Casino Employees Against Smoking Effects is urging New Jersey lawmakers to end the indoor smoking exemption for Atlantic City casinos, arguing it could help attract more visitors, but operators warn of potential revenue and job losses if a ban is enacted
Efforts to end indoor smoking in Atlantic City casinos have gained renewed attention as Casino Employees Against Smoking Effects (CEASE) calls on New Jersey lawmakers to eliminate the longstanding exemption that allows smoking on casino floors. The debate comes as the region faces increased competition and economic uncertainty, with both employee advocates and casino operators presenting sharply different forecasts for the impact of a smoking ban.
Push for Smoke-Free Casinos
CEASE, a group representing casino workers, argues that making Atlantic City casinos smoke-free would improve working conditions and potentially draw back visitors who have avoided the properties due to indoor smoking. Pete Naccarelli, a CEASE co-founder and table game dealer, has publicly urged state legislators to reject industry lobbying against a ban, stating that a healthier environment could help brick-and-mortar casinos compete with online gambling and new casinos planned for downstate New York.
The Atlantic County Economic Alliance recently warned that more than 8,000 casino jobs could be at risk if Atlantic City fails to adapt to changing market conditions. The organization identified the growth of online gambling and the anticipated launch of three New York City casinos as major threats to the local industry.
Legislative Efforts and Political Hurdles
Legislation to remove the casino exemption from the 2006 New Jersey Smoke-Free Air Act has been introduced in multiple sessions. During the 2022–23 legislative cycle, Senate Bill 264 was sponsored by 23 of 40 state senators, while Assembly Bill 2151 had support from 56 of 80 Assembly members. Despite bipartisan backing, neither bill advanced to a full vote, leaving the exemption in place. Similar efforts to ban casino smoking have stalled in other states, including Kansas, where a comparable bill failed earlier this year.
New Jersey's legislative impasse reflects a broader national challenge, as lawmakers weigh public health concerns against fears of lost revenue and jobs. The issue remains unresolved, with no clear timeline for when or if a statewide casino smoking ban might be enacted.
Casino Industry Response and Revenue Projections
Casino operators and industry groups have consistently argued that a smoking ban could drive away a segment of their customer base. In 2022, the Casino Association of New Jersey commissioned Spectrum Gaming to analyze the potential impact. The study projected that a full ban could reduce brick-and-mortar gross gaming revenue by nearly 11% in the first year, potentially cutting gaming tax collections by up to $44 million and resulting in as many as 2,500 job losses.
However, some experts question the certainty of these projections. Dr. Geoff Atkinson of Management Science Associates, a Spectrum affiliate, has stated that available evidence does not clearly show a significant advantage or disadvantage for casinos that allow or prohibit smoking. The debate over the true economic impact remains unsettled, with both sides citing conflicting data and interpretations.
Broader Regulatory Context
The Atlantic City casino smoking debate is part of a wider regulatory landscape in which states are reassessing gambling rules and consumer protections. For example, Denmark recently blocked dozens of unauthorized gambling sites, including Polymarket, as part of ongoing efforts to control unlicensed online gambling. Denmark's regulatory actions highlight the global trend toward stricter oversight, even as U.S. states like New Jersey grapple with balancing economic interests and public health in the casino sector.
Understanding gross gaming revenue (GGR) is essential to this debate. GGR represents the total amount wagered by players minus winnings paid out, serving as a key metric for both operators and regulators. Changes in GGR directly affect tax collections and employment levels, making accurate projections critical when evaluating the potential consequences of regulatory changes such as a smoking ban.
