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Casinos Win Legal Battle over Cigarette Rewards

"Federal health officials have been in a legal tussle with two of Canada's largest casinos over a rewards program they use called Players Advantage Club.

"The program allows patrons to use points they've accumulated to buy a variety of goods, including cigarettes. Health officials said that amounted to giving away smokes, which is a violation of the Tobacco Act, which forbids retailers to furnish tobacco products 'without monetary consideration.'

"Last year, the department ordered Casino Niagara and Niagara Fallsview Casino Resort to change the points plan and exclude tobacco products.

"The owner of the casinos, Falls Management Co., refused and argued that it is not giving away cigarettes. The company said club members paid for them with points, which served as "monetary consideration."

"The case ended up at the Federal Court of Canada and in a decision released last week, the court sided with the casinos and threw out Health Canada's order..."

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