New Orleans Councilwoman LaToya Cantrell recently said the citywide smoking ban is doing what it was designed to do—especially at Harrah’s Casino.
“As we intended, that our people are working in healthier environments and that is prolonging their life while they are able to make an honest living to take care of their families. A study shows the air in the casino had a 99 percent reduction in fine particle air pollution.”
She added, “When I’m there, it’s almost like you’re a rock star because whether you’re going to the hotel or the casino, the employees are just saying ‘thank you’ every step of the way.”
But Harrah’s New Orleans casino officials warned city leaders last spring that the smoking ban, which began April 22, would cause revenue to drop by as much as 15 percent, which would cost the parish millions in gaming and sales tax dollars. That prediction proved to be more than true, as Harrah’s posted $20.7 million in gaming revenue in June, a drop of 30.7 percent, or $9.2 million, from a year ago. The smoking ban also has been blamed for a 16 percent decline in gaming revenue in May.
Caesars Entertainment Corporation Southern Regional President and Harrah’s New Orleans General Manager Dan Real said he doesn’t expect those drastic declines to recur.
“Rather, we expect to see continued volatility in month-to-month revenue comparisons as we adjust to the operational challenges the smoking ban has presented,” he said.
One accommodation, Real said, “remains on developing first-class outdoor smoking patios that will provide a more convenient alternative for our smoking guests to relax, while preserving the smoke-free environment for our non-smoking guests.”
Real pointed out Boyd Gaming Corporation’s Treasure Chest and Pinnacle Entertainment’s Boomtown New Orleans are located in nearby Jefferson Parrish, but are exempt from the city’s smoking ban. Boomtown’s revenue grew nearly 4 percent in July and Treasure Chest’s was up 7.3 percent. He added due to the smoking ban, Harrah’s New Orleans lost its place as the state’s second-largest producer of gaming revenue. The Golden Nugget Lake Charles with $21.5 million in July revenue now claims that spot. Pinnacle’s L’Auberge Lake Charles remained in first place with $27.7 million.
Another change related to the smoking ban, as well as industry competition and casino floor advances, Real said, is that the casino is talking with state gaming regulators about reducing the mandatory requirement of 2,400 workers. “While this made sense 15 years ago, the playing field has clearly changed. I have guaranteed that the reduction in work force, if approved, would take place through natural attrition. There would be no layoffs as a result of the change,” he said.
Real stated, “We have managed the smoking ban in a strategic and proactive manner.” One indication of that is the casino has posted huge signs at its entrances, welcoming guests to the “best smoke free casino in the south.”
