August 2022 Snapshots
In LIGHT of the data.
With the release of August 2022 data from the New Jersey Division of Gaming Enforcement (DGE), we get our first good look at the performance of the 2022 summer season in terms of gross gaming revenues (GGR). For nongaming activity and traffic into the city via the Pleasantville Toll Plaza we will need to wait a bit longer until those reports are released by the DGE and the South Jersey Transportation Authority, respectively.
August, traditionally one of the strongest months for Atlantic City’s casino industry, especially regarding brick-and-mortar gaming revenues, put in a solid showing for 2022. Brick and mortar GGR for the month outperformed 2021 (4.4% increase) and though it fell short of pre-pandemic 2019 it beat out every other August since 2015.
Although it did not surpass August 2019, August 2022’s strong brick-and-mortar results, when combined with July 2022’s, offset the summer’s slow start to deliver a solid performance that is an encouraging sign for continued post-COVID recovery for the city’s casino industry. June 2022 brick-and-mortar revenues lagged both June 2019 and May 2022 leading to concerns that gas prices and inflation would negatively impact the summer season. Despite these concerns, the three months ended August 2022, outpaced the same period in pre-pandemic 2019 by a narrow margin of 0.3% in brick-and-mortar revenues.
Total GGR positioned August 2022 as one of the strongest Augusts in recent history outperforming 2019 (27.8%), 2021 (8.9%) and setting a new near-term record for August monthly revenues.
The three months ended August 2022 surpassed 2019 total GGR by a significant margin of 34.4%. Gains in total GGR for the period are largely attributable to the contributions of internet gaming. In the three months June through August 2022, internet gaming accounted for 31.8% of total GGR compared to 12.6% for the same period in 2019.
It is difficult to say with certainty that any observed trends in recent data will last due to the variability of the local gaming industry’s performance. Some direct and indirect impacts on the industry include regional gaming expansion, economic conditions and the lingering effects of the COVID-19 pandemic.
The relatively slow growth of brick-and-mortar gaming revenues compared to the increasing contribution of internet gaming to total revenue could potentially suggest a change in consumer behavior that doesn’t cannibalize in-person gaming but includes significant internet gaming activity.
Brick-and-mortar operations will still represent the greater share of overall activity, and also generate complementary revenues from nongaming operations. A decreased reliance on exclusively in-person gaming activity has the potential to keep the New Jersey casino industry competitive with its neighbors and make it more resilient to market disruptions that might potentially occur in the future.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Thousands) |
August 2022 |
% Change from Prior Year | August 2021 | YTD August 2022 | % Change from Prior Year | YTD August 2021 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 432,891 | 8.9% | 397,657 | 3,120,486 | 15.7% | 2,696,339 |
| Sports Wagering Revenue | 27,477 | 24.8% | 22,022 | 154,732 | -14.3% | 180,493 |
| Internet Gaming Win | 131,438 | 16.1% | 113,230 | 1,082,659 | 25.0% | 866,130 |
| Casino Gaming Win | 273,976 | 4.4% | 262,404 | 1,883,095 | 14.1% | 1,649,717 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q2 2022 | % Change from Prior Year | Q2 2021 | YTD June 30, 2022 | % Change from Prior Year | YTD June 30, 2021 |
|---|---|---|---|---|---|---|
| Casino | 454,541 | 2.0% | 445,541 | 899,484 | 9.3% | 822,932 |
| Rooms | 172,942 |
18.9% |
145,472 | 292,341 | 24.0% | 235,696 |
| Food & Beverage | 131,757 | 44.9% | 90,933 | 235,471 | 52.3% | 154,653 |
| Entertainment & Other | 69,545 | 56.5% | 44,445 | 121,274 | 55.2% | 78,138 |
| Casino Licensees Total Revenue | 828,785 | 14.1% | 726,630 | 1,548,570 | 19.9% | 1,291,418 |
** Data agregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of August 22, 2022. May not match totals from Quarterly Press Releases and Statistical Summaries, which represent a 'snapshot' of data at the time of publication and are not retroactively updated.
