After the Louisiana Gaming Control Board released the May casino revenue report on Monday, Harrah’s New Orleans Casino complained that its revenue dropped significantly due to the citywide smoking ban imposed on April 22.
Revenue at the above-mentioned gambling venue decreased 16% year-on-year to reach $24.1 million, although more visitors entered its premises in May 2015. Casino officials also noted that revenue for the last 9 days of April declined 15%.
Jade Brown Russell, a spokeswoman for Harrah’s New Orleans, commented that the casino is currently facing considerable revenue decrease, while venues in neighboring jurisdictions are experiencing record highs. She also pointed out that all gaming segments suffered in May, but revenue from slot machines was hit more severely.
Although Ms. Russell attributed the drop mainly to the smoking ban, she refused to provide more details on how exactly it is affecting Harrah’s business.
In January, the New Orleans City Council voted unanimously in favor of a full smoking ban. Back then, Harrah’s casino officials argued that this would probably lead to a revenue decrease of more than 20%. This is why they requested for visitors to be allowed to smoke in cigar bars within the premises of the gambling venue.
In March, the casino attempted to renegotiate its lease with city officials so as to offset any potential loss in revenue. New Orleans owns the land where the property is located. However, Harrah’s proposal was not welcomed by the city.
When it became clear that New Orleans would not back off from it decision, Harrah’s along with more than 50 other companies started legal proceedings against the city. However, the casino pulled out of the lawsuit, explaining that it wanted to adjust its operations to the new regulation.
The drop in revenue did not come as a surprise, as last December, regulators predicted that Louisiana would lose more than $100 million over the course of the next two years, provided that the ban passed.
Despite the negative effect it seems to have not only on the state gambling industry, but also on its economy as a whole, Mayor Mitch Landrieu’s office and the New Orleans City Councilors are not likely to change their minds. Officials have repeatedly pointed out that the health of both employees and customers is what matters most.
On Monday, Ms. Russell expressed hopes that Harrah’s will be given the chance to eventually renegotiate the ban. Yet, she stated that the gaming facility will keep on complying with the state and city regulations and that it will remain supportive of New Orleans’ policy to look for ways to balance “the fiscal impacts with the public health and safety concerns.”
Harrah’s New Orleans is Louisiana’s only land-based casino. The venue opened doors back in 1999 and spreads over a 115,000-square-foot site. The casino floor offers to visitors more than 20 poker tables, over 100 table games, and 1,700 slot machines. The property also features a 450-room hotel and a number of entertainment and dining options.
