Casinos blame ban for business loss, layoffs
BY Kenneth Lowe, The Southern Springfield Bureau
Sunday, February 10, 2008 2:30 AM CST
SPRINGFIELD - An overall decline in Illinois gambling last month might be because of the new statewide indoor smoking ban, some gambling industry officials said Friday.
According to numbers released by the Illinois Gaming Board, Illinois casinos in January saw a 17 percent decrease in revenue compared to January of 2007. The casinos saw a decrease of nearly 6 percent in admissions, although Harrah's Casino in Joliet and Par-A-Dice Casino in East Peoria both saw small increases.
The board's report coincided with Harrah's riverboat in Metropolis announcing Friday it would lay off 30 of its employees. The casino, near the Kentucky border, saw the largest drop in revenue from December at nearly 23 percent.
Officials at Harrah's Metropolis blamed the drop in business on the smoking ban.
Tom Swoik, executive director of the Illinois Gaming Association, also believes the majority of lost revenue is because of the ban. Swoik said gamblers who smoke aren't all jumping the border to out-of-state casinos, but that those smokers who do still attend Illinois casinos need to take smoke breaks outside, which could cut into the time they spend gambling.
"If you look at the admissions, they've gone down, but they haven't gone down as much as the revenues," Swoik said. "The less time people gamble, the more it has an effect on revenues."
Others say it may be too early to assess the impact of the ban.
Bill Renk, vice president of Jumer's Casino in Rock Island, said a combination of the smoking ban, harsh weather and the current state of the economy make it difficult to blame any single factor on his casino's bad numbers. Jumer's saw a slight increase in attendance from December, but revenues were down almost 7 percent.
"If we're going to be speaking specifically to smoking, I think the true picture for us is going to have to wait," Renk said. "Even then, we've done some things to sort of mitigate the situation by providing smoking areas for our guests which are being used."
Mike Grady, a spokesman for the American Cancer Society, said all economic studies gathered by his organization have determined there are no longterm effects on the economy after smoking ban laws like Illinois' Smoke Free Illinois Act take effect.
"Right now is a very turbulent economic time, and to try to point to the Smoke Free Illinois Act as the reason a certain sector of the economy might be showing some slippage right now is a really big stretch," Grady said.
State Rep. Mike Boland, D-East Moline, said more time must be taken to examine the trends to see what factors are causing the revenue loss.
"If there's a drop-off at all the boats everywhere in the state, it could be the smoking ban, or it could be the economy," Boland said. "I think we're probably going to have to wait to really see what's happening there."
Swoik said there likely will be efforts to make casino game rooms exempt from the smoking ban. The planned exemption would allow smoking only in game rooms and would last either five years or until surrounding states pass smoking bans similar to the one in Illinois, Swoik said.
Boland said he would consider an exemption if it left some area set aside for nonsmokers in the casinos.
"There are people who tell me they don't go to the boats because of all the smoke," Boland said. "Maybe making sure that there's at least some place that's smoke-free might bring in more customers."
Grady said the American Cancer Society would oppose any exemption.
"Casino workers have a right to breathe clean air and not risk their health to bring a paycheck home to their family," Grady said. "The idea that a certain class of worker should be put at risk makes no sense to us."
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