4
DEC

Smoking Ban Kills Las Vegas Bar Business

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LAS VEGAS, NV -- Revenue has dropped at many taverns - as much as 30 percent in some locations - because of a decline in customers, shooed away by the state smoking ban in establishments that serve food.

The prohibition against smoking, which took effect in January, sent gamblers who want to light up while playing slot machines to traditional casinos or one of the few taverns built before 1992 that have 35 slot machines and are exempt because the businesses were classified as casinos.

"There are a lot more challenges for an operator than ever before," said Joseph Wilcock, president of the Nevada Tavern Owners Association.

Wilcock estimates that 75 of the association's roughly 300 members gave up food service to keep their gambling and smoking patrons. Most of the membership, he said, is complying with the smoking ban "but are losing their shirts."

None, Wilcock said, wanted to give up the moneymaking slot machines.

Roger Sachs, co-owner of the three Las Vegas-area Steiner's taverns, said friendly service, good food and a lively atmosphere help keep customers from taking their business to a more traditional restaurant.

Sachs said the gambling devices made Steiner's three locations profitable.

Since January, however, revenues from the slot machines are off 29 percent to 35 percent at each location.

"We probably do as well on food as anybody because that's something we wanted to establish," Sachs said. "But other places might take a monthly loss of $10,000 on food, but made it up with the gaming. That's not the case now because the business is not there."

Herbst Gaming is Nevada's largest slot route operator with approximately 7,200 slot machines in 700 locations throughout the state.

In the third quarter, Herbst said revenues from the company's route operations were $66.1 million in the three months ended Sept. 30, a 21 percent drop over the same period in 2006.

For the first nine months of 2007, Herbst's slot route operations generated $212.5 million, 19 percent less than the same nine-month period in 2006.

"There is no question the smoking ban had a dramatic impact on our route operations and has fundamentally changed the slot route industry," Herbst Gaming President Ed Herbst told gaming analysts following the earnings release.

United Coin Machine, which operates about 6,000 machines in more than 400 locations statewide, is experiencing similar losses in revenue.

United Coin President Grant Lincoln said the smoking ban created an uneven playing field for the tavern operators, who don't have the promotional budgets to match the customer incentives offered by the large casinos.

"There's not a lot we can do," Lincoln said. "As their volume suffers, our volume suffers. The question is, have we truly bottomed out? The smoking issue has been a fairly crushing blow for the average tavern operator."

Dec 04, 2007 12:56 am   Email to a Friend

Comments

huntrer on Jun 05, 2009 2:56 am

I am so sick of all these effing faggots talking about their lungs and their health. go to non smoking places if you dont want to smell smoke. private property is private property and if the owner wants smoking the owner gets smoking. go open your own god darn NPR liberal faggot bar with non smoking

kris on Oct 04, 2008 5:12 pm

Smokers need to just accept the fact that non-smokers are sick (literally) of having our right to breathe taken away from us. There is no such thing as a non-smoking section if there is a smoking section in the same building. Your smoke wanders over, ruining more than just how the place smells and how the food tastes. It ruins our health, as well. If you choose to ruin your own health, you are right in saying that's your business. But who gave you the right to ruin MY health?!? You don't ask for consent or care about how your choices are affecting the people around you negatively.

Saying that smoking bans are akin to burning books or limiting civil liberties is laughable. What those bans are doing is finally recognizing the civil liberties of people who DON'T smoke (which is becoming the majority). If you want to cram into rooms where your cancer-causing, ammonia-ridden, vomit-inducing smoke can't do any damage to the unborn children and other non-smokers around you, have at it. But don't complain to ME, a non-smoker who has had to suck up your side-stream smoke for most of my life against my will.

It's your turn to suck it up.

scott on Aug 03, 2008 12:10 pm

i dont belive that the last great bastion of adult fun has turned no smoking,, this will be the last year my friends and i will be going,,

Jane on Feb 01, 2008 10:20 pm

I for one am having a hard time planning a trip to Vegas just becuase smoking is STILL allowed in Casinos. That is absolutely filthy and outdated. Smoking is no longer socially acceptable therefor I should not have to subject myself to it just becuase I want to experience Las Vegas.

Alberto Gahones on Jan 23, 2008 1:54 am

I concur. No smoking no visiting. Nearby Atlantic City is scratched off my list now, so I too was thinknig of instead, catching a Red Eye to Vegas for a few days. Now I find this Pete's sake! Me and the wife went to Vegas about 10 years ago, and it was spendid! You could light up anywhere! Now I have more money than ever to play with, but can't smoke a damn ciggarette, in VEGAS??? I'll just watch Fear and Lothing and dream of the good old days. Peace my fellow smoking friends.

pat on Jan 20, 2008 7:43 am

I was thinking of visiting las vagas and if any smoking ban is implemented then Im afraid i wont come. I think your find that all smokers will say the same no smoking no visiting.

Jim on Jan 01, 2008 1:09 pm

What other rights are the government going to take away from us.The coal burned in the U.S causes more damage than smoking. We are becoming a country that has no rights. The patriot act just about killed our constitution. What is this new world order ? Didn't Hitler say the same thing? New world order, take away guns, What is next, burn books ?

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