Severo Portela
Who could have guessed that the smoking ban in casinos would return to haunt gaming operators? Given, of course, the much more relevant issues the industry is now facing, like the 40% slide down and the imperative restructuring that comes with a new normal chiffre d’affaires; the rebalancing of VIP and mass market ratio, the non-gaming segments of the business, and the SMEs’ role and slice, just to mention a few.
It looks like the dispute can be limited to those who want the government to submit a draft bill with a full smoking ban in casinos, and those who want the government to allow the VIP operations to keep closed smoking rooms. The casino workers affiliated with the Macau Federation of Trade Unions (FAOM) – reputed to be a conservative and pro-Beijing labor organization – are unequivocally for the full ban, while a junkets association is urging the government to allow smoking lounges within the so-called VIP gambling zones.
The blanket ban on smoking has the government’s blessings, even if some hope for a bridge between the public health stance Secretary Tam is taking, and Secretary Leong’s economist reading. The Macau Executive has only one position on the matter: that of Chui Sai On.
Macau’s universal ban stance has received additional political coverage from Beijing… coming from the capital’s new smoking law that forbids smoking in public places. Even the International Airport’s closed smoking rooms have been replaced by al fresco cigarette facilities. Looks like smoking days are over.
In this scenario, no wonder that only the junkets operating in the Macau Special Administrative Region are voicing an open, but quite polite, opposition to a full smoking ban, or rather they just want the government to make an exception. We must consider the fact that directly-elected lawmaker Zheng Aiping has been accompanying the junkets association to meetings with high level local officials. This legislator, elected in Mak Soi Kun’s ticket, is making a non-aligned name for himself.
As for the casinos’ top- bananas, in this time of assessment and evaluation of contractual compliance, no wonder they are just watching carefully for new cues from the government.
However, this obvious public health issue can and should be assessed and measured with regard to money and liberty. Regarding the effect of the smoking ban on VIP tables, it is well accepted the English experience of a 10% downturn, which makes one wonder why anyone would worry about such a small decline! It is the same rationale supporting the new normal of gaming revenue.
So, we have to consider that at least the 10% does not apply to Macau, and the impact of a full smoking ban on the VIP rooms is much more significant. Perhaps a more feasible idea would be to revamp the industry, to create a family-friendly integrated resort, to build a new leisure destination…but you cannot have a NEW gambler in a VIP room. The vices associated with sleazy old gaming joints run from drinking to drugs, from smoking to sexual misbehavior and swearing. Is it possible to keep the smoking?
As for the abovementioned liberties, I would like to add a disclaimer that I’m a born-again non-smoker, but I do not know if that affects my set of human liberties.
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