Casinos In South Dakota Use Smoking Ban As Crutch For Revenue Loss

In South Dakota, gambling revenue was down in Deadwood in January. Casinos in the area blamed not only the inclement weather, but also a smoking ban that went into effect for the drop in revenue.

Around the US, smoking bans have been blamed in many states for decreased gaming revenue. In most cases, the economic recession of 2008 had more to do with the revenue loss than the smoking bans, but casinos were quick to point the finger at the smoking laws.

In Deadwood, revenue was down almost fourteen percent in January from the same period the previous year. The two things that changed in 2011, outside of the economy, were the smoking ban and massive snowstorms that hit the area.

The weather has played a part in casinos revenue dropping all across the US. Snowstorms have ravaged much of the Northeast and many states in the Midwest. In South Dakota, Deadwood officials asserted that the weather was the worst on the weekends, the main time for gambling in the state.

"Obviously the smoking ban has an effect," said Deadwood Chamber of Commerce Director George Milos. "but it seems to only snow on the weekends this winter, and when you have several weekends in a row with hazardous travel advisories and winter storm warnings, it really has a negative effect, because weekends are our bread and butter in the winter."

Deadwood casinos have been struggling for several months, and the casinos themselves see much bigger problems than just the smoking ban or the weather. It is getting to the point where casinos are starting to cut their costs by laying off employees.

The casinos believe, however, that they will rebound in the summer. Traditionally, casinos in South Dakota do better in the summer months when the weather is warmer and more residents are leaving their homes and heading to the gaming facilities.

February 27, 2011
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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