Indian Tribal Casinos will always have an unfair advantage over their non tribal competition. Tribal Casinos are literally above the law and are able to cater to players in a way regular casinos can not.
Regular casinos are bound by the laws of where they are located. Any laws made by the state must be adhered to by the non tribal casinos even if it affects the casinos in a negative way.
The ban on smoking is a perfect example of this. Most states have banned smoking in public places like bars, casinos and office buildings, so if you are planning on going to a casino this weekend and are a smoker be prepared to have to take a break from the casino every time you want a smoke.
Indian casinos, located on Indian reserves, do not have to follow state laws. This allows Indian casinos do be some of the only casinos in the country that a player can still go and light up in the gamming area. This gives tribal casinos a major advantage over regular casinos.
This makes someone who smokes more likely to go to a tribal casino and avoid non tribal casinos, and the casinos know there is nothing they can do to bring these customers back. A free room and a meal or 2 is not going to convince a smoke that they want to go outside especially in the dead of winter.
Even though these laws affect the amount of money the casinos make which affects the money the government gets from the casinos in taxes the states are continuing to make smoking illegal in casinos and other public places.