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended June 30, 2022 & 2021 |
Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 |
|---|---|---|---|---|
| Occupancy percentage | 77.4% | 70.0% | 70.4% | 61.2% |
| Average Daily Room Rate (ADR) | $171.79 |
$158.00 |
$163.21 | $146.32 |
| Revenue Per Available Room (RevPAR)* | $132.99 | $110.56 | $114.90 | $89.55 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | July 2022 |
Change from Prior Year |
July 2021 |
YTD July 2022 |
Change from Prior Year |
YTD July 2021 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,901,558 | -4.8% | 1,997,463 | 9,962,554 | 4.0% | 9,579,590 |
| AC Airport | ||||||
| Scheduled Service Passengers | 84,218 | -9.0% | 92,511 | 496,918 | 6.2% | 468,145 |
| Charter Passengers | 13,818 | 32.3% | 10,448 | 74,045 | 202.4% | 24,486 |
| Total Air Passengers | 98,036 | -4.8% | 102,959 | 570,963 | 15.9% | 492,631 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| August '22 | August '21 | % Change from Prior Year |
TOTAL 2022 YTD |
TOTAL 2021 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 6 | 4 | 50% | 56 | 14 | 300% |
| # of Room Nights | 8,658 | 3,755 | 131% | 81,036 | 13,161 | 516% |
| # of Delegates | 16,223 | 9,701 | 67% | 365,029 | 54,507 | 570% |
| Delegate Spending | $4,313,661 | $3,695,603 | 17% | $116,856,716 | $12,935,007 | 803% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 5 | 0 | N/A | 27 | 0 | N/A |
| # of Attendees | 7,780 | 0 | N/A | 117,932 | 0 | N/A |
| Hotel Bookings | ||||||
| # of Shows | 5 | 9 | -44% | 97 | 74 | 31% |
| # of Room Nights | 2,094 | 4,719 | -56% | 76,287 | 69,533 | 10% |
| # of Attendees | 14,900 | 13,234 | 13% | 140,274 | 89,080 | 57% |
| Delegate Spending | $2,284,142 | $3,527,667 | -35% | $50,257,623 | $40,785,993 | 23% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 16 | 13 | 23% | 180 | 88 | 105% |
| # of Room Nights | 10,752 | 8,474 | 27% | 157,323 | 82,694 | 90% |
| # of Attendees | 38,903 | 22,935 | 70% | 623,235 | 143,587 | 334% |
| Delegate Spending | $6,597,803 | $7,223,270 | -9% | $167,114,339 | $53,721,000 | 211% |
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, Stockton University School of Business
Jane Bokunewicz, Ph. D., Faculty Director and Associate Professor of Hospitality
Atlantic City Information
Atlantic City to receive $43 million in municipal aid - According to an Aug. 29 news release from the Office of New Jersey Gov. Phil Murphy, Atlantic City will receive $43 million in municipal aid in the 2023 fiscal year budget, which is $16.6 million in additional fiscal year 2022 aid. Fiscal year 2023 funding includes $2 million from the Anti-Violence Out-of-School Youth Summer Program, and $20 million in federal funds secured by the New Jersey Department of Transportation for critical infrastructure updates to Route 40. Fiscal year 2022 funds will include $3.9 million in public works projects, including new equipment like street sweepers, $1 million to expand the Boardwalk and make it more ADA compliant and $5 million for a citywide surveilance camera system. As reported by Casino.org, the efforts to invest in and "clean up" Atlantic City are seen as an effort for the resort to remain competitive in face of New York casino industry expansion. Further reporting from The Press of Atlantic City.
Cannabis businesses subject of Casino Reinvestment Development Authority (CRDA) land use hearing - According to the agenda of an Aug. 18 CRDA Land Use Regulation and Enforcement Division hearing, several cannabis businesses are seeking variences to opperate in Atlantic City. As outlined by Route 40, these businesses include Everest Dispensary LLC (to build a retail store and consumption lounge) and Starboard Enterprises NJ LLC (to build a grow facility).
