Smoking Ban Lifted in Atlantic City Casinos

With the state of Michigan contemplating a smoking ban that may or may not include Detroit Casinos and nonprofit bingo halls, it's interesting that Atlantic City has lifted their ban in area casinos.

As of November 16, gamblers will be allowed to light up again after a one month ban had taken effect. Their City Council has lifted it for at least a year pending further analysis of the economic impact. Based upon the financial outlook for the state and competition from Pennsylvania casinos (which allow smoking), they apparently feared piling on to an already slumping industry.

When will the possible Michigan smoking ban be revisited? And, will they exempt bingos and Detroit casinos from the ban? They might have to in order to keep the playing field level in the face of exempt tribal casinos and future gaming sites that will be built in Ohio.

For more information, please see 12 Months Later / Full ban on smoking likely to stay off table in Atlantic City

Smoking Ban On Hold For Now

We haven't provided an update on the potential smoking ban in bingos and other establishments in Michigan in quite some time. This is because no new news has come out of Lansing.

Michigan's budgetary concerns have taken precedence over everything else at the moment. As legislators battle over the allocation of dwindling resources in the state, most other legislation has been pushed aside. Expect a renewed focus on a smoking ban after the budget deadline arrives on October 31, 2009.

Smoking Ban Exemptions Give Advantage to Casinos

It was one of the most contentious issues in the (Wisconsin) state Legislature's debate about a statewide smoking ban. And it remains one of the biggest questions about the ban, which will take effect July 5, 2010.

The state's 16 Native American casinos are exempt from the ban and can continue to allow smoking. That doesn't sit well with some bar owners — and the legislators who represent them — because it gives the casinos a competitive advantage.

And it encompasses much of the state — from the large Potowatomi casino in Milwaukee and the Oneida casino in Green Bay to the smaller casinos in the north woods.

Rep. Dean Kaufert, R-Neenah, has talked about leveling the playing field and may introduce a bill that would ban smoking in casinos, too.

For the complete story, please see Larry Gallup, Burning Questions: The casino exemption, PostCrescent.com, July 5, 2009.

Representative Argues Smoking Ban Should Include Tribal Casinos

State Rep. Dean Kaufert claims the statewide smoking ban that's going into effect in July 2010 is flawed because it excludes Native American casinos.

It's a fairness issue," said Kaufert, a Neenah Republican who has been contacted by constituents regarding the reach of the ban. "A statewide ban should truly be a statewide ban. There shouldn't be pockets where people don't have to comply with the state."

Kaufert said he may introduce legislation to include casinos in the ban, which was signed into law in mid-May by Gov. Jim Doyle and goes into effect July 5, 2010.

"I want to gauge the interest of my colleagues, Republican and Democrat, and see if there is any interest in moving forward with legislation that would make it a true statewide ban," Kaufert said last week.

Tribal officials say the statewide ban isn't applicable to casinos because it is not part of the gaming compacts between the tribes and the state.

When the statewide ban was passed in May, Kaufert introduced an amendment that would have included all Native American lands in Wisconsin. He said the amendment would have "closed a major loophole" in the bill, but it was defeated in the Assembly.

Kaufert will face a tough road if he opts for a legislative remedy. He realizes that it would be a "little tricky" to pass a bill that bans smoking in casinos because of the sovereign nation status of tribes.

For the complete story, please see Andy Thompson, Ban smoking in casinos, legislator says, Green Bay Press-Gazette, June 22, 2009.

Casinos Argue That Smoking Ban Hurts Everyone

In Michigan, Louisiana, and elsewhere, casinos and other gambling venues (including bingos) scramble to fight against potential smoking bans. Many of these are now bringing up the ripple effects (lower tax payments, job losses, small business revenue) that a smoking ban will likely have in gaming communities.

Below is an excerpt from a recent article out of Louisiana:

As bills that would expand Louisiana’s smoking ban to gambling venues continue to smolder in the Legislature, casino officials are battling to avoid what they call an unfair financial burden.

State Rep. Gary Smith told House members the 2006 law banning smoking in restaurants unfairly excluded bars and casinos, placing a burden on establishments that make most of their money serving food.

“These businesses compete with each other, and we need a level playing field,” Smith said. “We’ve already drawn a line in the sand, and now we’re going to make it even across the board for all of the individuals in the service industry.”

But Boomtown Casino spokesman Charles Fredrick says prohibiting smoking in casinos will send economic ripples throughout the state.

“What we anticipate is a 20 percent reduction in revenue if this smoking ban passes,” Frederick said. “If we lose 20 percent of our business, or even 15 percent, that means people are going to get laid off. The State Police get $52 million a year from riverboat casinos. Take 20 percent from that and tell me how many state troopers are going to get laid off.”

For the complete story, please see Stephen Maloney, Casinos go on offensive to ward off smoking ban, New Orleans City Business, June 8, 2009.

