By
Jane Shaw
Senior Editor Updated: 04/22/2024
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Smoking Opponents Want Casino Giants to Conduct Reviews
It has been revealed that opponents of smoking in US casinos are ramping up their efforts to put an end to smoking at gambling properties. According to reports, they are pushing for three major casino companies to conduct comprehensive reviews relating to the potential impact of banning indoor tobacco use in their gaming establishments.
Michigan-based healthcare system Trinity Health and the Americans Nonsmokers’ Rights Foundation are said to have recently submitted shareholder proposals to Caesars Entertainment, Bally’s Corporation, and Boyd Gaming. Their proposals urge each company to assess the financial impact of creating a smoke-free environment across all their casino properties.
Currently, the trio of casino giants allow smoking on their gaming floors in states where indoor tobacco use is allowed. These states include Indiana, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, New Jersey, Pennsylvania, Rhode Island, Virginia, and West Virginia.
Bally’s Corporation manages nine casino properties in seven states, Caesars Entertainment operates 41 casinos across 12 states, and Boyd Gaming oversees 25 casinos in eight states, all of which allow smoking indoors.
The shareholder proposals put forward by Trinity Health and ANRF are based on the idea that excluding indoor smoking could potentially benefit the business operations of these casinos. They reference independent research commissioned by ANRF in 2021, which indicated that a majority of gamblers prefer smoke-free environments.
A proposal to Boyd Gaming stated that there were possible business risks to allowing indoor smoking at gaming properties:
…From higher employee health insurance premiums (when compared with casinos that don’t permit indoor smoking), greater maintenance costs, and deterring a significant number of potential visitors who won’t visit a casino due exposure to tobacco smoke (87% of the American public does not smoke).
However, the boards of the three publicly traded companies have recommended that shareholders vote against the submissions, expressing reluctance to initiate a review of smoking’s impact on their businesses.
Boyd Gaming is scheduled to hold its annual meeting on May 9, while Bally’s Corporation is set to hold its meeting on May 16. Caesars Entertainment has not yet set a date for its annual meeting.
Despite the efforts of anti-smoking advocates, the likelihood of these shareholder proposals being adopted remains slim, according to reports. Data from shareholder proposals made between January and May 2023 with Russell 3000 companies show that only eight percent gained majority support and were ultimately adopted out of a total of 682 proposals.
It was also reported that in another recent development, New Jersey Governor Phil Murphy has expressed support for ending casino smoking in Atlantic City. He further spoke about the matter recently, stating that he would sign a bill to that effect should one be presented to him.
Meanwhile, the United Auto Workers (UAW), representing table game dealers in Atlantic City, filed a lawsuit against New Jersey recently. The lawsuit challenged the state’s 2006 Smoke-Free Air Act, which permits casinos to allocate 25 percent of their gaming floor for smoking purposes.
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