March 2023

 

LIGHT Snapshots

 
March 2023
 

In LIGHT of the data.

First-quarter gross gaming revenue returns for 2023 offer a ray of sunshine following a disappointing year-end 2022 report.

Brick-and-mortar gross gaming revenue for Atlantic City鈥檚 casino operators in the three months ended March 2023 ($655.3 million) exceeded the same period in 2022 ($612.7 million) by 7.0% and 2019 ($597.1 million) by 9.7%.

When revenues from internet and sports wagering are included, Atlantic City operators鈥 collective performance in the first quarter of 2023 ($1.2 billion) exceeded 2022 ($1.08 billion) by 11.5% and pre-pandemic 2019 ($726.7 million) by 65.7%. The rise of internet gaming especially during the pandemic has clearly accelerated total gross gaming revenue for Atlantic City鈥檚 casino operators to new heights masking more modest gains in brick-and-mortar revenue in the same period. Sports betting, perhaps fueled by March Madness, recorded an impressive 49.3% increase year-over-year revenue in the three months ended March 2023 compared to the same period in 2022. The increase is even more impressive when compared to first quarter 2019, as the market was just beginning to take off. The first quarter of 2023 saw $87.5 million in revenue compared to $25 million in the same period of 2019.

 

Regarding year-end 2022:

Although total net revenue exceeded 2021 totals and surpassed pre-pandemic 2019 total net revenue ($3.16 billion) for the first time, it was not enough to exceed gross operating profit (GOP) year over year. Despite realizing higher GOP in 2022 than 2019 ($613.5 million), the year ended with a disappointing decline of nearly 5% GOP compared to 2021.

Increased local competition and lost earning potential in 2020 combined to make 2022 a uniquely challenging year for several of Atlantic City鈥檚 casino operators. Anecdotally, operators have increased spending on marketing and promotional efforts to draw in consumers and remain competitive in the market. Increases in wages for the industry workforce also likely contributed to higher operating costs leading to lower GOP at year end.

Notably, with the industry-wide gains in revenue 鈥 especially revenue generated by internet gaming, which is taxed at a higher rate 鈥 the industry has generated record-high total gaming tax revenue in the last two years. Combined tax revenue generated from an 8% tax on casino gross revenue, a 15% tax on internet gaming gross revenue, an 8.5% tax on casino retail sports wagering gross revenue, and a 13% tax on casino Internet sports wagering gross revenue resulted in $467 million in 2022. That is a nearly 12% increase over the industry鈥檚 last peak at $417.5 million in 2006 鈥 before the launch of online and sports wagering.

 

Atlantic City Gaming Win & Total Casino Revenue

Source:

Monthly Revenue (Casino Licensees, $ In Thousands

March 2023

% Change from Prior Year March 2022 YTD

March 2023

% Change from Prior Year YTD March 2022
Total Gaming Win (includes Internet & Sports Wagering) $441,021 15.2% $382,893 $1,203,926 11.5% $1,079,732
Sports Wagering Revenue $46,662 82.1% $25,627 $87,463 49.3% $58,580
Internet Gaming Win $165,712 17.8% $140,655 $461,172 12.9% $408,481
Casino Gaming Win $228,648 5.6% $216,611 $655,291 7.0% 612,672

 

Quarterly Revenue (Industry, $ In Thousands)** Q4 2022 % Change from Prior Year Q4 2021 YTD December 31, 2022 % Change from Prior Year YTD December 31, 2021
Casino

$412,822

-8.9% $452,937 $1,781,497 0.0% $1,781,740
Rooms $144,016 6.5% $135,229 $698,226 13.0% $617,785
Food & Beverage $132,062 18.3% $111,653 $528,128 29.3% $408,335
Entertainment & Other $82,991 29.1% $64,262 $296,144 37.3% $215,671
Casino Licensees Total Revenue $359,069 1.0% $764,081 $3,303,995 9.3% $3,023,530
Gross Operating Profit (GOP) $119,301 -31.6% $174,485 $731,276 -4.6% $766,877

** Data agregated from New Jersey Division of Gaming Enforcement for individual properties, includes amended totals as of April 13, 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
September 30, 2022 & 2021
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Occupancy percentage 65.8%  66.4% 73.4%  67.6%
Average Daily Room Rate (ADR) $155.75 $156.60 $177.89 $172.88
Revenue Per Available Room (RevPAR)* $102.48 $103.98 $130.57 $116.87

* RevPAR= ADR X Occupancy Percentage


Atlantic City Statistical Transportation Data

Source:

