Will Smoking Restrictions Hit Atlantic City Casinos?

Gambling and smoking have always seemed to go hand in hand. The classic image of the casino floor usually comes complete with heavy cigarette smoke in the dim lights. Is all that about to change? As awareness to the dangers of passive smoking rises, more and more casinos are facing anti-smoking laws that may put out the smoke in casinos for good. Next in line is Atlantic City, where casino owners, headed by Donald Trump, are ready to fight for their clients’ right to smoke, and their own right to make more money.

Atlantic City casinos are not the first to be targeted by anti-smoking legislation. In recent years, smoking restrictions have taken effect in many other casinos around the United States. Illinois’ Casino Queen, a $92 million enterprise which first opened in July of 2007, saw a sharp decline in revenue since the beginning of 2008, when the state’s ban on smoking in public places – ‘The Smoke Free Illinois Act’ - came into effect.

The Casino Queen is built on the water, which is why gambling is legal on the premises. Nevertheless, it is still within Illinois jurisdiction when it comes to the Smoke Free Illinois Act. From $17 million a month, revenue plunged to $13 million. "It was like flipping a switch, with the new smoking bill," casino manager Tom Monaghan said.

In the greater gambling world votes are split between those in favor of smoking in casinos and those who believe it is time for casinos to catch up with the rest of the world and ban indoor smoking. During the 13th International Conference on Gambling which took place in Las Vegas two years ago, several voices could be heard arguing in favor of a smoking ban. A research conducted by students at the University of Nevada at Reno concluded that casino floor workers are exposed to four times more tobacco smoke than any other workers, a fact which greatly increases their risk of cancer and heart disease.

Casino owners, on the other hand, are far more concerned about the bottom-line profit of their enterprises, and how badly those figures might suffer. Several studies have shown that Delaware casinos have lost about $100 million annually due to the state’s smoking ban. There are, however, contradicting studies which pointed out other reasons for the decrease in Delaware’s gambling revenue.

Another study conducted in Australia shows that casino smoking restrictions only cause people to step outside for a short cigarette break, after which they usually come back to gamble some more. The smoking ban, therefore, can be blamed only for a small long-term decline in slot-machine profits, but not for a sharp decline in total revenue. Either way, there is more than total revenue and bottom-line figures at stake.

Connecticut and Nevada casinos are also coping with new public-smoking restrictions, but the legal situation there is far more complex. In Connecticut smoking is forbidden in public places, restaurants and bars. Connecticut’s Foxwoods and Mohegan Sun casinos, however, are under tribal jurisdiction and are therefore beyond the states jurisdiction. In Nevada the case is very much the same. Dealers and casino workers are pushing for anti-smoking bills to be recognized within casinos, with their main concern being their own health and the health of other gamblers. Representatives of the tribes that own the casinos say they are not inured to the health issues, but the appropriate forum to address them is within tribal laws and legislatures.

We finally get back to Atlantic City. Donald Trump doesn’t smoke. He says he could never imagine himself smoking. He even served as a spokesman in national public service announcements to end all smoking forever. Nevertheless, only one single day after City Council unanimously introduced a measure that would outlaw smoking on casino floors, Donald Trump has become a smoking advocate and an avid defender of smokers’ rights.

As an owner of one of the cities 11 casinos, Donald Trump is only concerned with his bottom line profit. "It's a sad day for Atlantic City," he said regarding the new measure. "It puts Atlantic City at a huge competitive disadvantage with casinos in other states. Hundreds of millions of dollars will be lost in future taxes".

The law prohibiting smoking anywhere on the casino floor was first introduced and given preliminary approval on April 9. It is up for a final vote on April 23. Casinos would have the option of building un-staffed lounges were patrons could smoke, but not gamble. The ban would take effect Oct. 15.

On April 23 we’ll all have a chance see what the City Council values more highly – Trump’s bottom line profit or the health and well-being of casino employees and patrons.

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