The billboard shows Sirico in a sharp blue suit with white-winged tresses, throwing chips down at a roulette table. The billboard said "Where else can you gamble with the family?," the New York Post reported Thursday.
Sirico claims he never gave the hotel permission to use the picture.
"It's an invasion of privacy," Sirico lawyer Richard Emery said, adding the hotel's move was "blatant opportunism."
Sirico and a crew of five of his castmates agreed to show up at a meet-and-greet event at the hotel for $260,000, the suit said.
Once he had finished with his obligation to the hotel, Sirico felt like playing some roulette.
"He was playing with his own money, on his own time and his presence in the gaming area had nothing to do with his contractual obligations to the Hilton, which by that point were fulfilled," the suit said.
The suit said a hotel photographer came up and took a few pictures of Sirico while he was playing without his permission.
The lawsuit seeks unspecified damages for invasion of privacy, breach of contract and consumer fraud for making people believe Sirico endorsed the hotel.