Whereas the proposal to implement indoor smoking ban to Louisiana casinos keeps raising heated debates on the senate floor, local casinos are struggling to avoid the ban, which they call to become the reason for business failure.
The author of the amendment Sen. Gary Smith said that they should expand the tobacco smoking ban to include casinos as well since many restaurants have been on the brink of bankruptcy because they ban excluded casinos, clubs and bars, hurting only restaurants.
However, Calvin Sanders, the spokesman for Boomtown Casino claims that banning smoking on casino floors would have grave economic consequences for the whole state.
He said they estimate that the revenue would drop by 20 percent in case of the implementation of the ban. That would mean the job cuts and the state revenues cut. He added that the State Police Department obtains around $50 million annually from casinos. So it would force troopers to cut expenses as well.
Judging by the examples of other states that have imposed similar smoking bans in casinos, it becomes evident that when the smoking is outlawed the revenue drops as well. Therefore, Louisiana casinos state that the ban would cause dramatic negative influence on the economy of cash-strapped state.
For example, the implementation of indoor smoking ban across Illinois last January triggered drop of the state revenues from eight casinos by $400 million in just one year. According to Illinois Gaming Board the revenues equaled $2 billion in 2007 and dropped to $1.6 billion in the following 2008.
Sanders admitted the latter reduction happened before the economic crisis; therefore namely the smoking ban could be blamed for it.
In case Louisiana lawmakers approve the ban, the casino managers anticipate a total of $110 million reduction tax revenues from gambling and cause 1,400 job places.
The Boomtown Casino spokesman said that they have an estimated 65 percent of 170,000 people who visit the casino each month smoked while gaming. Another important factor was that smokers spend more money for gambling than non-smokers, as the slot machines located in the smoking area generate twice as much revenue as from similar machines located in smoke-free zones.
The Louisiana casino owners fear that smoking gamblers would switch to Indian Casinos and the riverboat casinos across the Mississippi, which are exempted from indoor smoking ban.
Of course, they understand that the smoking ban would help to improve health of many people and prevent these people from further exposure to secondhand smoke, the owners state that banning smoking during the economy downturn would have horrible consequences.
Sanders said that imposing a smoking ban when the nation faces the worst recession since the Second World War is the same like giving the money from gaming revenues to neighboring states as s birthday present.