The Louisiana Joint Legislative Committee on the Budget delayed a vote on the state’s annual .6 million contract with the city of New Orleans to cover support services at Harrah’s casino for the coming fiscal year, pending a report on how possible revenue declines due to the approaching citywide smoking ban could impact state finances. The ban on smoking in bars and gambling halls was unanimously approved by the city council and will take effect April 22.
Ronnie Jones, chairman of the Louisiana Gaming Control Board, told committee members, “There’s going to be a fall-off in attendance at the casinos. There’s going to be less money available to the state of Louisiana.” Legislative economist Greg Albrecht said he expects the smoking ban will lead to some revenue loss to the state, but not as high as 20 percent.
Harrah’s officials said not allowing smoking on the gambling floor would cause it to lose customers and revenue and reduce yearly sales tax collections by $500,000. They added besides the casino support services funds the legislature provides, the city could lose another $13.6 million in annual lease payments.
Harrah’s said it will request that the city council provide an exemption to allow a smoking section on its gambling floor and also “to offer programs to make patrons and employees aware of the dangers of smoking and programs to quit smoking.”
Councilwoman LaToya Cantrell, author of the smoking ban, said Harrah’s request is “a slap in the face. I think it’s a big disappointment. They don’t mention the billions of dollars being spent on health care needs.”
State Rep. Walt Leger of New Orleans said, “There are certainly other casinos where people can go if they want to smoke at them.”