More on the Proposed Michigan Smoking Ban

The Michigan House voted Tuesday to ban smoking in workplaces including bars and restaurants, but to allow it on gambling floors at Detroit's three casinos, cigar bars and smoke shops.

The 73-31 vote set up another face-off with the Senate, which last year voted for a total smoking ban, no exceptions.

The smoking ban remains a hot issue, led by antismoking advocates encouraged by smoking bans approved in recent weeks in Wisconsin and North Carolina, a tobacco industry state where a smoking ban was once unimaginable.

But like last year, a stalemate looms again between Michigan's House and Senate over whether to allow smoking in Detroit's casinos. A state-imposed smoking ban would not affect American Indian-run casinos.

For the complete story, please see Chris Christoff, Michigan House OKs smoking ban, Detroit Free Press, May 27, 2009.

Bingos Not Exempt as Smoking Ban Passes House

Attempts to add an exemption for charitable bingos failed, as the Michigan House passed a smoking ban. Under this law proposal, the Detroit casinos and cigar bars patrons will be allowed to smoke, but bingo players won't.

The bill will now move on to the Senate.

From the Detroit News:

The Michigan House today approved legislation to ban smoking in bars, restaurants and other public places but gives exemptions to Detroit's three casinos as well as cigar bars and tobacco specialty shops.

The vote was 73-31. The bill is nearly identical to one passed in the House last year. The Senate then approved its own version of a smoking ban that was a blanket prohibition with no exemptions. The effort to ban smoking died when the two chambers couldn't reach a compromise.

For the complete story, please see Charlie Cain, Michigan House OKs smoking ban, exempts casinos, The Detroit News, May 26, 2009.

Smoking Ban Passes Michigan House

The Michigan House of Representatives has again passed a smoking ban. This version will exempt casinos and tobacco shops.

However, there is no word yet on whether or not charity bingos may join that list. Last year's smoking ban legislation (which eventually expired before a compromise could be reached) did include nonprofit bingos amongst their exemptions.

From The Detroit News:

The debate about a possible workplace smoking ban in Michigan continues.

A state House committee on Wednesday approved a bill that would ban smoking at most workplaces including bars and restaurants. But casinos and tobacco shops would be exempt from the ban, similar to plans approved by the Democrat-led House in 2007 and 2008.

The Republican-led Senate has not taken up a smoking ban bill this year. The Senate approved a ban with no exceptions last year. A spokesman for Senate Majority Leader Mike Bishop of Rochester said no deal has been reached on a compromise.

The Senate and House would have to agree on a version of the ban for it to become law.

Legislature Folds on Casino Smoking Ban

It had been weeks since the Mohegan Tribe pushed a massive bet to the center of the table: a threat to immediately sue the state and place into escrow Connecticut's share of slot machine revenue if lawmakers imposed a smoking ban on their casino.

On Tuesday, with as much as $400 million in annual revenue from both of Connecticut's casinos at stake, the legislature finally folded.

Despite strong pressure from labor groups who want a smoking ban to protect their workers - and to demonstrate their clout after recently organizing some workers at Foxwoods Resort Casino - there has been widespread consensus among legislators and their aides that the Mohegans' bet was one that lawmakers and Gov. M. Jodi Rell could not afford to call, especially with the state facing a combined deficit of nearly $9 billion over the next two fiscal years.

For the complete story, please see Ted Mann, Finance Committee Kills Casino Smoking Ban Bill, TheDay.com, May 13, 2009.

Foxwoods Casino Reaches Compromise on Smoking Ban

In an effort to extinguish a controversial issue, Gov. M. Jodi Rell signed an agreement with the Mashantucket Pequot nation Thursday for a voluntary, limited smoking ban at the Foxwoods Resort casino.

The agreement is similar to one that Rell signed earlier this year with The Mohegan Tribe to limit smoking in a wide variety of areas at the casino complex.

The deal was announced as the state legislature is still debating a highly controversial bill that would impose a phased-in, total ban on smoking at both casinos. Two major legislative committees have voted overwhelmingly in favor of the ban, and some proponents say the bill should still go forward even with the new agreement.

The tribes, however, have reacted strongly against the bill, raising the specter of a potential battle over nearly $400 million per year in slot-machine revenue currently added to the cash-strapped state coffers from the casinos.

Those threats remained real Thursday as the Pequots hailed the new understanding with Rell as a major step forward.

For the full story, please see Christopher Keating, Gov. Rell Signs Smoking Deal With Foxwoods Resort Casino, Capitol Watch, Courant.com, May 7, 2009.

Mohegan Sun Fights Back Against Possible Smoking Ban

The chief executive officer of Mohegan Sun urged state lawmakers Tuesday to kill a proposal that would compel the two tribally owned casinos in Connecticut to ban cigarette smoking by 2011, saying the resulting drop-off in business would cost the state millions in slot revenues and lost jobs.

