Atlantic City, NJ — A longstanding legal battle over indoor smoking in Atlantic City casinos took a dramatic turn this week after a New Jersey appellate court overturned key parts of a lower court decision and ordered the case back for further proceedings, injecting new life into the fight over casino workers’ rights and public health protections.
The lawsuit, originally filed in April 2024 by the United Automobile Workers Region 9 and Casino Employees Against Smoking Effects (CEASE), challenges a provision of the state’s Smoke-Free Air Act that exempts casinos from New Jersey’s indoor smoking ban. Plaintiffs argue the exemption violates casino workers’ constitutional rights by exposing them to secondhand smoke — a well-documented health hazard.
In a Jan. 26 ruling, a three-judge panel of the New Jersey Appellate Division found that the trial court improperly dismissed several constitutional claims and failed to conduct adequate fact-finding before rejecting the lawsuit in 2024. The appellate panel agreed that the judge relied too heavily on industry-funded economic projections and a “rational basis” standard rather than applying a more thorough equal protection analysis required under state law.
“The trial court, after discerning no fundamental right is at stake, applied a mistaken approach to plaintiffs’ state equal protection challenge without conducting a fulsome balancing of the competing interests,” the appellate opinion said. “Such findings are especially crucial to the ultimate disposition of plaintiffs’ state equal protection arguments, with the health of thousands of casino employees and, perhaps, millions of dollars at stake.”
While the appeals court upheld the trial court’s refusal to issue a preliminary injunction — meaning smoking may continue on casino floors for now — it vacated the dismissal of the case and remanded it for further hearings to develop a full factual record. That includes testimony and evidence about how a full smoking ban could affect casino revenue and employment — a central industry argument against change.
Nancy Erika Smith, an attorney representing the workers, said her clients are pushing for the New Jersey Supreme Court to take up the case directly rather than subjecting it to further trial court proceedings. “We agree with the appellate division that the New Jersey Supreme Court should decide the important constitutional issues raised by this case,” she told NJ.com. “We don’t think we need more evidence beyond what’s in the record.”
Industry representatives, for their part, emphasize the economic importance of allowing smoking in a highly competitive gaming market. Supporters of the current exemption have previously cited studies suggesting that customers who smoke may otherwise take their business to casinos in neighboring states.
As the case returns to a lower court, stakeholders on both sides are preparing for potentially months more of legal arguments that could reshape workplace conditions in Atlantic City’s casinos and influence public health policy statewide.
What Happens Next: A Possible Timeline
With the case now sent back to the trial court, the next phase is expected to unfold over much of 2026. A status conference will likely be scheduled in the coming weeks to set deadlines for additional briefing and limited discovery, as ordered by the Appellate Division.
The judge may reopen the factual record to allow updated evidence on the health effects of secondhand smoke and the economic impact of a full smoking ban. That process could take several months, particularly if expert testimony is required.
A new trial-level ruling on the constitutional claims is unlikely before late 2026. Any decision could be appealed, extending the case further. Separately, the plaintiffs have indicated they may ask the New Jersey Supreme Court to take the case directly, which could accelerate a final resolution into 2026 or early 2027.
Smoking remains permitted on up to 25 percent of casino floors in the meantime.
Why This Matters: The outcome could reshape workplace health standards for thousands of casino employees and determine whether Atlantic City’s long-standing smoking exemption survives.