Smoking ban cuts receipts from pull-tabs, bingo

03/31/2008

By MARK BRUNSWICK,
Star Tribune
March 31, 2008


Enacting a statewide ban on smoking last year appears to have had a precipitous effect on charitable gambling revenues from pull-tabs and bingo, a report released today shows.

Gross receipts from charitable gambling were down 12.8 percent in the last three months of 2007, which correlates with when the statewide smoking ban took effect. Even taking into account a tanking economy, the smoking ban is likely to be responsible for a decline in gross receipts of 7.5 percent to 8 percent, according to the report.

The overall 12.8 percent drop, compared with the same period of 2006, represents the largest fall in receipts since lawful gambling was first regulated in the state in 1985, according to the report from the State Gambling Control Board, which regulates the industry.

As the debate about a statewide smoking ban intensified before its passage last year, supporters of charitable gambling warned that banning smoking, particularly in bars and restaurants, would have a disastrous impact on charitable gambling, which already had been struggling.

The Gambling Control Board report shows a clear decline starting in October 2007 from the previous five years.