Circa Hospitality Group Settles Class-Action Lawsuit Over Fake Comp Taxes

^{The Circa Hospitality Group settled a class-action lawsuit filed by Club One rewards members. (Photo: courtesy of Circa Resort and Casino)}

LAS VEGAS – A class-action lawsuit over stolen comp dollars at three downtown Las Vegas casinos is being settled with comp dollars, rather than real money.

A settlement has been reached in a $3.75 million class-action lawsuit filed against Circa Hospitality Group, and Club One rewards members at Circa Resort & Casino, The D, and Golden Gate will receive a total of 800,000 Club One reward points. It's not quite the millions in cash the plaintiffs sought, but it's something.

The lawsuit, filed in 2013, claimed that Circa Hospitality Group's Club One rewards program charged members for taxes that didn't exist, effectively reducing the value of comps for players.

For example, 8 News Now reported that one plaintiff spent $23 on lunch at Saginaw's Deli inside Circa, with the receipt showing a $1.93 "add-on tax" deducted from their comps. The lawsuit characterizes the charge as "false and deceptive," alleging Circa routinely reduced the value of earned comps through these fees.

While a deal was struck in the case, Circa denies "all allegations of wrongdoing in this lawsuit" and states "the Court has not made any finding that Defendants have engaged in any wrongdoing or misconduct."

The lawsuit said the fees affected thousands of other guests, totaling $3.75 million in damages. The settlement fell short of that figure, but the plaintiffs found it reasonable to accept.

Who’s Involved and What They Can Receive 

The lawsuit defines eligible class members as follows:

Club One player rewards program between October 23, 2020, and December 31, 2025, and you redeemed comp dollars at Circa, The D, and/or Golden Gate in exchange for food, meals, and/or nonalcoholic beverages, and had your comp dollars reduced proportionally to the menu price and the associated sales tax of the food, meal, and/or nonalcoholic beverage obtained.

Those included in the class-action lawsuit have two options. They can do nothing and remain in the Settlement Class to receive Club One comp dollars from Circa Hospitality Group.

They can also opt out of the settlement, meaning they would receive no compensation and would not be bound by anything in the agreement. One reason to go this route would be to file an individual action against Circa Hospitality Group.

Full Terms of the Settlement

The group suing the Circa casinos had a lofty goal of recovering millions of dollars in lost comp dollars. The plaintiffs didn't reach that goal, but will likely remain local customers to the properties.

The letter from the law firm details five points both parties agreed to. Though it doesn't recoup all the lost comp dollars, the settlement could ensure this doesn't happen to anyone in the future. Here is what the parties agreed to, directly from the lawyers:

1. Distribute 800,000 comp dollars (“Settlement Comp Dollars”) to the Qualifying Members split equally between all Qualifying Members; 
2. Ensure the Club One Program policies and procedures regarding comp dollar redemptions comply with Nevada law; 
3. Pay a Service Award to the Class Representatives; 
4. Pay attorneys’ fees to Class Counsel; 
5. and Pay the costs associated with settlement

Each plaintiff who remains in the "Settlement Class" will be considered a "Qualifying Member" and will receive an equal share of the total Settlement Comp Dollars.

The settlement comp dollars will be credited to each Qualifying Member's Club One account no later than Dec. 31, 2026. There's one important caveat: these comp dollars are valid for only nine months from the time they are credited to a member's account. In other words, use them or lose them.

Circa Hospitality Group did not respond to a request for comment.