August 2023 Snapshots
In LIGHT of the data.
As in past months, strong returns from the internet gaming sector pushed total casino industry gross gaming revenue (GGR) to new heights. At more than $500 million, August GGR set a new near-term record for single month total GGR. Year-to-date total GGR, at more than $3.4 billion, was likewise impressive, far outpacing the same period in the last 12 years, and, with four months remaining, outperforming total year-end GGR for every year between 2011 and 2020. If New Jersey follows nationwide trends, we may be looking at the industry’s best year for GGR in more than a decade. Though impressive, this record GGR hasn’t seemed to directly translate into profit growth for Atlantic City’s casino operators. Despite record high GGR, GOP was down year-over-year in the second quarter.
As demonstrated in the monthly GGR returns, internet gaming has become an increasing share of revenue for Atlantic City’s casino operators. In Summer 2023 (June – August) at the peak of the resort’s tourism season, GGR from internet gaming represented nearly a third (32.7%) of the industry’s total GGR for the period. Even before the acceleration of internet gaming observed during the pandemic, internet gaming revenues represented 22% of total GGR for Summer 2019.
As such a significant piece of their revenue mix, Atlantic City’s casino operators
are invested in making internet gaming work, and pay off, in the long term. As the
sector matures and more gaming businesses bring their internet operations in house,
they may discover efficiencies that make this segment more profitable.
At the moment, as I address in depth in a recent article for the Summer 2023 issue
of LIGHT’s On, the Lloyd D. Levenson Institute’s biannual newsletter, the real “winner”
in the surge of internet gaming has been the state of New Jersey. As shown in this
month’s news release, in the year-to-date ended August 2023 the state’s gaming industry
has generated a total $260.7 million in taxes levied on internet gaming, 67.8% of
the total gaming taxes collected in the same period.
August monthly brick-and-mortar casino revenues increased year-over-year, and at $280
million exceeded August 2021 but fell short of August 2019 ($286.5 million). Despite
a year-over-year decline in July, strong returns early in the year propelled the year-to-date
brick-and-mortar revenue to more than $1.92 billion outpacing every year since 2013
($1.96 billion) – the last summer before the introduction of internet gaming later
that year.
We will have to wait and see how summer brick-and-mortar GGR totals – sometimes used
as a proxy for tourism volume in the resort – translate into third-quarter profits
for the casino industry and tax revenues for the city and state. With continued economic
pressures, we should not be surprised to see a small decline in GOP, although we can
expect to see increases in tax revenue generated since internet gaming revenue is
taxed at a different, higher rate than the casino industry’s other revenue streams.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Thousands |
August 2023 |
% Change from Prior Year | August 2022 | YTD
August 2023 |
% Change from Prior Year | YTD August 2022 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 502,268 | 16.0% | 432,891 | 3,454,221 | 10.7% | 3,120,486 |
| Sports Wagering Revenue | 66,707 | 142.8% | 27,477 | 287,033 | 85.5% | 154,732 |
| Internet Gaming Win | 155,274 | 18.1% | 131,438 | 1,241,253 | 14.6% | 1,082,659 |
| Casino Gaming Win | 280,286 | 2.3% | 273,976 | 1,925,936 | 2.3% | 1,883,095 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q2 2023 | % Change from Prior Year | Q2 2022 | YTD June 30, 2023 | % Change from Prior Year | YTD June 30, 2022 |
|---|---|---|---|---|---|---|
| Casino | 419,297 | -7.8% | 454,541 | 838,621 | -7.1% | 902,877 |
| Rooms | 179,634 | 3.9% | 172,942 | 319,283 | 9.2% | 292,341 |
