More Than 11% Back Proposal, Signaling Investor Pressure to Address Health, Staffing, and Financial Risks

More than 1 in 5 Outside Shareholders Support Proposal, Despite Company Opposition

Berkeley, CA — A shareholder proposal calling on Boyd Gaming to examine the business benefits of implementing a smokefree air policy received more than 6.4 million votes at the company’s annual meeting last week—representing over 11% of all shareholder proxy votes cast. When excluding insider-held shares, 21.4% of all outstanding outside shares supported the proposal—signaling strong investor concern around the business and health implications of smoking policies in the casino industry, especially for a second-year proposal facing opposition from company leadership.

The strong showing of support for the proposal reflects growing investor interest in greater transparency around the business risks of indoor smoking and the benefits of smokefree policies. Boyd insiders, including company executives and directors, control 30% of voting shares and opposed the proposal.

“The level of shareholder support—particularly among outside investors—shows that there is growing investor concern around how Boyd Gaming is managing risks tied to indoor smoking,” said Cynthia Hallett, president and CEO of the American Nonsmokers’ Rights Foundation (ANRF), a co-filer of the proposal. “Given the regulatory shifts, evolving customer preferences, and Boyd’s presence in markets where smokefree competition or legislation is increasing, it is reasonable to expect disclosure on how these factors are evaluated. Nearly 90% of U.S. adults are nonsmokers, and investors have a legitimate interest in understanding how smoking policies may influence staffing, absenteeism, customer experience, and long-term business performance.”

The proposal was co-filed by ANRF, School Sisters of Notre Dame Collective Investment Fund, and Trinity Health, a Livonia, Michigan-based health system, as part of a larger effort to get major casino operators to disclose the financial impact of allowing smoking indoors — from elevated health insurance and maintenance costs to the loss of health-conscious customers who choose smokefree environments.

“As long-term shareholders, we are seeking greater transparency around how Boyd assesses the financial and operational risks of allowing indoor secondhand smoke—from increased employee health costs and facility maintenance, to deterring health-conscious customers,” said Cathy Rowan, Director of Socially Responsible Investments at Trinity Health. “We believe the current level of disclosure is insufficient, especially given the regulatory, legislative, and competitive dynamics at play in the markets where Boyd operates. This vote indicates shareholders’ concern for greater disclosure.”

Earlier this year, the Securities and Exchange Commission (SEC) rejected Boyd’s attempt to block the proposal from appearing on the ballot, siding with the filers—just as it did in similar cases involving Wynn Resorts and Caesars Entertainment.

The proposal also highlighted that health experts have been clear that the industry’s reliance on “state-of-the-art ventilation” is not a solution. According to the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the CDC, there is no ventilation system capable of eliminating the health risks posed by secondhand smoke. Only 100% smokefree indoor environments can do that.

With shareholder votes at Caesars Entertainment (June 10) and Penn Entertainment (June 17) still to come, pressure is mounting across the gaming industry to reevaluate indoor smoking policies and the business risks they pose. Wynn Resorts shareholders recently voted on a similar proposal (April 30), where despite insider ownership of 21.9%, more than 10% of outside shareholders backed the measure—highlighting a growing trend of investor concern for casino operators to increase disclosure of the business costs of indoor smoking.

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Read more: The Business Case for Smokefree Casinos

Watch: Casino Workers Ask for Casinos to Study Smokefree Casinos

About ANRF: American Nonsmokers’ Rights Foundation (ANRF) is a 501c3 non-profit educational and advocacy group that has been working for nearly 50 years to protect everyone’s right to breathe nontoxic air in workplaces and public places, from offices and airplanes to restaurants, bars, and casinos. ANRF has continuously shined a light on the tobacco industry’s interference with sound and life-saving public health measures and successfully protected 61% of the population with local or statewide smokefree workplace, restaurant, and bar laws. ANRF aims to close gaps in smokefree protections for workers in all workplaces, including bars, music venues, casinos, and hotels. For more information, please visit no-smoke.org. ANRF projects include https://smokefreecasinos.org/ and https://smokefreemusiccities.org/.