New Jersey has had a statewide ban on indoor smoking in public places for years now. However, this ban has never applied to Atlantic City casinos and this could all change if smoking in casinos is made illegal. Over the last few months, hundreds of casino workers have been pushing for a ban on indoor smoking in casinos- a ban that the governor also supports.
Casino workers have been desperate for a smoke-free working environment for years. That’s because second-hand smoke is said to cause serious illnesses and health conditions. According to the CDC, casinos have some of the highest levels of air pollution and these levels have been known to lead to cardiovascular diseases and many other illnesses.
The National Institute of Occupational Safety and Health has already recommended a smoke-free environment in hotels as workers are at great risk whenever they are exposed to secondhand smoke. But this is not the first time that casino workers in AC have attempted to fight for smoke-free casino floors.
In 2008, the workers fought and successfully managed to have smoking on casino floors banned. Smoking was prohibited on gambling floors at all the city’s casinos on October 15th, 2008. However, patrons were still allowed to smoke in unstaffed smoking lounges away from the slot machines and table games.
However, this ban caused revenue to plummet by 20% in just the first week of being in effect. Citing financial difficulties and a worsening economy, the city eventually reversed the smoking ban, and casinos were once again allowed to offer smoking, but at a 25% cap. Over the last few years, casino workers have continually rallied to push for legislation to completely ban the practice, which has been pending in the senate and the Assembly.
Casino operators claim that a total ban on smoking would hurt businesses while causing job losses in the thousands.
At the beginning of the year, a report by the Spectrum Gaming Group claimed that if the smoking ban in the city is authorized, it could end up costing close to 2,500 jobs. In addition to this, the report also stated that a smoking ban would lead to a severe decline in the gaming and tax revenue for the state.
The report claimed that close to 10% of the city’s workforce was at risk should the ban be enacted, which would consequently result in a considerable decline of close to 10.9% of the gaming revenue, approximately $93 million in non-gaming revenue, as well as between $17.2 and $44 million for the state and the city as far as tax revenue is concerned.
The report done by Spectrum Gaming was commissioned by the Casino Association of New Jersey to ensure a total understanding of the consequences of a ban on smoking in casinos. According to the president of the state’s casino association, enacting such a ban at this time would be a bad idea as employment at casinos is at a 20-year low, with less than half the workforce that was present in 2003.
According to the president, visitation at casinos is also quite lower than it was 5 years ago and AC casinos are still yet to recover to pre-pandemic profit levels. The Casino Association states that implementing a smoking ban could lead to devastating consequences for the city and the state.
The report also stated that a smoking ban would have longer-term financial effects for the sector, placing casinos in Atlantic City at a competitive disadvantage with neighbouring casinos in Pennsylvania where smoking is allowed. The Spectrum report also stated that close to 21% of the people that come to Atlantic City to gamble were smokers.
Based on that, the impact of smoking bans would cripple the economy, according to the Casino Association, casinos in AC have taken considerable steps over the last few decades to create healthier environments for both their patrons and employees. This includes limiting smoking to just one area of the floor.
The Association reckons that instituting a smoking ban would destroy the welcoming and inclusive environments that casinos have worked hard to create for both smokers and non-smokers. At present, casinos in Atlantic City allow smoking on just 25% of the gaming floor. In comparison, other jurisdictions such as Pennsylvania allow smoking at 50% or more.
In addition to the more favorable percentage, the Casino Association also claims that it has invested heavily in adding world-class filtration systems that help to circulate fresh air through. When the pandemic started many casinos hired independent experts to review their air filtration systems, to create a safe environment and ensure clean air quality for their patrons and staff members.
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A new report now says that the ban is not a threat to business
Recently, a new report examining how the pandemic has transformed the habits of punters states that the casino business will no longer be impacted by a ban on smoking. The report, which was issued by Vegas-based C3 Gaming, was carried out independently and was not financed by a third party.
The report states that the pandemic transformed various vital aspects of the modern gambling experience including buffets and public smoking, all of which are things that punters have now become accustomed to. The report, therefore claims that banning smoking is no longer a threat to gaming revenue.
This study found that casinos that offer smoking do not generate more revenue than those that do not allow it. For instance, the reports showed that casinos such as Resorts World in Queens, Parx Casino in Philadelphia, Foxwoods and Mohegan Sun in Connecticut, and Empire City in Yonkers, all of which do not allow smoking on the floor, generated more slots revenue than casinos in AC over the last 12 months.
Final Thoughts
The Rivers Casino in Philadelphia has also been smoke-free on the casino floor since August last year. According to the CEO, the financial results from that decision have so far been mixed. But the rise and fall in revenue can be attributed to many factors including inflation, labor shortages, as well as new competition from nearby markets.
