The ongoing battle over the future of smoking in Atlantic City’s casinos continues with a major victory for the proponents of the controversial smoking ban. However, the war is yet to be won.

The latest development saw an anti-casino smoking measure move forward after three years of intense discussions between pro-smoking and anti-smoking activists. The bill was now approved by the New Jersey Senate health committee, sparking hopes among the latter camp.

Following the advancement of the anti-casino smoking bill, a confrontation between the two camps erupted. People screamed at one another as anti-smoking activists rejoiced.

For reference, Atlantic City’s nine casinos can currently turn up to 25% of their gaming area into a smoking area. However, this means that employees responsible for that area must breathe cigarette smoke all shift long, exposing them to a variety of health problems.

Casino operators fear introducing a smoking ban as it may impact their business. Some believe that patrons who go outside to have a smoke may decide to call it a day. Others fear that fervent smokers will simply go to play in Philadelphia.

Because of that, operators have long been seeking a compromise, such as smoking rooms. However, this would still require employees to man said rooms.

In any case, the bill will now go to the Senate for a vote. In order for the measure to pass, an identical bill must also be approved by an Assembly committee and voted upon by the full chamber. Finally, it would be up to Governor Phil Murphy to sign the measure into law.

The Industry Says the Ban Would Be an “Economic Catastrophe”

Casino industry supporters conceded that smoking is harmful but warned that a smoking ban may, at the very least, lead to layoffs. Donna DeCaprio, president of the Local 54 of the Unite Here union, a group representing hospitality staff, warned that as many as 3,000 of the 50,000 casino jobs in the city could disappear.

DeCaprio also predicts the potential closure of three of Atlantic City’s casinos, saying that a total ban on smoking is going to result in an “economic catastrophe.”

However, Cynthia Hallett, president and CEO of Americans for Nonsmokers’ Rights, pointed out that, according to polls, more people would be inclined to visit the city’s casinos. In addition, previous surveys have found no proof that a ban on smoking would hurt casino operators’ business.

Senator Shirley Turner, on the other hand, was firm that Americans shouldn’t be forced to choose between their job or their health.

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For nearly two decades, casinos in Atlantic City have been exempt from the statewide ban that prohibits smoking within public areas across New Jersey. The exemption in the New Jersey Smoke-Free Air Act enabled casino operators to allow indoor smoking for up to 25% of their gaming floors. During the pandemic, Atlantic City’s casinos banned indoor smoking temporarily. However, with the pandemic residing, indoor smoking was reinstated. Unlike other states where the temporary smoking ban became the new normal, operators in Atlantic City continue to fear the possible negative impact of such a measure.

Despite fears, one proposal that calls to close the existing smoking loophole in the legislation is gaining traction in New Jersey. Senate Bill 264 (SB 264) proposes the elimination of the smoking ban exemption that is applicable to casinos and simulcasting facilities. The bill’s primary sponsors are Joseph Vitale and Shirley Turner, but it is also co-sponsored by two dozen lawmakers.

The proposal marks the latest effort by lawmakers that want to put an end to the exemption of smoking for casinos. Enjoying bipartisan support, SB 264 gained traction recently after it was heard by the Senate Health, Human Services and Senior Citizens Committee. Supporters of the proposal hope for it to gain further traction and those efforts come at a time when bills can advance at a faster pace ahead of January, which marks the expiration of the legislative session.

The latest progress comes after a hearing with the Assembly dating back to March. At the time, supporters of the new proposal, as well as opponents, were heard. Besides bipartisan support, the smoking ban is backed by Casino Employees Against Smoking Effects (CEASE), a group that fights against smoking inside casinos.

Smoking Ban Opponents Voice Their Concerns

Despite the concerns about the impact of smoking on casino employees’ health, not everyone agrees with the proposed smoke ban in New Jersey. Groups against the smoking ban continue to claim that it may result in significant losses for casino operators. They claim that in turn, this can result in layoffs and reducing the number of employees.

