November 2022

 

LIGHT Snapshots

 
November 2022
 

In LIGHT of the data.

Going into winter 2022, internet gaming continues to be the star of Atlantic City gaming operations 鈥 representing 37.7% of total gross gaming revenue earned by Atlantic City鈥檚 casino operators in the month of November, compared to 32.6% in November 2021 and 17.0% in pre-pandemic November 2019. Year-to-date, internet gaming revenue for 2022 ($1.5 billion) has increased 22% over year-to-date 2021 ($1.2 billion) and 248.7% over year-to-date 2019 ($433.4 million). Internet gaming revenues have seen remarkable gains since the start of the pandemic, more than doubling their share of total year-to-date gaming revenue for Atlantic City operators in November 2022 (34.9%) compared to the same period ended November 2019 (14.3%).

This has become indisputably a major source of revenue and economic activity for Atlantic City鈥檚 casino operators. But it is not a substitute for in-person gaming, which, in addition to generating gaming revenue, generates complementary revenues from the resorts鈥 nongaming amenities, such as lodging, dining and entertainment. It should also be noted, casino operators share a portion of the revenue from internet gaming with third-party providers.

In comparison, gross gaming revenues earned from slots, table games and poker have struggled in recent months to meet 2019 revenue levels. Year-to-date ended November 2022 brick-and-mortar gaming revenues ($2.57 billion) exceeded the same period in 2021 and compare favorably to the same pre-pandemic period ended November 2019 ($2.48 billion). While an encouraging sign of post-pandemic recovery, this modest performance may not be enough to offset recent increases in operating expenses, which are now well above those of 2019.

The industry could be facing strong headwinds finishing out 2022 and beginning the first quarter of 2023, as a traditionally slow seasonal period aligns with ongoing broader economic concerns. While impossible to predict, it may be reasonable to expect a slowing of internet gaming revenue growth and modest, if any, growth in brick-and-mortar revenues because of these external pressures. Depending on their business models, each Atlantic City gaming property may weather these challenges differently.

It is important to keep in mind that, despite these challenges, the Atlantic City industry, as a whole, is still trending ahead of total 2021 gaming revenues and is on track to generate near-term record total gross gaming revenue by year-end.

 

Atlantic City Gaming Win & Total Casino Revenue

Source:

Monthly Revenue (Casino Licensees, $ In Millions

November 2022

% Change from Prior Year November 2021 YTD November 2022 % Change from Prior Year YTD November 2021
Total Gaming Win (includes Internet & Sports Wagering) 388.10 7.1% 362.32 4,336.40 12.4% 3,856.90
Sports Wagering Revenue 27.41 -26.9% 37.48 255.16 -9.0% 280.54
Internet Gaming Win 146.16 23.9% 117.95 1,511.24 22.5% 1,233.68
Casino Gaming Win 214.53 3.7% 206.89 2,569.99 9.7% 2,342.67

 

Quarterly Revenue (Industry, $ In Thousands)** Q3 2022 % Change from Prior Year Q3 2021 YTD September 30, 2022 % Change from Prior Year YTD September 30, 2021
Casino $469.19 -7.3% $505.87 1,368.67 3.0% 1,328.80
Rooms $261.87 6.1% $246.86 $554.21 14.8% $482.56
Food & Beverage $160.59 13.1% $142.03 $396.07 33.5% $296.68
Entertainment & Other $88.49 20.8% $73.27 $209.76 38.5% $151.41
Casino Licensees Total Revenue $980.14 1.3% $968.03 $2,528.71 11.9% $2,259.45
** Data agregated from New Jersey Division of Gaming Enforcement for individual properties, includes amended totals as of August 22, 2022. 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
Q3 2022 Q3 2021 YTD 2022 YTD 2021
Occupancy percentage 86.66% 81.25% 76.2% 68.0%
Average Daily Room Rate (ADR) $216.55 $224.61 $184.71 $178.07
Revenue Per Available Room (RevPAR)* $187.66 $182.50 $140.75 $121.09

* RevPAR= ADR X Occupancy Percentage


Atlantic City Statistical Transportation Data

Source:

