A burning issue for the American Gaming Association next year will be fighting initiatives across the country that would ban smoking in casinos.
Smoking bans hurt casino business because some gamblers prefer
to smoke, said Frank Fahrenkopf Jr., association chief executive.
He said the industry was concerned about the proliferation of
anti-smoking petitions and other measures, and was working with the
American Society of Heating, Refrigerating and Air Conditioning
Engineers to develop a "best practices" air filtration standard
providing for improved air filtration systems to suck up smoke and
blow in fresh air.
Early in 2006, the trade group expects to meet with the heads of
several state gambling associations to discuss a standard that can
be shown to state legislators and residents, Fahrenkopf said.
"The real battle is not the federal level," he said. "It's
going to be at the state level."
The association also hopes leading air conditioning vendors will
be able during an industry conference in Las Vegas in May to
demonstrate to casinos the best technique for removing smoke,
Fahrenkopf said.
Anti-smoking advocates have argued that even the most advanced
filtration systems don't prevent people from breathing smoke from a
cigarette a few feet away.
More research needs to be done to create a virtually smoke-free
environment inside a casino, said MGM Mirage spokesman Alan
Feldman.
"If you are standing next to someone who's smoking, I'm not
sure there's something specific that exists to prevent you from
inhaling the smoke, just like I'm not sure if there's anything that
can prevent you from inhaling smoke when you walk outside,"
Feldman said. "Having large-scale infiltration systems creates a
much healthier environment for everybody."
Some MGM Mirage properties use high-tech filtration systems,
including the Mirage, Bellagio and Mandalay Bay.
Filtration technology is improving, with new developments
including table games outfitted with filters that suck up smoke,
Feldman said.
In New Jersey, the industry appears to have escaped a public
smoking ban under consideration by the state Legislature. The
proposed legislation would exempt casinos in Atlantic City while
prohibiting smoking in other public areas.
The Casino Association of New Jersey recently funded a
PricewaterhouseCoopers study that concluded that a smoking ban in
Atlantic City casinos would result in a loss of $93 million in
state tax revenues in the first two years of implementation. The
study also projected a loss of about 3,400 jobs in Atlantic City
and a loss of $175 million in wages within two years.
Released last month, the report was based on an analysis of
gambling revenue at Delaware racetrack casinos before and after a
smoking ban in 2002. Gambling revenue fell 19 percent during the
two years following the ban and 20 percent at Dover Downs, a major
casino in Delaware. That followed six consecutive years of revenue
growth before the smoking ban, the study said.
The Delaware ban, which applies to public areas but not private
clubs, survived a court challenge arguing that the prohibition
violated the state constitution's equal protection clause. But a
Superior Court judge in Delaware said the ban, intended to promote
public health, was constitutional.
Nevada casinos, bars, convenience stores and other venues with
slot machines are facing the possibility of an anti-smoking ballot
initiative that would prevent smoking in bars and taverns that also
serve food.
That initiative, called the Nevada Clean Indoor Air Act, is
backed by health organizations including the American Cancer
Society.
A group of taverns, convenience stores and slot machine route
operators gathered to oppose the petition drive and advance their
own initiative that would maintain smoking in gambling areas. The
industry group also filed suit in state court in Carson City in
March to block the Clean Indoor Air Act, arguing that the language
was too vague, among other things. A judge is expected to decide by
the end of the year whether to allow or dismiss the injunction.
While both Nevada petitions exempt casinos, Nevada's gambling
industry has joined the tavern industry in opposing the Clean
Indoor Air Act, saying the measure would end up prohibiting smoking
in hotel rooms. Backers of the act disagree, and a judge is
examining the validity of those claims. State law views hotel rooms
as private residences.
Buffy Martin, government relations director for the American
Cancer Society in Nevada, has called the industry's claim a "junk
suit" and said it is a tactic common in other states where tobacco
companies have fought anti-smoking initiatives.
"They'll sue nonprofit organizations because there's no way the
American Cancer Society can match the amount of money the tobacco
companies have to fight this," Martin said.
Several states have enacted smoking bans in recent years,
including Massachusetts, Idaho and Washington. A number of other
states are considering smoking bans.
Anti-smoking petitions and legislation are gaining momentum
nationwide because people have become increasingly aware of the
dangers of second hand smoke, Martin said.
"I think citizens agree that second hand smoke is a public
health problem," she said. "It's not just a nuisance anymore."
Some Las Vegas casinos have areas that prohibit smoking such as
individual tables or banks of slot machines. While the newest
properties boast high-tech filtration systems, many older casinos
don't and are noticeably smoky.
Poker rooms are an exception. Most Las Vegas poker rooms are
smoke-free to suit the preferences of a growing number of poker
players.
Martin said anti-smoking initiative petitions typically survive
court challenges.
"They're afraid this will go on the ballot because a majority
of Nevadans support this," she said of the gaming industry's
stance against smoking bans.
Smoking rates have declined in places with smoking bans, she
said, and health risks to workers also decrease.