The world’s biggest casino operator, Harrah’s Entertainment has lost a class action lawsuit causing the casino operator to pay more than 80,000 players a damage fee of € 75. Harrah’s had sent a misleading birthday mailing to thousands of customers.

The lawsuit was started by Debra Smerling when she traveled to Harrah’s in Atlantic City on 9 August, 2003. Smerling received a coupon for $ 15 for her birthday as part of the Total Rewards loyalty program of the casino. The coupan could be used on Sunday, August 10. Smerling waited until after midnight and 12:30 am she tried to redeem the voucher. The casino staff refused to redeem it however, claiming it could only be redeemed after 8:00 am. Smerling was not going to wait until morning and filed a lawsuit.

It is now seven years later and the Supreme Court in Middlesex County ruled that Harrah’s has violated the Truth-in-Advertising Act by failing to state on the casino gambling coupon it can not be used before 8:00 am. Approximately 350,000 gamblers will receive a message informing them that they can participate in the collective lawsuit against Harrah’s. Probably 80,000 people used their coupon and are therefore entitled to $100 in damages per person. Other persons may also be entitled to compensation for damages, provided they have tried to redeem their casino bonus voucher before 8:00 am. Such persons must file their own proceedings against the casino operator.

According to a lawyer for the plaintiffs, Andrew Wolf, the result was exactly what Smerling was looking for. He said: “We are pleased at the result, that Ms. Smerling was vindicated and that the court found that Harrah’s violated New Jersey law. They can have whatever policy they like, but they have to let people know about it.” Harrah’s was very disappointed with the outcome, a spokesman for Harrah’s said the law was improperly executed. He said that although the coupon did not specifically say that it can only be used at certain times, it does say that it should be presented to the Total Rewards Center, and that gambling center is open on Sunday from 8:00 am until midnight. The lawsuit could cost Harrah’s a total of € 6,000,000 in damages.