Travel Mode October
2022
Change
from Prior
Year
October
2021
YTD
October
2022
Change
from Prior
Year
YTD October
2021
AC Expressway
Total Toll-Paying Traffic
Pleasantville Toll Plaza
1,418,479 -7.9%  1,539,261 14,736,614 -0.2% 14,765,203
AC Airport
Scheduled Service Passengers  60,300 -6.9% 64,755 718,367 8.7%  660,700
Charter Passengers   12,132  14.9% 10,555  102,328 84.1% 55,588
Total Air Passengers 72,432 -3.8%  75,310  820,695  14.6%  716,288

Atlantic City Meetings and Conventions Data

Source:

  November '22 November '21 % Change
from Prior Year
TOTAL
2022 YTD
TOTAL
2021 YTD
% Change
from Prior Year
Conventions/Tradeshows/Meetings*
# of Shows 8 3 167% 87 27 222%
# of Room Nights 11,896 11,257 6% 131,561 33,694 290%
# of Delegates 24,251 22,415 8% 451,121 96,393 368%
Delegate Spending $11,141,642 $9,752,090 14% $159,820,273 $29,344,231 445%
Boardwalk Hall Bookings
# of Shows 5 2 150% 43 5 760%
# of Attendees 28,108 9,418 198% 203,319 44,333 359%
Hotel Bookings
# of Shows 12 7 71% 158 104 52%
# of Room Nights 5,862 2,983 97% 121,571 94,156 29%
# of Attendees 5,105 2,830 80% 179,269 123,772 45%
Delegate Spending $6,846,303 $1,735,494 294% $81,816,120 $54,347,817 51%
Monthly Totals
# Convs_Trade_Mtgs / Boardwalk Hall / Hotel 25 12 108% 288 136 112%
# of Room Nights 17,758 14,240 25% 253,132 127,850 98%
# of Attendees 57,464 34,663 66% 833,709 264,498 215%
Delegate Spending $17,987,945 $11,487,584 57% $241,636,393 $83,692,048 189%

Notes:

January 2021 hotel attendees reflect virtual attendance numbers

March and August 2021 conventions/tradeshow numbers updated based on information received after reporting deadline

January 2022 conventions/tradeshow numbers updated based on information received after reporting deadline

March 2022 Boardwalk Hall Bookings updated based on information received after reporting deadline

*Includes Meet AC events booked at Boardwalk Hall


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

Casino Reinvestment Development Authority (CRDA) extends agreement with Atlantic City to finance Streetlight work - As reported by , the CRDA agreed to extend a standing agreement with the City for the inspection, repair, maintenance, replacement and provision of streetlights. In 2020, the CRDA set aside $500,000 to finance this work, according to details presented November 15, when the CRDA's original agreement with the City ended last July, $395,000 of that money had yet to be spent. In October, the New Jersey Governor's Office ordered the CRDA "to take all necessary measures to immediately take control of the citywide streetlight outages issue within the city of Atlantic City.鈥 The new agreement will be in effect through 2024 and makes nearly $600,000 available for the project.

Effort to improve city services 'kicks off' with public meeting - As reported by city officials held a public meeting November 16 to kick off the CitiStat program for improving city services. In the first of what will be recurring bi-weekly meetings, officials and residents met on the Atlantic City campus of 淫性视频 to discuss residents' complaints and city actions to address them. The CitiStat program is a system of bi-weekly public meetings, data collection and public reporting intended to keep the city accountable on issues including city-wide infrasturctural maintenance and repairs (pot holes, street lights etc.), trash collection and code enforcement. A second meeting was held on and, as of , 88 complaints had been reported via the CitiStat process with six issues reported as closed, 76 in process and six not yet started.

Owners of former Atlantic Club Casino Hotel say property will be redeveloped as luxury condos - As reported by , current owners of the building, New York-based Colosseo Atlantic City Inc., say plans are in the works to redevelop the property that has been vacant for eight years following the closure of the casino in January 2014. Representatives of Colosseo told the Press more specific plans would be available by early January. 

Residents of Stanley Holmes Village sue - As reported by , residents of Atlantic City's Stanley Holmes Village are suing the Atlantic City Housing Authority over the condition of the aging housing complex, particularly the availability of heat and hot water. Village residents met with city officials at a special meeting on to discuss the complex. According to representatives of the Atlantic City Housing Authority Board, the U.S. Department of Housing and Urban Development has agreed to begin issuing Section 8 vouchers in January to Stanley Holmes residents who want to try to find housing elsewhere. From , the city deployed inspectors to all 420 units at Stanley Holmes Village to document existing problems. 

