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The impact of a local smoke-free air law on wagering at an off-track betting facility in Indiana

The impact of a local smoke-free air law on wagering at an off-track betting facility in Indiana. Jon Macy & Erika Hernandez Indiana University. Economic Impact of Smoke-Free Air Laws. Research: no negative impact on business activity Restaurants Bars Hotels

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The impact of a local smoke-free air law on wagering at an off-track betting facility in Indiana

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  1. The impact of a local smoke-free air law on wagering at an off-track betting facility in Indiana Jon Macy & Erika Hernandez Indiana University

  2. Economic Impact of Smoke-Free Air Laws • Research: no negative impact on business activity • Restaurants • Bars • Hotels • Hospitality industry across borders • Restaurants and bars in a tobacco-growing community

  3. Evidence for Gaming Industry is Growing but Still Lacking • 2003: Local smoke-free ordinances in Massachusetts had no effect on bingo revenues • 2005-2006: Conflicting findings on the effect of Delaware’s statewide smoke-free air law on gaming revenues at racinos • 2008: Local smoke-free ordinances in Kentucky had no effect on charitable gaming revenues • 2011: Ohio’s statewide smoke-free air law had no effect on the hospitality industry (including casinos) in Ohio and Kentucky border counties

  4. Summary ofGaming Industry Research • Massachusetts and Kentucky studies focused on charitable gaming (bingo) • Delaware studies had no comparison group and focused on video slot machine revenue • Ohio/Kentucky border study included entire hospitality industry • Unpublished Illinois study used only 4 years of data total and only 1 year after statewide law • 10 years behind research on rest of hospitality industry

  5. Current State of Policy Efforts • Opponents of smoke-free workplace laws continue to argue that they negatively impact gaming revenues • Casinos first to be exempted from smoke-free air laws • Indiana Legislative Fiscal Impact Statement predicted negative economic consequences • More evidence needed to support policy advocacy

  6. Indiana OTB Study - Background • OTB site in Fort Wayne, Indiana went smoke-free on June 1, 2007 due to local ordinance • OTB sites in Indianapolis and Merrillville, Indiana continue to permit smoking • Study objective: test the effect of the law on wagering at Fort Wayne site compared to the Indianapolis and Merrillville control sites

  7. Indiana OTB Study - Methods • Data • Monthly per capita handle (amount wagered) from 2002 to 2009 for the 3 OTB locations • Monthly unemployment rates for counties where OTBs were located • Analysis • Tested for shift and slope changes in per capita handle for each location after June 1, 2007 • Tested trends in per capita handle for 2 smoking locations compared to smoke-free location

  8. Seasonally adjusted per capita handle at three off-track betting locations in Indiana, 2002 to 2009 Fort Wayne smoke-free air law went into effect Seasonally adjusted per capita handle in US$

  9. Indiana OTB Study - Results • No change in trend in per capita handle at any of the 3 OTBs after June 1, 2007 • Per capita handle decreased at all 3 OTBs from 2002 to 2009 • Unemployment rate was a significant predictor of per capita handle • As unemployment rate increased over the study period, per capita handle decreased

  10. Indiana OTB Study - Conclusions • No change in trend in per capita amount wagered at Fort Wayne OTB after city implemented a smoke-free air law • No change in trend at two comparison locations • There is no economic reason for policymakers to exclude OTB facilities from smoke-free legislation • Workers and patrons at gaming facilities can be protected from secondhand smoke without fear of negative economic consequences

  11. Thank you! Co-author & statistician: Erika Hernandez Contributors: Tim Filler, Stan Glantz, Mary Lay, Kosali Simon

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