Previously, Unite Here claimed that a smoking ban could have a devastating impact on Atlantic City’s casino sector. According to them, the implementation of a smoke ban may decrease gross gaming revenues for casinos by a staggering 11%.

Contradictory to anti-smoking groups, supporters of the smoke ban claimed that it wouldn’t have such a dire impact on the casino sector. Supporting this statement, the groups reiterated that a temporary ban imposed due to the pandemic did not hurt the sector.

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Valenzuela City in the Phillipines has taken a significant stride towards eliminating unlawful gambling activities within its jurisdiction, as evidenced by a recent city council meeting.

Mayor Wes Gatchalian, Vice Mayor Lorie Natividad-Borja, and 1st District City Councilor Ricar Enriquez were among the prominent figures present at the meeting.

Recognising the adverse impact of illegal gambling on individuals’ lives, the council passed three ordinances aimed at directly addressing these issues. Ordinance No. 1105 emerged as a transformative measure by imposing a complete ban on Philippine Offshore Gaming Operators (POGOs) from operating within Valenzuela City.

Those found to be in violation of this prohibition will face severe penalties, including fines of up to ₱300,000 ($5,431) and a maximum imprisonment term of one year. This bold action underscores the city’s dedication to safeguarding its residents through strict gaming regulations and cracking down on illicit gambling activities.

In addition to the POGO ban, Ordinance No. 1107 was enacted, temporarily suspending new applications for online gambling and Small Town Lotteries (STL) for a duration of five years. This moratorium will allow the city to thoroughly review its zoning ordinance and make any necessary adjustments. Existing businesses involved in online gambling and STL operations are expected to continue their activities without interruption.

Mayor Gatchalian, who has been at the forefront of this cause since taking office, expressed satisfaction with the passage of these ordinances. He emphasised the need for a comprehensive study, particularly regarding POGOs falling under the jurisdiction of the Philippine Amusement and Gaming Corporation (PAGCOR), and STL being administered by the Philippine Charity Sweepstakes Office (PCSO). Mayor Gatchalian made it clear that the city’s intent was not to defy national agencies but rather to protect its citizens from the risks associated with gambling.

Addressing Local Practices and Illicit Gambling

However, the city council also acknowledged the existence of unique local practices, such as the traditional game of Sakla, often played during wakes to raise funds for burial services and support bereaved families. To tackle this issue, Ordinance No. 1108 prohibits participation in any unauthorised or illegal activities. Violators of this ordinance will be subject to fines of up to ₱5,000, while organisers could face fines of up to ₱50,000 and imprisonment for one year.

To strike a balance between tradition and regulation, Mayor Gatchalian announced that the city would contribute a minimum of ₱7,000 towards funeral expenses for Valenzuela City residents. This gesture of support aims to assist grieving families and reduce reliance on Sakla as a means of financial assistance during challenging times.

The recent ordinances passed in Valenzuela City exemplify the unwavering commitment of its leaders to protect citizens from the detrimental effects of illegal gambling. By taking decisive action, the local government seeks to create a safer environment while respecting and supporting cultural practices. As the city moves forward, it is hoped that these measures will serve as a model for other regions in the ongoing battle against illegal gambling.

More casino & gambling news

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Atlantic City’s casino industry has reported an increase in net revenue of 1% for the fourth quarter of 2022, compared to the same period in the previous year. The gross operating profit, however, showed a decrease of 31.6% for the same quarter. 

Gross Operating Profit of Atlantic City Casino Industry Declines in Q4 2022

The licensees’ reports showed that in the 4th quarter of 2022 net revenue reached $771.9 million, while the gross operating profit reached $119.3 million. For the entire year of 2022, net revenue increased by 9.3% to $3.3 billion in comparison to the same period in 2021. 

In contrast, the casino licensees reported a gross operating profit of $731.3 million, which was a decrease of 4.6% compared to the same period last year. 

Hotel occupancy rates for the industry’s casino hotels were also reported. The occupancy rate for the quarter ending December 31, 2022, was 65.8%, down 0.6% from the previous year. For the twelve months ending December 31, 2022, the occupancy rate was 73.4%, which was an increase of 5.8% from the previous year.

