August 2021
In LIGHT of the data.
Peak summer in the resort produced promising revenue returns for the city’s casinos. At $113.2 million, August internet gaming revenue fell just shy of July 2021 ($118.7 Million), while land-based gaming operations put in a strong showing at $262.4 million.
Combined with sports gaming revenue, land-based and online earnings for the month exceeded August 2019 ($338.9 million) by 17.4%. Strong performance by both in-person and online gaming during the peak summer tourism season provides further evidence that brick-and-mortar gaming operations can beneficially coexist with internet gaming operations.
Total annual gaming revenue for the resort is on track to meet 2019 levels. As of August 2021, total gaming revenue for Atlantic City’s casinos fell just 2% short of the same period in 2019. With four months remaining, year-to-date total gaming revenue for the resort ($2.1 billion) was $1.2 billion behind the year-end total for 2019. Internet gaming has contributed significantly to these gains.
Although land-based gaming revenues have neared 2019 performance levels in recent months, the industry is still trying to recover lost ground from the early part of the year when pandemic related circumstances suppressed in-person gaming activity. Land-based gaming revenue for the year-to-date lags 2019 by 9.7% and with a third of the year remaining is $1.0 billion behind 2019 year-end totals.
If pandemic mitigation efforts are successful in lowering transmission rates into the fall and winter and live events continue to return to the resort, we can expect a strong shoulder season fueled by continuing demand for experiences. The start of the NFL season earlier this month is sure to boost sports gaming revenues moving into the fall.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
August 2021 |
% Change from Prior Year | August 2020 | YTD August 2021 | % Change from Prior Year | YTD August 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 262,404 | 31.8% | 199,053 | 1,649,717 | n/a | 842,203 |
| Sports Wagering Revenue | 113,231 | 29.0% | 87,773 | 866,130 | 44.8% | 597,975 |
| Internet Gaming Win | 22,022 | 33.6% | 16,484 | 180,493 | 134.7% | 76,895 |
| Casino Gaming Win | 397,657 | 31.1% | 303,310 | 2,696,339 | 77.7% | 1,517,073 |
| Quarterly Revenue (Industry, $ In Thousands) | Q2 2021 | % Change from Prior Year | Q2 2020 | YTD June 30, 2021 | % Change from Prior Year | YTD June 30, 2020 |
|---|---|---|---|---|---|---|
| Casino | 445,781 | 299.5% |
111,593 |
822,932 | 76.3% | 466,871 |
| Rooms | 145,472 | n/a | 37 | 235,696 | 141.5% | 97,614 |
| Food & Beverage | 90,933 | n/a | 73 | 154,653 | 49.1% | 103,753 |
| Entertainment & Other | 44,340 | 356.4% | 9,715 | 77,934 | 54.7% | 50,413 |
| Casino Licensees Total Revenue | 726,526 | 498.4% | 121,418 | 1,291,215 | 79.7% | 718,651 |
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended June 30, 2021 & 2019 |
Q2 2021 | Q2 2019 | YTD 2021 | YTD 2019 |
|---|---|---|---|---|
| Occupancy percentage | 70.0% | 81.5% | 61.2% | 77.1% |
| Average Daily Room Rate (ADR) | $158.00 | $139.76 | $146.32 | $134.37 |
| Revenue Per Available Room (RevPAR)* | $110.60 | $113.90 | $89.55 | $103.60 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | July 2021 |
Change from Prior Year |
July 2020 |
YTD July 2021 |
Change from Prior Year |
YTD July 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,997,463 | 22.4% | 1,631,601 | 9,579,592 | 24.7% | 7,681,100 |
| AC Airport | ||||||
| Scheduled Service Passengers | 92,511 | 288.9% | 23,787 | 468,145 | 51.9% | 308,173 |
| Charter Passengers | 10,448 | 545.3% | 1,619 | 24,486 | 37.1% | 17,856 |
| Total Air Passengers | 102,959 | 305.3% | 25,406 | 492,631 | 51.1% | 326,029 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| August '21 | August '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 4 | 0 | N/A | 14 | 22 | -36% |
| # of Room Nights | 3,755 | 0 | N/A | 13,161 | 72,188 | -82% |
| # of Delegates | 9,701 | 0 | N/A | 54,507 | 217,187 | -75% |
| Delegate Spending | $3,695,603 | $0 | N/A | $12,935,007 | $56,790,400 | -77% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 0 | 0 | N/A | 0 | 11 | -100% |
| # of Attendees | 0 | 0 | N/A | 0 | 129,722 | -100% |
