Smoking opponents are trying to force casinos to weigh smoking bans
Opponents of casino smoking are trying to force three casino companies to overhaul how extinguishing indoor tobacco smoke at casinos would affect their businesses.
Michigan-based health system Trinity Health and the American Nonsmokers Rights Foundation (ANRF) recently submitted shareholder proposals to Caesars Entertainment, Bally's Corporation and Boyd Gaming. The document requires each company to study the financial impact of banning smoking in all its casinos.
In states where indoor smoking is legal, the three casino companies continue to allow smoking inside their casinos. States that allow commercial smoking in casinos include Indiana, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, New Jersey, Pennsylvania, Rhode Island , Virginia and West Virginia.
Bally’s operates nine casino smoking locations in seven states.Caesars operates 41 casinos that allow indoor smoking in 12 states, and Boyd operates 25 casinos that allow smoking in eight states.
Shareholder Proposal
Trinity Health and American Nonsmokers Rights are calling on every company to investigate and perhaps realize that banning indoor smoking would actually be good for business. The proposal cites independent research commissioned by the ANRF, which concluded in 2021 that most players prefer smoke-free casinos.
Allowing indoor smoking at Boyd Gaming hotels poses potential business risks, such as higher health insurance premiums for employees, higher maintenance costs, and preventing large numbers of people from being exposed to tobacco smoke compared to casinos that do not allow indoor smoking. and potential visitors who do not go to casinos (87% of the American public do not smoke)," reads the shareholder proposal submitted to Boyd Gaming.
"Shareholders have failed to demonstrate the costs to our company of continuing to allow indoor smoking, and the company has failed to disclose the social and environmental costs and risks to stakeholders," the statement continued. "Shareholders are calling on the board to commission and disclose a report on the impact of continuing to allow indoor smoking at Boyd Report on potential cost savings from implementing a no-smoking policy at gaming hotels.”
The boards of the three listed companies have recommended that shareholders vote against proposals to launch a review of the impact of smoking on their businesses.
Boyd will hold its 2024 annual meeting on May 9. Bally's will hold its annual meeting on May 16. Caesars has not yet scheduled its annual meeting.
Long Odds
One of three shareholder proposals is likely to be considered. Of the 682 shareholder proposals submitted by Russell 3000 companies between January and May 2023, only 8% received majority support and passed.
New Jersey Governor Phil Murphy (D) supports banning smoking in Atlantic City casinos. This week, he reiterated his stance, saying he would sign such a bill if it reached his desk.
However, the governor stressed during his weekly radio show Wednesday whether he could be more proactive in asking lawmakers to implement the smoking ban, calling it a "complicated issue".
"There are legitimate concerns about the economic viability of Atlantic City," Murphy said, advocating for state lawmakers to work with the casino industry and anti-smoking groups to find solutions.
The United Auto Workers (UAW), representing Atlantic City table game retailers, filed a lawsuit against New Jersey last week challenging the state's 2006 Smoke-Free Air Act, which allows casinos to operate in designated gaming areas. A 25% fee is charged for smoking.
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Source: www.casino.org
