As times get tougher for the gaming industry and others, it’s possible to see U-turns in various states when it comes to anything that may affect gaming tax revenue and/or jobs. Atlantic City has already repealed its total smoking ban in casinos after operators complained that patrons were defecting to places such as Pennsylvania where there are no smoking bans. Atlantic City gaming revenue has been hard hit by higher fuel prices and the uncertain economic future.

In Montana a bill has been introduced to exempt bars and casinos from the smoking ban passed in 2005 and due to go into effect next year. It is expected that a smoking ban would mean less customers and the loss of profits. Businesses would have until June 2009 to apply for exemption. In Nevada there is no smoking ban to repeal in order to boost gaming revenue at casinos, so instead legislators are toying with the idea to reduce the gambling age to 18. Visitor numbers to Las Vegas are down 10% on this time last year.

The economic downturn and increased competition from neighbouring states may finally bring sports betting to Delaware. The state was one of four given exceptions to the congressional ban on sports betting in the 90s but has never implemented its right. Maryland has just voted to allow five slot machine operations, something that in due course will impact on the three Delaware racinos because at present around 50% of customers come from Maryland. Sports betting could bring a new lease of life to gambling in the state.

Lower gaming tax revenues will hit many state budgets but lower casino revenues are expected to hit charities also. Casinos are often major supporters of charities in their local area as a means of fostering community relations. With the gaming industry facing job losses and decreasing profit margins, everyone with a stake in gambling revenue is looking for solutions that could minimise falling returns. (E-11.26.08)

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