| Food & Beverage | 140,970 | 7.0% | 131,757 | 270,105 | 14.7% | 235,471 |
| Entertainment & Other | 79,059 | 13.7% | 69,545 | 147,589 | 21.7% | 121,274 |
| Casino Licensees Total Revenue | 818,961 | -1.2% | 828,785 | 1,575,598 | 1.5% | 1,551,963 |
| Gross Operating Profit (GOP) | 145,996 | -20.5% | 183,629 | 281,432 | -17.9% | 342,647 |
** Data agregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of August 22, 2023. 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, 2023 & 2022 |
Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Occupancy percentage | 74.4% | 77.4% | 69.8% | 70.39% |
| Average Daily Room Rate (ADR) | $173.22 | $171.79 | $165.50 | $163.21 |
| Revenue Per Available Room (RevPAR)* | $128.86 | $132.99 | $115.56 | $114.89 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | July 2023 |
Change from Prior Year |
July 2022 |
YTD July 2023 |
Change from Prior Year |
YTD July |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,925,008 | 2.6% | 1,875,974 | 10,299,039 | 4.0% | 9,904,833 |
| AC Airport | ||||||
| Scheduled Service Passengers | 62,908 | -28.1% | 87,514 | 445,074 | -11.3% | 501,977 |
| Charter Passengers | 13,945 | 32.5% | 10,522 | 78,232 | 13.4% | 68,986 |
| Total Air Passengers | 76,853 | -21.6% | 98,036 | 523,306 | -8.4% | 570,963 |
Atlantic City Meetings and Conventions Data
Source: VistAC
| August '23 | August '22 | % Change from Prior Year |
TOTAL 2023 YTD |
TOTAL 2022 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 3 | 6 | -50% | 54 | 56 | -4% |
| # of Room Nights | 1,458 | 8,658 | -83% | 75,745 | 81,036 | -7% |
| # of Delegates | 5,075 | 16,223 | -69% | 396,080 | 365,029 | 9% |
| Delegate Spending | $1,241,372 | $4,313,661 | -71% | $87,730,377 | $77,656,761 | 13% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 2 | 5 | -60% | 27 | 27 | 0% |
| # of Attendees | 3,720 | 7,780 | -52% | 132,373 | 117,932 | 12% |
| Hotel Bookings | ||||||
| # of Shows | 5 | 5 | 0% | 75% | 97% | -23% |
| # of Room Nights | 2,282 | 2,094 | 9% | 57,817 | 76,287 | -24% |
| # of Attendees** | 8,510 | 14,900 | -43% | 87,482 | 140,274 | -38% |
| Delegate Spending+ | $2,151,831 | $2,284,142 | -6% | $37,135,833 | $50,257,623 | -26% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 10 | 16 | -38% | 156 | 180 | -13% |
| # of Room Nights | 3,740 | 10,752 | -65% | 133,562 | 157,323 | -15% |
| # of Attendees | 17,305 | 38,903 | -56% | 615,935 | 623,235 | -1% |
| Delegate Spending | $3,393,203 | $6,597,803 | -49% | $124,866,210 | $127,914,339 | -2% |
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
+May 2022 Convention Center delegate spending updated due to an error in calculation formula
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
$100 million boardwalk bill signed in Atlantic City - As reported by The Press of Atlantic City, at Jim Whelan Boardwalk Hall on August 15, New Jersey Gov. Phil Murphy signed the bipartisan Boardwalk Preservation Fund Act (S3989/A5675) into law. The Act appropriates $100 million from the American Rescue Plan Act of 2021 (HR 1319) to fund critical investments in the boardwalk infrastructure of the Jersey Shore. Successful applications for funding will be for projects that increase storm resiliency, improve ADA access, and ensure safer and longer lasting infrastructure. Municipalities have until October 31, 2023 to submit their applications. Further coverage by New Jersey Business Magazine and the New Jersey State League of Municipalities.
65 commercial and residential properties in Atlantic City go to auction - As reported by The Press of Atlantic City, 65 properties were up for sale via an online real estate auction by Max Spann Real Estate and Auction Company. Included in the auction were 20 beach block lots in the South Inlet and a three-story home on Pennsylvania Avenue. Other properties up for auction are in the Bungalow Park, Chelsea, Ducktown and Westside neighborhoods.
