April 2024

 

LIGHT Snapshots

 
April 2024
 

In LIGHT of the data.

April 2024 was a modest month for Atlantic City casino operators as total gross gaming revenues (GGR) for the month increased year over year, but not month over month. These returns were driven entirely by a near record GGR from internet gaming ($10 million shy of last month鈥檚 record of $197.2 million). 

Sportsbooks statewide benefited from interest in both the men鈥檚 and women鈥檚 NCAA basketball tournaments with 鈥淢arch Madness鈥 culminating in the finals in early April.  In keeping with increasing recognition of women鈥檚 sports, interest was especially high for the women鈥檚 final, as noted at LIGHT鈥檚 recent Shorecast event by Daniel Gallagher, the director of sports sales for the Atlantic City Sports Commission.  

Over $1 billion in statewide handle generated nearly $30 million in revenue for Atlantic City-based sportsbooks, 2% shy of their 2023鈥檚 sportsbook revenue numbers.

Likely due to early spring weather and an unfavorable calendar, brick-and-mortar gaming revenue in April 2024 fell short of April 2023 by 6%. At $216.8 million, compared to April 2023 ($231.5M) and March 2024 ($239.8M), April 2024 brick-and-mortar gross gaming revenue was not enough to keep pace with internet and sports-betting revenues.

For Atlantic City's gaming operators, maturing internet gaming and expanding sports-betting markets generated $217.8 million combined in gross revenue for the month 鈥 surpassing brick-and-mortar revenues.
It will be interesting to watch how the return of warm weather and summer visitors affects the gaming revenue mix for Atlantic City鈥檚 operators going into Summer 2024.

While stakeholders should expect to see gains in brick-and-mortar gross gaming revenue over the coming months because of typical seasonal increases in visitation to the city, Atlantic City may actually see greater gains in in-person revenue generated from nongaming operations. It will be many months before a clear picture of this trend is available, but operators鈥 recent investments in improving resort offerings suggest that a significant shift in the market鈥檚 overall revenue mix could be coming. A focus beyond gaming, to the elements that make Atlantic City unique and a stronger competitor against the threat of New York City casinos, is simply good business.

Regarding the first quarter of 2024, Closer review of first-quarter lodging data reveals a more positive outlook than initially suggested by the small drop in occupancy rate would initially suggest.

Atlantic City鈥檚 casino resorts sold 10,000 more room nights in the first three months of 2024 than in the same period of 2023 despite a nearly $8 year-over-year increase in average daily room rate (ADR). ADR increased by approximately $4 in first quarter 2023 compared to the same period in 2022. The first quarter 2024 ADR is nearly $35 higher than the same period in 2019.

Leap Day (February 29, 2024) added an additional day to the quarter compared to last year, adding both additional available room nights and the potential for additional sales. This dynamic likely contributed to the slight decrease in occupancy rate year-over-year, despite more room nights being sold.  

At 902,092 the number of occupied room nights is the largest seen since 2019 (951,017) and is consistent with a subtle increase in visitation to the city as measured by the South Jersey Transportation Authority鈥檚 count of vehicles passing through the Pleasantville Toll Plaza of the Atlantic City Expressway. Vehicle counts for the period January through March 2024 increased 3% over the same period in 2023 and 9.5% compared to the same period in 2022.

This pattern is also seen in total net revenue for the quarter, which was the highest in recent history 鈥 growing nearly 2% year-over-year. While the industry might have hoped that this increase in net revenue would translate to an increase in gross operating profit for the period, it was sadly not the case.

While the third highest (in dollar value) in the past eight years, first-quarter Gross Operating Profit was down 8.7% in 2024 compared to the same three-month period in 2023. A variety of market circumstances can explain this dynamic, including an increase in the cost of doing business, inflation, and a potential shift in revenue mix to operations like lodging and food & beverage that traditionally have narrower profit margins. 

