When Covid-19 restrictions ended, casinos in Atlantic City ended the smoking ban. But a number of employees and anti-smoking groups are pushing lawmakers to end the loophole that permits smoking on a quarter of the casino floor.
Little by little, the effort is gaining legislative momentum.
The employees say the secondhand smoke harms their health. The casinos say a smoking ban harms the gaming revenue, which in turn could cost jobs and tax revenue to the state.
A February report from the Spectrum Gaming Group and commissioned by New Jersey’s casino industry seems to bolster the gaming hall claims of possible economic catastrophe. As many as 2,500 jobs could be jettisoned. Gambling revenue could decline almost 11 percent and non-gambling revenue, 6.5 percent while tax revenues may fall by as much as $44 million.
The story says while smokers represent 21 percent of the gamblers in Atlantic City, they tend to spend more time and money in the casino, not to mention if they went outside for a smoke, that’s less time to gamble, according to the report.
“Now is not the time to enact a smoking ban,” Joe Lupo, president of Hard Rock Atlantic City and of the Casino Association of New Jersey, said in a statement accompanying the study.
The Greater Atlantic City Chamber supported Lupo’s position, warning that a smoking ban would cost jobs and hurt local businesses.
“A smoking ban would have a negative impact on the casino industry, resulting in significant job losses (and) decline in revenues, which in turn would hurt local businesses and vendors that rely on the industry for their economic livelihood,” said Michael Chait, chamber president. “We recognize the concerns of casino employees who support a smoking ban, but we also must keep in mind that thousands of employees and their families will be impacted by lost jobs if a ban is passed.”
The stance cost the chamber at least one member.
“We highly value our membership in the Greater A.C. Chamber, but as a public health agency we cannot continue to be members of an organization that places financial interests above health,” Atlantic Prevention Resources Executive Director, Bob Zlotnick said. “As a member of the local community, we would stand to be impacted by any loss in local business, but we cannot in good conscience put a price tag on the health of our families and neighbors.”
Casino visitation reached a 20 year low in 2021 most of it the result of Covid-19. In person gambling revenue in 2021 was 5 percent less than 2019, pre-pandemic. Lupo also noted the casino workforce has yet to reach their pre-pandemic levels.
“If you had asked the tavern and restaurant owners, when we put in the smoking ban, they were upset with me,” he told NJBIZ. “Years later they all said, ‘You know what, guv, we were wrong.’”
Lupo rejected the comparison patrons “do not travel any great distance to go to a restaurant or bar,” just so they can smoke. Casino guests would just as soon visit Pennsylvania casinos where smoking is allowed rather than New Jersey.
“The primary concern for New Jersey casinos is not that guests will stay at home, but that they will travel to another casino in Connecticut or Pennsylvania where smoking is permitted instead of coming to Atlantic City,” Lupo said.
Three of the casinos in the Philadelphia area—Parx, Rivers and Live!— voluntarily banned smoking, leaving Valley Forge and Harrah’s where smoking continues. Parx told NJBIZ that the reception has been positive from guests.
“Even many smokers have given positive feedback and have not minded going to the smoking patio. Employees are extremely happy with the change, especially the table games team,” said their public relations director, Carrie Nork Minelli.
The 43-page Spectrum study indicated a causal relationship between a smoking ban and economic impacts on the casinos, but it might not be cut and dried.
“The content of the report has a lot of caveats,” said Peter Chen, an analyst at the progressive think tank New Jersey Policy Perspective. “It seems like there are a lot bigger factors at play, which the authors of the study acknowledged.”
Lupo nonetheless cautioned that considering the casino staffing shortages, and the loss in their revenue, “we see no reason to believe that these declines would not last as long as neighboring jurisdictions continue to permit smoking on casino floors.”
As in New Jersey, Pennsylvania casinos had to go smoke-free when they partially reopened amid the pandemic in 2020. Those mandates have been lifted, and more than a dozen Pennsylvania casinos now allow indoor smoking on the floor.
The expectation is that “lack of secondhand smoke exposure will improve team member health and have a long-term positive impact,” while Parx’s increasing market share would offset any loss of revenue from the smoking ban, Minelli said.
Five more state Senators came out in favor of banning smoking on the casino floor. They bring the total of primary or co-sponsors to 13, or one third of the Senate. The five are Senators Andrew Zwicker (D); Jon Bramnick (R); Joseph Cryan (D); Fred Madden (D); and Robert Singer (R).
“New Jersey should not allow any worker to be subjected to cancer-causing secondhand smoke while on the job,” said Senator Zwicker. “I’m co-sponsoring S264 because it’s past time that we eliminate the casino smoking loophole and finally protect the health of casino workers. This is a commonsense bill and an urgent matter for thousands of Atlantic City casino employees.”
Smoking inside should no longer be acceptable in casinos, said Senator Bramnick. “Employees have the right to breathe while working without the harmful effects of tobacco smoke.”
Employees expressed gratitude to the growing list of senators.
“All we’re asking is to be treated like every other worker in the state of New Jersey. We refuse to continue choosing between our health and a paycheck,” said Pete Naccarelli, co-leader of Casino Employees Against Smoking’s Effects (CEASE), according to Insider NJ.
New Jersey Governor Phil Murphy said he would sign a smoking ban if it arrived on his desk.
