Casino betting on a loophole

Monday, gamblers could once again smoke 'em if they got 'em at Bronco Billy's Casino in Cripple Creek.

Colorado casinos have been smoke-free since Jan. 1, when a statewide smoking ban was extended to gaming establishments. The law, however, has a loophole that allows smoking at cigar bars - defined as a bar that earns at least 5 percent of its annual gross income or $50,000 annually from the sale of tobacco products. That's the exemption Bronco Billy's is claiming. One other casino in the state, the Wild Card in Black Hawk, has also claimed exemption as a cigar bar.

Mark Murphy, coowner of Bronco Billy's, said he has tracked tobacco revenue closely since 2005, when the smoking ban was enacted, to make sure his casino qualified for the exemption. Going smoke-free through the first quarter of 2008 was a test - one his business didn't pass.

"The proponents of the bill said banning smoking would not have any impact on the industry," Murphy said. "The impact on our employees has been significant."

Casino revenue has been down every month this year, with Cripple Creek revenues dropping a record $2.3 million in March and off $1.6 million in April compared with 2007. High gas prices and a sluggish economy may deserve some of the blame, but casino owners say the smoking ban is the biggest culprit.

On the other hand, revenues are down in smokerfriendly Las Vegas, too, said Stephanie Steinberg, chairwoman of Smoke-Free Gaming of Colorado. And claiming to be a cigar bar after going smoke-free for five months is ludicrous, she said.

"Bronco Billy's has never operated as a cigar bar and has always operated as a casino," she said. "Our position is that this is an illegal activity that is being condoned by local government."

Murphy said he spoke with the city attorney and the police chief before allowing smoking. Steinberg also called the police, hoping they'll write citations - $200 for the first offense, $300 for the second, $500 for the third.

"The police are at odds because they don't know what to do," she said. "Unless this place is issued a citation, we don't have recourse in a court of law."

Cripple Creek Police Chief Gary Hamilton and city attorney Corey Hoffmann did not return calls Monday. Cripple Creek Mayor Dan Baader, however, was all for bringing back smoking.

"I think it's a great idea," he said. "I wish they would all do it."

Bronco Billy's stretches through eight historic storefronts on Bennett Avenue in downtown Cripple Creek. The smoking section occupies about 25 percent of the floor space.

"We think they're being creative in how they'll serve their customers in the future," said Mike Hirsch, general manager at the Gold Rush. He wouldn't say if he had plans for a smoking section.

In Colorado Springs, several gamblers waiting Monday afternoon for the Ramblin Express casino shuttle had no problem with smoking at Bronco Billy's.

"Smoking and gambling goes together," said Robert Remisch of Colorado Springs, who said he smokes. "I know I'll be gambling at Bronco Billy's."

Remisch said he used to go to Cripple Creek several times a month, but he's cut back on his trips since the smoking ban.

Bronco Billy's Murphy said there was no sudden rush to light Monday.

"We've got a few people smoking, and we've got a few people not smoking," he said.

But, he added, "I think it should have an impact in the very near term."