Atlantic City Gaming Win & Total Casino Revenue

Source:

Monthly Revenue (Casino Licensees, $ In Thousands

April 2024

% Change from Prior Year April 2023 YTD

 2024

% Change from Prior Year YTD   2023
Casino Gaming Win 216,834 -6.3% 231,474 872,888 -1.6% 886,765
Internet Gaming Win 187,879 18.2% 158,937 750,690 21.1% 620,108
Sports Wagering Revenue 29,911 -2.0% 30,513 151,396 28.3% 117,976
Total Gaming Win (includes Internet & Sports Wagering) 434,624 3.3% 420,924 1,774,975 9.2% 1,624,850
Quarterly Revenue (Industry, $ In Thousands)** Q1 2024 % Change from Prior Year Q1 2023 YTD March 31, 2024 % Change from Prior Year YTD March 31, 2023
Casino 417,741 -0.4% 419,324 417,741 -0.4% 419,324
Rooms 148,126 6.1% 139,649 148,126 6.1% 139,649
Food & Beverage 129,686 0.4% 129,135 129,686 0.4% 129,135
Entertainment & Other 72,359 5.6% 68,530 72,359 5.6% 68,530
Casino Licensees Total Revenue 769,923 1.8% 756,638 769,923 1.8% 756,638
Gross Operating Profit (GOP) 155,397 -8.7% 170,177 155,397 -8.7% 170,177

** Data agregated from New Jersey Division of Gaming Enforcement for individual properties, includes amended totals as of August 22, 2023. May not match totals from which represent a 'snapshot' of data at the time of publication and are not retroactively updated. 

Atlantic City Hotel Lodging

Source:

Casino Hotel Lodging Statistics
For the Period Ended
March 31, 2024 & 2023
Q1 2024 Q1 2023 YTD 2024 YTD 2023
Occupancy percentage 64.82% 65.18% 64.82% 65.18%
Average Daily Room Rate (ADR) $164.20 $156.52 $164.20 $156.52
Revenue Per Available Room (RevPAR)* $106.40 $102.02 $106.40 $102.02

* RevPAR= ADR X Occupancy Percentage

Atlantic City Casino Operator Taxes & Fees

Source:

Total Paid Taxes & Fees

$202,372,000 $181,053,000 11.78%

Taxes & Fees

Q4 2023 Q4 2022

Casino Gaming Gross Revenue Tax

$41,117,000 $40,737,000 0.93%

Internet Gaming Gross Revenue Tax

$77,886,000 $66,611,000 16.93%

Sports Wagering - Retail Gross Revenue Tax

(includes racetracks)

$1,039,000 $967,000 7.45%

Sports Wagering - Internet Gross Revenue Tax

(includes racetracks)

$37,005,000 $30,752,000 20.33%
Investment Alternative Tax/CRDA Obligations $21,425,000 $19,237,000 11.37%
1.25% Additional Tax $1,405,000 $1,205,000 16.6%
1.25% EDT $2,308,000 $1,888,000 22.25%
Luxury Tax $9,556,000 $8,859,000 7.87%
Tourism Promotion Fee $1,945,000 $1,940,000 0.26%
Hotel Room Fee $2,795,000 $2,774,000 0.76%
Hotel Room Surcharge $1,863,000 $1,849,000 0.76%
Parking Fees $4,028,000 4,234,000 -4.87%

Atlantic City Casino Operator Spending

Source: - Member Reported

Total $195,709,608.74 $166,359,279.56 17.64%

Purchase of Goods and Services From New Jersey Vendors

(By County)

Q4 2023 Q4 2022 % Change
Atlantic  $104,259,719.11 $105,505,857.06 -1.18%
Bergen $3,824,016.84 $3,270,061.78 16.94%
Burlington $3,748,472.55 $5,605,478.74 -33.13%
Camden $5,710,417.47 $6,146,934.11 -7.1%
Cape May $1,973,663.17 $1,579,216.09 24.98%
Cumberland $5,057,329.16 $6,030,951.57 -16.14%
Essex $10,882,741.16 $7,678,367.27 41.73%
Gloucester $1,887,327.78 $1,936,096.3 -2.52%
Hudson $429,999.969 $498,204.85 -13.69%
Hunterdon $43,220.22 $55,761.85 -22.49%
Mercer $6,323,970.47 $6,506,703.72 -2.81%
Middlesex $2,701,846.96 $3,717,282.54 -27.32%
Monmouth $2,779,287.96 $3,806,751.83 -26.99%
Morris $2,441,912.24 $4,440,407.01 -45.01%
Ocean  $920,066.49 $505,796.14 81.90%
Passaic $1,055,955.44 $924,441.32 14.23%
Salem $96,747.31 $20,920.11 362.46%
Somerset $1,927,588.7 $1,877,649.47 2.66%
Sussex $8,492.97 $5,640.00 50.58%
Union $4,545,688.69 $6,239,387.54 -27.15%
Warren $1,096.77 $7,370.26 -85.12%

