On July 1, 2007, cigarette butts were officially extinguished in public places across the United Kingdom. Almost half of all U.S. states have also enacted state-wide smoking bans dating back as early as California's ban in 1994, which took effect in 1998. Once smoke cleared the air in these jurisdictions, many casinos and bingo parlors were a little more than put out by the new laws.
One session at the upcoming Global Gaming Expo in Las Vegas, titled “Up in Smoke - How Bans are Hurting Business,” will investigate the smoking ban's proliferation with an expert panel discussing how to deal with its taxing blows. The session preview notes that 20 percent revenue declines have been associated with jurisdictions that restrict smoking in public areas.
In late September, the Detroit Free Press reported that even though Michigan House of Representatives voted down a proposed smoking ban on concern it would negatively impact Detroit's casino industry, the bill may be revisited this year. The ban, which according to published reports would affect casinos, restaurants and bars, garnered 50 votes -- six shy of the required number for approval.
Opposition came primarily from Detroit lawmakers who argued a ban would hit casino revenues, which are shared between the city and the state.
House leaders, however, rejected amendments that would exempt businesses operating within 20 miles of an Indian casino -- where smoking would still be permitted -- as well as cigar bars, bingo halls and charity events, the paper said.
In mid-October, Atlantic City enacted a temporary smoking ban in 11 area casinos. City officials had requested a delay on a full casino smoking ban for a year but didn’t pass an ordinance in time. The delay request was made in the wake of a struggling economy, competition in Pennsylvania and New York and plunging casino revenues.
Yet, in a little under two weeks after an Atlantic City smoking ban took effect in area casinos, a city council-approved measure reversed it, according to the Associated Press. Casinos had complained the ban put a damper on business.
“We had to reconcile two very compelling sides: No one wants to lose their job and certainly no one wants to lose their life,” Bruce Ward, a councilman, told the AP. “But the background of the financial crisis is connected to where we are tonight.”
Last February, the City Council of Atlantic City voted 6 to 3 in favor of a measure prohibiting smoking on 75 percent of a casino floor. The remaining 25 percent was to be set aside as a smoking area.
“It will have a huge devastating effect,” Donald Trump, chairman of Trump Entertainment Resorts, owner of Trump Taj Mahal, Trump Plaza and Trump Marina, told the Courier-Post of New Jersey. “The smoking ban will have a far bigger impact than the casinos in Pennsylvania have.”
Although it can be devastating for some, others in the United Kingdom already in the throes of dealing with a national smoking ban have discovered more creative ways to go about business.
BingoTimes.com found that if bingo halls also served as prisons, hospices, parks or theaters, the area would be exempt from the U.K. smoking ban and bingo players could resume smoking.
What prompted the research, which the site said it conducted to assist bingo halls losing business due to the ban, was a survey on BingoTimes.com that revealed 75 percent polled said local bingo halls were “quieter” since the ban.
Other loopholes outlined by the site include using tobacconists during bingo games to allow customers-players to sample tobacco products and holding bingo sessions in mental health units.
Instead of relying on clever positioning, some U.K. trade bosses are looking to install all-weather machines in outdoor beer gardens among other places where smokers can legally dwell. The Mirror reported that the bosses are looking to also lift the pay-out limit.
“The vast majority of people who play fruit machines smoke, so the smoking ban is having a very serious impact,” Keith Smith of the British Amusement Catering Trade Association stated in the paper.
According to the Mirror, income from pub machines has been down £200 million during the past seven years, though smoking has only been completely banned completely in the U.K. for a little more than a year.
A report released in February by market analyst Mintel identified the smoking ban as the biggest cause of the decline in business at U.K. bingo halls. It said that the result of bingo players either staying away or spending time outside smoking during game intervals has been a sharp downturn in refreshment sales and gaming machine takings.
If smoking bans have done anything, the new laws have provided an agreement point for companies seeking a scapegoat for lackluster financial standings.