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Smoking bans sap casinos' revenue

Colorado, Illinois see significant dips

Gaming's had it tough in Las Vegas lately.

The state collected 14.5 percent less money in gaming taxes in September than it hauled in a year earlier.


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  • But officials in some states would love to have fared so well.

    Thanks to smoking bans initiated in early 2008, Colorado and Illinois have sustained major dips in gambling revenue, according to experts on a panel Wednesday at the Global Gaming Expo.

    Gaming-tax collections in the Centennial State were off as much as 25.4 percent in the second quarter year over year in some jurisdictions, and as much as 53 percent in the third quarter year over year once you throw in the effects of a new, graduated tax, said Lois Rice, executive director of the Colorado Gaming Association.

    In the Land of Lincoln, gaming revenue has trended downward all year, including a 25.6 percent drop year over year in October, said Wes Ehrecke, president of the Iowa Gaming Association.

    Illinois' decline has happened even as gaming revenue in neighboring Iowa, where there's no smoking ban in casinos, rose or stayed steady from January to October, Ehrecke said.

    If there's any positive news for the folks in Colorado and Illinois, it comes from the other side of the globe.

    Chris Downey, executive director of the Australasian Casino Association, discussed Australia's myriad smoking bans, which started taking effect in 2003.

    Though slot revenue inside individual casinos immediately fell anywhere from 8 percent to 12 percent, gambling halls bounced back after two years to four years.

    The key to surviving, said Downey, was advance notice.

    Properties in Australia typically had two years or more to adjust to pending bans. They used the lead time to launch marketing efforts, communicate with customers about the change, build upscale smoking balconies and install advanced air-conditioning systems.

    Stateside jurisdictions haven't always enjoyed the luxury of time to prepare for smoking bans.

    Colorado casinos, for example, had six months' notice. Most casinos already had their marketing materials printed up more than six months out, Rice said.

    Nor could the Colorado Legislature have picked a worse time for the ban, which exempted the state's tribal casinos. The economic downturn and record gasoline prices joined the smoking ban to form a "perfect storm," Rice said.

    Casino operators have invested $2 million in heated smoking patios, and they've mounted "extensive" marketing efforts. Still, gaming-tax collections through the first three quarters fell 15.7 percent, from $86.8 million in 2007 to $74.8 million in 2008. For the full year, experts forecast collections of $75 million to $80 million, down from $100 million in 2007. That will mean less money for the historic preservation initiatives that casino dollars fund in Colorado.

    "Don't believe the anti-smokers' rhetoric that the population of nonsmoking gamblers will replace the smokers who leave," Rice said. "It's not true. It'll never happen. And don't let the states say there'll be no impact at all. If you're facing a ban, just keep your Legislature educated as to the economic impacts."

    Economic impacts have stayed top-of-mind for casino operators in Atlantic City, where a smoking ban has wandered through several iterations.

    What started in April 2006 as a smoking ban with a casino exemption became in April 2008 a 100 percent ban on smoking wherever people gamble.

    Lawmakers suspended that ban for a year beginning Sunday because of the ailing economy. The law now allows smoking on 25 percent of a casino's floor.

    When policymakers reconsider the ban in 2009, Joe Corbo, vice president and general counsel of Boyd Gaming Corp.'s Borgata and president of the Casino Association of New Jersey, hopes they understand that smoking bans aren't simply about employee and consumer health.

    Health is important. But competitive issues are vital, too. Atlantic City must vie for customers with casinos in Pennsylvania and Connecticut, neither of which has an extensive smoking ban. And while some casino workers support the ban, others oppose it because they worry about potential declines in income and tips.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

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    Ron wrote on February 12, 2009 08:41 PM: Excellent and true article ( the anti smoking crowd must be livid about the TRUTH in it). My job allows me to travel through much of the U.S.A. and Canada (No I am not a truck driver) and i\I see the effects of the smoking bans in many small towns where all or most of the bars have either shut down or for sale (and can't give thier bars away due to lack of patrons). And what of the non smokers? They never came before and are not ever coming now.


    Martha wrote on November 26, 2008 10:56 AM: When all of these dealers went to work in the casinos and made heaps of money no one complained about the smoking going on in the casino. No one twisted their arm to become a casino worker. Now that they have seen some of their fortunes disappearing, they aren't complaining as much about the smoking. Once you turn a gambler off by not allowing them to smoke at the tables making huge bets, you will never get them back.


