SEATTLE — Non-tribal casinos have already lost tens of millions of dollars because of Washington’s new indoor smoking ban.
A new financial study, discovers taxpayers could loose millions as well.
Card-rooms, charity bingo halls, and some bars and restaurants are required to report financial information to the state every year. The state hasn’t had a chance to look at the figures since the smoking ban took effect. I have. It looks like “no smoking” means economic devastation for the non-tribal gaming industry.
If there was ever any doubt that gamblers are also smokers, these numbers put that to rest.
KIRO Team 7 Investigators have been tracking revenue figures for 30 of the largest non-tribal casinos in Washington.
Before the smoking ban, that group had been averaging increased revenues of 13 percent the first 6 months of each year. Since the ban, instead of jumping up another 13 percent, gross revenues fell 14 percent.
“It’s killing us!”, says Tom Myers of the All-Star Casino & Lanes in Silverdale. He figures his poker room profits are down about 30 percent. Bar revenues have slipped worse than that.
Myers told KIRO Team 7 Investigators, “I’d like to be optimistic and think it will come back or at least level out, but the way the trend is, it’s continually declining. You’ll see more and more shut down. The stronger ones will survive, but the little-guy that’s creating, in here there are about 60 jobs alone, those jobs are going to go bye-bye if things go that way.”
Our exclusive research also found that during the first six months of telling gamblers that have to go outside to light up:
29 of the 30 biggest non-tribal casinos reported declining revenue. Several reported losses in excess of 40 percent.
“It’s devastating.” Says Dolores Chiechi of the Washington Recreational Gaming Association.
She says a half dozen casinos have already shut the doors & more are in real financial trouble. She adds many customers are heading to tribal casinos where they can smoke without leaving the table.
“They’re definitely feeling the crunch because those who do gamble will always have somewhere else to go. They’ll go to the tribe casinos because they don’t have to comply with the initiative rules that passed in November.”
The revenue shift is hard on state and local tax coffers as well. Tribal gaming operations pay about 2 percent back in local taxes. Non-tribal card rooms can pay up to 20 percent of gross receipts to taxes.
Myers adds, “The playing field need to be leveled. It’s so lop-sided one way. It’s tough to pay the bills let alone the taxes plus everything else you have to take care of to stay open.”
Ironically, Several of Washington’s largest youth sports associations will likely also be seeing a dip in revenue this year.
Charity Bingo halls generate the majority of income for some local soccer, football, and swimming clubs.
Early figures show nearly every bingo hall in the state has lost money.
The State Gambling Commission is just now starting to look at the same numbers we’ve been crunching. That agency expects a full, detailed report in 6-8 weeks.
By Chris Halsne
