For years, New Jersey lawmakers, health advocates, and casino workers have debated banning smoking in Atlantic City casinos. The call for 100% smoke-free casino floors has picked up pace especially after the Smoke-Free Air Act was adopted in 2009.
Currently, Atlantic City casinos are exempted from the smoke-free regulation, allowing smoking on 25% of the casino gaming space. New Jersey lawmakers are considering a bill that would implement a total ban on smoking within Atlantic City’s nine casinos.
Those in favor of 100% smoke-free casino floors argue that it would enhance air quality and improve the health of workers, while those against it contend that a total ban could lead to significant revenue losses and job, as well as push gamblers towards Pennsylvania casinos, affecting Atlantic City’s vital tourism industry.
On Monday, January 29th, 2024, New Jersey Senate Health, Human Services and Senior Citizens Committee voted to approve a long-delayed measure that would ban smoking in casinos in Atlantic City. The move following a release of a state-commissioned report finding that worker and customer support for a ban has grown.
However, the study cautioned that a smoking ban could seriously impact Atlantic City if neighboring states don’t implement similar policies. With neighboring Pennsylvania yet to impose similar restrictions, the fate of New Jersey’s proposed ban may ultimately depend on how that state approaches the issue.
What we cover
Bill Awaiting Assembly, Senate Vote
Attempts to implement a total ban on smoking in New Jersey casinos have been met by strong opposition, especially from Atlantic City operators. A proposed bill to ban smoking in Atlantic City’s gaming floors failed to pass late last year due to intense lobbying efforts by casino operators.
Last year, Resorts AC CEO Mark Giannantonio made headlines when he skipped a scheduled casino smoking ban debate with a panel from Americans for Nonsmokers’ Right. Meanwhile, As the new legislative session gets underway, it is the fourth time the lawmakers are attempting to push for a 100% smoke-free policy.
Companion bills S1234 and A5678 have been introduced in the Senate and Assembly to debate casino smoking. Similar proposals in previous years, such as bills S2468 and A1357 in 2020, as well as S0911 and A0222 in 2019, failed to pass committees or receive floor votes due to heavy lobbying pressures from Atlantic City’s casinos.
The new bill will go through the Assembly first, before a similar proposal is debated on the Senate floor. If it sails through the Assembly and Senate, a full chamber will vote once again before sending the approved bill to Gov. Phil Murphy’s desk for signing.
While public opinion polls consistently show around 60-70% of New Jersey residents support a ban, as evidenced in surveys conducted by Fairleigh Dickinson University in both 2022 and 2023, assembling a veto-proof majority remains a major hurdle.
Democratic leaders in both legislative chambers who support the restriction have been unable to overcome opposition. Governor Phil Murphy has said he would sign a ban into law if it reaches his desk, but getting it through the legislature is the bigger challenge, as was seen with his previous unsuccessful certification of similar bills.
Casino Industry Concerns
Executives from Atlantic City’s casinos, led by industry groups such as the Casino Association of New Jersey, have long argued against any smoking restrictions. They have repeatedly cited a 2017 study conducted for the Casino Association of New Jersey by independent research firm Spectrum Gaming Group to argue that a smoking ban would have severe economic consequences.
According to the report highlighted by CNBC, the investigators projected declines in casino gaming revenue between 5-11.9% under various scenarios with a smoking prohibition in place, which casino leaders claim would translate to lost tax dollars for Atlantic City and New Jersey as well as thousands of job cuts.
Specifically, the Spectrum study found that a total ban on casino floor smoking could reduce gaming revenue by $236 to $257 million annually. It also forecast declines in hotel room bookings and other non-gaming spending at casinos.
With over 25,000 direct casino industry jobs in Atlantic City according to the Casino Association, executives warn even a 5% revenue drop could lead to thousands of layoffs. This is particularly concerning because online casinos in New Jersey have been hiving off revenue and betting share from their land-based counterparts in AC.
Worker Health Concerns Prompt Push for Smoking Ban
Supporters of a smoking ban point to alarming data on the health impacts of secondhand smoke exposure in casinos. Studies cited by the CDC have non-smoking employees face increased risks of lung cancer, heart disease, and asthma of up to 30% due to prolonged exposure to secondhand smoke.
The recent state-commissioned report found that 84% of surveyed casino workers said they would prefer a smoke-free workplace. Unite Here Local 54, the union representing thousands of Atlantic City hospitality staff, has also been loud on the matter.
With public and political support growing, lawmakers are feeling increased pressure to take action after long avoiding the issue. However, economic concerns still stand in the way of a straightforward path to banning casino smoking statewide.
Atlantic City’s Fate May Rest on Pennsylvania’s Next Move
As pressure builds for smoke-free casinos in New Jersey, analysts say Atlantic City may need to wait and see if Pennsylvania follows suit before pulling the trigger. With gaming halls in each state heavily competing for metro area gamblers, Atlantic City could be devastated if Pennsylvania retains smoking.
So far, efforts to prohibit smoking in Pennsylvania casinos have gained little momentum. But Atlantic City casinos and lawmakers will likely be closely eyeing gambling legislation in the state this year.
Summing Up
As Atlantic City casinos weigh going smoke-free, they find themselves delicately balancing worker health against economic competitiveness. However, their path forward may now depend largely on the smoking policies Pennsylvania gaming halls choose to implement.
Banning smoking would align with growing public sentiment for cleaner casinos and better worker protections. But if Pennsylvania fails to follow New Jersey’s lead, Atlantic City could be devastated by gamblers taking their business elsewhere.
For now, the casino smoking debate continues simmering in Trenton. But Atlantic City is on alert, knowing the fate of gaming halls in the city could shift quickly depending on the tobacco policies to the west in Pennsylvania.
