Earlier today, Alexis Tam Chon Weng, currently taking the position of a Secretary for Social Affairs and Culture in Macau, announced that the local government will certainly propose a full smoking ban within the premises of casinos.
This means that smoking will no longer be allowed in VIP rooms and the special smoking lounges, set up for mass players on the main floors of the gambling venues.
As Mr. Tam shared, the local regulator will probably prepare an amended bill within the first six months of 2015. Then, it will be submitted to the Legislative Assembly. However, the proposal is not particularly likely to pass before the end of this legislative year, which is set to end on August 15.
Mr. Tam stated that he expects for the debate over the new smoking regulation to last for quite some time. He also pointed out that the decrease in gaming revenue, that Macau is currently facing, will not affect the government’s determination to implement a full smoking ban in local casinos and slot parlors.
Earlier this week, Macau’s largest labor union made an announcement that it would start a campaign for the implementation of a complete smoking ban within the premises of gambling venues, based on the territory of the administrative region.
On October 6, 2014, the local government implemented certain rule changes, which stated that smoking on the main floors of gambling venues will only be allowed within enclosed lounges that do not feature slot machines or gaming tables. VIP players, however, are still able to smoke in the rooms that are intended for them. Some gambling venues were even reported to have converted their premium mass areas into VIP rooms, so as for players to be able to smoke.
Karen Tang, an analyst for Deutsche Bank AG, said in a special note that mass gaming revenue has fallen by 15% after the ban came into effect back in October. She also pointed out that if the new regulations cover VIP rooms, as well, VIP revenues will most certainly be affected in a negative manner.
Mr. Tam, who is in charge of Macau’s Health Bureau, shared that the new bill will also entail more sizeable fines for violations of the smoking ban. An increase of the tobacco tax will also be discussed by local officials.
Robert Goldstein, the current president and COO of Las Vegas Sands Corp., was asked to comment on the effects that a full smoking ban might have on the gaming industry in the administrative region. Mr. Goldstein said that these changes might not be good for the business. Yet, the company will comply with the law.