Other Spending

Q4 2023 Q4 2022 %
Capital Expenditures $64,227,515 $71,180,013 -9.77%
PILOT Contributions (Includes PILOT & additional payments under PILOT legislation) $28,242,109 $27,505,652 2.68%
CRDA Special Improvement District $322,582 $243,627 32.41%
Municipal/Atlantic City Fees-  Water $1,410,845 $1,130,895 24.75%
Municipal/Atlantic City Fees- Sewer $1,251,941 $1,061,249 17.97%

Municipal/Atlantic City Fees-

Other (permits, boardwalk seating, mercantile etc.)

$494,103 $677,473 -27.07%
Charitable Contributions $252,181 $294,895 -14.48%

Total Spending

$96,201,276 $102,093,806 -5.77%

Atlantic City Statistical Transportation Data

Source:

Travel Mode April
2024
Change
from Prior
Year
April
2023
YTD 
2024
Change
from Prior
Year

 

YTD  2023

AC Expressway
Total Toll-Paying Traffic
Pleasantville Toll Plaza
1,373,389  2.4% 1,341,194  5,323,583  2.8% 5,176,401
AC Airport
Scheduled Service Passengers 84,156 12.8% 74,640 321,656  23.9% 259,650
Charter Passengers  9,854 -14.6% 11,533 28,857 -18.6% 35,433 
Total Air Passengers 94,010 9.1% 86,173 350,513 18.8% 295,083 

Atlantic City Meetings and Conventions Data

Source:

  April '24 April '23 % Change
from Prior Year
TOTAL
2024 YTD
TOTAL
2023 YTD
% Change
from Prior Year
Conventions/Tradeshows/Meetings*
# of Shows 5 6 -17% 27 31 -13%
# of Room Nights 6,034 7,938 -24% 45,457 46,618 -2%
# of Delegates 31,377 29,079 8% 210,786 242,676 -13%
Delegate Spending $6,957,919 $7,500,589 -7% $48,108,651 $52,540,168 -8%
Boardwalk Hall Bookings
# of Shows 4 2 100% 9 12 -25%
# of Attendees 22,703 8,983 153% 57,687 65,827 -12%
Hotel Bookings
# of Shows 14 14 0% 46 38 21%
# of Room Nights 8,190 5,612 46% 36,288 25,675 41%
# of Attendees 7,230 6,848 6% 39,112 27,617 42%
Delegate Spending $4,262,043 $3,201,881 33% $22,528,331 $15,883,973 42%
Monthly Totals
# Convs_Trade_Mtgs / Boardwalk Hall / Hotel 23 22 5% 82 81 1%
# of Room Nights 14,224 13,550 5% 81,745 72,293 13%
# of Attendees 61,310 44,910 37% 307,585 336,120 -8%
Delegate Spending $11,219,962 $10,702,470 5% $70,636,982 $68,424,141 3%

*Includes Visit Atlantic City events booked at Boardwalk Hall

Atlantic City Information

Atlantic City Mayor and School Superintendent charged - As reported by the , on April 15, Superintendent La'Quetta Small was charged with three counts of disorderly persons simple assault and Mayor Marty Small Sr. was charged with terroristic threats, aggravated assault and disorderly persons simple assault, in the alleged abuse of their teenage daughter. 

Casino Reinvestment Development Authority (CRDA) names new director - As reported by , the CRDA board voted unanimously to name former Atlantic County Sheriff Eric Scheffler as the authority's new executive director.