| Hotel Bookings | ||||||
| # of Shows | 9 | 5 | 80% | 74 | 34 | 118% |
| # of Room Nights | 4,719 | 3,385 | 39% | 69,533 | 24,964 | 179% |
| # of Attendees** | 13,234 | 4,225 | 213% | 89,080 | 37,975 | 135% |
| Delegate Spending | $3,527,667 | $1,922,428 | 84% | $40,785,993 | $14,412,219 | 183% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 13 | 5 | 160% | 88 | 67 | 31% |
| # of Room Nights | 8,474 | 3,385 | 150% | 82,694 | 97,152 | -15% |
| # of Attendees | 22,935 | 4,225 | 443% | 143,587 | 384,884 | -63% |
| Delegate Spending | $7,223,270 | $1,922,428 | 276% | $53,721,000 | $71,202,619 | -25% |
Notes:
Reduction in figures beginning mid-March 2020 are due to cancellations and/or shut downs as a result of COVID-19
January 2021 hotel attendees reflect virtual attendance numbers
*Includes Meet AC events booked at Boardwalk Hall
** 2020 figures may have been adjusted due to COVID-19 related updates
LIGHT Snapshots is a publication of the Lloyd D. Levenson Institute of Gaming, Hospitality
& Tourism, part of the School of Business at Stockton University
Jane Bokunewicz, Ph. D., Faculty Director and Associate Professor of Hospitality
Atlantic City Information
Atlantic City's City Council approves 2021 budget - As reported by The Press of Atlantic City, on August 25, members of City Council voted to approve a $199 million 2021 budget, $10.9 million less than 2020. The Council also took up ordinances establishing licensing fees ($25,000 per year for large businesses and $2,500 per year for micro businesses) and municipal sales taxes (2% on all sales except wholesale, wholesale 1%) on recreational cannabis.
Atlantic City City Council approves bid to use Bader Field for truck driving school - As reported by The Press of Atlantic City, on August 25 City Council granted the Ernest Trans School of Trucking LLC a revocable three-year lease agreement to use the former airport as a trucking school. The school will pay the city $1,040 per month plus 3% of its profits for use of the site.
Atlantic City launches SurfSafeAC.com, real-time beach information website - As reported by The Press of Atlantic City, on August 12 Atlantic City Mayor Marty Small Sr., and members of the Atlantic City Beach Patrol and emergency services announced the launch of a website, SurfSafeAC.com, which will provide residents and visitors with real-time information about the city's beaches. Information such as which beaches are open, where water risks are, water temperatures and wave heights will be posted to the site live by the city's lifeguards. No cost was involved in the system, as Atlantic City was among 15 beach patrols from Brigantine to Cape May Point chosen by the South Jersey Lifeguard Chiefs Association to test out the system as a model for the rest of the area's patrols.
Casino smoking ban bill supported by Atlantic City City Council - As reported by The Press of Atlantic City, on August 25 Atlantic City's City Council passed resolutions in support of New Jersey State Senate Bill 1878. The bill eliminates the smoking ban exemption for casinos and simulcasting facilities. Further reporting by Casino.org.
Further development of the 'Orange Loop' - As reported by The Press of Atlantic City, developers continue investing in the 'Orange Loop' hoping to turn the area into the "ultimate" entertainment hub and a go-to destination for visitors. A 15,000-square-foot, mixed-used commercial building is planned for New York Avenue and the Dreams Cabaret (137 S. New York Ave.) is set to be converted into a mixed-use building. Along Westminster Ave., developers plan to build 50 Airbnb rentals, a stage for live performances, and a shipping container hotel. When all projects are complete, an estimated $20 million will have been invested in the area.
Stockton University Hughes Center to honor Steven P. Perskie - According to an August 16 press release, the William J. Hughes Center for Public Policy at Stockton University will honor
former Senator, N.J. Casino Control Commission Chair and
retired Superior Court Judge the Honorable Steven P. Perskie with an award. At the
Hughes Center Honors on November 10, 2021, the center will recognize Perskie for his
contributions to New Jersey public life.