Chelsea Economic Development Corporation announces third annual Best Empenada Challenge - During the month of September 2022, 10 Chelsea neighborhood restaurants will compete to be named winner of the "Best Empanada Challenge." The event is organized by the Chelsea Economic Development Corporation. More reporting from The Press of Atlantic City and ROI-NJ.
Federal Emergency Management Agency (FEMA) to fund three Atlantic City flood mitigation projects - As reported by The Press of Atlantic City, FEMA has awarded the city $5.4 million in grant funding for three flood mitigation projects that are part of a $100 million plan the mayor's office has undertaken to address nuisance flooding and storm protection. Many other planned projects, including the replacement of city-owned bulkheads, are already underway or have already been completed.
South Jersey Transportation Authority (SJTA) receives funding for electronic smart highway project - According to an Aug. 10 news release, the Federal Highway Administration has awarded the SJTA $8.7 million for its Smart and Connect Atlantic City Expressway Project. "The project will use the grant to transform the Atlantic City Expressway into a smart and connected corridor using cellular vehicle-to-everything technologies" that support future connected and automated vehicles. Further reporting from The Press of Atlantic City.
New Jersey Gaming News
First fully regulated, peer-to-peer betting exchange in U.S. launches in New Jersey - As reported by PlayNJ and Gambling Insider, peer-to-peer sports betting exchange Prophet Exchange has launched following licensing approval from the New Jersey Division of Gaming Enforcement. A "peer-to-peer betting exchange" is a different style of sports betting. Prophet Exchange acts as a liason, conecting fellow betters. Platform users place wagers based on prices set by other users without margins attached to the odds.
Mark Giannantonio named Casino Association of New Jersey (CANJ) President - According to an Aug. 11 news release, Mark Giannantonio, president and CEO of Resorts Casino Hotel in Atlantic City, has been named president of the CANJ. Former president Joe Lupo is relocating to Las Vegas to accept a new leadership position with Hard Rock International. Further reporting by ROI-NJ and The Press of Atlantic City.
New Jersey Superior Court judge strikes down law amending casino PILOT, awards damages to county - As reported by The Press of Atlantic City and Propublica, on Aug. 29, Superior Court judge Michael Blee ruled that the state law passed in late 2021 amending the 2016 Atlantic City Casino Payment In Lieu Of Taxes (PILOT) and reducing the industry's tax obligation by approximatly $55 million annually, is unconstitutional. Earlier in the month, Blee ordered the state to pay damages to Atlantic County related to the disputed PILOT legislation. If upheld, the county will receive more than $22 million in PILOT payments in 2022, as well as legal expenses. Further reporting by Casino.org and The Press of Atlantic City.
Outdoor gambling considered as smoking ban compromise - As reported by the Associated Press and Casino.org, industry stakeholders are considering outdoor gambling as a possible compromise - alowing operators to offer gaming to patrons who smoke, while implementing an indoor smoking ban to protect workers and other patrons from second-hand smoke. However, defining what an "outdoor" gaming space is, given the challenges of New Jersey's climate (as compared to Nevada, which currently offers outdoor gambling), could be complicated.
National Gaming News
Kansas launches sports betting Sept. 1 - As reported by The Kansas City Star, KMBC News and Legal Sports Report, sports betting "soft launched" in Kansas on Sept. 1 with six online sports betting sites active in the state. Two retail sportsbooks, at Hollywood Casino and Kansas Star Casino, also opened with a third, DraftKings Sportsbook at Boot Hill, to open in October. Sports betting officially launched on Sept. 8.
Massachusets governor signs sports betting into law - On Aug. 10, Massachusets Gov. Charlie Baker signed Bill H.5164 (an act regulating sports wagering) into law. According to Legal Sports Report, a launch date has yet to be set. However, 42 sports betting companies have expressed interest in operating in the state which expects to have 15 online sports betting sites once launched.