淫性视频 and The Press of Atlantic City partner to open community reporting lab - According to a November 17 news release from 淫性视频, the University and The Press of Atlantic City celebrated the opening of a new Community Innovation Reporting Lab located at the John F. Scarpa Academic Center, which is part of 淫性视频's Atlantic City campus, on November 16. Additional reporting by . 

Sun Country Airlines adds nonstop service to Atlantic City International Airport - According to a November 15 , Sun Country Airlines added 15 new nonstop routes beginning in summer 2023. Included in the new routes is nonstop service between Minneapolis-St. Paul International Airport (MSP) and Atlantic City International Airport (ACY). 

New Jersey Gaming News

Bragg Gaming Group announces launch of new content and technology with Rush Street Interactive in New Jersey - According to a December 1 , Bragg Gaming Group is partnering with Rush Street Interactive to provide new igaming products to New Jersey players through the Betrivers.com platform. The partnership is the first launch of Bragg's new Remote Games Server technology in the state. This technology was previously released in Ontario, Canada and Michigan earlier this year as part of the companies' existing collaboration in the North American market. 

Evolution launches second live casino studio in New Jersey - As reported by ,  Evolution Gaming announced the opening of a second purpose-built live online casino gaming studio in New Jersey. The studio launched on November 10 following approval from the New Jersey Division of Gaming Enforcement. The first studio opened in August of 2018. 

New Jersey voters oppose north Jersey casino expansion - As reported by , a poll conducted by Fairleigh Dickinson University found only 37% of New Jersey voters supported adding new casinos to the state outside of Atlantic City and 51% opposed. These findings are simmilar to what Fairleigh Dickinson University found among voters six years ago.

 National Gaming News

After announcing deal with FanDuel, Churchill Downs Incorporated announces plan to open DraftKings-branded gaming site - As reported by , Churchill Downs to partner with DraftKings on DK Horse, "a standalone, advance-deposit wagering (ADW) site for horse racing." The DK Horse App will remain separate from the main DraftKings Sports Betting app for now. Three months ago, Churchil Downs announced a multi-year. Further reporting from  and . 

American Gaming Association releases report on illegal and unregulated gaming markets - The released "" a report examining illegal and unregulated gaming markets in the U.S. Researchers estimate Americans gamble an estimated "$511 billion each year with illegal and unregulated sportsbooks, iGaming websites and so-called 'skill games.'" Further coverage from , and . 

Broadway League, Shubert Organization oppose Times Square Casino Proposal - As reported by , the national trade association for the Broadway industry and the largest theater owner in the U.S. have voiced their oposition to a Times Square casino project proposed by Caesars Entertainment and SL Green Realty.

East Coast Gaming Congress & Nexgen Gaming Forum (ECGC) returning in Spring 2023 - As reported by , will return to the Hard Rock Hotel & Casino Atlantic City on April 19 and 20, 2023. The event had been held in fall the past few years following the postponement of the 2020 conference due to the COVID-19 pandemic. 

Maryland launches online sports betting 鈥 As reported by , Maryland launched online sports betting on November 23 with seven operators. An additional seven operators are expected to join the market for a total of 14 operators within the next few months. A May 2022 Eilers & Krejcik predicts Maryland鈥檚 online sports betting market could generate $123.3 million in sports betting revenue in its first year. In the first five days of operating, Maryland sportsbooks registered 16.5 million transactions, just shy of the 17.1 million transactions measured for New Jersey in the same period, according to . According to , Maryland鈥檚 governor, expects to see as much as $30 million in tax revenue generated from sports betting in 2023 and almost $100 million by 2027.

Massachusetts accepts sports betting operator applications 鈥 As reported by , the Massachusetts Gaming Commission received 15 sports betting operator applications including six applications for online only operations. The state is permitted up to 15 online operators. Massachusetts is expected to launch retail sports betting in January and online sports betting in early March. According to , Encore Boston Harbor received the state鈥檚 first sports betting license on December 8.

Nevada wins $1 billion in October 2022, 20th consecutive month with at least $1 billion in casino win - As reported by and Nevada's casinos generated over $1 billion in gaming revenue for the 20th consecutive month in October 2022. The industry's previous record streak of over $1 billion monthly win was eight months, October 2006 through May 2007. 