Atlantic & Cape May County communities chosen for FEMA funded resiliency projects - As shared by the Greater Atlantic City Chamber of Commerce, the Federal Emergency Management Agency (FEMA) recently announced the selection of 149 applications totaling nearly $642.5 million in available grant funding. Among the selected application were 10 projects in Atlantic & Cape May counties totaling $32 million. The projects included a $24.3 million seawall for Cape May City (the largest project in New Jersey) and two projects for Atlantic City - two $178,762 grants to develop resiliency plans for the Ducktown/Chelsea and Venice Park neighborhoods. Last year, the Atlantic City neighborhoods of Bungalow Park and Chelsea Heights received similar funding.
Atlantic City Housing Authority considered "troubled" by U.S. Department of Housing and Urban Development, gas leaks discovered and repaired, partial demolition proposed - According to continuing coverage by The Press of Atlantic City, the U.S. Department of Housing and Urban Development (HUD) has officially designated the Atlantic City Housing Authority (ACHA) as "troubled" - an official status that triggers greater oversight and intervention. Speaking at an August 24 ACHA board meeting, Executive Director Matt Doherty told the assembled "I do not believe the housing authority will be able to provide uninterrupted reliable heat and hot water service to the residents of Stanley Holmes Village this coming winter." At the same meeting, the board unanimously passed a resolution to raise the pay of maintenance workers and their supervisors and approved a collective bargaining agreement with LIUNA Local 55 for the period of Sept. 1, 2023, to Aug. 31, 2026, that will allow the authority to hire skilled union laborers to do rehabilitation jobs on housing units - avoiding the need to hire contractors. According to coverage from Aug. 18, a New Jersey Superior Court judge gave the agency 10 days to provide a timeline for repair plans at Stanley Holmes Village. As reported by The Press of Atlantic City, 17 gas leaks discovered during an Aug. 29 inspection were reported repaired as of Sept. 5. According to papers filed with the court on Sept. 1, plans to provide consistent heat and hot water for Stanley Holmes Village will require the demolition of approximatly 30% of the Village's 420 units.
Bulkhead ordinance tabled by Atlantic City City Council - As reported by The Press of Atlantic City, a proposed ordinance that would have required private owners of vacant bayfront lots to build bulkheads for flood control, was tabled as Atlantic City Mayor Marty Small Sr. said he was on the verge of getting funding to build bulkheads on private property. The city recently completed a $6.5 million project to install new bulkheads on public property in the Lower Chelsea neighborhood. Residents expressed concern in June that inconsistancies in the presence, condition and height of neighboring bulkheads on private property ruined the effectiveness of the city's project.
Derelict property discussed in CitiStat meetings finally demolished - As reported by The Press of Atlantic City, a property reportedly used as a staging area by drug users and thieves who broke into a nearby Community Baptist Church is being demolished. The property was first brought to the attention of city officials at the second CitiStat meeting on Nov. 30. After nine months of efforts and delays the building is coming down.
Judge dismisses lawsuit challenging Atlantic City ordinance - As reported by The Press of Atlantic City, a judge has dismissed a lawsuit challanging an Atlantic City ordinance that requires some businesses in high-crime areas to close from 10 p.m. to 8 a.m. as a public safety measure. The Pakistani-American Muslim Organization of South Jersey and business owners filed suit against the ordinance July 14 alleging the restriction was unfair and discriminatory. According to the judge's decision, store owners had not yet exhausted a waiver process available to them, and he recommended they do so before pursuing any legal action. Atlantic City City Council passed the ordinance in April to discourage drug dealers and others breaking the law while loitering in front of open stores
Working group formed to explore future growth of Stockton University in Atlantic City - According to a Stockton University news release, President Joe Bertolino has formed a working group to explore future expansion of the University in Atlantic City. The working group's first task will be to hire an experienced firm to conduct a feasibility study for the University's Phase III project, which is currently a 2.25-acre parking lot between Hartford and Albany avenues. Stockton does not own the property but would partner with AC Devco in the development of the project.
New Jersey Gaming News
Bally Bet sportsbook opens in Atlantic City - As reported by Play NJ, Bally Bet Sportsbook opened at Bally's Atlantic City on Aug. 23. The company’s first East Coast retail Bally Bet Sportsbook is taking over the space formally occupied by FanDuel Sportsbook. An online version of the sportsbook is expected to be launched as the Bally Bet Sportsbook app.
