NO SMOKING LAW BLAMED FOR LAYOFFS

San Jose casino sees 10% drop in business

The state's tough new anti- smoking law is being blamed for the layoff of
75 people at Bay 101, the long-controversial card casino in San Jose.

Bay 101 officials announced yesterday they were laying off 75 of the club's
600 employees and shuttering the casino's two restaurants.

Since the first of the year, business at the casino has been down 10
percent, a direct result of the new law that requires Bay 101 to ban
smoking in its rooms, club officials said.

When it was built three years ago, Bay 101 specifically installed a
high-powered air filtration system under the assumption that many of the
casino's customers would be smokers.

The casino also is dropping advertising and has let go its consultants,
including veteran political/government strategist Ed McGovern.

This is the second layoff in five months for Bay 101.

In September, 25 people were let go, following another 10 percent drop in
business.

That drop was blamed on a move by the Santa Clara County district
attorney's office to restrict the fees Bay 101 could charge gamblers.