In response to the growing grassroots movement advocating for a ban on smoking within casinos across 14 states, where patrons and employees are subjected to harmful secondhand smoke, the American Nonsmokers’ Rights Foundation (ANRF) and Trinity Health have initiated shareholder resolutions. These resolutions urge prominent industry leaders, including Wynn Resorts, Boyd Gaming, Caesars Entertainment, and Penn Entertainment, to assess the economic advantages of adopting smoke-free policies at their establishments. Voting on these resolutions is scheduled to commence on April 30 and will extend into May and June.
This marks the second consecutive year that these organizations have presented proposals to leading casino operators. This year’s initiative represents a broader effort, following nearly 60 million votes cast in support of the study proposal. Although Wynn Resorts, Boyd Gaming, and Caesars Entertainment attempted to exclude the proposal from their Annual Meeting of Stockholders, the voting will proceed after the Securities and Exchange Commission (SEC) rejected their efforts to dismiss it.
“There are clear business risks to allowing indoor smoking in casinos, including higher health insurance premiums, higher maintenance costs and a significant deterrent to potential visitors due to secondhand smoke exposure,” said Cynthia Hallett, president and CEO of the American Nonsmokers’ Rights Foundation (ANRF). “Last year’s success demonstrated that investors are increasingly interested in understanding the financial and business implications of smoke-free policies.”
In 2024, proposals submitted to Bally’s Corporation, Boyd Gaming, and Caesars Entertainment attracted nearly 60 million shareholder proxy votes in support. Notably, the proposal for Bally’s Corporation received endorsement from a diverse group of shareholders, including Rhode Island State Treasurer James Diossa, who cast his vote in favor on behalf of the state. This level of support from investors is significant for proposals in their inaugural year and was viewed by asset managers as a compelling indication for these companies to address the business risks associated with indoor smoking.
Casinos serve as more than mere gambling venues; they function as hospitality centers that provide dining options, meeting facilities, and various amenities, appealing to visitors who anticipate clean and healthy environments.
“These proposals are about due diligence. Companies study all kinds of operational risks — indoor smoking should be no different,” said Cathy Rowan, Director of Socially Responsible Investments at Trinity Health. “By evaluating the financial impact of smokefree policies, casino operators can make informed decisions that reflect long-term shareholder value. We’re not telling them what the outcome should be — we’re saying it’s time to look at the numbers.”
In the coming weeks, shareholders will cast their votes on proposals that urge companies to commission and publish a report evaluating the potential cost savings associated with implementing a smoke-free policy at their locations throughout the United States. Transitioning smoking to outdoor areas—already a common practice in many states—reflects the increasing public preference, as 88.5% of Americans do not smoke. This transition would be advantageous for businesses, employees, and guests, particularly for the majority of workers and patrons who favor smoke-free settings.
From an investment perspective, the request is clear: perform a cost-benefit analysis and share the results. Assessing the financial implications of smoke-free policies is an essential aspect of responsible corporate governance.
In addition to filing these proposals, ANRF and Trinity Health are also actively conversing with other prominent casino operators, such as Churchill Downs, MGM Resorts International, and Bally’s Corporation. The aim of these discussions is to persuade these companies to assess the financial and operational risks associated with their existing smoking policies.