Housing project proposed for Orange Loop - As reported by , the Knights of Columbus building on Pacific Avenue at St. James Place, which was recently designated as a historic landmark by Atlantic City City Council, could soon be redeveloped for "workforce housing." A $25.7 million plan would see the five-story structure, built in 1927 and vacant for decades, developed into 40 apartments and ground-floor retail space. Developer 1408 Pacific Avenue LLC has asked for a $2 million loan from the Casino Reinvestment Development Authority (CRDA) to go toward the $4 million purchase of the building. A presentation at a recent CRDA meeting, which secured "preliminary determination of eligibility for the project,"  outlined financing plans, which include close to $4 million in state historic tax credits, $6 million in grants from the New Jersey Economic Development Authority, another $6 million in grants for workforce housing from the state Housing and Mortgage Finance Agency and funds from other sources.

Moody's Investors Service upgrades Atlantic City's bond rating - As reported by and , improved the city's bond rating from Ba2 to Ba1 citing "substantial strengthening of the city's fiscal position." 

One person dies as fires damage Boardwalk, Central Pier - As reported by The Press of Atlantic City, there was a fire that claimed the life of an elderly man and damaged Central Pier on , and a fire that damaged the entrance ramp and walkway onto the Boardwalk at St. James Place on . The fires, nine days apart, were for several interest groups. Atlantic City's historic Boardwalk is currently undergoing a .

Petition puts expansion of Atlantic City cannabis "Green Zone" to public vote - As reported by , in March, the Atlantic City City Council, at the urging of Mayor Marty Small Sr., passed an ordinance to expand the cannabis zone to Albany Avenue on the edge of the Chelsea Heights residential neighborhood. A pettition submitted in April has succeeded in adding a question to the November 2024 ballot that would ask city residents if the ordinance should be repealed. 

Plan may be forthcoming for 'Garwood Mills' site in Gardner's Basin - As reported by , city officials have been meeting with representatives of Kushner Companies, owners of a seven-acre waterfront site across from the city鈥檚 maritime park Gardner鈥檚 Basin, to encourage their development of the site. The company has yet to develop the property which they purchased from the city in 2004 for $2 million. 

淫性视频 hosts third annual Community Day and Party in the Park - According to a 淫性视频 news release, members of the 淫性视频 and Atlantic City community gathered on April 27 for the third annual Community Clean Up and Party in the Park. Further coverage by . 

 New Jersey Gaming News

Bally's Atlantic City celebrates 45th Anniversary with capital improvements - As reported by , Bally's Atlantic City will debut a new steakhouse, VIP players鈥 lounge, high-limit slot room and rewards card center for Summer 2024 as the property celebrates its 45th year. 

Hard Rock Hotel & Casino Atlantic City to open two new nongaming venues - According to a news release shared by , Hard Rock Hotel & Casino Atlantic City will open a new outdoor restaurant, The Terrace, and a new nightlife venue, The Balcony, on Memorial Day weekend. A new beach experience is also planned for Summer 2024. 

Monmouth Park racetrack breaks ground on Caesars Sportsbook - As reported by , Monmouth Park in Oceanport Township, New Jersey, has broken ground on an on-site sportsbook. The 16,000 square-foot facility will feature indoor and outdoor viewing areas, as well as food and beverage offerings. 

New Jersey Attorney General and casino union ask judge to dismiss lawsuit that seeks to ban smoking at casinos - As reported by and , the New Jersey Attorney General and Unite HERE Local 54, Atlantic City鈥檚 main casino workers union, have asked a judge to dismiss a lawsuit brought by the United Auto Workers union. United Auto Workers represents dealers at the Bally鈥檚, Caesars and Tropicana casinos. The lawsuit seeks to overturn New Jersey鈥檚 indoor smoking law, which bans it in virtually every workplace except casinos.

淫性视频 Atlantic City Summer Experience: Live-Work-Learn

 National Gaming News

Churchill Downs and FanDuel set new record for Kentucky Derby betting - According to , betting on the Kentucky Derby hit record levels reaching $210.7 million in 2024 compared to $188.7 million in 2023. Twin Spires, the betting platform owned by Churchill Downs Incorporated, handled $60.9 million in wagers on the race $12 million more than in 2023. FanDuel had its most significant day of horse betting with more than 700,000 customers betting on the Derby compared to 500,000 in 2023. 

