.jpg)
After failed efforts to ban smoking in casinos via the courtroom and in some state legislatures in recent years, anti-smoking advocates are now asking shareholders to help lead the charge.
The American Nonsmokers’ Rights Foundation and Trinity Health recently filed shareholder resolutions asking Wynn Resorts, Boyd Gaming, Caesars Entertainment, Bally’s Corp., and Penn Entertainment to study the economic benefits of creating smoke-free casinos.
Anti-smoking advocates in New Jersey tried to change the policies in Atlantic City casinos. But the state’s Supreme Court rejected the issue, and anti-smoking protests failed to get lawmakers to pass legislation.
Now, the ANRF is taking a different approach. The group first launched the proposals last year and, according to the ANRF, 60 million shareholders voted in favor.
“There are clear business risks to allowing indoor smoking in casinos, including higher health insurance premiums, higher maintenance costs, and a significant deterrent to potential visitors due to secondhand smoke exposure,” ANRF President and CEO Cynthia Hallett said in a press release.
“Last year’s success demonstrated that investors are increasingly interested in understanding the financial and business implications of smokefree policies. We are encouraged by the strong support we’ve received from shareholders and look forward to engaging with more companies this year. The continued investor interest signals a growing recognition that casinos should, at the very least, study the costs of indoor smoking on employee morale, guest satisfaction, and overall profitability.”
Group Pushes For Corporations To Study The Issue
Wynn, Boyd, and Caesars attempted to omit the proposals from annual shareholder meetings, but the Securities and Exchange Commission ruled that they must be heard. Votes will begin on April 30 and run into May and June.
ANRF officials argue that reviewing smoking policies simply makes business sense. They believe there may be an opportunity cost for casinos allowing guests to light up.
“These proposals are about due diligence,” Trinity Health director of socially responsible investments Cathy Rowan said. “Companies study all kinds of operational risks — indoor smoking should be no different. By evaluating the financial impact of smokefree policies, casino operators can make informed decisions that reflect long-term shareholder value. We’re not telling them what the outcome should be – we’re saying it’s time to look at the numbers.”
Anti-Smoking Advocates Point Towards Declining Revenue
While some casino workers and legislators have supported previous attempts to ban smoking, others have pointed to the potential loss of customers and jobs that the move might bring. This comes as New Jersey casinos have seen decreased revenue over the last year.
“As lawmakers continue to proceed with the annual state budget process, representatives in the New Jersey Legislature must understand the perilous economic situation at hand for my members, and indeed all workers in Atlantic City,” Unite Here Local 54 President Donna DeCaprio said earlier last year. The union represents Atlantic City’s largest group of casino workers.
“Not only is the overall in-person revenue troubling — but the size of the declines at some of the individual properties portends some serious instability for thousands of workers. The legislators need to take this into consideration as they consider policies that could compound the downward trends.”
Efforts to ban smoking in casinos were also recently launched in Kansas and Missouri.
