Illinois Smoking Ban Disaster: Revenue's Drop By 20%

The Chicago Tribune reports:

The struggling economy has dealt a bad hand to the nation's usually robust gambling business, a downturn made even worse in Illinois, where the state's nearly year-old smoking ban has proved unhealthy to casinos.

Among those paying the steepest prices are local governments, charities and their clients, who have come to rely on gambling tax receipts.

The big gambling states— Nevada, New Jersey and Mississippi—are off 5 percent to 7 percent in casino revenue. But the picture is worst in Illinois, where casino revenue is down 20.3 percent this year.

Gambling officials estimate that the state will get between $150 million and $160 million less in taxes, most of it earmarked for education. Statewide, the eight communities with casinos will see $20 million to $25 million less than they took in last year, officials estimate.

Tom Swoik, executive director of the Illinois Casino Gaming Association, had predicted a 19 percent drop in revenue when the state smoking ban was debated, based on what other states had seen. He's not happy to have been so close to the mark.

An interesting article.