Casino Association exec argues smoking ban would hurt gaming revenues

Dear Editor:

I would like to address the speculation raised since the start of the debate regarding Senate Bill 348 mandating a total smoking ban in bars and commercial casinos, but exempting Indian casinos.

Colorado, Delaware, New Jersey, Illinois and Pennsylvania have implemented total or partial smoking bans and without exception saw immediate reduction in revenues. Since implementation ,Pennsylvania and New Jersey have scaled back their non-smoking measures, having experienced losses to tax revenue and jobs. Pennsylvania now allows smoking on 50 percent of its gaming floors and Atlantic City recently extended its moratorium on a total smoking ban for another two years.

While some may not be sympathetic to revenue reduction at casinos, be mindful of the fact that Louisiana is itself the largest “partner” in casino operations since its state gaming tax of 21.5 percent comes off the top of revenues before any other expenses are paid.

Reductions in casino customers and revenues also mean large losses to state and local government. Fewer customers also means fewer jobs needed to support those customers and staffing reductions will occur as well. In March of 2010, the Federal Reserve Bank reported that “Estimates suggest that revenue and admissions at Illinois casinos declined by more than 20 percent ($400 million) and 12 percent, respectively.”

Applying Illinois’ experience to Louisiana’s figures, we would expect to see 15 to 20 percent reductions, or more specifically 3,300 to 4,400 direct and support jobs lost, $78.9 to $105.2 million in lost state gaming taxes, and a loss of between $7.9 to $10.5 million to the Louisiana State Police which are in part funded by gaming taxes.

This is not speculation but real life experiences from Illinois, a state whose casino industry has still not recovered from the smoking ban impact while its neighbors (Iowa and Indiana) have reaped rewards. Does anyone honestly believe Louisiana’s experience will be any different, especially given that neighboring Indian casinos and Gulf Coast casinos are not covered by this legislation?

Casinos are a customer service industry, thus it is folly to assert that gaming revenues would increase. For if that were true, the majority of gaming space would be smoke free today in response to customer demand. There has been no such demand.

Additionally, 40 percent or less of our workforce is employed to the gaming area, all other areas at our facilities are already non-smoking.

Casino operators have been proactive in providing new technologies to disperse second-hand smoke near and around their employees. Bars and casinos are adult entertainment and their employees and customers, as Gov. Jindal stated last year, are adults who can decide whether these venues are appropriate for them.

Wade Duty,

Executive Director, Louisiana Casino Association