CCSNJ Opposes Full Smoking Ban in Casinos
Tuesday, March 10, 2009

MEMORANDUM

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

FROM: Debra P. DiLorenzo, President & CEO

RE: S-236 (Turner/Vitale)

DATE: March 10, 2009

The Chamber of Commerce Southern New Jersey respectfully opposes S-236 (Turner/Vitale), which eliminates the smoking ban exemption for casinos and simulcasting facilities. The Chamber represents 1,700 companies from the seven southern counties, Philadelphia and northern Delaware, including New Jersey’s eleven casinos.

The casino industry is to Southern New Jersey what the pharmaceutical industry is to our Northern New Jersey brethren. However, the casino industry, like many other industries involving the spending of discretionary income, has experienced unprecedented declines in revenues over the past two years and into this year to date. These declines are attributable to the global economic crisis and competition from Pennsylvania. Pennsylvania and Connecticut, which are two of New Jersey’s gaming industry’s prime competitors, permit smoking in their casinos. If New Jersey were to ban smoking in its casinos, the state would find itself at significant competitive disadvantage.

Currently, New Jersey’s casino industry employs approximately 38,000 individuals directly and another 20,000 indirectly generated by the purchases of goods and services, which is down from 41,000 and 21,000, respectively in 2007. The impact of declining casino revenues is real and the Chamber believes it is vital for policymakers to do everything in your power to bolster the economy – not hamper it further, with legislation like S-236 (Turner/Vitale).

The economic reality is that every other state that has enacted a smoking ban has suffered an immediate 15% - 20% of revenue decline. In Atlantic City, this could mean that many more employees of the casino industry and of businesses that serve the casino industry may lose their jobs and benefits if New Jersey moves to a 100% smoking ban. In addition, tax revenues will also be impacted, negatively affecting our State budget, which is facing a $2.8 billion shortfall. While some employees would prefer to work in a non-smoking environment, many employees are in favor of continuing to allow smoking given the jobs and income that are derived from the revenues that smoking customers generate, much of which will dissipate if smoking is excluded. In fact, Local 54 Leadership, who has a fiduciary duty for the welfare of its thousands of members, has forcefully argued against a full smoking ban.

Make no mistake about it, when the gaming industry in Atlantic City suffers, all of New Jersey suffers. The Chamber respectfully urges the Committee to withdraw consideration of a full smoking ban. Moving forward with legislation such as S-236 (Turner/Vitale) sends a poor message about the State’s willingness to position itself for economic recovery. Thank you for your consideration and the opportunity to present our Chamber’s views on this bill.