Bally's restricts pool and fitness center access to adults - As reported by Casino.org, following a series of guest complaints, Bally's Atlantic City decided to restrict access to its indoor pool and fitness center to guests age 21 and over.
Caesars Entertainment seperates online casino from online sportsbook in New Jersey - According to PlayNJ, Caesars Entertainment is launching the Caesars Palace Online Casino in NJ seperating its online gaming business from the Caesars Sportsbook, which will continue to operate in New Jersey. Caesars Palace Online Casino is also live in Pennsylvania, Michigan, West Virginia and across the border in Ontario, Canada.
Casino Control Commission delays rulling on fate of Playboy Casino chip fund - As reported by The Press of Atlantic City, at an Aug. 9 meeting, the Casino Control Commission decided to delay ruling on what it will do with $875,000 from an account originally earmarked for the cashing in of chips issued by the former Playboy Hotel and Casino. The Commission decided to close the account in July noting that the fund was meant to benefit original patrons of the casino who had winnings, and that any remaining uncashed chips were "most likely to have been obtained by gift, inheritance or sale from the secondary market."
Online lottery in New Jersey set to expand in Fall 2024 - As reported by Play NJ, the online offerings of the New Jersey Lottery are expected to expand in Fall 2024 with the introduction of online sales for games such as Pick 6 and Mega Millions. The change was approved at the New Jersey State Lottery Commission's meeting on Aug. 17.
Trump Plaza casino site up for sale - The former Trump Plaza casino, which sat vacant since September 2016, was imploded in February 2021. As reported by Casino.org and PlayNJ, an affiliate of Icahn Enterprises, IEP AC Plaza, LLC, has placed the remaining tower at 2201 Boardwalk and 9.46 acres of adjoining land up for sale. Rainforest Cafe and B&B Parking are partial tenants of the building, which was constructed in 1985.
Stockton Atlantic City Summer Experience: Live-Work-Learn
National Gaming News
150 colleges and universities implement platform for anonymous reporting of suspicions of sports betting involvement - As reported by Casino.org, a new tool developed by US Integrity Incorporated, RealResponse, is being implemented by 150 colleges and universities. The digital platform facilitates communications between student-athletes and athletic administrators and allows for the anonymous reporting of sports betting suspicions. The NCAA prohibits its student-athletes from betting on any college sport sanctioned by the governing body. Further reporting from Play USA.
Connecticut Casinos to remain smoke free, groups advocate for smoking ban in other states - As reported by Casino.org, two tribal casinos in Connecticut, Mohegan Sun and Foxwoods, have no plans to allow smoking to resume on their casino floors after voluntarily banning smoking during the pandemic. Connecticut casino officials told the media that they don't believe the smoking prohibitions have hurt their gaming operations and that guests are seemingly enjoying the "healthier environment." As reported by Play NJ, the group Casino Employees Against Smoking’s Effects (CEASE), made a public statement supporting the Connecticut smoke-free environment. As reported by Casino.org, Americans for Nonsmokers’ Rights (ANR) is urging North Carolina lawmakers to ban indoor smoking at casinos if the state moves forward with legalizing commercial gambling.
Executive Director of Pennsylvania Gaming Control Board calls on state lawmakers to settle skill-gaming debate, state on track for record annual gross gaming revenue - As reported by Casino.org, in testimony to the Pennsylvania Senate Democratic Policy Committee, Pennsylvania Gaming Control Board (PGCB) Executive Director Kevin O'Toole expressed his opinion that lawmakers need to intervene and determine whether they wish to legalize and regulate skill gaming machines or ban them. Officials with the Pennsylvania Lottery and representatives from the state’s licensed commercial gaming industry say skill gaming machines poach revenue from their highly regulated and taxed operations - resulting in an estimated $250 million in lost tax revenue. As reported by Casino.org, Pennsylvania may be on track for record total gross gaming revenue in 2023. The state saw a nearly 9 percent increase in gross gaming revenue in the month of July according to PGCB reports.
