December 2021
In LIGHT of the data.
Atlantic City’s casinos came into 2021 with nearly 6 months experience of operating under pandemic conditions. The health and safety protocols implemented in 2020 and refined throughout 2021 helped support a return to in-person play for casino patrons and improve brick-and-mortar gaming revenues especially in the third quarter. These protocols were not enough to wholly overcome the impacts of the pandemic, but succeeded in bringing year-end brick and mortar gaming revenues to within 5% of year-end 2019 totals.
Atlantic City’s casino industry, like the region’s gaming hospitality and tourism businesses overall, has proven resilient, but still vulnerable to fluctuations in COVID-19 infection rates and caseloads. In some months of 2021, like this past December, brick-and-mortar gaming revenues surpassed 2019 levels, in others revenues lingered behind.
Even as other sectors of the gaming business, internet gaming especially, show significant and steady revenue growth, coronavirus surges and waves like the Delta and Omicron variants continue to prove an obstacle to sustained recovery for Atlantic City’s brick-and-mortar casino operations. While months like December 2021 are encouraging they are not yet the norm. We likely will not see a full recovery of the industry until pandemic conditions stabilize.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
December 2021 |
% Change from Prior Year | December 2020 | YTD December 2021 | % Change from Prior Year | YTD December 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 369,506 | 34.1% | 275,467 | 4,226,402 | 59.6% | 2,647,683 |
| Sports Wagering Revenue | 24,474 | -15.4% | 28,943 | 305,017 | 83.4% | 166,334 |
| Internet Gaming Win | 133,212 | 33.9% | 99,450 | 1,366,891 | 40.9% | 970,337 |
| Casino Gaming Win | 211,820 | 44.0% | 147,074 | 2,554,493 | n/a | 1,511,012 |
| Quarterly Revenue (Industry, $ In Thousands) | Q3 2021 | % Change from Prior Year | Q3 2020 | YTD September 30, 2021 | % Change from Prior Year | YTD September 30, 2020 |
|---|---|---|---|---|---|---|
| Casino | 505,871 | 35.6% | 373,176 | 1,328,803 |
58.2% |
840,047 |
| Rooms |
246,860 |
72.0% | 143,490 | 482,556 | 100.1% | 241,104 |
| Food & Beverage | 142,029 | 179.0% | 50,900 | 296,682 | 91.8% | 154,653 |
| Entertainment & Other | 73,271 | 102.5% | 36,191 | 151,205 | 74.6% | 86,604 |
| Casino Licensees Total Revenue | 968,031 | 60.3% | 603,757 | 2,259,245 | 70.8% | 1,322,408 |
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended September 30, 2021 & 2020 |
Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 |
|---|---|---|---|---|
| Occupancy percentage | 81.3% | 72.9% | 68.0% | 70.6% |
| Average Daily Room Rate (ADR) | $224.61 | $159.11 | $178.07 | $144.89 |
| Revenue Per Available Room (RevPAR)* | $182.50 | $116.02 | $121.08 | $102.36 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | October 2021 |
Change from Prior Year |
October 2020 |
YTD October 2021 |
Change from Prior Year |
YTD October 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,539,261 | 31.7% | 1,168,775 | 14,765,205 | 22.5% | 12,050,673 |
| AC Airport | ||||||
| Scheduled Service Passengers | 64,755 | 101.5% | 32,141 | 660,700 | 83.7% | 359,754 |
| Charter Passengers | 10,555 | 580.1% | 1,552 | 55,588 | 118.7% | 25,421 |
| Total Air Passengers | 75,310 | 123.5% | 33,693 | 716,288 | 86.0% | 385,175 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| December '21 | December '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 10 | 1 | 900% | 37 | 24 | 54% |
| # of Room Nights | 6,585 | 0 | N/A | 40,279 | 72,188 | -44% |
| # of Delegates | 8,084 | 40 | 20110% | 104,477 | 217,257 | -52% |
| Delegate Spending | $4,115,717 | $3,162 | 130062% | $33,459,948 | $56,798,466 | -41% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 2 | 0 | N/A | 7 | 11 | -36% |
| # of Attendees | 550 | 0 | N/A | 44,883 | 129,722 | -65% |
| Hotel Bookings | ||||||
| # of Shows | 4 | 0 | N/A | 108 | 40 | 170% |
| # of Room Nights | 1,652 | 0 | N/A | 95,808 | 27,730 | 246% |
