A new study by the National Bureau of Economic Research and the University of Illinois indicated the Smoke-Free Illinois Act, which banned smoking in casinos and within 15 feet of their entrances, has not impacted casino revenue. Dr. John Tauras, who led the study, stated, “Estimates from our study clearly indicated that the Illinois law that banned smoking in casinos has had no significant negative economic consequences for casinos in terms of per-capita admissions or revenues.”
However, the state’s commercial casino operators disagree. They claim the act, one of the first in the U.S. to ban smoking in casinos, was implemented one month before the recession of 2008, making it difficult for researchers to quantify whether the smoking ban or the recession affected revenue.
Researchers analyzed casino footfall and revenue for 10 years before and eight years after Illinois’ smoking ban was implemented. They compared the numbers with those for Iowa, Indiana and Missouri, making per capita adjustments based on the states’ overall populations. The study also took into account the recession and the introduction and growth of electronic video gambling in the state.
Illinois Casino Gambling Association Executive Director Tom Swoik noted a 2009 study showed the state’s smoking ban was responsible for a 20 percent drop in revenue in 2008 alone—a loss of $400 million, including more than $200 million in state tax revenue. “We do know from other studies that the more time someone spends on the casino floor, they more likely they are to keep playing. If they have to go outside to smoke, they’re more likely to light up and then leave,” Swoik said.
He added, “We know that secondhand smoke is not beneficial to your health, and at the same time, having a facility where people can smoke at a casino is beneficial for revenue. It can be hard to weigh the negative health effects versus the economic numbers.”
Tauras said the study might lead tribal casino operators to rethink their casino smoking policies. Currently about 75 percent of tribal casinos do not ban smoking.
