As New Jersey lawmakers appear to be moving towards legislation that would close a loophole excluding casinos from indoor smoking bans, researchers around the industry remain confident that Nevada will not follow suit, at least not without an epic fight.
Gaming analyst Andrew Klebanow and two colleagues from consulting firm C3 Gaming recently released a report on how smoking bans may not have as big of an impact on casinos’ revenue as previously thought. Their findings have become a huge topic of debate around the industry, especially as more of the smaller gaming markets gravitate towards non-smoking policies. So far, more than 15 states have implemented full or partial smoking bans in casinos, with many cracking down after the advent of the Covid-19 pandemic.
Atlantic City is by far the biggest gaming market in the U.S. to consider banning smoking, but that is still not set in stone—as of now, a little over half of the state’s Assembly members have endorsed legislation to close the smoking loophole, but the official vote won’t take place until September, if even then. No hearings have yet been scheduled.
Meanwhile, that debate has not yet reached the Silver State, and it doesn’t appear to be coming anytime soon. Chad Beynon, a gaming analyst for Macquarie Securities, told The Nevada Independent that gaming is simply too big of an industry in the state to consider losing any revenue, especially with the possibility of recession looming. Atlantic City’s gaming is only a part of New Jersey’s overall economy, but “given that the industry is the biggest employer of jobs in Nevada, there appears to be a strong enough fight against (banning smoking),” said Beynon.
The C3 report noted that for the most part, bettors accepted Covid-related policy changes and adapted accordingly. The authors said that “even after mask mandates were lifted and smoking prohibitions remained in place, customers collectively accepted it,” and as a result, operators “successfully pushed smoking out of their buildings at no economic cost.”
Klebanow also told the Independent that “states that are not dependent on gaming tax revenue for the lion’s share of their budgets will gradually close their smoking loopholes,” but Nevada will be “dead last” to make the change, if at all.
Cynthia Hallett, CEO of Americans for Nonsmokers Rights, has said previously that the group is “trying to build a grassroots effort” in Nevada, even though she acknowledges that “it’s a battle and we’re pushing that big stone up the hill.” However, Hallett also said that she “doesn’t believe that hill is that steep anymore.”
The Nevada Clean Indoor Air Act was enacted back in 2006, which banned indoor smoking in public places and businesses—except for casinos, of course.
Whereas most states have ramped up their smoking legislation over recent years, Nevada has done the opposite. In 2011, the act was amended to allow smoking in bars and taverns that are 21-plus only. Then in 2019, the act was expanded again to include vapes and e-cigarettes.
When the state’s casinos reopened after a historic 78-day shutdown in 2020, patrons could only remove face coverings to eat, drink, and smoke. As of now, the Park MGM on the Strip and the Fernley Nugget in northern Nevada are the only smoke-free casinos in the state.
