Harrah’s New Orleans Hotel and Casino reported a 30% drop in its June revenue. The venue’s General Manager attributed the considerable decrease to the indoor smoking ban the city imposed back in April.
Harrah’s New Orleans posted revenue of $20.7 million for June compared to the $30 million generated during the same month a year ago. Generally speaking, the monthly figures depend primarily on weather conditions, the number of winners during the reviewed period, etc. However, Dan Real, General Manager of Harrah’s New Orleans, pointed out that the full smoking ban was what affected the June revenue most.
As mentioned above, a citywide ban on smoking at bars and gambling venues was imposed on April 22, 2015. Back then, Harrah’s New Orleans officials predicted that revenue would drop more than 20% due to this. They also claimed that this would therefore have a negative impact on the taxes contributed to the state.
As Mr. Real noted himself, the ban led to players going to riverboat casinos where smoking at slot machines and gaming tables is permitted. On the other hand, the executive pointed out that the non-smoking portion of their visitors was happy with the restriction.
Mr. Real and other officials from Harrah’s New Orleans turned to the city and the state Legislature, calling for an exemption from the ban or at least for being allowed to take certain measures that would help them prevent further drops in revenue.
For example, they suggested the creation of enclosed smoking rooms within the premises of the casino. Thus, players will not have to leave the property in order to puff a cigarette. In addition, casino officials hinted that they would like to move the property into business activities different from gaming.
However, both proposals would need an approval from city officials and certain changes in the current regulations to be implemented.
Harrah’s New Orleans also asked to be granted flexibility on the casino workers it employs. Under the current law, the property must hire no fewer than 2,400 people. Earlier this year, the casino asked legislators to be allowed to cut 400 jobs through attrition. However, the necessary changes in the regulations were not made by the end of the legislative session.
Harrah’s New Orleans said that it would seek for due measures to be taken in 2016. According to casino officials, this would provide the financial relief the property needs after the introduction of the smoking ban.
