Dear Governor Daniels,
I read online that you are considering supporting a smoking ban for Indiana. I wanted to warn you that smoking bans across the country have done grave economic harm to adult venues such as bars and casinos.
Please find attached to this e-mail a number of studies, all conducted by PhD economists, which find that smoking bans do indeed harm businesses such as bars and casinos. While I am sure the American Cancer Society has presented to you many contrary studies which find that smoking bans do no economic harm, I have to warn you that these contrary studies have been conducted almost entirely by public health professionals, not economists, and have been published in public health journals, not economic journals. As economist Dr. Jonathan Tomlin pointed out in Forbes Magazine, these amateur studies are "riddled with statistical shortcomings and... flaws."
Please allow me to suggest to you the preemptive exemption for "over 21" workplaces in the Tennessee smoking ban. Such an exemption would greatly reduce any economic harm threatened by an Indiana smoking ban. Please find the Tennessee public smoking law attached.
Governor Daniels, the latest Gallup Poll shows that while most Americans do favor a ban on smoking in restaurants, Americans also favor some sort of compromise accommodation of smokers in adult venues such as bars and casinos. Only 31 percent of Americans favor a total ban on smoking in bars and casinos. I am sure similar numbers hold true in Indiana as well.
http://www.gallup.com/poll/
Bill Hannegan
Home phone: 314.367.3779
Cell phone: 314.315.3779
Links to Attached Studies:
The Economic Impact of a Smoking Ban in Columbia, Missouri: An Analysis of Sales Tax Data for the First Year
A Report on the Impacts of the City of Dallas Smoking Ban on Alcoholic Beverage Sales March 2003 to March 2004
The Revenue Performance of Casinos after a Smoking Ban: The Case of Illinois
Impact of Smoking Bans on Restaurants
No Smoking at the Slot Machines: The Effect of a Smoke-Free Law on Delaware Gaming Revenues
The Effect of Smoking Bans on Bars and Restaurants: An Analysis of
Changes in Employment
Adams, Scott and Cotti,
Chad D. (2007) "The Effect of Smoking Bans on Bars and Restaurants: An
Analysis of Changes in Employment," The B.E. Journal of Economic Analysis
& Policy: Vol. 7: Iss. 1 (Contributions),
Article 12.
DOI: 10.2202/1935-1682.1628
DOI: 10.2202/1935-1682.1628
The
Impact of Smoking Bans on the Hospitality Industry: New Evidence from Stock
Market Returns
Jonathan T. Tomlin (2009) “The Impact of Smoking
Bans on the Hospitality Industry: New Evidence
from Stock Market Returns,”
The B.E. Journal of Economic Analysis &
Policy: Vol. 9: Iss.
1 (Contributions), Article 13.
The Economic Impact of a Smoking Ban in Columbia, Missouri: An Analysis of Sales Tax Data for the First Year
Michael
R. Pakko, Federal Reserve Bank of St. Louis
Regional Economic Development,
2008, 4(1), pp.
30-40.
The Economic Impact of the New York State Smoking Ban on New
York’s Bars
Ridgewood Economic Associates, Ltd., 2004
An Analysis of the Economic Effect of the Lexington-Fayette
County, Kentucky Smoking Ban of 2004
Richard Thalheimer, Thalheimer Research Associates,
Inc., 2005
http://kuneman.smokersclub.com/PDF/KYLexingtonThalheimerreport6_8_05.pdfA Report on the Impacts of the City of Dallas Smoking Ban on Alcoholic Beverage Sales March 2003 to March 2004
Terry L. Clower, Ph.D. & Bernard L.
Weinstein, professors of applied
economics at the University of North Texas in Denton, 2004
The Revenue Performance of Casinos after a Smoking Ban: The Case of Illinois
Thomas A. Garrett,
Michael R. Pakko, 2010, Federal Reserve Bank of St. Louis
Impact of Smoking Bans on Restaurants
National Restaurant
Association, 2004
No Smoking at the Slot Machines: The Effect of a Smoke-Free Law on Delaware Gaming Revenues
Michael R. Pakko, 2005,
Federal Reserve Bank of St. Louis
The Economic Losers from Smoking Bans
Michael L. Marlow, Regulation, 2010
http://www.cato.org/pubs/regulation/regv33n2/regv33n2-4.pdf 
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