December 2022
In LIGHT of the data.
Even up against strong seasonal and economic headwinds, brick-and-mortar gaming revenues for December 2022 outperformed both December 2021 ($211.82 million) and December 2019 ($208.55 million) to deliver the strongest December brick-and-mortar revenue returns in 10 years. Despite lower returns in recent months, strong performance early in the year along with a strong December showing set up 2022 year-end, total brick-and-mortar revenues to exceed both year-end 2021 ($2.55 billion) and year-end 2019 ($2.69 billion) totals.
This may be an indicator that the industry has recovered to pre-pandemic levels of brick-and-mortar gaming activity — an encouraging sign for the industry as a whole.
With observed increases in operating expenses in 2022 compared to previous years, we will need to wait for the year-end quarterly reports to see if the 9% increase (2022 over 2021) in brick-and-mortar, year-end total gross gaming revenue translates to an increase in gross operating profit for the industry.
Online gaming, 35% of total gross gaming revenue for the year, continues to be a game changer, driving the Atlantic City casino industry to a new near-term record for both December monthly and year-end, total gross gaming revenue. The diversification of gaming products to include both online gaming and sports betting has pushed the industry statewide (including racetracks) to totals not seen since 2006.
While the rate of online gaming growth may be slowing, relative to pandemic-boosted acceleration seen at the start of 2020, the maturing online gaming market is fast becoming a staple of the industry’s consumer offerings.
Looking forward to 2023, Atlantic City’s operators are expected to continue diversifying and evolving both their gaming and nongaming offerings to deliver a competitive customer experience in an increasingly crowded regional gaming market.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Millions |
December 2022 |
% Change from Prior Year | December 2021 | YTD December 2022 | % Change from Prior Year | YTD December 2021 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 405,645 | 9.8% | 369,506 | 4,742,041 | 12.2% | 4,226,402 |
| Sports Wagering Revenue | 38,558 | 57.5% | 24,474 | 293,721 | -3.7% | 305,017 |
| Internet Gaming Win | 151,455 | 13.7% | 133,212 | 1,662,696 | 21.6% | 1,366,891 |
| Casino Gaming Win | 215,631 | 1.8% | 211,820 | 2,785,624 | 9.0% | 2,554,493 |
| 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 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 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: South Jersey Transportation Authority
| Travel Mode | November 2022 |
Change from Prior Year |
November 2021 |
YTD November 2022 |
Change from Prior Year |
YTD November 2021 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,295,360 | -3.5% | 1,342,893 | 16,029,472 | -0.5% | 16,108,096 |
| AC Airport | ||||||
| Scheduled Service Passengers | 61,203 | -13.6% | 70,808 | 779,570 | 6.6% | 731,508 |
| Charter Passengers | 9,580 | -3.2% | 9,892 | 111,908 | 70.9% | 65,480 |
| Total Air Passengers | 70,783 | -12.3% | 80,700 | 891,478 | 11.9% | 796,988 |
Atlantic City Meetings and Conventions Data
Source: VistAC
| December '22 | December '21 | % Change from Prior Year |
TOTAL 2022 YTD |
TOTAL 2021 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 14 | 10 | 40% | 93 | 37 | 151% |
| # of Room Nights | 5,557 | 6,585 | -16% | 125,222 | 40,279 | 211% |
| # of Delegates | 9,101 | 8,084 | 13% | 441,971 | 104,477 | 323% |
| Delegate Spending | $3,666,222 | $4,115,717 | -11% | $153,195,282 | $33,459,948 | 358% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 1 | 2 | -50% | 39 | 7 | 457% |
| # of Attendees | 125 | 550 | -77% | 175,336 | 44,883 | 291% |
| Hotel Bookings | ||||||
| # of Shows | 8 | 4 | 100% | 154 | 108 | 43% |
| # of Room Nights | 4,588 | 1,652 | 178% | 120,297 | 95,808 | 26% |
| # of Attendees | 6,274 | 1,975 | 218% | 180,438 | 125,747 | 43% |
| Delegate Spending | $3,130,927 | $1,291,227 | 142% | $78,100,744 | $55,639,044 | 40% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 23 | 16 | 44% | 286 | 152 | 88% |
| # of Room Nights | 10,145 | 8,237 | 23% | 245,519 | 136,087 | 80% |
| # of Attendees | 15,500 | 10,609 | 46% | 797,745 | 275,107 | 190% |
| Delegate Spending | $6,797,149 | $5,406,944 | 26% | $231,296,026 | $89,098,992 | 160% |
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 Council names street in honor of Dr. Harvey Kesselman - On Dec. 21, members of the Atlantic City Council unanimously approved an ordinance designating a portion of Albany Avenue as Dr. Harvey Kesselman Way. The ordinance reads: “Dr. Kesselman’s visionary prowess and collaborative nature has positioned Stockton University’s Atlantic City Campus to be an extraordinary Anchor Institution and a major economic driver for the region and the educational capital of southern New Jersey.” Stockton University news release. Coverage by The Press of Atlantic City.
