Harrah’s New Orleans Pursues Courtyards

Although its application to build two outdoor courtyards with slots for smokers has expired, Harrah's Casino New Orleans intends to reapply to recapture some of the revenue it has lost since the city's smoking ban took effect last April. The casino's revenue has dropped 12 percent since then.

Harrah’s Casino New Orleans still hopes to build outdoor courtyards with slots to accommodate smokers, even though its conditional use application with the City Planning Commission expired late last year. Dan Real, Harrah’s senior vice president and general manager, said, “Though our conditional use application hasn’t been heard by the City Planning Commission, our plans remain the same. We continue to work closely with city and state officials to review ways to mitigate challenges from the ban in New Orleans. Our key focus remains the development of two first-class, outdoor courtyards that will provide a convenient alternative for our smoking guests.” Hayne Rainey, spokesman for Mayor Mitch Landrieu, said Harrah’s will have to file a new application.

Since New Orleans’ Smoke Free Air Act took effect last April, Harrah’s revenue dropped about 12 percent, and fell 15 percent in November 2015 versus November 2014, according to Louisiana Gaming Commission figures. Meanwhile, revenues have increased at casinos in neighboring Jefferson Parish and Mississippi where smoking is permitted.

To minimize revenue drops due to the smoking ban, Harrah’s wants to build two outdoor courtyards: one of 1,900 square feet with 62 slots and another of 750 square feet with 25 slots. Both courtyards would be reached through the casino’s main doors and both would offer security.

Harrah’s officials cannot deny the casino’s indoor air quality has improved. A study by the Roswell Park Cancer Institute in Buffalo, New York measured fine-particle pollution at Harrah’s and 13 other bars just before the smoking ban took effect and two months later. The study indicated fine-particle air pollution dropped 96 percent in the bars and 99 percent at Harrah’s.

Last spring Harrah’s New Orleans also unsuccessfully petitioned the Louisiana legislature to change a 15-year-old law requiring it to have 2,400 employees at all times. Harrah’s officials said that number is unrealistic and a burden; they want to eliminate 400 jobs, due to changes in the industry, technology and regulations.

The casino opened in 1999 and has paid more than $1.1 billion in total gaming taxes to the state, including $73.5 million in 2014. It also has paid the city more than $280 million for its lease.

Harrah’s parent company, Caesars Entertainment, operates 40 casinos and resorts in the United States and Canada, including seven non-smoking facilities and several that offer smokeless gaming zones. Harrah’s in Bossier City operates the Louisiana Downs and Horseshoe Casino, where smoking is allowed on the gaming floor.

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