Travel Mode February
2023
Change
from Prior
Year
February
2022
YTD
February
2023
Change
from Prior
Year
YTD February
2022
AC Expressway
Total Toll-Paying Traffic
Pleasantville Toll Plaza
1,210,622 1.9% 1,188,421 2,426,775 7.9% 2,249,628 
AC Airport
Scheduled Service Passengers 59,633  -6.7% 63,925  115,602  -3.1% 119,324 
Charter Passengers  9,081  26.3% 7,192 13,620 -1.1% 13,777 
Total Air Passengers 68,714  -3.4% 71,117 129,222  -2.9% 133,101 

Atlantic City Meetings and Conventions Data

Source:

  March '23 March '22 % Change
from Prior Year
TOTAL
2023 YTD
TOTAL
2022 YTD
% Change
from Prior Year
Conventions/Tradeshows/Meetings*
# of Shows 13 9 44% 25 18 39%
# of Room Nights 7,645 8,393 -9% 38,680 30,522 27%
# of Delegates 110,005 93,029 18% 234,597 174,366 35%
Delegate Spending $18,430,615 $13,329,123 38% $49,883,048 $32,560,553 53%
Boardwalk Hall Bookings
# of Shows 2 1 100% 10 7 43%
# of Attendees 23,454 12,996 80% 56,844 44,881 27%
Hotel Bookings
# of Shows 7 12 -42% 24 24 0%
# of Room Nights 8,003 12,202 -34% 20,063 25,843 -22%
# of Attendees** 9,113 11,863 -23% 20,769 37,103 -44%
Delegate Spending $5,172,646 $8,319,847 -38% $12,682,092 $17,699,491 -28%
Monthly Totals
# Convs_Trade_Mtgs / Boardwalk Hall / Hotel 22 22 0% 59 49 20%
# of Room Nights 15,648 20,595 -24% 58,743 56,365 4%
# of Attendees 142,572 117,888 21% 312,210 256,350 22%
Delegate Spending $23,603,261 $21,648,970 9% $62,565,140 $50,260,044 24%

Notes:

*Includes Visit Atlantic City events booked at Boardwalk Hall

**January 2023 vs January 2022 Hotel Attendee variance is due to an event moved from hotel venue in 2022 to Boardwalk Hall* in 2023


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

Atlantic City Information

Atlantic City City Council approves construction of "unicoaster"- As reported by , members of the Atlantic City Council approved a resolution to award redevelopment of land under the city-owned Boardwalk Rotunda building to ACPB LLC to build a 鈥渦nicoaster鈥 thrill ride on the Boardwalk. 

Atlantic City City Council, Mayor, choose DEEM Enterprises' proposal for devlopment of Bader Field - As reported by , on March 23, Atlantic City Mayor Marty Small Sr. signed a memorandum of understanding with DEEM Enterprises to create a $3 billion automotive-focused housing and retail development. DEEM will have six months to conduct research and negotiate a redevelopment agreement. DEEM has agreed to pay $115 million to the city including $100 million for the land and the $15 milllion cost of building a recreation center for city residents. Further coverage by .

Atlantic City commits to cleaning schedule for city parks - As reported by , the city has commited to a new cleaning schedule for city parks. Weather permitting, public works will routinely clean 25 parks during the work week, scheduling cleaning so that each is visited at least once per week. The effort is part of ongoing initiatives to promote clean and safe neighborhoods and encourage pride in the community. 

淫性视频 receives award for Community Day event - As reported by 淫性视频鈥檚 Community Day Clean Up and Party in the Park, held April 2022 in Atlantic City, was recognized with an award from the New Jersey Communities Council. The event returns to the city on Saturday, April 22, 2023

New Jersey Gaming News

Bob McDevitt, leader of Local 54 of the Unite Here union, to resign, take national role - As reported by and , after 26 years leading Unite Here Local 54, the union that represents nearly one-third of Atlantic City鈥檚 casino and hospitality workers, Bob McDevitt will step down on May 1 to become chairman of the Unite Here national pension fund.

Borgata's Water Club to be redesigned and rebranded - In a March 14 Borgata announced a $55 million redesign and rebrand of the Water Club. New offerings in the renamed MGM Tower will include more than 700 guest rooms, luxury vista suites and a 9,000 square-foot flexible event space. Further reporting by .

Four gaming bills focus of New Jersey State Assembly Commitee on Tourism, Gaming and the Arts meeting - According to records of the New Jersey State Legislature, the Assembly Committee on Tourism, Gaming and the Arts voted to advance four gaming bills out of committee during its . Assembly Bill condemns overproliferation of pro-gambling advertisements in N.J., Bill establishes "Gambling Treatment Diversion Court Pilot Program" to be administered by Administrative Office of the Courts, Bill prohibits sports wagering partnerships at public institutions of higher education, and Bill requires school districts to provide instruction on risks of compulsive gambling as part of implementation of New Jersey Student Learning Standards in Comprehensive Health and Physical Education. Reporting from .

