City councilors put an end to a partial smoking ban carve-out for Atlantic City’s casinos on Wednesday by voting to extend anti-smoking regulations to cover all gaming areas. As Atlantic City continues to face increased competition from expanded gambling in neighbouring states, its casino industry hopes the move will be followed across the Delaware River in Pennsylvania.

The New Jersey Senate Health Committee on Monday advanced a bill to the full Senate that, if passed, would cause casinos in Atlantic City to lose their exemption to a 2006 state-wide anti-smoking bill that banned smoking in all public places in New Jersey. Meanwhile a similar measure advances in Colorado.

In a move that helps keep its casinos competitive with those in neighbouring states the Pennsylvania Senate has approved a statewide smoking ban with an amendment that carves out exemptions for private clubs and 25 percent of the casino gaming floor space where slot machines are located.

As New Jersey’s budget crisis escalates to an estimated $11bn shortfall, some lawmakers have proposed the expansion of gambling offerings in the Garden State.

Casinos and bingo halls in Buenos Aires were exempted from provincial anti-smoking legislation passed earlier this month as Latin American-facing gambling businesses hunker down for the implementation of full smoking bans in Peru and Colombia in the coming months, on top of laws introduced already this year in Mexico and Panama.

As regional competition intensifies, Pennsylvania remains poised for further growth following the recent implementation of table gaming. Meanwhile, the state's Gaming Control Board is currently assessing the prospects of four operators, vying for the state's sole remaining casino license.

New Jersey legislators have approved a deal that will see Atlantic City’s casinos continue to subsidize the state’s horseracing industry to the tune of $30m per year, whilst preserving an understanding that VLTs will not be installed at racetracks in the near future. In return, the casinos have been granted a tax break which will effectively allow them to offer a greater amount of free slot machine plays as incentives to entice visitors.

The prospect of a smoking ban in Pennsylvania has been put on hold until the Autumn, after the state’s House and Senate failed to reach an agreement on a range of businesses including casinos that should be exempted.

Casinos across the US are taking ever more aggressive measures to bring in customers during the economic downturn, from pushing for the right to serve drinks around the clock to giving smokers a freer run of the floor. But some industry observers worry the emphasis on boosting liquor sales and accommodating smokers could backfire, with potentially damaging long-term consequences.

Connecticut’s Attorney General Richard Blumenthal insists that the legislature has the authority to extend the state’s smoking ban to Connecticut’s tribal casinos on overriding grounds of public health. It is an argument that Connecticut’s two gaming tribes believe threatens their sovereignty.