Illinois Travel and Casino Industry Affected by Smoking Ban
Casinos in Aurora, Illinois, as well as those in East St. Louis, Joliet, and Alton claim that revenue is down; some showing decreases of nearly 19%. With the economy in shambles and the new smoking ban that took effect on the first day of 2008, even the rest of the state’s business owners are unsure of what to blame the lack of business on. Some claim that the reduced patronage is due to the smoking ban, while others swear that it is being caused by the horrible economic downturn. The truth is that it is likely a combination of both.
The casinos in Aurora, Illinois were showing a decline in patronage, as were Illinois casinos all across the board. The two casinos located closest to Missouri competitors, the Casino Queen and Argosy Casino Alton, were recently praying that Missouri voters wouldn’t pass Proposition A, which involved abolishing the loss limit for individuals entirely. However, Proposition A passed at the end of 2008 and Missouri casinos began raking in the customers that could no longer smoke their cigarettes in Illinois establishments. The result? Additional lost revenue for the casino and for the state.
Hollywood Casino in Aurora, Illinois, which is owned by Penn National Gaming Company, provided nearly $3 million less in tax revenues for 2008 when compared to the previous year and other Illinois casinos are comparable.
The fact is that with the majority of the Illinois casinos being located so close to the borders of Indiana, Missouri and Iowa – states that do not have any ban on smoking – it is difficult to compete. The once loyal patrons of the Illinois casinos are now turning their backs on them in order to enjoy their rights as a smoker.
Not only is this affecting the overall income for the casinos, it is also direly affecting the tax revenue that the State of Illinois receives. What this means is that the hundreds of programs that are funded by the state’s tax dollars are going to see a huge decrease in funding; especially the funds for education, since these have become almost solely funded by casino and lottery tax dollars. The municipalities that these casinos reside in will also see a decrease in funds; causing there to be less gambling money for the streets departments, city government and parks departments.
With high hopes, the casinos in Aurora, Illinois as well as those across the entire state are currently in the process of discussing a change in the law that might allow gamblers to smoke on the gaming floor once more.
