Louisiana regulators say $104 million in revenues and state fees might be lost over two years from Harrah’s casino, a horse racing track and video-poker halls if New Orleans enacts a widespread ban on smoking.
After the New Year, the City Council will debate a proposed ban on smoking in public places. The Associated Press says among those most affected would be the city’s gambling houses, which include a Harrah’s casino outside the French Quarter, a horse racing track and many video poker halls.
The lost revenue estimates were presented today by the Louisiana State Police, the agency that oversees gambling in Louisiana. The proposed ban has divided opinions in this city famous for its tolerance and lax vice laws.
Jeff Traylor, the audit director for the state police’s Gaming Enforcement Division, says the Louisiana estimates were based on a PriceWaterhouseCoopers study of the effects of smoking bans in Delaware and Atlantic City, New Jersey. According to Traylor, PriceWaterhouseCoopers estimated a decrease of 12% in revenues in Delaware for the first year after a smoking ban and a 20% decrease in profits in Atlantic City over a two-year period.
Drawing from those calculations, Traylor estimates revenues in New Orleans from gambling could be expected to decline by $86.4 million and fees paid by gambling establishments to the state could drop by $17.4 million over a two-year period following a ban. Read the full story.