Atlantic City delays choice of developer for Bader Field - As reported by The Associated Press, the Atlantic City Council was set to approve a memorandum of understanding with DEEM Enterprises before officials from the state Department of Community Affairs asked them to delay. DEEM Enterprises has submitted a proposal to redevelop Bader Field as a $2.7 billion recreational, residential and retail project centered on high-end sports cars. The delay provides more time for a competing proposal by Tower Investments to develop the site as a water-intensive project inspired by the canals of Amsterdam.
Casino Reinvestment Development Authority (CRDA) authorizes purchase of property for new offices and a warehouse for the Special Improvement District (SID) - As reported by The Press of Atlantic City, the CRDA's Board of Directors authorized its executive director to purchase a property at 1810 Baltic Ave. for the use of the SID. The SID is responsible for maintenance and cleanliness of the Tourism District, and works with the Atlantic City Police Department Tourism District Patrol Unit to conduct the Neighborhood Community Officer program.
Future of the Atlantic City Race Course topic of speculation - As reported by The Press of Atlantic City, the future of the facility, shuttered in 2015, is still unknown despite various project proposals over the years. Atlantic County Executive Dennis Levinson told The Press "the property could be something again” and just needed “someone with vision and money.”
John Lamey retires from leadership of Atlantic County Improvement Authority - As reported by The Press of Atlantic City, John Lamey has retired after 22 years as head of the Atlantic County Improvement Authority. His successor, Tim Edmunds, who has been with the authority since 2014, took office effective Jan. 1, 2023.
New proposals sought for Atlantic City grocery store - As reported by The Press of Atlantic City, after more than a year of discussion, the Casino Reinvestment Development Authority (CRDA) notified Village Super Market, prospective operators of an Atlantic City ShopRite, that they would be suspending negotiations. CRDA officials told The Press they intend to put out a new request for proposals.
South Jersey Transportation Authority (SJTA) to negotiate high-tech aeronautics firm's use of land at Atlantic City International Airport (ACY) - As reported by The Press of Atlantic City, the SJTA board authorized its executive director to negotiate with McLean, Virginia-based OST Inc./Converge to develop aeronautical facilities on 20 acres at ACY.
New Jersey Gaming News
Hard Rock Hotel & Casino Atlantic City announces new management team - As reported by The Press of Atlantic City, Hard Rock has announced George Goldhoff as the property's new president and Mike Sampson as its new general manager.
PokerStars combines Michigan and New Jersey player pools - As reported by Play Michigan and Play NJ, effective Jan. 1, 2023, PokerStars combined player pools for Michighan and New Jersey for interstate online poker. Michigan became the fourth state (after New Jersey, Nevada and Delaware) to join the Multi-state Internet Gaming Agreement (MSIGA) in May 2022 (Michigan Gaming Control Board). Further reporting from Play USA.
Warner Theatre at Caesars Atlantic City to reopen as "The Hook"- As reported by The Press of Atlantic City, Spiegelworld, which has produced live shows for Las Vegas, will operate the Warner Theatre at Caesars Atlantic City as an adult performance venue called The Hook. Following a multimillion-dollar renovation project, The Hook will feature live stage shows and an interactive dining experience. The 400-seat venue is expected to open June 30, 2023.
National Gaming News
Amid ongoing legal dispute, skill gaming parlor opens in Mechanicsburg, Pennsylvania - As reported by Casino.org, The Keystone Klub Gaming Parlor, a skill gaming facility featuring 20 gaming terminals has opened in Pensylvania, 30 miles east of where Parx Casino Shippensburg plans to open in Feb. 2023.
Chicago City Council approves Bally's casino-hotel proposal - As reported by Casino.org, the Chicago City Council approved Bally's proposal to bring a $1.7 billion casino-hotel to the site of the Chicago Tribune Freedom Center printing plant. Bally’s Chicago will include 3,400 slots, 170 table games, 10 food and beverage venues, a 500-room hotel tower with rooftop bar, a 3,000 seat / 65,000 square-foot entertainment center, a 20,000 square foot exhibition, outdoor music venue, and outdoor green space including an expansive public riverwalk with a water taxi stop
Hard Rock celebrates ground breaking in Bristol, Virginia, Completes Acquisition of The Mirage Hotel & Casino in Las Vegas, Nevada - According to news releases dated Dec. 12, Hard Rock has completed acquisition of The Mirage Hotel & Casino and broken ground on The Hard Rock Hotel & Casino Bristol. As reported by The Nevada Independant and Las Vegas Review Journal, Hard Rock will opperate the Mirage property through 2023 before investing "billions" in its expansion and rebranding. As reported by the Bristol Herald Courier, the new 300,000 square-foot permanent casino facility will feature 1,300 slot machines, 50 table games, a sports book, dining options and a variety of resort amenitites. The present 30,000-square-foot temporary casino will remain in operation once the permanent facility opens and become exclusively nonsmoking while smoking will be permitted in the new, larger casino space.
