A new strategy has emerged in the fight to ban smoking in casinos. It’s a shareholder vote.
shareholder void gaming, barry’s entertainment and caesars entertainment Casino companies will vote on a proposal that would force them to consider the costs associated with allowing indoor smoking.
The proposal is sponsored by Trinity Health, a nonprofit health network, and the Americans for Nonsmokers’ Rights Foundation. Trinity Health, based in Livonia, Michigan, will use its shareholder position to Fight for different health initiatives Even despite the fact that they own only a small portion of those companies. For example, Trinity owns just 440 shares of Bally stock, or about 0.001% of the company, according to public records.
Boyd, Bally’s and Caesars fought to have the proposal not included in proxy materials distributed to shareholders. The Securities and Exchange Commission rejected the casino’s request, and the proposal and its rationale were delivered to all shareholders.
Boyd will face the following problems Vote for non-smoking rating at Thursday’s annual general meeting. Bally’s will hold its annual meeting on May 16, and Caesars will follow suit with its own meeting, likely in June.
Together, the three companies operate 75 casinos in the United States that allow indoor smoking as permitted by state law. About 14 states allow indoor smoking in commercial casinos.
States such as Nevada and New Jersey have broader indoor smoking bans, but make exceptions for casinos. Bills to eliminate indoor smoking in casinos are at various stages in several states across the country, including New Jersey, Pennsylvania, and Rhode Island.
Anti-smoking advocates point to a study by C3 Gaming that concluded that smoke-free casinos generate more revenue and outperform competitors that allow smoking.
Proponents of the proposal say shareholders should know how much casinos are paying to raise employee health insurance premiums, increase maintenance costs and turn away customers who don’t like smoke.
Boyd, on his behalf, argues that states that have banned indoor smoking have had negative effects. The group argues that such decisions are best left to lodging properties to follow local trends, and that if shareholders succeed in enforcing the ban, which Boyd said is the real purpose of forcing the ratings. ), the company claims it will lose customers to competitors that continue to allow smoking. .
Caesars board member Jan Jones Blackhurst said Wednesday at the SBC Summit North America, an online gaming conference, that she believes the decision on whether to ban smoking inside casinos should be left to the government. . She noted that her experience shows that non-smoking casinos can take a financial hit.
“Typically, if you look across the country, when casinos go smoke-free, their revenue drops by 20% to 25%, and it also causes significant layoffs as people start to lose their jobs,” she said.
Reactions from trade unions have been mixed. While some worry about potential job losses, the United Auto Workers union, which represents more than 10,000 table game dealers nationwide, is working to combat smoking inside casinos, citing second-hand smoke among employees. is being strengthened.
of Centers for Disease Control and Prevention “No amount of exposure to second-hand smoke is safe, and the only way to completely protect non-smokers from second-hand smoke is to have a completely smoke-free indoor air environment.”
The U.S. Surgeon General has stated that many common practices found in casinos, such as separating smoking and non-smoking sections, purifying the air, and ventilating buildings, are not effective precautions against second-hand smoke.
Parks, a casino operator with locations in Pennsylvania, has decided to make its Bensalem property in North Philadelphia smoke-free during the coronavirus pandemic. It competes with four other local casinos that allow smoking indoors, but said it hasn’t seen a decline in market share.
“Financially, we know we’ve lost some customers, but we also know we’ve gained some customers,” Parks spokesman Mark Oppenheimer told CNBC. However, I don’t think there will be any significant impact.”
Instead, the company said it is focusing on guest satisfaction scores and surveys that show improved employee morale.
In Las Vegas, MGM Resorts The first casino resort on the Strip to ban smoking indoors and even on the pool deck. “Here at Park MGM, we’re not afraid to be different. As you’ve probably noticed, we’re all about freshness, including the air you breathe,” the property says on its website. It is.”
For now, Park MGM is the exception, but anti-smoking advocates hope it will soon become the rule.
