On April 22, New Orleans’ smoking ban reached its one-year anniversary and despite efforts to sidestep the ordinance, Harrah’s New Orleans casino is coping with being a smoke-free facility. Jade Russell, a spokeswoman and former regional counsel for Harrah’s parent company Caesar’s Entertainment, said, “We’re just concentrating on being the best smoke-free casino in the region.”
Russell noted the casino still is working with the city to build two smokers’ courtyards featuring slots, although the deadline has passed on Harrah’s original conditional use application with the City Planning Commission. The casino has not filed another application.
Meanwhile, since the smoking ban began, Harrah’s monthly revenue has been lower nine out of 11 months compared with the previous year, according to Louisiana State Police. However, admissions increased in eight months. But Russell said that could be the result of visitors who go outside to smoke and then come back into the casino. She said those individuals are not differentiated from other visitors.
Bronson Frick, associate director at Americans for Nonsmokers’ Rights, stated, “Indoor smoking isn’t really a major factor in regional gaming competition. We know that from looking at several casinos around the country.” Frick said the gaming industry “cherry-picks” data to illustrate smoking bans’ negative impact, when the reality is that fewer people smoke, according to the U.S. Centers for Disease Control. Their figures indicate the number of people smoking dropped from 21 percent in 2005 to 18 percent in 2013.
Frick also noted national revenue figures indicate the casino industry has not recovered from the recession. He pointed out Harrah’s take from gamblers fell from 2008 to 2011, remained flat in 2012 and 2013, rose in 2014 and fell 10 percent in 2015.
Russell said the two months of revenue increases at Harrah’s were the result of upswings in table games. She added slots revenue fell by 20 percent in the past year. However, that could be happening because, according to industry research, millennial gamblers prefer table games to slots. Women over age 50 are the main slots players but they’re spending less because job recovery for that population has lagged since the recession.
Both Russell and Frick said casinos are investing more in non-gaming amenities such as restaurants, theaters and attractions. That has led to development along Fulton Street in New Orleans. Russell noted, “The majority of the revenue generated by casinos is from non-gaming entertainment. We’d be foolish not to follow suit.”
According to Americans for Nonsmokers’ Rights, as of April the U.S. had 777 smoke-free gaming facilities (not including off-track betting sites), which is nearly half of all operating casinos.
