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Canadian Gamblers May Prefer to Gamble in the U.S. due to New Smoking Ban
A new law in Ontario, beginning May 31st, requires all indoor public places (and some private offices) to be non-smoking. Casino Windsor is getting ready for a change on the new Ontario Smoking Ban, just like New York.
Penalties for violating the smoking ban carry a maximum fine of $100,000 for individuals and $300,000 for companies, according to the Ontario Ministry of Health Promotion.
The news gives positive views on people. Especially to those non-smoker but like to gamble, and breathing smoke while gambling is annoying and is reported to be harmful. MotorCity Casino has their 3rd floor smoke free but no other casino in the Detriot area, until now, offers a smoke free environment.
On the contrary, this is not happy news for Casino Windsor management, because they're bound to lose a good number of American patrons who are smokers, not to mention losing the locals who smoke. An estimate of $225 million a year will be lost because of smoking ban. The reason to this is many gamblers smoke while playing games. Many gamblers from the US won't cross the border if they can't smoke at Casino Windsor.
To keep gamblers coming, Casino Windsor is building two outdoor patios that will have seating areas for smokers and is planning more spectacular giveaways, such as two Ford Mustangs and $2,500 in free gasoline in June. It also has 128 of its 389 hotel rooms designated for smoking.
Ahmed Wardi, 41, a Windsor resident who was enjoying a cigarette at Casino Windsor's Marketplace Buffet last Thursday, said he visits the casino every day. But the three-pack-a-day smoker said he would "go to America" once the ban takes effect.
As of the moment, smoking ban is not the only problem faced by Casino Windsor operators. Not to mention the terrorist attack on the World Trade Center in New York City, September 2001. This reflects into about $150 million annual loss of revenue at Casino Windsor since prior 911. Another problem for the Casino Windsor is that the Canadian dollar is much stronger, and the exchange rate is less for Americans who would spend their money on gambling. Before it was $1.35 to $1.45, now the US dollar is worth $1.10 Canadian. Americans now have less of an incentive to spend their money in Windsor and at the casino. In addition to this, all Americans will need a valid passport to cross the border starting December 31, 2007.
Howard Berenbon said, the Detroit area casinos will benefit from this new ban on smoking in Ontario. And they should not try to take advantage of their new opportunity to attract more people to Detroit. He suggests that they should offer payoff percentages for slot machines and video poker games. Offer discounts on their restaurants and buffets. And offer more $5 minimum bet blackjack tables.
But what could prove to be Casino Windsor's ace in the hole in all this is taxes. Gamblers are promised tax-free winnings in Ontario, as the government does not tax them. Of course, they are supposed to report the income on their U.S. tax returns but the casino does not report the winnings.
Monday, 24. 2006
Brian Letendre