Second Circuit Affirms Dismissal of Casino Antitrust Case Against Genting and Kien Huat

March 19, 2016

On March 18, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of antitrust claims brought by rival casino developers against several defendants, including Cleary Gottlieb’s clients, Genting New York LLC and Kien Huat Realty III Limited.

Plaintiffs had alleged that defendants conspired to exclude plaintiffs from the “Racing/Gaming Market in the Catskills region” and to monopolize it for themselves.  Plaintiffs alleged a geographic market broad enough to include defendants’ casinos in the Catskills and Queens and consumers in New York City, but narrow enough to exclude competing casinos in Connecticut, New Jersey, and Pennsylvania.  The U.S. District Court for the Southern District of New York concluded that this geographic market was implausible, and dismissed the case with prejudice on that basis.  The Second Circuit affirmed for the same reason.