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Question of the Day - 20 October 2018

Q:

It seems to me that with smoking rates at all time lows around the country, the time is right for a casino to go all non-smoking. Is anyone considering this?

A:

They’re not only considering it, they’re doing it, though the impetus is coming from state governments, not from within the industry.

For example, MGM Springfield in Massachusetts, which opened late last month, is a smoke-free casino. So is Plainridge Park, a Penn National Gaming racetrack and slot house also in the Bay State, one of the two highest win-per-slot casinos in the Penn empire. Massachusetts politicians mandated that their state's casinos would be smoke-free and since the Bay State was starting from a clean slate, it was hard for gaming companies to object. 

No, the resistance comes from established casinos, which equate extinguished cigarettes with lost revenue — tar and nicotine being the unofficial fragrance of the industry. And it’s not like they don’t have good reason: Gambling revenues in Illinois stumbled and hasn't gotten back up after smoking was extirpated in the Land of Lincoln. Baton Rouge implemented a smoking ban and casino business immediately fell more than 15%. A similar phenomenon occurred in the New Orleans casinos when they had to go smoke-free (partly because they wasted time fighting the ban instead of constructing outdoor smoking lounges), although they've since recovered.

Most casinos are following the lead of Hard Rock Hollywood (Florida) and increasing the size of their non-smoking gambling areas rather than trying to go cold turkey. Basically, if customers are accustomed to puffing away as they punch the buttons on their machines, they’re liable to go somewhere else to gamble if it means leaving their cigarettes in the car. But if they’re habituated to a smoke-free casino from the get-go, business doesn’t get hurt. 

Perhaps the strongest example is Maryland. Smoking has always been verboten in the Free State’s gambling houses, while it’s the hottest casino market in the nation. Casino revenue rose 14% in July and MGM National Harbor did $344 in win per slot per day (the industry average is $200).

So smoke-free casinos — if they start out that way — are a winning proposition. But we don’t think one could be built in Las Vegas or Atlantic City and live to tell the tale.

 

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Comments

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  • Michael Oct-20-2018
    Already tried in AC
    Revel already tried this when they opened.  They lasted less than a year, IIRC, and then allowed smoking.

  • Marla Corey Oct-20-2018
    Harrahs NOLA
    Smoke free and going strong. There is a patio area with slots that allows smoking.

  • FrankieBoy P Oct-20-2018
    The real story is a little more complex.
    There has never been a peer reviewed study - one not associated with deep ties to Big Tobacco or the gaming industry - that showed a fall off in revenue due to smoking restrictions. Not a single one. There is often an initial dip, then revenue returns. They said the same thing about restaurants, particularly in New York City. This will kill the restaurants and bars... it didn't. More robust business than ever before. People often cite casinos/cities where this has been tried and the casinos have faltered... but what they don't take into consideration is competition from neighboring states, in some cases brand new casinos with full featured amenities that compete with older poorly marketed casinos. Everybody likes to talk about Atlantic City's Revel, but they don't mention the saturated market and that three or four other *smoking* casinos closed shortly thereafter and that AC ignored competition from neighboring states for years.

  • FrankieBoy P Oct-20-2018
    Casino patrons smoke in exacly the same proportion as the general public.
    According to a 2007 - 2008 study done in Nevada, the percentage of smokers in casinos mirrors the general population... in other words, gamblers are no more likely to be smokers than those visiting movie theaters or department stores. And the percentage has plummeted since then and now hovers below 18% ...and is falling. There is no evidence that even suggests that those who smoke gamble more or lose more... if there were, don't you think the casinos would share this as they continue to fight smoking regulations? Back to Atlantic City... due to a legal snafu, a total smoking ban actually went into effect a decade ago before it was rescinded 2 weeks later. Revenue was not up year over year in a poorly run market, but casinos lost less money during the brief smoking ban. And the highest grossing casino in Florida is one that prohibits smoking in a jurisdiction where other casinos permit it. Only thing preventing casinos from going smoke free is irrational fear - and millions in lobbying.

  • Ray Oct-20-2018
    ? about Illinois
    Part of Illinois problem is Iowa, Wisconsin and Indiana having smoke-filled casinos nearby. Also Rivers in Des Plaines has cut into other casinos in the Chicago area, but one of the biggest factors is the "slot joints". Everywhere in the state there are places that have the state maximum of 5 video slot machines. Doesn't sound like much but the September revenue was over 120 MILLION, which I can imagine also takes a bite out of the 10 casinos' income.

  • Frank Mabry Oct-20-2018
    Illinois Casino Smoking
    Jumers casino in Rock Island Illinois allows eCigs.

  • Jackie Oct-20-2018
    What gets me
    Smoking is nothing more than a drug addiction to nicotine.  Now I don't care one bit if anyone wants to be a drug addict but I draw the line at anyone who forces their addiction upon me.  Smoking or vaping toward a non addict is an ASSAULT and you can be arrested and prosecuted for it.  No difference with anyone who used a needle to get high, caught AIDS and then physically contacted anyone else.  The only reason nicotine is permitted instead of enforced by the DEA is because nicotine is classified as a POISON but considered safe in small doses ever though it is more addiction than heroine.  So smokers are nothing more than drug addicts slowly committing suicide with a legally permitted poison.  Now that's what our Federal Government calls "Population Control".

  • joyce M. Oct-20-2018
    JoyceM
    Deadwood S. D. casinos all ha to go non-smoking a few years ago, despite casinos' having petitions to stop the ban, but South Dakota passed it anyway.  Don't think it stopped smokers from going to casinos.  Love the smoke-free atmosphere. Wish Iowa would do it too.

  • Oct-20-2018
    It COULD work in Vegas
    I don't agree with the assessment that a smoke-free casino can't ever be successful in Las Vegas. To the contrary: The majority of Vegas visitors are from Southern California, and California has the 2nd-lowest smoking rate in the country (12% or less), after Utah. The clear majority of us hate cigarette smoke and would welcome a smoke-free casino. Smoke-free casinos have failed because they don't offer a good-enough gaming experience. We video poker players go where the best VP is, and smoke-free casinos have traditionally had inferior games. Give us full-pay machines, along with enough of the standard casino/hotel amenities and low-enough (or free) lodging costs, and that could be our new "go-to" casino. Someone should go ahead and try to build a smoke-free casino, with all that I've mentioned, and I think they will succeed.

  • Roy Furukawa Oct-20-2018
    I’m Pro-choice
    Whether it’s babies or cigarettes, give people a choice. Non-smokers talk about big tobacco money, but CA taxes cigarettes to the hilt and all that money goes to non-smoking ads that use the same wacky unreal science as pro-tobacco does. If you’re that concerned you need to move or also ban all fossil fuel burning because that’s far worse than any second hand smoke. 

  • O2bnVegas Oct-20-2018
    CMA also-ran
    Smoke, smoke, smoke that cigarette.
    Puff, puff, puff until you puff yourself to death.
    Tell Saint Peter at the golden gate,
    Lord you hate to make him wait,
    but you've gotta have another cigarette!!!
    
    LOL

  • Flaxx Oct-22-2018
    Revenue decline
    The Research Division of the Federal Reserve Bank of St. Louis did an economic analysis in 2009 and found that "Illinois casinos suffered losses of more than 20 percent – well over $400 million – in total during the first year of the Smoke Free Illinois Act." We don't know if revenues have stabilized or if the decline in rates is permanent, but we do know that changes do lead to losses. QOD makes a good point about starting out smokefree vs. a dramatic shift.  Here is the link to the research, if you'll let me post it: http://research.stlouisfed.org/wp/2009/2009-027.pdf