• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Shareholders push casinos to reassess indoor smoking
Editor's Pick

Shareholders push casinos to reassess indoor smoking

by May 10, 2024
by May 10, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

A new strategy has emerged in the battle to ban smoking in casinos: the shareholder vote.

Shareholders at Boyd Gaming, Bally’s Entertainment and Caesars Entertainment will put on the ballot at the respective casino companies proposals to force them to study the costs associated with permitting smoking indoors — and whether going smoke-free could save money.

The proposals are sponsored by Trinity Health, a nonprofit health care network, and the Americans for Nonsmokers’ Rights Foundation. Trinity Health, based in Livonia, Michigan, has used its shareholder status to fight for various health initiatives despite the fact that it owns just a tiny fraction of these companies. For example, public records show Trinity owns just 440 shares of Bally’s stock, or about 0.001% of the company.

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

Boyd will face a vote over a smoke-free assessment at its annual shareholder meeting Thursday. Bally’s holds its annual meeting on May 16, and Caesars will follow with its own meeting, likely in June.

The three companies collectively operate 75 U.S. casinos that permit indoor smoking, where state law allows. About 14 states permit indoor smoking in commercial casinos.

States like Nevada and New Jersey have prohibited indoor smoking more broadly but carved out exceptions for casinos. Legislation to end indoor smoking at casinos is in various stages in several states across the country, including New Jersey, Pennsylvania and Rhode Island.

Advocates for smoking bans point to research by C3 Gaming that concluded smoke-free casinos generate more revenue and outperform competitors that allow smoking.

Proposal sponsors argue shareholders should know how much casinos pay in higher health insurance premiums for employees, greater maintenance costs and keeping away customers who hate the smoke.

In its proxy, Boyd argues it’s seen a negative impact in states that banned indoor smoking. It argues these decisions are best left up to the properties to follow local trends and says if shareholders succeed in implementing a ban (which Boyd claims is the true goal in forcing an assessment), the company will lose customers to competitors who continue to allow smoking.

Caesars board member Jan Jones Blackhurst said Wednesday at the SBC Summit North America, an online gaming conference, that she believes the decision of whether to ban smoking in casinos should be left up to governments. She pointed out that experience has shown that smoke-free casinos can take an economic hit.

“Generally, if you look across the United States, when casinos prohibit smoking, revenues fall anywhere from 20% to 25%, which also then have a huge layoff factor with people starting to lose their jobs,” she said.

Unions are mixed in their responses. While some worry about the potential of job losses, the United Auto Workers, which represents more than 10,000 table game dealers across the country, has ramped up its efforts in the fight against in-casino smoking, citing secondhand exposure for employees.

The Centers for Disease Control and Prevention says “no amount of exposure to secondhand smoke is safe and the only way to fully protect nonsmokers from secondhand smoke is through 100% smoke free indoor air environments.”

The U.S. surgeon general says that many common practices found in casinos such as separating smoking versus non-smoking sections, cleaning the air and ventilating buildings are not effective protections against secondhand smoke.

Casino operator Parx, which runs locations in Pennsylvania, decided to stay smoke-free during the Covid pandemic at its property in Bensalem, north of Philadelphia. It competes with four other local casinos that allow smoking indoors but said it hasn’t seen its market share suffer.

“Financially, we know we’ve lost some customers, but we also know we’ve gained some customers. We don’t think we’ve seen a significant impact either way,” Parx spokesperson Marc Oppenheimer told CNBC.

Instead, the company said it focuses on guest satisfaction scores and surveys that indicate a boost to employee morale.

In Las Vegas, MGM Resorts opened the first casino resort on the Strip to prohibit indoor smoking and even smoking on the pool deck. On its website, the property declares, “Here at Park MGM, we’re not afraid to be different and, as you may have noticed, we’re all about what’s fresh. Now, that includes the air you breathe.”

For now, Park MGM is the exception, but smoke-free advocates hope soon, it’ll be the rule.

This post appeared first on NBC NEWS
You Might Also Like
  • Comcast to bundle Peacock, Netflix and Apple TV+ at a ‘vastly reduced price’
  • Tariffs would be ‘catastrophic’ for sales of tequila and mezcal, industry group says
  • FAA increases oversight of Boeing 737 Max 9 jets after Alaska Airlines near-disaster
  • Home price growth is back at pre-pandemic levels. Here’s what that means for buyers and sellers.
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Investor convicted in Trump Media insider trading case
next post
Six Leaders, but One Is Getting Real Frothy

You may also like

A U.S. construction boom is sending rents lower and creating...

August 14, 2024

Boeing, NASA say Starliner astronaut launch will move forward despite...

May 26, 2024

Amazon.com’s Ring will pay $5.8 million after employees spied on...

June 2, 2023

Federal Reserve raises interest rates to 16-year high as fight...

May 6, 2023

U.S. gas prices are likely to keep falling despite the...

October 14, 2023

From department store to ice rink: How shuttering Macy’s will...

August 13, 2024

Deutsche Telekom and T‑Mobile US introduce Network APIs and a...

February 27, 2023

Jenny Craig employees file a class-action lawsuit claiming the company...

May 6, 2023

Overstock.com wins auction for Bed Bath & Beyond’s intellectual property,...

June 24, 2023

Want to bet against Trump Media stock? It’ll cost you

April 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,429 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Ford to spend $3 billion to...

    July 18, 2024

    Private payroll growth slowed to 122,000...

    July 31, 2024

    Dick’s Sporting Goods to buy struggling...

    May 15, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here