    Bob wrote on November 24, 2008 06:10 AM: Illinois gamblers at least have the convenience of having smoking casinos conveniently located just across the river. Some are easily reached by public transportation.


    Dave wrote on November 20, 2008 06:02 PM: Yeah 100IQ what happened to Democracy, and freedom?

    One would think that business owners (businesses that cater to adults like bars/casinos) could choose to have his/her establishment smoking or smoke free.


    100IQ wrote on November 20, 2008 05:28 PM: Not only has second hand smoke not been proven to be harmful, a little know fact is that smoking is actually good for you. And that is the final word on the subject. So why are we worried about democracy? I don't know.


    Sad Summerlin wrote on November 20, 2008 04:27 PM: MM said

    "What about one completely smoke-free casino with all the amenities, entertainment, etc. that the current casinos have? Needless to say, I am a non-smoker and I do not by any stretch enjoy secondhand smoke--for myself or my children, but I don't know that I agree that all casinos should be smoke-free. "

    MM - It was called the Silver City. Nice property... oh... you can't find it now. Not enough "Non-Smokers" who were adamant about being in a "Non-Smoking" environment played there... it is now out of business.

    Tropicana used to have a really nice Non-Smoking Area (at one time it was the VIP slots area)... BAM! Poorest section of the floor when it was the Non-Smoking Area.

    I also can guarantee you that the number of smokers gaming are relatively matched to the percentage of the population that actually smokes...

    So what's the issue here?


    j wrote on November 20, 2008 04:16 PM: Just a small geography tip- Not everyone that comes here to Las Vegas is from California, there are actually 50 states in total. Thats right there are 50 states, not 2. Maybe you Anti-California folks missed that days lesson.


    0u812 wrote on November 20, 2008 03:18 PM: Not one Death Certificate in the whole world written has said died from second hand smoke. from the invention of cigarettes to the 1990s, smoking was permitted where ever you lit up and yet those people are still living well into there 90s-100s. They say it is the carcinogen that is released from the cig. yet Carcinogens are found in food, make-up, perfume, lipstick, tanning products, plants etc. Two doctors have told me that I am not allowed to be in certain vicinity or around perfume or cologne or i would get very sick. This should be banned so i may walk any where in town. Yet i move to another area where i do not smell it. Second hand smoke does not effect me and if it does I move out of the area. I believe all mothers & fathers should be at home and not allowed out unless with their children until they are 18 years of age. Senior citizens 65 and over should only be able to drive from the hours of 9am-11am 2pm-4pm they do not drive responsible. All non- smokers should be forced to eat out and drink in bars at least 4 days a week to make up for the decline of smokers. Now that we have all that understood please recover and wake up to reality. If you do not like something don't press it on others to dislike. Second hand smoke needs proof not what someone reaping millions to say this harmful. Speak with proof and facts. American Cancer society could not even answer my questions on second hand smoke. smoking is bad for the health of the smoker yet second hand smoke has not been proven.


    0u812 wrote on November 20, 2008 03:11 PM: Not one Death Certificate in the whole world written has said died from second hand smoke. from the invention of ciggarettes to the 1990s, smoking was permitted where ever you lit up and yet those people are still living well into there 90s-100s. They say it is the carcenogen that is released from the cig. yet Carcenogens are found in food, make-up, perfume, lipstick, tanning products, plants etc. Two doctors have told me that I am not allowed to be in certain vincinty or around perfume or cologne or i would get very sick. This should be banned so i may walk any where in town. Yet i move to another area where i do not smell it. Second hand smoke does not effect me and if it does I move out of the area. I believe all mothers & fathers should be at home and not allowed out unless with their children until they are 18 years of age. Senior citizens 65 and over should only be able to drive from the hours of 9am-11am 2pm-4pm they do not drive responsible. All non- smokers should be forced to eat out and drink in bars at least 4 days a week to make up for the decline of smokers. Now that we have all that understood please recover and wake up to reality. If you do not like something don't press it on others to dislike. Second hand smoke needs proof not what someone reaping millions to say this harmful. Speak with proof and facts. American Cancer society could not even answer my questions on second hand smoke. smoking is bad for the health of the smoker yet second hand smoke has not been proven.


    Joe Bama wrote on November 20, 2008 02:42 PM: You are right MM,that is why you send them to public school right?


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