New Jersey Gaming News
Barstool, Betway and SuperBook sportsbooks soft launch in New Jersey ahead of NFL season - According to Legal Sports Report and Play NJ, the Betway NJ sportsbook soft-launched on August 16th and Penn National Gaming's Barstool Sportsbook soft-launched in New Jersey August 19, becoming the 19th and 20th online sportsbooks in the state. New Jersey is the seventh gaming jurisdiction for Barstool Sportsbook which also launched in Arizona as of September 9. Barstool is operating in New Jersey through a partnership with Resorts Atlantic City. According to NJGamblingSites, SuperBook, operating under the Meadowlands' gaming license, soft-launched on August 27, becoming the state's 21st sports betting app.
Casino Control Commission approves Bally's Corporation petition for full gaming license - According to transcripts of the commission's public meeting, on August 17, the commissioners voted to approve the Bally's Corporation petition for a full gaming licence with conditions. As summarized in reporting from NJ Gambling Sites, as operators of Bally's Atlantic City, Bally's Corp will be required to reinvest $100 million in the property over the next five years. Prior owners Caesars Entertainment and VICI Properties will reimburse Bally's $30 million of the $100 million. Bally's Corp (formerly Twin River Holdings) purchased the Boardwalk casino property for $25 million in April 2020.
DraftKings buys Golden Nugget Online Casino - As reported by NJ Online Gambling and CNN Business, DraftKings has purchased Golden Nugget Online Gaming for an estimated $1.56 billion in stock. Following the purchase, Golden Nugget, which currently uses Scientific Games, will shift to using DraftKings' in-house technology to run its online platform. Draft Kings is also entering into a partnership with Fertitta Entertainment, which includes integrations with the Houston Rockets and an agreement to make DraftKings the exclusive daily fantasy sports betting and iGaming partner of the team.
Fixed-odds horse racing legal in New Jersey -As reported by Casino.org, legislation (A4909) passed in May aimed at legalizing fixed-odds betting on horse racing in New Jersey has become law. Supporters hope fixed-odds betting, which has proven popular in foreign horse racing markets, will help grow interest in New Jersey horse racing which has been declining for many years.
National Gaming News
Caesars consolidates sports bettting assets into single brand - As reported by Las Vegas Review Journal, following the purchase of William Hill in April 2021, on August 1, Caesars Entertainment announced a new rebranding effort ,that consolidates its sports betting assets. The new sports betting app, Caesars Sportsbook, runs on technology acuired in the purchase of William Hill and is live in eight states (Colorado, Indiana, Iowa, Michigan, New Jersey, Tennessee, Virginia and West Virginia). Caesars-owned retail sportsbooks are being renamed from William Hill to Caesars Sportsbook, however William Hill sportsbooks at other locations not owned by Caesars are not being renamed.
Canada legalizes single event sports betting - According to Online Poker Report and Play Canada, Bill C-218, which repeals the federal prohibition against single event sports betting, took effect on August 27. Ontario, Canada's largest province, has yet to approve private competition for its existing Proline parlay betting lottery, which has been expanded to allow more types of bets under the name Proline+. If private online sportsbooks are permitted to operate, BetMGM. Caesars Sportsbook, DraftKings, FanDuel, PointsBet, theScore Bet (Penn National Gaming), Torstar (Canadian media company), and William Hill are expected to be major players.
Illinois sportsbooks reach $5 billion in lifetime handle in June, faster than any other U.S. sports betting market - According to a press release from PlayIllinois, Illinois sportsbooks became the fourth and fastest U.S. sports betting market (16 months compared to New Jersey's 18 months) to cross the $5 billion lifetime handle threshold. Despite a dip in June, the first since November 2020, at $476.5 million, Illinois handle ranked third in the nation behind New Jersey ($766.9 million) and Nevada ($545.5 million). Hold for the month (9.97%) was the largest in the state since sportsbooks opened in March 2020, and June gross gaming revenue rose 31.8% over the prior month. Further reporting by SportsHandle.
Maryland and Pensylvania casinos set new monthly gaming revenue records - As reported by Casino.org, Maryland's six commercial casinos reported a new monthly gaming revenue record in July 2021. For the third time in five months the properties have broken the all-time monthly revenue high. The $180.1 million Gross Gaming Revenue (GGR) realized in July 2021, surpassed the previous single-month record ($172.4 million in May 2021) by 4.5%. Also, as reported by Casino.org, Pennsylvania's casinos generated $423.65 million in revenue in July 2021, surpasing the previous record $413.18 million set in May 2021. July 2021 was the best single month on record for table games in Pennsylvania.
