Illinois Casinos Fail to Hit Jackpot Due to Smoking Ban

With Illinois’ casino revenues already down this January compared to the same month a year ago, gambling industry officials say the new statewide smoking ban could be at least partly to blame.

“We predicted there would be losses and it seems like our predictions are coming true,” said Tom Swoik, executive director of the Illinois Casino Gaming Association , a not-for-profit organization representing eight of the nine riverboat gaming operations in Illinois.

The sharp drop in the state’s casino take, down 17 percent, from $159,268 in January 2007 to $131,465 in January 2008, was additionally accompanied by a loss of 100,000 patrons statewide.

The Smoke Free Illinois Act went into effect on January 1, 2008.  It makes smoking illegal in nearly every public place and requires smokers to move at least 15 feet away from a building entrance, windows that open and ventilation intakes.

Chicago resident Abby Abraham, 27, who goes to casinos every couple of months, said the smoking ban has influenced where he decides to gamble.

“Well, personally smoking affects my nerves, and I believe I play better when I smoke at the table than if I go outside,” said Abraham, who now travels to casinos in Indiana where he can still smoke. “It’s not like Indiana is far away.”

Casinos in Illinois’ neighboring states seem to be benefiting from the smoking ban along with the Hoosier state boat Abraham now visits.

For example, adjusted gross revenues on the Illinois border at the Isle of Capri Casino in Bettendorf, Iowa are up compared to January 2007, according to Iowa Racing and Gaming numbers.

Swoik also says smokers still visiting Illinois casinos do not spend as much money, because they waste time smoking outside.

“People go outside and smoke, and they stay out there,” said Swoik, “Every time they smoke is time away from the tables and slot machines.”

The numbers are also down so far for February, but not as much as for January, said Swoik, who acknowledged other factors including the weather could have played a role in the declining visitors and revenue.

The smoking ban has Illinois casinos reacting in different ways.

At Harrah’s Metropolis Casino in Metropolis in downstate Massac County, the casino announced this month it would lay off 30 employees. The Empress Casino in Joliet is touting its climate-controlled smoking locations.

The Illinois Department of Revenue predicted the Smoke Free Illinois Act would have some financial drawbacks for the state. The Act would reduce tax revenues collected under the Cigarette Tax Act and the Cigarette Use Tax Act by approximately $24 million to $60 million per year and would reduce Retailers’ Occupation Tax and Use Tax Revenues by approximately $3.5 million to $8.5 million per year, according to a fiscal note in the Act.

Swoik said the Illinois Casino Gaming Association was trying to find a way to let smokers light up in Illinois casinos.

“We’re still working on trying to get an exemption,” said Swoik.