Nevada may have been cheated out of more than $100 million in hotel room tax revenue in recent years by a host of online travel companies, according to a lawsuit.
Filed in Clark County District Court in April, an 11-page civil complaint names nearly 30 online travel entities that are alleged to have bilked the state out of tens of millions in room tax revenue over several years.
According to the suit, companies including Expedia Inc. (which owns the brands Orbitz and Hotwire), Booking Holdings Inc. (which owns Priceline), Tripadvisor and Hotel Tonight have been “knowingly engaged” in a “scheme” to short the state for years.
It works, according to the suit, like this: A company purchases hotel rooms on a wholesale basis for a certain price, say $150 for a night, but then attempts to sell the room at a higher price.
Instead of reporting the price that the