Shareholders’ activism is playing an increasingly significant role in shaping company policies and procedures, one of the hot topics currently being the impact of indoor smoking in casinos. Casinos have traditionally permitted indoor smoking with the perception that it may improve customer satisfaction and consequently propel revenues. However, the tide appears to be changing, with shareholders relentlessly pushing for a reassessment of these practices.
Over the past decade, there has been a visible shift towards clean, safe, and healthy environments, reinforcing the push by shareholders for smoke-free indoor spaces. This push to reassess indoor smoking is motivated not only by health concerns but also by financial considerations. A growing body of research suggests that smoke-free policies can translate into not just a healthier, more productive workforce but also lead to increased customer traffic, resulting in revenue growth.
The potential benefits of smoke-free casinos are numerous. For starters, it can significantly reduce exposure to secondhand smoke (SHS), which has been linked to various harmful health effects, including heart disease, stroke, respiratory diseases, and lung cancer. Patrons and employees alike would benefit from enhanced air quality, leading to a more enjoyable and healthier casino experience.
Moreover, the additional advantage of smoke-free casinos lies in reducing the costs associated with the healthcare of employees. By limiting exposure to SHS, casinos can ensure the longevity and well-being of their employees, thereby reducing high turnover rates, health-related absenteeism and cutting down on health insurance costs.
Also noteworthy is the shift in public perception. Today, going smoke-free is increasingly seen as not just an ethical but also a smart business decision. Research shows that the majority of customers, including smokers, prefer smoke-free casinos. Casinos that adapt to this trend early might be viewed more favorably, translating into improved customer loyalty and higher revenues in the long run.
Despite the clear health benefits and potential financial appeal, not all stakeholders are convinced. Many casino operators still hold on to the belief that allowing smoking is vital to their business. The worry is that banning smoking could deter a portion of their clientele and negatively impact their bottom line. In addressing these concerns, casino operators need to consider the evolving customer preference landscape and the increasing demand for smoke-free indoor spaces.
Another challenge involves navigating the regulatory terrain. In certain jurisdictions, indoor smoking in casinos isn’t just allowed, but actively protected, thanks to pervasive tobacco industry lobbying efforts. To effectuate lasting change in such environments, movements couldn’t solely rely on shareholders’ pressures and would likely need to involve legislative and judicial action
