New Jersey Court Rules Casinos are Subject to State's Consumer Fraud Laws

Posted By Suzanne Moore | Thursday, December 14, 2006 - 09:38
Categories: Travel & Casinos | Law | Atlantic City

A New Jersey appellate court ruled this week that under the state's consumer fraud laws, three wronged casino players can sue Harrah's Atlantic City Casino Hotel. The decision had rejected a judge's previous ruling that stated that the Casino Control Commission had exclusive jurisdiction over the casinos.

The unanimous ruling by a three-judge appellate panel enabled three women to file a class-action lawsuit on two promotions that the casino had advertised. Magda Claude, Sheila Smerling and Debra S. Smerling, are suing the casino for false and misleading advertising.

The women claimed that following the casino's promotions, which offered cash incentives they visited the casino twice, in 2003 and 2004. They did not, however, successfully collect the promised money.

Harrah's Entertainment requested to have the lawsuit dismissed or transferred to the Casino Control Commission but according to Appellate Judge Anthony J. Parrillo, the advertisements raise questions whether they contain false, deceptive or misleading statements. This falls under the jurisdiction of the court and the commission has no exclusive jurisdiction over these matters.

Readers' Soapbox

Smerling v Harrahs

Submitted by Andrew Wolf on Sat, 2009-01-24 22:36.

The case that was reported in December 2006 was certifed as a class action. On January 16, 2009, the Superior Court of New Jersey,
Middlesex County, certified a class action Debra Smerling, et al, v. Harrah's Entertainment Inc., et al.

The class action charges Harrah's Entertainment Inc. with violations of the New Jersey Truth in Consumer Contract Warranty and Notice Act for sending promotional coupon advertisements to consumers that contain violations of the New Jersey Casino Control Commission Advertising Regulations and the General Advertising Regulations of the New Jersey Consumer Fraud Act.

The coupon advertisements - for two Harrah's Entertainment Inc. promotions called "Money Train" and "Birthday Cash" were sent to more than 700,000 people between 2000 and 2004. The claims, if successful, could result in a damages award against Harrah's Entertainment Inc. of $70 million.