“We are now competing directly with thousands of slot machines in neighboring states,” CEO Mitchell Etess wrote to the leaders and members of the legislature’s Finance Committee, which received the bill Tuesday morning, when it was referred from the House floor. “Patrons who smoke will take their business to other states, if a ban is approved in Connecticut, and revenues could drop up to 20 percent. There will be layoffs, and a cascading loss of business to us and our vendors.”

Etess pointed to the examples of Illinois and Delaware, where the imposition of smoking bans cut casino business by 17 percent and 19 percent respectively, and also backed his conclusions with a new analysis from the Connecticut Economic Resource Center.

For the complete story, please see Ted Mann, Mohegan Sun CEO asks legislators to kill casino smoking ban bill, TheDay.com, May 6, 2009.

Sides Battle Over Potential Tribal Casino Smoking Ban

A second legislative committee has approved a bill extending the state smoking ban to Connecticut's two tribally operated casinos, though the proposal's chances of becoming law remain unclear.

The Government Administration & Elections Committee voted 8-3 Monday to pass legislation that would remove the exemptions from Connecticut's bar and restaurant smoking ban for the two casinos. The bill, which has already triggered a threat of legal action from tribal officials, was previously approved by the Public Health Committee, 28-2.

The second committee vote went down on party lines — Democrats supporting the measure, Republicans opposing it — with one legislator, Rep. Andrew Fleischmann, D-West Hartford, abstaining.

But despite the handy committee victory for supporters of the effort, doubts remain among legislators about the attempt to force the smoking ban on the Mashantucket Pequot and Mohegan tribes, which operate Foxwoods Resort Casino and Mohegan Sun, respectively, as well as the potential cost.

The tribes have long held that such a move by the legislature would violate their rights as sovereign entities, and Mohegan Tribal Chairman Bruce “Two Dogs” Bozsum has warned legislators that passage of such a law will trigger a long and costly court battle, during which the tribe would withhold its current payments to the state of 25 percent of the take on the casino's slot machines.

For the complete story, please see Ted Mann, Second committee approves proposed casino smoking ban bill, TheDay.com, April 20, 2009.

Smoking Ban Battle Heats Up at Mohegan

We've talked before about the possibility of smoking bans eventually spreading to tribal casinos. Here's an excerpt from an article discussing the upcoming battle taking place in Connecticut.

From Indian Country Today
"The Mohegan Tribe has threatened to withhold millions of dollars of slot revenues and sue the state all the way up to the United State’s highest court if the legislature passes a bill banning smoking in Connecticut’s two Indian casinos.

Mohegan Tribal Chairman Bruce “Two Dogs” Bozsum and Mohegan Attorney General Helga M. Woods wrote letters to Gov. Jodi Rell and Attorney General Richard Blumenthal March 25 saying the proposed bill violates tribal sovereignty, is unconstitutional and a breach of the tribal-state gaming compact.

The letters were in response to House Bill 5608, titled “An Act Concerning the Issuance of Liquor Permits to Casinos that Permit Smoking in Such Premises.” The bill would essentially hold the casinos’ liquor licenses hostage by refusing to renew the permits unless the tribes sign an agreement with the governor to totally ban smoking from their facilities. The bill was initiated by Blumenthal in February.

Both the Mohegan Tribe and the Mashantucket Pequot prohibit smoking in around 90 percent of their facilities and have installed state-of-the-art ventilation systems in the restricted smoking areas of their casinos."

For the complete story, please see Gale Courey Toensing, Mohegan promises smoking ban battle all the way to high court, Indian Country Today, March 31, 2009.

Smoking Ban Update (Friday)

The Latest:

Our sources are at the Capitol are telling us to expect nothing new to happen this week (only today left anyway)and they are doubtful that anything will happen next week as well. Of course, this is politics and things often surprise us.

The House wants their smoking ban exemptions for casinos, bingo halls, and private clubs to remain in place, while the Senate wants no exemptions. At the moment, both sides seem firm in their positions.

Smoking Ban Update

Will Michigan bingos, private clubs, and non-native american casinos be exempt from a smoking ban? Stay tuned as we are hearing new information (and usually conflicting information) all of the time.

The latest from the Detroit News:

LANSING -- House Democrats are scrambling to decide how they will handle surprise Senate-passed legislation that broadens their own ban on smoking in restaurants, bars and other workplaces.

The Senate version, passed last week, prohibits smoking indoors, including cigar bars, bingo parlors and Detroit's three casinos -- three places exempted from a no-smoking bill the House approved in 2007. Some members of the Detroit delegation in the House and the bill's sponsor, Rep. Brenda Clack, D-Flint, still prefer the exemptions, especially those for the casinos.

For the full story, please see Gary Heinlein Smoking ban vote delayed, Detroit News, May 15, 2008.