Michigan to be site of first Sports & Social DraftKings venue - According to Legal Sports Report, DraftKings has announced plans to build its first Sports & Social DraftKings, a 10,400-square-foot, stand-alone entertainment facility at Somerset Collection in Troy, Michigan. The venue, 20 minutes from downtown Detroit, will feature DraftKings branding, but patrons will only be able to bet via their mobile devices. The '"premier dining, sports and entertainment destination " concept was originally proposed as a stadium-adjacent ammenitiy as part of a growing trend of placing branded sportsbook facilities near or inside stadiums.
Online gambling revenue numbers for Ontario, Canada, released - iGaming Ontario released the first public report of industry performance since online gambling launched in Ontario, Canada, on April 4, 2022. In the period ended June 30, 2022, iGaming generated CAD $4.1 billion (USD $3.1 billion) in handle and CAD $162 million (USD $124 million) in total gaming revenue, excluding revenues generated by the Ontario Lottery and Gaming Corporation, which also operates an iGaming product. For a look at these figures in comparison to U.S. market performance in the second quarter of 2022, see this article from Legal Sports Report.
Penn Entertainment to take over full ownership of Barstool Sports - According to an SEC filing shared by Legal Sports Report, Penn Entertainment is seeking full ownership of one of its main sports betting brands, Barstool Sports. Penn Entertainment currently owns 50% of the company it innitailly acquired 36% of in 2020, and plans to purchase the remaining shares of the company by February 2023.
Hospitality & Tourism News
American Hotel & Lodging Foundation (AHLAF) issues 2022 report on diversity of hotel industry's public company boards - In an Aug. 2 news release, the AHLAF announced the release of a 2022 report on the diversity of hospitality industry public company boards. The report found that hospitality public company boards comprised 22.5% women in 2021 in comparison to the Russell 3000 average of 25.6% female board members in 2021. The report found that 7.6% of hospitality public company board members in 2021 were African American, up from 6.3% in 2020 and equivalent to pre-pandemic 2019 levels.
Atlantic City Airshow draws 550,000 - As reported by The Press of Atlantic City, the 19th Atlantic City Airshow (Wednesday, Aug. 24) drew approximatly 550,000 people to the resort. The annual landmark event has a substantial impact on the local economy. Read more in the Summer 2022 issue of LIGHTs On.
European river cruises disrupted by drought, low water levels - As reported by the New York Times, "one of Europe's worst droughts in decades" has led to low water levels in rivers used by cruise companies. With water levels too low for ships to pass, several industries that utilize the rivers, including commodities transport as well as tourism, have been disrupted. River cruising is a multibillion-dollar industry accounting for 1.6 million travelors in 2018.
Icona Resorts proposes $150 million hotel on site of former movie theater in Cape May, NJ - As reported by The Press of Atlantic City, on Sept. 1, owners of the Icona Resorts chain of hotels presented at a special public event a proposal to build a $150-million, 160-room hotel at the site of the former Beach Theater movie house located accross the street from Cape May's Convention Hall. The proposed property would also feature restaurants, high-end retail shops, ballrooms and interior parking. The project cannot proceed without the participation and approval of a number of stakeholder organizations and, unless the site is declared to be in need of development, a number of variances would be needed to enact the plan as proposed.
Ocean City, N.J. top fall destination for Airbnb renters- As reported by The Press of Atlantic City, Ocean City, N.J., is vacation rental company Airbnb's top destination for fall 2022. Rentals in the resort town ranked it ahead of nine other U.S. destinations such as Ann Arbor, Michigan; Oxford, Mississippi; Baton Rouge, Louisiana; Lexington, Kentucky; and Lubbock, Texas.
Thousands attend Atlantic City beach concert series featuring Phish - As reported by The Press of Atlantic City, about 30,000 fans gathered on the beach for the three-day concert series.
