Jon Macy & Erika Hernandez Indiana University

 Research: no negative impact on business activity  Restaurants  Bars  Hotels  Hospitality industry across borders  Restaurants and bars in a tobacco-growing community

 2003: Local smoke-free ordinances in Massachusetts had no effect on bingo revenues  : 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

 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group and focused on video slot machine revenue  Ohio/Kentucky border study included entire hospitality industry  Unpublished Illinois study used only 4 years of data total and only 1 year after statewide law  10 years behind research on rest of hospitality industry

 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

 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

 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 in US$ Fort Wayne smoke-free air law went into effect

 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

 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

Co-author & statistician: Erika Hernandez Contributors: Tim Filler, Stan Glantz, Mary Lay, Kosali Simon