Casinos urged to reevaluate indoor smoking policy due to shareholder pressure.

• The respective casino companies, Boyd Gaming, Bally's Entertainment, and Caesars Entertainment, will have proposals on their ballots for shareholders to study the costs associated with permitting smoking indoors.
• In the U.S., 75 casinos operated by Boyd, Bally's, and Caesars allow indoor smoking, in accordance with state law.
• Research by C3 Gaming shows that smoke-free casinos generate more revenue and outperform competitors that allow smoking, advocates for smoking bans argue.

The shareholder vote has emerged as a new strategy in the fight against smoking in casinos.

The shareholders of and will propose at the respective casino companies to study the costs of permitting smoking indoors and whether going smoke-free could save money.

Trinity Health, a nonprofit health care network, and the Americans for Nonsmokers' Rights Foundation have sponsored proposals. Although Trinity Health owns only a small fraction of these companies, it has used its shareholder status to fight for various health initiatives. For instance, public records indicate that Trinity owns just 440 shares of Bally's stock, which is about 0.001% of the company.

The Securities and Exchange Commission denied the casinos' requests to keep the proposals out of the proxy materials distributed to shareholders, and the proposals as well as the rationale behind them were delivered to all shareholders.

Boyd's annual shareholder meeting on Thursday will include a vote on a smoke-free assessment.

In the U.S., there are 75 casinos that allow indoor smoking, and this is permitted by state law in about 14 states.

Several states across the country, including New Jersey, Pennsylvania, and Rhode Island, are considering legislation to ban indoor smoking at casinos, although some states, like Nevada and New Jersey, have already done so with certain exceptions.

Research by C3 Gaming shows that smoke-free casinos generate more revenue and outperform competitors that allow smoking, advocates for smoking bans argue.

Casinos pay higher health insurance premiums, have greater maintenance costs, and keep away customers who hate smoke, according to proposal sponsors.

Boyd contends that states that have banned indoor smoking have experienced a negative impact. He suggests that these decisions should be left to property owners to follow local trends. Boyd argues that if shareholders succeed in implementing a ban, the company will lose customers to competitors who continue to allow smoking.

At the SBC Summit North America, Jan Jones Blackhurst, a Caesars board member, stated on Wednesday that she believes governments should decide whether to ban smoking in casinos. She emphasized that smoke-free casinos can negatively impact the economy.

If casinos prohibit smoking, revenues fall by 20% to 25%, resulting in significant layoffs and job losses.

The United Auto Workers, representing over 10,000 table game dealers nationwide, has intensified its efforts in opposing in-casino smoking, citing the risk of secondhand exposure to employees.

The CDC states that no level of secondhand smoke exposure is safe and the only way to completely shield non-smokers from secondhand smoke is through completely smoke-free indoor environments.

According to the U.S. Surgeon General, common practices in casinos, such as separating smoking and non-smoking areas, cleaning the air, and ventilating buildings, do not provide adequate protection against secondhand smoke.

Parx, a casino operator with locations in Pennsylvania, opted to remain smoke-free at its Bensalem property during the Covid pandemic. Despite being one of four local casinos that permits indoor smoking, Parx has not experienced a decline in market share.

Marc Oppenheimer, a spokesperson for Parx, stated to CNBC that while they are aware of losing some customers financially, they have also gained some customers. However, they believe the impact has not been significant.

The company emphasizes guest satisfaction scores and surveys that show an increase in employee morale.

The Park MGM casino resort in Las Vegas has banned smoking both indoors and on the pool deck. On its website, the property states, "We're not afraid to be different and we prioritize fresh air. That's why we've implemented a no-smoking policy."

Currently, Park MGM is the only exception, but smoke-free advocates hope that soon it will become the norm.