Paul Szydelko
Casinos will remain among the last indoor public places to permit smoking for the foreseeable future after concerted efforts to nudge the venues to consider nonsmoking policies failed recently.
Shareholders of publicly traded casino companies Caesars Entertainment, Bally's Corp. and Boyd Gaming all overwhelmingly voted against proposals to at least study potential cost savings from implementing smoke-free policies.
Nonprofit health care company Trinity Health used its status as a shareholder in Caesars and the other gaming companies -- it owns a very small fraction of shares -- to propose commissioning research. Trinity and the Americans for Nonsmokers' Rights Foundation argued that the gaming companies could face risks from indoor smoking, such as higher employee health insurance premiums, higher maintenance costs and deterring potential customers who don't want to breathe second-hand smoke while they gambled.
The boards of directors at Caesars, Bally's and Boyd fought to keep the proposals out of the proxy materials distributed to shareholders. The Securities and Exchange Commission denied the casinos' requests, and the votes moved forward.
Caesars' board opposed the proposal, arguing that studying nonsmoking policies would not be an effective use of company resources. "We take the health of all our customers seriously, and when we allow smoking in certain designated areas of our properties we also take steps to help protect the health of our nonsmoking customers," the board wrote in its statement to shareholders.
More than 81% of votes were cast against the proposal at Caesars' annual meeting this month, according to results published in an SEC filing.
Nonsmoking advocates' efforts at Boyd played out in a similar way on May 9 when more than 63.5 million votes were cast against the proposal and only 18.5 million votes in favor during its annual shareholder meeting, according to the company's SEC filing.
In its SEC report, Bally's said almost 24 million shares voted against the proposal while more than 3.1 million shares favored the smoking study. Since the vote passed the 5% threshold required for a proposal in its first year, the issue can be brought back for a vote at both Bally's and Boyd's shareholders meetings next year.
After the Boyd vote, Cynthia Hallett, CEO of the Americans for Nonsmokers’ Rights Foundation, said in a statement that advocates were gratified the proposal found support from more than 22% of that company’s voting shareholders.
"We’ve established an incredibly strong foundation from which to build,” Hallett said. “Most proposals don’t even make it to a vote, let alone reach double-digit-level support. With this issue now reaching the boardroom, companies cannot hide from this important matter that affects the health and well-being of their employees and guests.”
Park MGM the lone nonsmoking haven
Cigarettes and cigars have long been a part of the gambling scene, and smoking has been allowed in Las Vegas' casinos from the start. Most areas in Nevada hotels, including restaurants, showrooms and convention areas, have been smoke-free since 2006.
Several casinos offer smoke-free zones on its gaming floors, but Park MGM remains the only major casino resort on the Las Vegas Strip that prohibits smoking in all indoor areas, a policy it implemented coming out of the pandemic-induced closure of the property in 2020.
All its rooms, suites, casino, restaurants, bars, convention center, entertainment areas, corridors, common areas and pools are nonsmoking. Smoking tobacco products, vaping and e-cigarettes are allowed only in designated areas on the property.
"Here at Park MGM, we're not afraid to be different and, as you may have noticed, we're all about what's fresh. Now, that includes the air you breathe," it promotes on its website. "Whether you come to play, party or relax, your time with us will be free of smoke -- and anything but stale. From your room to the casino floor, to the pool and beyond, clean air is not an oddity or luxury, it's a given."