THE IMPACT OF A LOCAL SMOKE-FREE AIR LAW ON

WAGERING AT AN OFF-TRACK BETTING FACILITY IN INDIANA

Jon Macy & Erika HernandezIndiana University

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

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

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Unpublished Illinois study used only 4 years of data total and only 1 year after statewide law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

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

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

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

Seasonally adjusted per capita handle at three off-track betting locations in

Indiana, 2002 to 20092002

2003

2004

2005

2006

2007

2008

2009

0

1

2

3

4

5

6

7

Merrillville

Indianapolis

Fort Wayne

Seas

onal

ly a

djus

ted

per

capi

ta h

andl

e in

U

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Fort Wayne smoke-free air law went into effect

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

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

THANK YOU!Co-author & statistician: Erika

HernandezContributors: Tim Filler, Stan Glantz,

Mary Lay, Kosali Simon