The decrease in occupancy rates may have contributed to the decrease in gross operating profit, but the industry’s overall performance is still strong. The Atlantic City casino industry continues to be a significant contributor to the city’s economy and remains a popular destination for tourists.

Hard Rock and Ocean Lead Atlantic City’s Casino Profit Growth in 2022

In 2022, only two of the nine Atlantic City casinos witnessed an increase in operating profits as compared to the previous year. Hard Rock observed a growth of nearly 20%, earning over $128 million, while Ocean earned $96.2 million, which is up 5.5%.

Bally’s operating loss declined significantly in 2022, with a loss of $1.8 million in comparison to $13.1 million in 2021.

Borgata’s operating profit decreased by 19.4%, earning $140.2 million. Caesars earned $60.4 million, down 2.7%, and Golden Nugget’s profits slightly decreased to $30.6 million. Harrah’s profits decreased by over 10%, earning $89.3 million. Resorts earnings were down by nearly 24%, at $21 million, and Tropicana’s earnings decreased by 7.6%, earning nearly $110 million.

In the category of internet-only companies, Caesars Interactive Entertainment NJ recorded a substantial increase in earnings, raking in $32.7 million, almost double the amount it made a year prior. Meanwhile, Resorts Digital, which serves as the online extension of Resorts Casino, generated $15.4 million in earnings, representing a 2.8% increase.

Looking back to the pre-pandemic year of 2019, only four casinos managed to increase their earnings in 2022: Hard Rock, Ocean, Resorts, and Tropicana. Although it’s worth noting that Harrah’s came very close to matching its 2019 earnings.

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Speaking to one such person, Tammy Brady, the Associated Press found out that the dealer, who started working at the age of 18, had stage 2 breast cancer right now. Brady is 55. The Borgata casino worker did not outright blame in-door smoking on the casino floor, but she did say that there was a lingering doubt whether her job didn’t make her sick – and if it wasn’t an avoidable condition after all.

Associated Press Interviews Cancer Patients who Work in Casinos

Holly Diebler, a craps dealer at Tropicana, is another sufferer, who is currently battling throat cancer. Diebler is confident she wants to keep her job, and doesn’t want to leave it – but once again, there is doubt that it’s the job and the conditions at casino tables that could have made her sick. Banning smoking on casino floors has been a hot-button topic with a bill already pitched, and Gov. Phil Murphy all hawkish on signing it – yet no bill has been pushed through legislation even though lawmakers have vowed to make sure they will see this piece through.

Casinos have objected repeatedly, arguing that ending the exception in the 2006’s indoor smoking ban would only suppress their results. They urged lawmakers to see reason and understand that improving bottom lines were not necessarily a sign of stability as casinos also have to pay a lot to third parties that run online operations, for example.

Yet, critics of this opposition have said that there is little evidence to suggest that casinos would be losing money by banning indoor smoking. Pennsylvania already does it in many of the casinos, and it’s unlikely that New Jersey and Atlantic City will see fewer visitors because people cannot light up while they play. Casinos can introduce dedicated areas where people can smoke.

Arguments Fly in Both Directions

Former Assemblyman Don Guardian was also critical of the issue when speaking to the Associated Press. He noted that he didn’t seek to impose a ban on smoking per se, but rather wanted to take people’s “right to kill others by smoking in a casino.” The argument that there will be a downturn in financial performance also seems patchy, says C3 Gaming, a consultancy.

Casinos that have banned smoking in Maryland and Washington DC seem to be doing well the company says. Meanwhile, critics of the smoking ban say that revenue would fall by 10% and at least one casino is bound to go out of business. Yet, as Janice Green, a dealer at the Tropicana said when speaking to the media, there is nothing wrong in shutting down smoking or asking smokers to smoke in dedicated areas.

It would embarrass the customer, some say, but Green wonders – what is embarrassing about being killed by customers, and how are the two things comparable.

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