Louisiana lawmakers reject banning smoking in casinos

A smoking ban inside Louisiana casinos died a quick death today in the state’s House of Representatives.

The overwhelming vote of 71-29 to kill the measure came after lawmakers argued the ban would be harmful to businesses, such as Louisiana’s riverboat casino industry.

Wall Street views casino smoking bans as a negative event. Smoking bans in casinos in Colorado and Illinois have been blamed for reduced gaming revenues in those markets.

Gaming analysts said a smoking ban would have damaged Las Vegas-based Pinnacle Entertainment, which draws some 57 percent of its revenues from its Louisiana casinos.

The possibility may have hurt the company’s stock price in the past week.

"The failure of this bill is also positive for Isle of Capri, Penn National Gaming and Boyd Gaming, which also could have been damaged by the legislation," Macquarie Securities gaming analyst Joel Simkins told investors.

"We are pleased that legislators got the message that this proposal would have been extremely detrimental to both the state’s job base and tax revenues, particularly during the current economic slowdown."

Passage would have broadened Louisiana’s indoor smoking ban to include bars and gambling establishments.

Smoking has been banned in Louisiana restaurants since 2007.

Smoking still would have been allowed on open-air patios and Indian casinos.

Time-Picayune article on the vote:
http://www.nola.com/politics/index.ssf/2009/06/house_rejects_smoking_ban2971.html