How will a smoking ban in Indiana affect Casinos?
11th February, 2009
It is a very real possibility that Indiana will soon pass a comprehensive bill prohibiting smoking in the workplace. If the bill were passed casinos might have cause to be concerned- when a similar law was passed in Illinois it was said that it led to a 20% decline in revenue.
The smoking ban was made legal in Illinois in January 2008 and since then the state has bore witness to a few negative changes. Firstly, according to one study, revenues at racetrack casinos dropped by roughly 15% in the first 18 months of the ban being enforced. It has also been reported that there are 710 fewer casino workers in the state than there were a year ago.
Tom Swoik, Executive Director of the Illinois Casino Gaming Association said of gamblers "They go outside to smoke, and in this business, time away from the tables and the machines is money,"
Whilst Swoik recognizes that the weakened economy may have contributed to the decline in revenues, he also points out that neighbouring states such as Indiana, where smoking is allowed, actually saw an increase in their revenue. In Indiana, profits increased by 1.7% in 2008, and in Iowa, where casinos are exempt from the smoking ban, profits went up by 4.9%.
It won’t be long before we know whether the bill was passed or not.
By Annabel