| # of Attendees** | 1,975 | 0 | N/A | 125,747 | 41,700 | 202% |
| Delegate Spending | $1,291,227 | 0 | N/A | $55,639,044 | $15,887,942 | 250% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 16 | 1 | 1500% | 152 | 75 | 103% |
| # of Room Nights | 8,237 | 0 | N/A | 136,087 | 99,918 | 36% |
| # of Attendees | 10,609 | 40 | 26423% | 275,107 | 388,679 | -29% |
| Delegate Spending | $5,406,944 | $3,162 | 170898% | $89,098,992 | $72,686,408 | 23% |
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, Stockton University School of Business
Jane Bokunewicz, Ph. D., Faculty Director and Associate Professor of Hospitality
Atlantic City Information
Atlantic City Council awards $4.5 million contract for Phase 1 improvements to Atlantic Avenue - As reported by The Press of Atlantic City, on December 29, Atlantic City's City Council awarded a $4.5 million contract to Charles Marandino LLC of Milmay for work to be done to Atlantic Avenue between Maine Avenue in the Inlet and Tennessee Avenue at the public library. The "road diet" plan aims to make Atlantic Avenue safer for drivers and pedestrians, and to make it easier to park and use bikes for transport. The four lane road will be reduced to two lanes with a bike lane and parking added. The road would also be repaved and new curbing and lighting installed. Phases 2 and 3 of the project, which would extend the work to Albany Avenue near the Stockton University campus, is still under debate.
Atlantic City's Chelsea neighborhood drops ordinance to limit short-term rentals - As reported by The Press of Atlantic City, an ordinance passed in January 2021 limiting the number of short-term rentals in an area from Annapolis to Jackson avenues, and Albany to Raleigh avenues has been dropped. The state had already prohibited the ordinance from going into effect.
Atlantic City to get another professional basketball team in March - As reported by The Press of Atlantic City, The Basketball League (TBL) will bring the Atlantic City Gambits to the resort in March 2022. TBL includes 43 teams nationwide with each playing 24 games during a March through May season with playoffs in June. The Gambits join the Atlantic City Seagulls, who competed from 1996-2001 and recently reformed to play as part of the American Basketball Association.
Restaurant Week to remain in the fall for 2022 - As reported by The Press of Atlantic City, event organizers have decided to keep Atlantic City Restaurant Week in fall for 2022 after holding the event in October for the first time in 2021. Restaurant Week 2022 will run from October 2 through 7.
New Jersey Gaming News
Casino content studio Design Works Gaming (DWG) goes live in New Jersey via SG Digital’s content distribution platform, OpenGaming - As reported by SBC Americas, in December ,Golden Nugget Online Gaming (GNOG) players were able to access DWG content for the first time through SG Digital’s content distribution platform, OpenGaming. DWG content is also available to Resorts Casino players via the same SG Digital platform.
Esports Entertainment Group partners with Hard Rock Hotel & Casino Atlantic City for in-person Esports event - According to a December 14 press release shared by Esports Insider, on January 22 and 23 Esports Entertainment Group planned a first of its kind LANDuel event at Hard Rock Hotel & Casino Atlantic City. The 256-person double elimination Madden NFL 22 esports skill-based wagering tournament would be "the first, state sanctioned, in-person, peer to peer wagering event in esports." However, as reported by PlayNJ on January 12, the tournament has been postponed to March 19 and 20.
Governor Phil Murphy signs two bills amending PILOT expanding tax deductions for Atlantic City's casinos - As reported by The Press of Atlantic City and Play NJ, on December 21, New Jersey Governor Phil Murphy signed S4007/A5587 and S3994/A5943 into law. S4007 amends the 2016 payment-in-lieu-of-taxes agreement for Atlantic City's casinos and S3994 extends temporary tax credits and permanently redefines promotional gaming credits.
