Casino Smoking Bans Show No Harm to Revenue, Say Analysts
The long-standing economic argument for allowing smoking on casino gaming floors—despite the health risks to non-smokers and staff—continues to lose credibility.
In a recent webinar titled The Impact of Smoking Regulations on Casino Gaming, two leading casino finance analysts concluded there is now strong evidence that casinos can go smoke-free without experiencing negative financial consequences.
Public Support for Smoke-Free Casinos Is Growing
Hosted by Spectrum, Management Science Associates, and Spectrumetrix, the webinar highlighted a shift in consumer attitudes. For years, casino employers have resisted banning smoking indoors, claiming it would hurt business and lead to job losses. But that argument is increasingly being challenged by both data and public sentiment.
Geoff Atkinson, marketing research manager for Management Science Associates, presented data indicating most casino patrons are comfortable with smoke-free policies. This analysis was echoed by Matt Roob, Senior Vice President of Financial Analysis at Spectrum Gaming Group, who suggested a simple solution: require smokers to step outside to smoke.
Roob and Atkinson pointed out that smoking among adults has significantly declined. In 2022, only 11.6% of adults in the U.S. reported smoking—a number that continues to fall. With such a small portion of the population still smoking, the notion that banning it would broadly impact casino revenues no longer holds up.
Dispelling Myths Around Smoking and Revenue Loss
The panel also addressed the ongoing misconception that eliminating smoking directly causes casinos to lose revenue. Illinois, for example, became smoke-free in 2008 and saw a decline in slot revenue—but that decrease coincided with the global financial crisis triggered by the collapse of Lehman Brothers. Analysts argue it’s misleading to link the revenue drop solely to the smoking ban.
COVID-19: A Turning Point for Smoke-Free Policies
The COVID-19 pandemic served as a critical moment for some casinos to reevaluate their smoking policies. Notably, Mohegan Sun and Foxwoods in Connecticut implemented smoke-free rules post-pandemic and have maintained strong economic performance since.
While some operators may still fear that going smoke-free could affect profits, recent trends and research strongly suggest otherwise. The data no longer supports the belief that smoking bans on gaming floors harm casino business—providing a new path forward for an industry long resistant to change.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com