M E M O R A N D U M

TO:                       Members of the Senate Health, Human Services and Senior Citizen Committee

FROM:                Christina M. Renna, President & CEO, CCSNJ

RE:                        S-264 (Turner/Vitale)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our opposition to S-264 (Turner/Vitale), which eliminates the smoking ban exemption for casinos. Current law prohibits smoking in most indoor public places, with certain exceptions, including casino facilities that are accessible to the public for wagering.  As written, this bill would eliminate these exceptions from the smoking ban.

               The CCSNJ understands and appreciates the health and wellness concerns that have been raised by casino employees. However, we believe strongly that timing is everything, and now is not the right time to pass this legislation which has the potential to have a devastating impact on the South Jersey economy.

The casino gaming industry remains a, if not the, leading industry in the region with more than 21,000 workers employed by Atlantic City casinos, of which over 20,000 live in the seven most southern counties of New Jersey. As a result, anything that could put the success of New Jersey’s casinos in jeopardy must be considered with an eye towards future job losses and an overall regional economic downfall should the casinos decline or fail.

               South Jersey was hit particularly hard during the COVID-19 pandemic and is still struggling to recover. At the height of the pandemic, New Jersey’s brick-and-mortar casinos were closed for an unprecedented 108 days. During this time, New Jersey lost millions in revenue and thousands of workers were laid off, putting a massive dent in the state and regional economy.

Casinos have still not fully recovered from the impact of the pandemic. According to the Third Quarter 2023 numbers released this month by the state Division of Gaming Enforcement, net revenue for casinos in 2023 was flat compared to last year and the year prior. Additionally, the decline of gross operating profit was likely due to the overall increase in the cost of doing business amid local and regional competition. It is the in-person gamblers who visit that do far more than gamble - they also shop, dine and stay, which supports additional jobs in restaurants, hotels and retail stores in casinos and around Atlantic City. A decline in visitors who come to Atlantic City to gamble will not only impact casino workers, but will also have an undoubted ripple effect on these other industries. To that end, a study done by Spectrum Gaming Group estimated that a smoking ban could lead to a loss in total taxes of between $17.2 million and $44 million, and potentially 2,500 fewer jobs.

The CCSNJ believes that gamblers will leave Atlantic City for casinos where they are permitted to smoke, as has been seen in other locations that have implemented a full smoking ban. For example, Harrah’s New Orleans saw its revenue decline 20 percent after the city-instituted a smoking ban in April of 2015.

There are 32 casinos operating within a 150-mile radius of Philadelphia — some of which do not have full smoking bans. In Philadelphia, certain casinos have reversed full smoking bans, leaving only two casinos in Pennsylvania completely smoke free. With these nearby casino options, gamblers who prefer to smoke can easily go to another location where smoking is permitted.

In a New York Times article on this topic, multiple gamblers stated they prefer to play and smoke, with one person saying he visited Atlantic City less because he could not smoke in certain areas of the casino. Another contributor to the article, who stated she prefers smoking and gambling to relax, lives in Somers Point, New Jersey. She would only need to drive an additional 40 miles, which would take approximately 35 more minutes than a trip from Somers Point to Atlantic City, to visit Live! Casino & Hotel in South Philadelphia, where smoking is still permitted in designated areas. This underscores the ease in which South Jersey-based gamblers can move to a casino outside of Atlantic City, should smoking be banned.

The CCSNJ appreciates the Legislature’s thoughtful actions post-pandemic, adjusting previous laws to fit into a post-pandemic world. Casinos have also adjusted, investing in state-of-the-art air handling systems that provides an air change rate that is 200 percent better than a typical retail building and 400 percent more outside air than a typical retail building. This was done to assure the constant circulation of air and that air quality is at its peak at all times while inside a casino.

Casinos are an economic engine in South Jersey and the entire state. With the region still recovering from the pandemic and the risk of a recession looming, now is not the right time to consider a change that could cost thousands of South Jersey jobs.

For these reasons, the CCSNJ respectfully opposes S-264 (Turner/Vitale).