Delaware online sportsbooks against market expansion - According to , the Delaware Lottery and Rush Street Interactive, the parent company of sole online Delaware sports betting operator BetRivers, are against legislation () that would expand the market to up to six sportsbooks. 

East Coast Gaming Congress held in Atlantic City - As reported by and , gaming industry stakeholders gathered in Atlantic City on April 17 and 18 to discuss challenges and opportunities facing the casino gaming industry. The 27th annual also honored David Rebuck, former director of the New Jersey Division of Gaming Enforcement, with a lifetime achievement award.

ESPN Bet branded retail sportsbook opens in Detroit - As reported by , the first ESPN Bet branded retail sportsbook opened at Penn Entertainment's Hollywood Casino at Greektown in downtown Detroit. 

International online gaming operator 888 sells US assets to Hard Rock Digital - According to a shared by , international online gaming operator 888 Holdings plc, has decided to sell some of its United States assets to Hard Rock Digital. 

Louisiana bans prop bets on college athletes - According to a bulletin issued by the shared by, Louisiana has, as of April 1, effectively banned prop bets on individual college athletes. 

Nevadans in favor of indoor casino smoking ban - As reported by , a study commissioned by the Nevada Tobacco Control and Smoke-free Coalition has found that nearly 6 in 10 Nevada residents think Nevada鈥檚 Clean Indoor Air Act that went into effect in December 2006 should be modified to remove the casino exemption.

Online casino referendum fails in Maryland - According to , a referendum legalizing online casino gaming in Maryland failed to pass the state's General Assembly before lawmakers adjouned the current legislative session. Legalizing online gaming in Maryland requires a constitutional amendment. If the referendum had passed the Assembly it could have gone to a public vote in November, as it stands, the next opportunity will not come until 2026. 

Pennsylvania bill seeks to prohibit customers from using credit cards to fund online gambling accounts - As reported by and , Pennsylvania legislators filed legislation () that would ban credit card funding for all online gambling. 

Pennsylvania casino opens smoke-free gaming lounge - As reported by , Mohegan Pennsylvania in the Poconos has opened a smoke-free gaming lounge in partnership with Aristocrat Gaming. The 2,000-square-foot facility features 55 of the latest slot titles from Aristocrat.

Hospitality & Tourism News

Heavily eroded North Wildwood beach to be rebuilt - According to an from Gov. Phil Murphy & Mayor Patrick Rosenello, covered by , beaches in North Wildwood, some of the most severly eroded in the state, will be rebuilt with an unusual project planned through the state Department of Transportation鈥檚 Office of Maritime Resources. The project is a stop-gap measure until a U.S. Army Corps of Engineers project can begin.

New restaurant to open at Cape May's Sunset Beach - As reported by , a new restaurant, Fish House, is set to open at the former site of The Grille at 502 Sunset Blvd., just north of Cape May Point, overlooking the Delaware Bay and the SS Atlantus shipwreck.

Ownership of Miss America Organization disputed - As reported by and , former casino owner Glenn F. Straub has sued Miss America's CEO for $20 million in a dispute regarding the ownership of the long-running beauty pageant. 

Spirit Airlines announces closure of Atlantic City International Airport crew base amid restructuring - As reported by and , Spirit Airlines announced that a crew base located at Atlantic City International Airport would close effective Sept. 1 amid a company-wide restructuring plan. The closure will impact 157 pilots and flight crew and follows the termination of a $3.8 billion proposed merger between Spirit and JetBlue. 

Thousands gather for Atlantic City Beer & Music Festival - As reported by , thousands of beer enthusiasts gathered at the Atlantic City Convention Center on April 12 and 13 for the . One-hundred-and-ten breweries, nine restaurants, 64 vendors, six charities and 12 attractions were represented at the event, which will have an outdoor counterpart at Bader Field in July. 


LIGHT Snapshots is a publication of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism, 淫性视频 School of Business

Jane Bokunewicz, Ph. D., Faculty Director and Associate Professor of Hospitality