NJ Gaming Revenue to Suffer a Dramatic Decline in the Face of Atlantic City Smoking Ban
Banning smoking in Atlantic City casinos has been talked about for quite some time now. Although smoking has been briefly unallowed in said casinos before July 2021, the state has lifted the extension that included casinos since then, and casino workers couldn’t be less content with the decision. We’re going to talk about the “smoke-free” Bill A2151 and the ways it can potentially impact the industry and revenue. The latter has been growing steadily lately, for the comprehensive data check iGamingNJ latest state revenue analysis, and the smoking ban is thought to hinder the industry’s development pace.
What does Bill A2151 state?
Bill A2151 amends the “New Jersey Smoke-Free Air Act,” to prohibit smoking at casinos and casino simulcasting facilities. Smoking is now prohibited in most indoor public places and workplaces, with a few exceptions, such as indoor public places and workplaces inside the perimeter of casinos and casino simulcasting facilities that are open to the general public for gambling. These exceptions to the smoking prohibition would be eliminated under this law.
Secondhand smoke puts workers of casinos at risk of lung and heart conditions, according to the National Institute for Occupational Safety and Health, and a study published in the Journal of Occupational and Environmental Medicine found that the air in casinos can contain up to 50 times more cancer-causing particles than the air on rush-hour highways.
The immediate impact of the smoking ban on the industry
The gambling sector in Atlantic City is the economic backbone of South Jersey. A smoking ban may reduce consumer traffic, resulting in employment losses, lower gaming income, and lower tax money that supports the state and local economies, as well as New Jersey elderly and those with disabilities.
According to the Spectrum analysis on the potential impacts of the Atlantic City casino smoking ban on gross gaming revenue, around 21% of tourists are smokers, which is about 8% more than the overall population. Spectrum calculated the economic consequences of a hypothetical total smoking ban in New Jersey casinos, and the effects of the smoking ban in other jurisdictions but gave no opinion or suggestion on whether smoking should be prohibited on casino floors.
NJ casinos’ revenue and jobs at risk?
The ban on smoking at Atlantic City casinos, based on a recent assessment by SpectrumGaming Group, an independent research and professional services firm, may result in a decline in the number of jobs, up to 2,500, and have a devastating economic impact on the NJ’s iGaming market. According to the report, a smoking ban would affect about 10% of Atlantic City’s workforce, resulting in 1,000 to 2,500 job losses, as well as a significant drop in gaming revenue of up to 10.9%, up to $93 million in revenue that is not related to gaming, and a tax revenue loss of between $17.2 million and $44 million for the state of NJ and the Atlantic City.
Bottom line
Over the years, the casino business has taken major measures to promote a healthier atmosphere for personnel and visitors, such as confining smoking to a small portion of the floor space. We recognize that this is a sensitive topic, but it is critical that we maintain a friendly and inclusive atmosphere for all of our customers, including smokers and nonsmokers.