Thursday, February 21, 2008

Operator Interface: No Smoking?

Smoking bans gripping locations are initially causing a 30% drop-off in coin-op revenues, according to industry estimates. That fluctuates from route to route, region to region, but many are alarmed over the cumulative effect over the next decade. In fact, the recent AMOA Council of Affiliated States was devoted almost exclusively to this issue.

“We need a grass-root development to band together to bring this inequity before the U.S. Supreme Court,” proposed one Connecticut operator to RePlay. “At least then we will know once and for all if this is imminent domain. If it is, then pay us for taking our business away. Between all the bar owners and operators, I am sure we can afford a high-priced lawyer to bring this issue to the court.”

Since anti-smoking sentiment and legislative fervor have gained momentum not only in the U.S. but around the world, what is a realistic course of action for the industry to take? If smoking bans are inevitable in this political climate, is the best that operators can hope for a statewide ban (as opposed to ones for selected communities) and one that exempts age-restricted locations like bars and taverns? Have lobbying efforts toward that end been measurably helpful?

Smoking bans are definite challenges, but operators are troubleshooting, diversifying, partnering with entertainment providers and more to rethink their companies and to staunch their losses. Join the dialogue and share your efforts and prescriptions for confronting and offsetting the smoking ban issue.