Maryland hires team to explore feasibility of iGaming launch for the state - As reported by Casino.org, the Maryland Lottery and Gaming Control Commission (MLGCC) has hired consultant team The Innovation Group to study the possible benefits of legalizing iGaming in the state. Senate Bill 267, which sought to ask state voters if their wished to allow internet casinos, failed to gain adequate support and has since been shelved. Internet gaming supporters hope that more information on the possible tax benefits of legalizing iGaming will help the issue find legislative support.
Rush Street Interactive chosen as vendor for Delaware online gaming, partners with Boom Entertainment to expand New Jersey offerings- According to an Aug. 17 news release from Rush Street Interactive, the company has been chosen by the Delaware State Lottery as its vendor for the state's online gaming operations. Pending regulatory approvals, Rush Street Interactive will provide online gaming in Delaware for an initial term of five years renewable for additional one-year terms for up to five years. Rush Street Interactive is currently live in 15 states and the regulated international markets of the Canadian province of Ontario, Colombia and Mexico. As reported by PlayNJ, the company has recently partnered with Boom Entertainment to expand its New Jersey online casino offerings via BetRivers Casino.
Wynn Resorts announces reduction of WynnBET markets -According to an Aug. 11 news release, Wynn Resorts will close its online sports betting and iGaming platform, WynnBET, in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. While operations in Nevada and Massachusetts, where the company has a physical presence, will continue unaffected, there would be no expansion into new markets and operations in New York and Michigan were under review. As reported by PlayPennsylvania, a pending PA online casino launch is also likely not happening. Further reporting by PlayNJ.
Hospitality & Tourism News
Annual Atlantic City Airshow brings nearly half a million people to city - According to a joint news release from the Greater Atlantic City Chamber, Visit Atlantic City and David Schultz Airshows, the annual airshow, which took place on Aug. 15 (practice day) and 16, drew 485,000 people to the city. Despite challenging weather conditions, which caused delays, the 20th anniversary year of the event was a success. Coverage by The Press of Atlantic City.
Conflict over offshore wind continues, public support wanes - According to a Monmouth University Poll released Aug. 29, as of Aug. 23 just over half (54%) of New Jersey residents favor placing electricity-generating wind farms off the state's coast. This represents a decline from Feb. 19 when three quarters of the population (76%) favored offshore wind farms. According to the poll's findings, 4 in 10 residents think wind farms could hurt the state’s summer tourism economy and just under half see a connection between wind energy development and the recent spate of whales washing up on New Jersey beaches. Few saw wind energy leading to major job growth in the state. According to continuing coverage from The Press of Atlantic City, multiple officials in Cape May and Atlantic counties are raising questions about the off-shore wind projects. As reported by the Associated Press, as of Aug. 31, global wind energy developer, Orsted, said its first offshore windfarm in New Jersey would be delayed until 2026 due to supply chain issues.
Third power outage impacts Wildwood businesses during summer tourism season - As reported by The Press of Atlantic City, a downed wire caused a power outage on the evening of Aug. 26 (a Saturday) once again disrupting Wildwood businesses including Morey's Piers and the Boardwalk. Power was restored to these businesses after about two hours, but this was the third outage of the summer. A fire at a local substation caused a multi-day outage from Friday, July 7 through Sunday, July 9, and another downed wire caused an outage that shut portions of the Boardwalk for about three hours on the afternoon of Tuesday, Aug. 15. "Issues with energy infrastructure" are being blamed for the recurring outages and investigation into the cause of the substation fire is ongoing. For businesses that make most of their money in July and August, the outages have been a significant disruption and likely caused significant revenue losses. As reported by The Press of Atlantic City, Wildwood businesses met with Atlantic City Electric on Sept. 6 to discuss the outages.
TidalWave country music festival returns to Atlantic City for three days of festivities - As reported by The Press of Atlantic City, 2023 marked the second year the three-day (Aug. 11 - 13) TidalWave country music festival was held in Atlantic City. This year's event packed the beach to see headliners Thomas Rhett (Friday), Jason Aldean (Saturday) and Brooks & Dunn (Sunday).
