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?
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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Michael
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