VEGAS MYTHS BUSTED: Resort Fees Have Been Banned
Posted on: May 19, 2025, 07:21h.
Last updated on: May 25, 2025, 05:18h.
- New resort fee rules imposed by the FTC have gone into effect
- The rules change how hotels must inform guests about additional fees tacked onto their nightly room rates, but aren’t making the fees illegal
Last Monday, the Federal Trade Commission’s (FTC) new “junk fees” rule went into effect. What exactly that means is causing some confusion. Despite social media claims to the contrary, this rule doesn’t mean that resort fees are now illegal or even that they will go away anytime soon.
It only means that customers won’t remain unaware of how much those fees are before being smacked in the face with them after checking out their online room rental, or worse, upon checking out of a resort at the end of their stay.
“I get at least one message a day from someone who says ‘Do I just ignore these resort fees now that they’re illegal?’” wrote social media influencer Jennifer Gay on her X account @vegasstarfish.
The rule (officially called the “Trade Regulation Rule on Unfair or Deceptive Fees”) requires all previously hidden mandatory fees to be displayed upfront in live event ticketing or short-term housing. That includes facility fees for concerts and resort fees for hotel stays.
Parking fees aren’t included in the rule because they’re optional. Also not included are taxes or other charges imposed by state or local governments.
Are Vegas Resorts Complying?
A stroll around the internet shows most major Las Vegas Strip resorts and online travel agencies (OTAs) such as Expedia, Hotels.com, and Booking.com are now in compliance. Resort fees are now universally revealed upfront, underneath the base cost of rooms, and totaled up before online checkout.
Arguable exceptions are the prices shown on the websites for Resorts World, Fontainebleau, and the dozen hotels operated by MGM Resorts.
They comply with the letter of the law by displaying a total price — including tax and resort fees — before the “Book Now” button is shown.
However, the first place a price is displayed is on calendars displaying only the base room price. Included above or beneath the calendar is a note stating that the prices don’t include daily resort fees or taxes.
We’re guessing this policy doesn’t violate the new FTC rule. But if it’s changed, we were wrong.
Bonus Myth: Why Resort Fees Exist
What has been banished from most resort websites are those laughable descriptions of what resort fees are and why they exist.
Most resort companies claimed they were a “convenience fee” that was “requested by our guests.” These mythical guests loved resort fees because they preferred not paying separately for amenities including Wi-Fi, gym access, and local phone calls.
Because you never know which travelers could be time travelers from the 1980s lacking cell phones.
The real purpose of resort fees was to fool OTAs into listing a resort’s properties first when customers searched for “lowest price” or “best value.”
According to the “City Cast Las Vegas” podcast, Station Casinos became the first Las Vegas resort company to add resort fees to hotel bills in 2004. These fees went unnoticed at first because they were less than $10 per night.
But competitors noticed. In 2008, MGM Resorts joined the bandwagon, followed by Caesars Entertainment in 2013 — after a 2010 ad campaign during which they boasted of “no resort fees” and even had Holly Madison posing in a “No Resort Fees Zone” T-shirt.
A price war began, sending base room prices plummeting and resort fees skyrocketing. Now, the latter are $56.69 per night at the Bellagio, $56.63 per night at Caesars Palace and, at Circus Circus, they’re $41.95 on a room with a $43 weeknight base price.
Why Aren’t They Going Away?
Even though resorts can no longer hide them, resort fees are sticking around for three primary reasons:
Lower OTA Commissions: Resorts pay commissions to OTAs (typically 10-25%) based only on room rates, not separate fees.
Revenue Stream Stability: Resort fees provide a consistent revenue stream that isn’t subject to the same fluctuations as room rates, which can vary with demand or OTA discounts. This stability allows hotels to offset tax liabilities more predictably.
Consumer Psychology: A room that costs $75 a night plus a $50 resort fee still feels cheaper than a room offered for $125. Also, as much as people hate resort fees, after 25 years of being forced to pay them, they’re used to it.
Look for “Vegas Myths Busted” every Monday on Casino.org. To read previously busted Vegas myths, visit VegasMythsBusted.com. Got a suggestion for a Vegas myth that needs busting? Email corey@casino.org.
Last Comments ( 2 )
Why did it take the FTC more than a decade. That's our government, elected officials, watching out for their own interest. Will never change. Be smart and try when you can to opt out of going to places as such. I'm not saying never go. Just go less.
The resort fees are just another way to screw the customer! Keep your stinking wifi, gym, & whatever elevator tax you are offering. If people wanted to use them, let them pay but not me! They're enough casino hotels that do not charge resort fees and parking fees for the right to spend their hard earned money. Your greed will be your downfall, trust me you greedy bastards