New Year's Mega Millions jackpot largest ever to be offered in final week of the year- As reported by Casino.org, strong lottery sales in the 45 states plus Washington, D.C., and the U.S. Virgin Islands led to a record $685 million jackpot drawing in the last week of 2022.
Pennsylvania casino retail revenue slows in November - As reported by Casino.org, data released by the Pennsylvania Gaming Control Board shows a slowing of retail gaming revenue growth in November 2022. Land-based casino revenue for the month was down 1.3% compared to November 2021. Revenue from internet gaming offset the decline realizing a 37% increase in November 2022 compared to November 2021.
Rhode Island casino workers advocate for smoke-free workplaces - As reported by Casino.org, employees at Bally’s Twin River Lincoln and Bally’s Tiverto, Rhode Island's only casinos, are seeking closure of a loophole in Rhode Island’s Public Health and Workplace Safety Act of 2004, which permits indoor smoking at casinos. The workers chartered a local chapter of “Casino Employees Against Smoking Effects (CEASE),” an anti-casino smoking organization founded in Atlantic City, in May 2022.
Virginia implements rule limiting promo deductions from taxable revenue to the first 12 months after an operator launches - According to Legal Sports Report, Virginia realized its second-highest tax payment for sportsbook operators in October 2022 after a new rule limiting deductions of promotional spending from taxable revenue came in to effect. Under the new rule, Virgina kept $7 million of the $51.2 million revenue generated by the industry that month. Only five of the state's operators were permitted to deduct promotional spending from taxable revenue resulting in a $1 million deduction compared to a $15.8 million deduction in October 2021. According to Legal Sports Report, as of Jan. 10, a bill (SB1142) had been introduced in the Virginia state Senate to challenge the rule and establish a new system for the deduction of promotional spending from taxable revenue.
Virginia skill gaming lawsuit postponed until Spring 2023 - As reported by Casino.org, a lawsuit challenging the state's decision to outlaw "skill gaming" machines has been postponed until the Virginia General Assembly concludes its 2023 legislative session in the spring.
Hospitality & Tourism News
Bill creating fund for county tourism advertising advances out of New Jersey senate committee - As reported by The Press of Atlantic City, New Jersey State Senate Bill S2192, advanced out of the Senate State Government, Wagering, Tourism & Historic Preservation Committee on Dec. 19. The bill "establishes the 'County Tourism Incentive Grant Fund' and provides for the appropriation and distribution of excess state hotel and motel occupancy fee revenues for deposit into the fund, to be used to award grants to counties to support tourism advertising and promotion." An action bill sponsor Sen. Vince Polistina says it will "shift more revenue back to tourism promotion and advertising."
Cape May County Zoo partners with Atlantic Cape Community College to expand eduational services - As reported by The Press of Atlantic City, the zoo and college will partner to provide new opportunities to the residents, visitors and students of Cape May County.
Formica Freitag Bakery merges with Valenti’s Italian Bakery to take "Atlantic City Bread" national - As reported by The Press of Atlantic City, the Formica Freitag Bakery and Valenti’s Italian Bakery have merged to create a larger entity that will keep the Formica Freitag Bakery name. Quick freezing technology will allow the Atlantic City-based company to ship its bread nationwide.
Lucy the Elephant celebrates completion of 15-month restoration project - As reported by The Press of Atlantic City, after 15 months and $2.4 million in restorations, America’s oldest roadside attraction, Lucy the Elephant, reopened to the public with a community celebration on Dec. 28. The restoration work was funded in part by $1.2 million in grants from the Save America’s Treasures program and the New Jersey Historic Preservation Fund. Donations to the Save Lucy Committee, ticket tours and sales from Lucy’s gift shop, which remained open, also funded the project.
Meet AC reports successful 2022 season - According to a Jan. 4 news release, Meet AC and the Atlantic City Sports Commission welcomed 210 competitions, conventions and sporting events to the resort in 2022. These included the 113th NAACP National Convention, Meet AC Atlantic City Airshow and The Atlantic City Pickleball Open.
Showboat to convert second section of former hotel to residential units - As reported by The Press of Atlantic City and Casino.org, the Casino Reinvestment Development Authority (CRDA) approved a site plan submitted by Showboat Renaissance that would see 308 hotel rooms on the Boardwalk converted for use as studio apartments. This is the second section of the former casino hotel to transition to residential use. In 2018, the CRDA approved the conversion of 400 hotel rooms into 264 residential units.
