New Jersey Appeals Court Revives Casino Smoking Lawsuit

A long-running legal fight over smoking inside Atlantic City casinos just took a turn back to square one. A state appeals court has told a lower court to reopen the case, saying earlier handling missed key legal steps and relied too heavily on disputed economic claims.

Good to Know

• New Jersey appeals court ordered a restart of the casino smoking lawsuit
• Judges faulted the lower court for legal and evidentiary errors
• Atlantic City casino smoking exemption now faces renewed court review

Appeals Court Resets the Legal Process

The New Jersey appeals court ruled that a lower court must restart proceedings in a lawsuit challenging the casino exemption under the Smoke-Free Air Act. Judges said procedural mistakes undermined the prior dismissal, especially around constitutional analysis and how economic evidence was treated.

Rather than applying the broader equal protection standard required under the New Jersey Constitution, the trial judge relied on a narrower rational basis test. The appellate panel said that approach fell short when evaluating whether casino workers receive unequal treatment compared with other indoor employees.

“On remand, the court shall allow the record to be developed and litigated to address the hotly contested projections of revenue loss… and for the court to make appropriate findings of fact concerning the reliability and credibility of the competing expert projections,” the panel wrote.

That direction clears the way for live testimony, expert analysis, and a deeper look at both health risks and financial claims tied to indoor smoking.

How the Case Reached the Appeals Court

Casino workers launched the lawsuit in April 2024, arguing that the smoking carve-out denies them a safe workplace. The plaintiffs include Atlantic City employees represented by the United Auto Workers and Casino Employees Against Smoking Effects.

In August 2024, Superior Court Judge Patrick Bartels dismissed the case. The ruling leaned on two ideas. Casino workers accepted jobs knowing smoking was allowed, and the exemption had existed for years without violating the constitution. The court also credited industry arguments that a full ban could push smokers toward casinos in nearby states.

The appeals court pushed back on that logic. Judges said economic projections cannot replace a full constitutional review grounded in tested evidence.

Industry-funded studies played a central role in the earlier dismissal. Those studies warned that banning smoking could cut casino revenue and weaken Atlantic City competitiveness.

The appellate panel said the lower court accepted those claims without building a factual record. Competing studies and expert opinions never received a full hearing. On remand, judges want both sides to defend their projections under examination rather than relying on assumptions.

That shift puts health data and financial modeling on equal footing inside the courtroom.

New Jersey banned smoking in most indoor workplaces through the Smoke-Free Air Act of 2006. Casino floors and simulcasting facilities received an explicit exception. That carve-out has drawn criticism for nearly two decades.

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