2008
They say the tribe operations would get the customers
A smoking ban approved by the Michigan Senate that includes casinos could keep gamblers away in Detroit, and gives an unfair advantage to casinos operated by tribes, casinos officials and observers said.
But the proposed ban was welcomed by Caesars Windsor officials, who said a similar government edict against smoking in Ontario moved many of its customers to Detroit’s three casinos.
“There have been smoking bans around the country,” said Lansing gaming consultant Jacob Miklojcik. “There is a definite impact, and it’s not irrelevant.”
Delaware and Windsor have banned smoking, and casino revenues there have suffered, Miklojcik said.
How much it hurts casinos depends on where smokers come from and whether nearby casinos ban smoking, he said.
Outstate casinos operated by tribes in northern Michigan and the Upper Peninsula would not be covered by the proposal.
“It only takes one person in a group in a car who wants to smoke to make a difference,” he added. “They’ll go somewhere else.”
MGM Grand Detroit Chief Operating Officer Lorenzo Creighton said a ban would create an unlevel playing field because tribal gaming operations do not have to be subjected to such bans.
“It’s one of those things that we in the industry wish wouldn’t happen because it could be costly to us,” Creighton said. “It can hit us 10-plus percent in revenue. You know what that means for taxes. We’re not in this alone.”
Greektown Casino spokesman Roger Martin said he would have no comment until Greektown has a chance to review the bill.
MotorCity Casino officials did not return calls for comment.
Detroit’s casinos have small nonsmoking areas.
Caesars Windsor spokeswoman Holly Ward said she likes the idea.
“In any competitive market it’s always advantageous to have more of a level playing field,” she said.
Ontario enacted a ban on workplace smoking in 2006 that included Casino Windsor, now Caesars.
Casino revenues suffered, and management blames smoking among other factors such as construction on the gaming floor, escalating gas prices, a falling exchange rate and border issues.
“It was really hard for us to divide things out because they were all happening at the same time,” Ward said.
Ward said the casino has high hopes for a comeback as it opens its revamped Caesars facility on June 19.
Gamblers interviewed near Greektown were split.
Dan Smith, 45, of Sterling Heights said he does not support the ban.
“Bottom line is, I smoke,” he said. “I don’t see the benefit.”
Other gamblers were more supportive.
“I won’t have to inhale all that secondhand smoke,” said Diane Smith, 55, of Detroit. She added that she more than likely will go gambling more if it passes.
Stephen Balbach, 59, of Frankenmuth agreed.
“Smoking to me is disrespecting the nonsmokers,” he said. “Why should we take the risk of getting lung cancer just to have a good time?”
Other casinos have fought such bans.
Donald Trump, who owns three Atlantic City casinos, called on the city’s casinos to sue over a smoking ban that takes effect Oct. 15, arguing that it creates a competitive disadvantage.
Trump argued that slot parlors in Philadelphia, which permit smoking while gambling, had been stealing Atlantic City’s most profitable customers.
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