Blowing Smoke

As you read this, Rhode Island‘s legislature is on track to pass a smoking “ban” in casinos with so many loopholes as to be totally meaningless. Politicians will undoubtedly congratulate themselves on having taken a stand for public health but that’s just so much bullshit.

The bill, which passed unanimously out of the state Senate, provides a couple of big-ass outs for Big Gaming, which in this case consists of Bally’s Corp. The main one is the mandate that every gambling venue have a “pari mutual [sic] facility smoking lounge,” of undefined (and presumably infinite) size. Also, these don’t have to be put in for 18 months yet. That not only gives casinos another year and half to poison their customers and employees, it also gives Bally’s plenty of time to push for a repeal, pleading poverty. (Well, Bally’s is poverty-stricken, but solely through its own fault.) Air-quality and smoke-mitigation requirements were heinously stricken from the final bill text.

There’s nothing in the pending law to prevent, say, 99% of Bally’s Lincoln (above) being converted to a “smoking lounge,” with other customers herded into a smoke-free 1%. The bill is so toothless that dentures are required. What determines a “smoking lounge” is purely at the operators’ discretion and, as we said, there’s no enforcement mechanism. It’s an open invitation to abuse the public.

Indeed, the casino industry continues to debase itself for the 10% of patrons who smoke, sticking it to the 90% who don’t. Considering the lack of cost benefit (documented) and the accelerated depreciation of properties were smoking is permitted (inarguable), it escapes any reasonable person why Big Gaming is so addicted to tar and nicotine.

Since we’re fully in agreement with Americans for Nonsmokers Rights President Cynthia Hallett, we yield the floor at this point: “Will workers be made to take shifts or pour drinks? What assurance do the working people who have been calling for smoke-free protections for years have that this amendment won’t completely undermine the bill they have fought so hard for? There is no safe level of secondhand smoke exposure. Smoke drifts out of even the most carefully cordoned-off areas, and ventilation may mask odors but does not mitigate health risks.” True, ever word.

We’ll go even farther. Every gaming executive who opts to allow, if not promote smoking, has at some conscious level decided that profits are more important than the lives of patrons and workers, whom he had decided can be killed for the sake of a good P&L statement. Yes, killed. Big Gaming is slowly committing murder. This is even worse than when it knowingly courts addicted and excluded gamblers, hoping to wring out their last dollar.

Why do we Americans go along with this? Why have we so completely internalized Wall Street‘s contempt for us? We’ve fallen victim to the callous mentality that results in environmental racism, “sacrifice zones” and rationing of health care. God forbid a life should be saved if it takes even a penny off the quarterly EBITDA. Or, in the immortal words of Sen. Joni Ernst (R), “Well, we’re all going to die.” The poorer and less fortunate of us sooner than most. If you haven’t got the choice of working or playing in a smoke-free casino, your health is shit out of luck, pal. Need it be said that we can do better?

Compared to the big spike seen in neighboring New Jersey, casinos in Pennsylvania experienced a mild uptick in May. Casino winnings rose 2% while iGaming soared 34%. Casinos grossed an overall $305 million, easily led by (ahem!) smoke-free Parx Casino, up 3.5% to $53 million. Even Wind Creek Bethlehem had trouble keeping pace, slipping 1.5% to $43.5 million. In the Philadelphia area, Parx continued to trounce its competitors. Rivers Philadelphia surged 9% to $20 million but couldn’t quite catch pictured Philadelphia Live ($21.5 million, -9%). Nor could becalmed Harrah’s Philadelphia ($12 million) match rival Valley Forge Resort ($13 million, +7.5%). In the Pittsburgh vicinity, Rivers Pittsburgh was flat at $31 million, while Hollywood Meadows nudged 2.5% to $18 million and Pittsburgh Live hopped 5% to $10 million.

Out in the hinterlands, little Lady Luck Nemacolin leapt 18.5% to $3 million, putting it on par with Parx Shippensburg ($4 million, 16%). Only Presque Isle Downs ($9 million, -3%) was revenue-negative. Mohegan Pocono gained 4.5% to $18.5 million, Hollywood Penn National was flat at $14 million and Mount Airy Resort jumped 8.5% to $18 million. Hollywood York jumped 15% to $9 million (very good for a satellite casino) and Hollywood Morgantown gained 7% to $6.5 million. iGaming brought in another $233 million, led by FanDuel (27.5%), then DraftKings (22.5%), BetRivers (16%), BetMGM (15.5%), Caesars Palace Online (5%) and Hollywood Casino (4%).

Sports betting saw handle climb 12% to $625 million, from which books engendered $73 million (23.5% up) but gave away 23% in promos. FanDuel was well to the fore with $34.5 million, trailed by DraftKings ($19.5 million), PointsBet ($5.5 million), BetMGM ($3.5 million), ESPN Bet ($3 million) and Caesars Sportsbook ($2 million).

Having one of its best months in recent memory was Louisiana, where revenues rose 6.5% on a same-store basis. Louisiana Live (above) continued to claw away at almost all of its competitors, grossing $10.5 million, second only to cratering Margaritaville ($13.5 million, -20.5%). We’ve got a hunch that Caesars Entertainment is doing exceptionally heavy promotional activity, particularly in light of unusual customer movement in the Pelican State. Horseshoe Bossier City defied the Shreveport/Bossier City trends, jumping 7.5% to $11 million. Bally’s Shreveport dipped 2.5% to $9 million, Boomtown Bossier slipped 5.5% to $4 million and Sam’s Town plunged 19.5% to $3 million. Louisiana Downs slid 12.5% to $3.5 million.

Everybody in Baton Rouge saw a rising tide of business. Even decrepit Belle of Baton Rouge was up 49% to $1 million. Queen Casino gained 13% to $9.5 million but was outpaced by L’Auberge Baton Rouge, rediscovering its mojo ($17.5 million, +21%). Golden Nugget regained the upper hand in Lake Charles ($30 million, 3%), outdueling L’Auberge du Lac ($29 million, +5.5%). Delta Downs galloped 12% to $16 million and Horseshoe Lake Charles surged 17% to $8.5 million. New Orleans saw Treasure Chest literally double its business to $14.5 million, but it was still looking up at Caesars New Orleans ($21 million, 6.5%, below). Boomtown New Orleans faded 7% to $10.5 million and Fair Grounds was flat at $3.5 million. Boyd Gaming‘s two outliers went in different directions: Amelia Belle sank 7.5% to $2.5 million while Evangeline Downs was up 8.5% to $7 million.

Casinos in Motown were relatively unmoved by the May thaw, up only 1%. MGM Grand Detroit hopped 2.5% to $53 million whilst Motor City was flat at $34 million. Hollywood Greektown was also flat at $25.5 million. Deutsche Bank doesn’t bust out dollar figures for iGaming but the market was split between BetMGM (27%), fending off FanDuel (26%), DraftKings (14.5%), Caesars Palace Online (7.5%) and Hollywood Casino (3%). Sports betting meant a tight 13% hold, resulting in $50 million of revenue off handle of $386 million. FanDuel ($22.5 million) thumped DraftKings ($12.5 million), not to mention BetMGM ($7.5 million), PointsBet ($3.5 million), ESPN Bet ($2 million) and Caesars Sportsbook ($1 million). Caesars execs purport to love their OSB numbers but we don’t share the sentiment.