 National Gaming News

American Gaming Association (AGA) updates Responsible Marketing Code for Sports Wagering - According to a March 28 , effective immediatly the AGA has updated its to enhance protections for college-age audiences. The code sets the industry standard for responsibility in marketing and advertising of sports betting.

Kentucky legalizes sports betting - As reported by , Kentucky has passed legislation legalizing sports betting in the state. The Kentucky market is estimated to be worth $23 million in annual tax revenue. Further coverage from . 

Massachusetts launches online sports betting - As reported by , Massachusetts launched online sports wagering on March 10. The state permitted the first retail sports bets at the end of January. The Massachusetts sports betting market is estimated to be worth $60 million in annual tax revenue. Further coverage from . 

NFL approves keeping in-stadium sportsbooks open while games are played at those venues - As reported by , NFL owners have passed a resolution that would allow game-day operation of in-stadium retail sportsbooks located in venues in states where sports wagering is now legal. Roughly have of the league's teams could take advantage of the new resolution, which allows teams to keep all of the revenue generated from in-stadium sportsbooks up to $20 million before revenues become subject to the NFL's revenue sharing policies.

Parx Casino in Bensalem, Pa., to build on-site resort hotel - As reported by , Parx Casino, 10 miles north of Philadelphia, is moving forward with plans to build a 300-room, on-site resort hotel. The property will also include two restaurants and a 14,000 square-foot event space. 

Tennessee legislators consider amendment to sports betting, tax levied on handle rather than gross revenue - According to, legislators in Tennessee are considering a sports wagering taxation model that would levy a tax on handle rather than gross revenue. The current model taxes operators' gross revenue at 20% with a minimum 10% hold requirement. A proposed handle tax would be levied at 1.85%. 

The Conference Board releases Consumer Confidence Survey results for March - According to a March 28 from , findings of the March Consumer Confidence Survey suggest that consumers plan to "spend less on highly discretionary categories, such as playing the lottery, visiting amusement parks, going to the movies, personal lodging and dining" over the next six months. The Conference Board also reported an increase in March over February of the Consumer Confidence Index, and the Expectations Index, based on consumers' short-term outlook, also increased in March over February, but remained, as it has for 12 of the last 13 months below "the level which often signals a recession within the next year." Finally, the Present Situation Index decreased in March compared to February. Analysis of the indexes suggests that "while consumers feel a bit more confident about what鈥檚 ahead, they are slightly less optimistic about the current landscape."  Further reporting from . 

Hospitality & Tourism News

Brigantine considers adjustment to short-term rental ordinance - As reported by , Brigantine officials are considering adjustments to the municipality's short-term rental ordinance, which among other considerations, would ban one-night stays. Other local municipalities have either introduced or are considering banning one-night stays.  Margate has a one-week stay minimum for short-term rentals. Longport and Ventnor are considering introducing a minimum two- to three-night stay requirement for short-term rentals.

淫性视频, Esports Innovation Center among groups fostering an esports ecosystem in southern New Jersey - As reported by , 淫性视频, the Esports Innovation Center and Camden County College are connecting students with career opportunities in esports. 

"Trophy Park," youth sports and hospitality complex project falls through in Hamilton Township, New Jersey - As reported by , a developer in Hamilton Township has decided to abandon plans for a youth sports, entertainment and hospitality complex. The complex, "Trophy Park," would have spanned 268 acres and included 345,000 square feet of indoor sports facilities, two dozen outdoor turf fields, two 3,000 seat stadiums, a 2,000 bed "athletes village," three hotels, and family amusement facilites. The project, estimated to cost $280 million, was expected to generate $3.5 million in tax revenue and create about 300 full-time and 1,000 part-time jobs. The project faced opposition from local conservationists and significant zoning challenges. The project would have also needed the Pinelands Commission to agree to designate the space a Pinelands Regional Growth Area to allow for the development.

United States Department of Justice (DOJ) files civil antitrust lawsuit to block JetBlue Airways Corporation鈥檚 (JetBlue) acquisition of Spirit Airlines Inc. (Spirit) - According to a March 7 from the DOJ, an antitrust lawsuit has been filed to block the merger of JetBlue and Spirit. The DOJ believes the $3.8 billion acquisition would allow JetBlue to eliminate its largest rival and further concentrate the airline industry, harming American travelers. According to , as of March 31, four states California, Maryland, New Jersey and North Carolina had signed on to the DOJ's lawsuit. Further reporting from and .