Pennsylvania has record-breaking October - As reported by, Pennsylvania realized record sports betting handle ($797 million) and online casino revenue (over $124 million) in October 2022. 

Pennsylvania to open fourth satellite casino in Febraury 2023 - As reported by , a fourth satellite casino, Parx Casino Shippensburg, will open in February 2023. The new Parx owned, 73,000 square-foot, Category 4 casino is opening at the site of a former Lowe's Home Improvement Store 40 miles southwest of Harrisburg. "The facility will open with 500 slot machines and 48 electronic table game positions, plus a 100-seat restaurant and sports bar with self-service sports betting kiosks. No live dealer table games will initially be offered."

Resorts World and Sightline announce launch or 2nd generation cashless technology 鈥 As reported via and , Resorts World Las Vegas is implementing updates to Sightline鈥檚 cashless technology which improve functionality by 鈥渄ramatically decreasing the customer鈥檚 time to play.鈥 An example of Sightline鈥檚 technology is available on the Resorts World Las Vegas Mobile+ app which features a cashless wallet that uses biometrics for enhanced security.

Hospitality & Tourism News

Cardinal Bistro to reopen at site of former Bourre restaurant on South New York Avenue in  Atlantic City - As reported by the Ventnor restaurant that closed in 2019 will reopen in place of Bourre, a Cajun barbecue restaurant and bar, in the Orange Loop. 

Las Vegas Visitation 1% shy of 2019 levels in October - As reported by , more than 3.6 million tourists visited Las Vegas in October 2022, a 7% increase over October 2021 and just 1% (29,000) behind October 2019. In the 10 months ended October 2022, the city welcomed just under 32.3 million visitors just 3 million short of visitation levels in the same period of 2019. 

Market rate rental housing project proposed for Bader Field, Atlantic City - As reported by Bart Blatstein, CEO of Tower Investments and owner of Showboat Atlantic City proposed a $3 billion redevelopment plan for Bader Field that would include the construction of 10,000 units of mid-market level rental homes and 400,000 square feet of and office space, along with 20 acres of open, recreational space and trails at the former airport. The project would be developed in five phases over twelve years. Further reporting from .

New Jersey Governor announces $25 million investment in state historical sites - According to a November 29 from the Office of Governor Phil Muphy, $25 million from federal American Rescue Plan funds "will be allocated to the New Jersey Department of the Treasury and distributed to Revolution NJ, in partnership with the New Jersey Historical Commission and Crossroads of the American Revolution" to aid in the restoration of Revolutionary War sites in New Jersey. Restorations will be in preparation for the United States of America鈥檚 Semiquincentennial (250th) anniversary taking place in 2026. 

Ocean City High School adds esports program - As reported by , Ocean City High School has announced plans to introduce a new esports program to students over the next three years. Matthew Friedman, the district superintendent, told the Press, "It鈥檚 really about creating career pathways and opportunities for students,鈥 Friedman said. 鈥淚t鈥檚 not just creating a space to game. It鈥檚 creating an educational space. it鈥檚 creating cross-content connections.鈥

Port Authority of New York and New Jersey unvels new Terminal A at Newark Liberty International Airport - As reported by , the Port Authority debuted the 1 million-square-foot, $2.7 billion terminal on November 15. Tne new Terminal A is 20% larger than its predecessor and is "estimated to generate $4.6 billion for the regional economy and serve 13 million visitors."

Resort brand, Icona, pursues deal to redevelop former Ocean City bank building as a boutique hotel - As reported by and , Icona has offered $6.5 million to buy a former bank building in downtown Ocean City. The purchase would be part of plans to develop the site as a boutique hotel, which would require an investment of millions of dollars more and a use variance from the city as hotels are not permitted in downtown Ocean City. 

淫性视频 Poll finds inflation impacting holiday spending and travel - According to polling results released by the William J. Hughes Center for Public Policy at 淫性视频, two-thirds of New Jersey adults surveyed said inflation was impacting their holiday spending and one in three said they will spend less this year compared to a year ago. Read the full 淫性视频 news release

Theme park ride manufacturer announces two new roller coasters for Steel Pier, Atlantic City - As reported by , and during the Baltimore-based ride manufacturer Premier Rides annouced that two of its roller coasters would be coming to Atlantic City's Steel Pier.