Lottery courier, Jackpocket, partners with Caesers Interactive Entertainment New Jersey LLC to bring online casino product to New Jersey - According to a press release shared via PR Newswire, Jackpocket which operates a lottery app in 10 U.S. states, including New Jersey and New York, will be the "first third-party lottery service to enter the online casino space in the Garden State." Pending approval from the New Jersey Division of Gaming Enforcement, the online gaming product will include slots, bingo and table games. Further reporting from Online Poker Report.
National Gaming News
Connecticut sportsbooks generate $4.8 million in gross sports betting revenue in first month of operation - According to Legal Sports Report, Connecticut's three casinos generated $54.1 million in handle and $4.8 million in revenue in the Month of October 2021, averaging an 8.9% hold. The state's three sportsbooks launched on October 19 following a soft launch on October 12. State report.
Hard Rock International to buy Las Vegas Mirage - As reported by the Associated Press, on December 13, MGM Resorts International announced that operations of The Mirage Las Vegas would be sold to Hard Rock International in an almost $1.1 billion cash deal expected to close in the second half of 2022. Hard Rock International intends to build a guitar-shaped hotel on the 80-acre property off the Las Vegas Strip. The Mirage real estate is owned by MGM Growth properties which is being bought by VICI Properties in a $17.2 billion deal expected to close in 2022.
Maryland opens first retail sportsbooks - According to Legal Sports Report, three of 17 properties granted Maryland sports betting licenses launched the state's first retail sportsbooks on December 9.
Ohio passes sports betting legislation, sportsbooks to open no later than January 1, 2023 - According to Legal Sports Report, Ohio legislators passed HB 29 a bill regulating sports betting in the state. Sports betting must start in the stat by January 1, 2023 and provisional gaming licences can be awarded through June 30, 2023. Lottery kiosks can accept sports bets on the spread, moneyline and the over/under as well as parlays of two-to-four bets. Sportsbooks will not be able to offer betting on horse races, however betting on professional esports was included.
Sientific Games Corporation acquires European games developer ELK Studios - According to SBC Americas, Scientific Games Corporation has acquired Stockholm based game developer ELK Studios in an effort to grow its igaming content offering and production capabilities. The acquisition will strengthen Scientific Games' position as a content provider in the UK and Europe and bring ELK's content to the US and Canadian markets.
Virgina sets new record for fastest U.S. sports betting market to reach $2 billion in handle - According to Legal Sports Report, state record sportsbook handle in October 2021 ($427.3 million) pushed total handle since Virgina launched sports betting in Mid-January 2021 to $2.4 million exceeding the $2 million threshold in just over nine months.
Hospitality & Tourism News
New Jersey Cannabis Regulatory Commission opens applications for Cannabis growers, maufacturers and testing laboratory operators - According to a December 15 press release from the Cannabis Regulatory Commission, almost 500 individuals and entities began the process of filing for recreational cannabis licenses for growing, manufacturing and testing in the first four hours after the Commission began accepting applications at 9 a.m. on December 15. The Commission will begin accepting applications for prospective marijuana dispensary owners March 15. Further reporting from the Courier Post.
New Jersey Airbnb Hosts have earned $825 million since 2010 - According to an economic report from Airbnb, shared via Insider NJ, between January 2010 and September 2021, Airbnbb hosts in the United States earned more than $54 billion of which, New Jersey based hosts earned $825 million. In the first three quarters of 2021 Airbnb hosts in the United States earned $12.5 billion total and the average individual Airbnb host earned more than $8,000 in the same period. Between May and August 2021 Airbnb delivered $520 million in tourism taxes to local governments in the United States.
Summer 2021 tourism rebounds - According to a report released by the New Jersey Division of Travel and Tourism, New Jersey Tourism saw a "strong bounce-back summer" in 2021. The report, which focused on the shore counties of Atlantic, Cape May, Monmouth and Ocean from June 1 to August 31, found record increases in key metrics such as bed tax receipts, rooms sold and beach tag sales. The 2021 bed tax revenues for shore counties are expected to reach $19.2 million, an increase of 22% over the record setting year 2019. Summer beach tag sales exceeded pre-pandemic levels with Cape May reporting a 35% increase in beach tag revenue over 2019. Further reporting by NJ Biz.