Nevada records record single month GGR in July 2021 - As reported by Forbes, Las Vegas Review Journal and Casino.org, Nevada casinos collected a record $1.36 billion in Gross Gaming Revenue (GGR) in the month of July 2021. July 2021 posted a statewide increase of 33% compared to pre-pandemic July 2019 revenue. The Las Vegas Strip also set a single month GGR record with $794 million in July 2021 up 46% over July 2019. A number of live events, pent up demand and the month having five weekends are being credited for boosting gaming revenues.
Penn National Gaming acquires Score Media & Gaming - According to Online Poker Report, Penn National Gaming has acquired its second sports media company. Score Media & Gaming's App TheScore is the most downloaded sports app in Canada. With Score, and Barstool Sports (acquired early 2020), Penn National gains access to a database of potential sports betters and the means to market to them directly. Media is expected to play a key role in building market share for the company's sportsbook.
Wisconsin announces alterations to state gaming compact - As reported by the Chicago Sun Times and US Betting Report, Wisconsin Governor Tony Evers announced on July 1 that the state would revise its tribal gaming compact with the Oneida Nation to permit sports betting. The Federal Department of the Interior approved the change in August and the Oneida Nation expects to offer legal retail sports betting in time for the start of the 2021 Football season.
Hospitality & Tourism News
Draught, declining water levels, impact tourism at Lake Powell - As reported by The Gardian and Las Vegas Review Journal, popular tourism destination Lake Powell reached record low water levels (elevation 3,554 feet) not seen since the reservoir was filled in 1969. Declining water levels are having a direct impact on tourism businesses, especially house boat rentals for which the lake is famous. Of the 11 boat ramps that serve the lake at full elevation (3,700 feet) only one remains fully functional. According to a National Park Service report the region hosted 4.4 million visitors in 2019 who spent $427 million and supported 5,243 jobs. In addition to being a key tourism destination and driver of the local economy, Lake Powell also plays an important role in power generation and the water supply for the region.
Hospitality workers affiliated with Local 54 ratify interim labor agreement with Ocean Casino Resort- As reported by The Press of Atlantic City, on the path to a long-term labor agreement with Ocean Casino Resort, 800 workers represented by Local 54 ratified an interim agreement on August 1 addressing 'core values.' These values included "contracting protections, successorship protection, grievance and arbitration and healthcare." The interim agreement expires December 31, before which time the union hopes to finalize the final contract.
New Airline GlobalX trains South Jersey residents as flight attendants - As reported by The Press of Atlantic City, Global Crossing Airlines (GlobalX), a charter airline which signed an airport use agreement with Atlantic City International Airport in July, has begun training staff for Atlantic City-based operations. Thirteen flight attendents completed training on August 30. The airline is also considering the development of a new hanger and maintenance facility at the airport.
New Jersey Transit, South Jersey Transportation Authority to study feasability of rail line to Atlantic City International Airport - According to NJ.com, NJ Transit and South Jersey Transportation Authority have agreed to study the possibility of building a rail station at the north end of the Atlantic City International Airport. The proposal is part if a larger redevelopment plan for land on Route 30 and is supported by an Atlantic City Rail Line advocacy group. The study is expected to take approximatly ten months from start date. Start date has not yet been set.
Restaurant industry nationally adds 1.3 million jobs in first seven months of 2021- According to the National Restaurant Association, in the first seven months of 2021 the national restaurant industry added 1.3 million jobs bringing the sector within 1 million of its pre-pandemic employment level of 12.3 million. Only six states - Idaho, South Dakota, Montana, Wyoming, Oklahoma and Arizona – had higher restaurant employment levels in July 2021 than they did in July 2019.
Spirit Airlines cancels flights nationwide, including in and out of Atlantic City International Airport - As reported by The Press of Atlantic City on August 2, 4, and 5, citing weather and 'operational challenges,' Spirit Airlines canceled numerous flights nationwide leaving thousands stranded. Spirit, the only carrier operating out of Atlantic City International Airport, canceled several flights in and out of the airport. American Airlines had also experienced disruptions, canceling 300 flights (equivalent to 9% of its schedule) by early afternoon on August 3. As of the evening of August 3, Spirit had canceled 382 flights, 55% of the airline's total. August 5th marked the fifth day of mass cancellations for the airline.
Year-round independent music venue planned for Atlantic City - As reported by The Press of Atlantic City, the Anchor Rock Club a 650-capacity venue, plans to open on New York Avenue as part of the 'Orange Loop' district. The venue, which has ties to the Philadelphia music scene, plans to host as many as 150 shows per year, starting with the three-day 'Phish weekend' that coincided with the city's beach concert series on August 13-15.
