Smoking ban takes a toll on US casinos’ revenues

LAS VEGAS: Smoking bans are snuffing out casino revenue, but more marketing and investment can lure customers back, a panel of experts told a gambling conference.

Since the Canadian province of Ontario imposed a smoking ban in public places in May, casinos along the border with the United States have suffered a revenue drop of 10% to more than 20%, said Ontario Lottery and Gaming vice-president Karl Gagesch.

“Short-term pain,” Gagesch told the conference on Tuesday. “Long term, we think we’re going to be OK.”

The largest impact has been at Casino Windsor, which laid off more than 300 employees over the summer as American smokers stayed in Michigan and New York to gamble, he said. Visitation was also hurt by a strong Canadian dollar and tougher border security, he said.

Gagesch said the province hopes a $400m refurbishment plan for casinos along the border will help reverse the trend. Casino Windsor also began allowing sports betting in September to compete with Detroit casinos, which can’t match the offering.

“The overall plan there is to create different reasons for American customers to come over the border,” he said. —