When it comes to the battle to ban smoking in casinos, a new strategy has emerged: the shareholder vote. Shareholders at major casino companies like Boyd Gaming, Bally’s Entertainment, and Caesars Entertainment are taking action by putting proposals on the ballot to study the costs associated with permitting smoking indoors and whether going smoke-free could actually save money.
These proposals are backed by Trinity Health, a nonprofit healthcare network, and the Americans for Nonsmokers’ Rights Foundation. Despite owning only a tiny fraction of these companies, Trinity Health has been using its shareholder status to advocate for various health initiatives. The proposals were initially fought by the casinos, but the Securities and Exchange Commission denied their requests, ensuring that all shareholders received the information.
Boyd Gaming, Bally’s, and Caesars will soon face votes on these smoke-free assessments at their respective annual shareholder meetings. These three companies collectively operate 75 U.S. casinos that permit indoor smoking, where state law allows. While some states have prohibited indoor smoking more broadly, exceptions have been made for casinos.
Research by C3 Gaming has shown that smoke-free casinos can actually generate more revenue and outperform competitors that allow smoking. Advocates for smoking bans argue that shareholders should be aware of the higher health insurance premiums for employees, increased maintenance costs, and potential loss of customers who dislike the smoke.
While some believe that the decision to ban smoking in casinos should be left up to governments, the economic impact is a concern. Jan Jones Blackhurst, a board member at Caesars, acknowledged that casinos could see a significant drop in revenue if smoking bans were enacted.
Worker unions have mixed responses, with some expressing concerns about job losses and others highlighting the risks of secondhand smoke exposure. The Centers for Disease Control and Prevention emphasize the importance of 100% smoke-free indoor air environments to protect nonsmokers from the dangers of secondhand smoke.
Despite the potential financial impact, some casino operators have chosen to go smoke-free during the Covid pandemic and have not seen a significant loss in market share. MGM Resorts opened the first smoke-free casino resort on the Las Vegas Strip, setting a new standard for the industry.
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