There is an ongoing battle in the casino industry over smoking. There are several organizations attempting to get smoking banned in casinos where it is still allowed. Their primary targets are New Jersey, Pennsylvania, and Nevada. At the same time, the casinos and their lawyers and lobbyists are fighting to keep the smoking status quo.
The arguments on both sides are simple and have not changed since the anti-smoking movement hit its peak in 2006. The workers and their supporters argue that smoking is bad for the health of the employees and non-smoking customers. The casinos argue that prohibiting smoking would be harmful for business. The casinos claim that while only 12 percent of Americans smoke, 23 percent of their customers do and smokers generate 30 percent of casino revenue. Casinos claim a smoking ban would reduce revenues by over 15 percent and result in the loss of 2,500 jobs in Atlantic City.
The casinos’ argument hits a nerve with lawmakers and tax collectors in New Jersey. The casino revenue is important to the state of New Jersey and Atlantic City. Atlantic City casinos have been under siege since Pennsylvania legalized slot machines in 2006. That was followed by the Great Recession. Those two factors led to five casinos closing between 2014 and 2016. Two have reopened and the business has recovered. But that is mainly due to the surge in sports betting and igaming revenue.
New Jersey will face another major challenge when three casino-resorts open in New York City. That will take at least several years, but operators are certainly aware of an impending crisis. It could be 2014 all over again. Casino supporters in government and the legislature are well aware of the delicate nature of the casino industry in Atlantic City.
The arguments vary in other states, but the loss of revenue and jobs is comparable. The anti-smoking forces challenge that argument. According to Americans Nonsmokers’ Rights Foundation (ANR), as of September 2024, at least 1,066 U.S. casinos and other gaming properties have 100% smoke-free indoor air policies. At least 148 Indian gaming facilities are smoke free. And on September 20, the Sault Ste. Marie Tribe of Chippewa Indians in Michigan announced that all five of its Kewadin casino locations will transition to smoke-free establishments. Ten states have casino smoking bans, including Iowa, Ohio, Maryland, New York, Nebraska, Colorado, and Massachusetts.
ANR and the United Auto Workers argue that non-smoking casinos can be more profitable than those that permit smoking. They cite casino revenue in all the states that banned smoking during the pandemic as proof. Indeed, casino revenue grew dramatically in the months immediately after casinos reopened in 2020 and 2021. Of course, the core argument for ANR and others is the health of workers and customers. Which again, according ANR, is demonstrably better in a non-smoking environment. That does not have a counterpart in the pro-smoking arguments. The pro-forces argue strictly on a business, employment, and tax basis.
Over the years, the anti-smoking forces have grown in power and influence. They have appeared before the Nevada Gaming Commission and the legislatures in Pennsylvania and New Jersey. They have also forced a case in New Jersey to the state’s Supreme Court. They have not won yet in court or the legislature. But they are closer in both Pennsylvania and New Jersey to getting legislation passed banning smoking completely in casinos. Even in Nevada, lawmakers are beginning to listen.
It is difficult to accept the casino argument at face value. The same argument was used by bars, restaurants, and other public spaces in the 35 states with smoking bans before smoking was prohibited. It may have merit if you ignore the personal, the people, side of the issue. But in the third decade of the 21st century, it seems almost unconscionable to make an argument that puts business interests and taxes above the health of human beings.
Casinos in Nevada, Pennsylvania, and New Jersey have powerful lobbies. They also pay a great deal in taxes. They will probably fight the battle until the end. But eventually, it will happen and smoking will be prohibited in casinos. The end is in sight, but do not expect it next year.
