By: Chris Lyon • Contributing Columnist
On Tuesday, May 9, 2023, Shreveport entered uncharted waters with a proposal in the city council to roll back smoking restrictions that went into effect in August of 2021. Councilwoman Tabatha Taylor (District A), a former employee of Eldorado Resort Casino and operator of a nonprofit organization that has received sponsorship from Eldorado as recently as 2020, introduced the ordinance requiring casinos to provide only 25% of their floorspace as smoke-free. If the city council passed this legislation, it would be the only city in America to undo a smoking restriction for casinos.
All five riverboat casinos (exclusive of Diamond Jacks, which closed during the pandemic) have reported a downturn in customer entries over the last six years, regardless of which side of the river they are on. Shreveport has a slightly larger decrease, but Bossier's attendance slump (29%) is not far off from Shreveport's (32%). If we include Diamond Jacks in these numbers, Bossier's decrease would be 38% from pre-pandemic to present, losing more than double the gamer entries compared to Shreveport over the same period (Bossier having lost 1.862 million gamers to Shreveport's 920,000 loss). This decline in attendance for both Shreveport and Bossier could be attributed to the rise of casinos in Oklahoma's southern border with Texas, which offer a shorter drive for many Dallas-area gamblers.
Gross revenue tells another story. While Bossier's riverboat casino totals, exclusive of Diamond Jacks, show an overall increase in revenue, Bossier casinos did lose over $14M in annual gross revenue with Diamond Jacks factored in. Margaritaville is the sole riverboat casino in Shreveport-Bossier to increase their revenue on average of three years pre-pandemic (2017-2019) and post-pandemic (2021-2022) with 2020 revenue excluded as an outlier.
Though data does not provide direct insight into why Margaritaville seems exempt from the wider slump, its financial stamina may have more to do with the fact that it is the newest and most amenity-filled resort that caters to a wider range of ages than its older brethren. This theory is bolstered by the plans shared for the takeover of the old Diamond Jacks which intends to focus on entertainment and additional retail opportunities.
It’s worth noting that Bally's, which took over the Eldorado in December 2021, operates nearly half of its casino properties smoke-free in other states and is in the process of opening two new properties — one in Chicago and one in New York — that would both be smoke-free due to existing laws in those jurisdictions. Boyd Gaming, which operates Sam's Town, has several smoke-free properties and more that provide an outdoor option.
Both companies, which did not bother to send a representative to speak on the merit of the ban at Tuesday's meeting, are capable of operating smoke-free and making a profit. While money talks, this data, self-reported to the state by casinos, doesn't lie.