February 2021
In LIGHT of the data.
With the February 2021 release from the New Jersey Division of Gaming Enforcement, we get the first look at a full 12-month cycle of COVID-19 impacts for Atlantic City, and the casino industry in New Jersey. Data from the New Jersey Division of Gaming Enforcement (DGE), South Jersey Transportation Authority (SJTA) and Meet AC combines to tell a story of fewer public gatherings, a shift to virtual/remote activities and the loss of thousands of jobs in the service sector. Trends seen across the state, nation and globe in both gaming and non-gaming related industries.
Based on the findings of LIGHT’s recent consumer survey, there is reason to hope that, after the most challenging year in the history of casino gaming in Atlantic City, a return to pre-pandemic prosperity is in sight.
Only time will tell what the ‘new normal’ in Atlantic City will look like, but we should be prepared to see, at least in the short term, a slow return to in-person events, continued popularity of remote gaming products and gradual return to work for people in the service sector in proportion to recovery in consumer demand.
Read LIGHT’s One-Year Retrospective HERE.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
February 2021 |
% Change from Prior Year | February 2020 | YTD February 2021 | % Change from Prior Year | YTD February 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | $258,466 | -6.0% | $275,078 | $553,978 | 1.6% | $545,430 |
| Sports Wagering Revenue | $16,416 | 243.9% | $4,773 | $48,145 | 70.8% | $28,180 |
| Internet Gaming Win | $93,810 | 80.4% | $51,988 | $197,582 | 84.5% | $107,074 |
| Casino Gaming Win | $148,240 | -32.1% | $218,317 | $308,251 | -24.8% | $410,176 |
| Quarterly Revenue (Industry, $ In Thousands) | Q3 2020 | % Change from Prior Year | Q3 2019 | YTD September 30, 2020 | % Change from Prior Year | YTD September 30, 2019 |
|---|---|---|---|---|---|---|
| Casino | $398,733 | -18.7% | $490,347 | $865,604 | -34.2% | $1,315,609 |
| Rooms | $143,490 | -29.2% | $202,711 | $241,104 | -50.0% | $$482,424 |
| Food & Beverage | $50,900 | -68.8% | $162,918 | $154,639 | -64.7% | $437,704 |
| Entertainment & Other | $36,191 | -50.4% | $72,896 | $85,035 | -54.4% | $186,500 |
| Casino Licensees Total Revenue | $629,314 | -32.2% | $928,872 | $1,346,355 | -44.42% | $2,422,236 |
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended September 30, 2020 |
Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|
| Occupancy percentage | 72.9% | 90.8% | 70.6% | 81.2% |
| Average Daily Room Rate (ADR) | $159.11 | $161.06 | $144.89 | $145.51 |
| Revenue Per Available Room (RevPAR)* | $115.99 | $146.24 | $102.29 | $118.15 |
* RevPAR= ADR X Occupancy Percentage
[Note: Atlantic City’s casino hotels were closed in April, May and June due to COVID-19 restrictions.]
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | January 2021 |
Change from Prior Year |
January 2020 |
YTD January 2021 |
Change from Prior Year |
YTD January 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
971,510 | -33.4% | 1,458,906 | 971,510 | -33.4% | 1,458,906 |
| AC Airport | ||||||
| Scheduled Service Passengers | 30,665 | -66.9% | 92,702 | 30,665 | -66.9% | 92,702 |
| Charter Passengers | 1,264 | -79.0% | 6,028 | 1,264 | -79.0% | 6,028 |
| Total Air Passengers | 31,929 | -67.7% | 98,730 | 31,929 | -67.7% | 98,730 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| Feb '21 | Feb '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings | ||||||
| # of Shows | 1 | 11 | -91% | 1 | 17 | -945 |
| # of Room Nights | 0 | 22,469 | -100% | 0 | 62,606 | -100% |
| # of Delegates | 36 | 61,763 | -100% | 36 | 129,158 | -100% |
| Delegate Spending | $4,125 | $18,326,535 | -100% | $4,125 | $44,107,112 | -100% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 0 | 5 | -100% | 0 | 9 | -100% |
| # of Attendees | 0 | 61,161 | -100% | 0 | 86,811 | -100% |
| Hotel Bookings | ||||||
| # of Shows | 2 | 15 | -87% | 3 | 22 | -86% |
| # of Room Nights | 400 | 7,984 | -95% | 448 | 12,885 | -97% |
| # of Attendees | 375 | 10,845 | -97% | 11,375 | 17,770 | -36% |
| Delegate Spending | $166,220 | $4,567,966 | -96% | $2,232,463 | $7, 752,236 | -71% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 3 | 31 | -90% | 4 | 48 | -92% |
| # of Room Nights | 400 | 30,453 | -99% | 448 | 75,491 | -95% |
| # of Attendees | 411 | 133,769 | -100% | 11,411 | 233,739 | -95% |
| Delegate Spending | $170,345 | $22,894,501 | -99% | $2,236,588 | $51,859,348 | -96% |
Note: 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 number
LIGHT Snapshots is a publication of the Lloyd D. Levenson Institute of Gaming, Hospitality
& Tourism at Stockton University
Jane Bokunewicz, Ph. D., Institute Coordinator and Associate Professor of Hospitality
Atlantic City Information
Atlantic City St. Patrick's Day canceled for 2021 - As reported by The Press of Atlantic City, the annual Atlantic City St. Patrick's Day has been postponed to March 12, 2022. The event, which is a highlight of spring in Atlantic City, was also canceled in 2020 due to concerns related to the pandemic.
Four West Atlantic City motels to be demolished before May 1 - As reported by The Press of Atlantic City, four run-down motels along the Black Horse Pike approaching Atlantic City should be demolished before the start of the 2021 summer season. The tear-down, which should take approximately six weeks, is the first phase of a two-phase project that would see the land converted to a passive park.
Metro Atlantic Athletic Conference (MAAC) announces extension of basketball tournaments - As reported by The Press of Atlantic City MAAC announced that its basketball tournaments, originally scheduled for March 9-13 would start on March 8 to allow for additional COVID-19 safety protocols between games. Last year's MAAC tournament was canceled before completion due to statewide COVID precautions. Fan attendance for the event was limited to about 1,100 fans and family members.
NASA enters multi-year agreement with Federal Aviation Administration (FAA) William J. Hughes Technical Center - As reported by The Press of Atlantic City, NASA has entered into a multi-year agreement to use workspace at the National Aviation Research and Technical Park at the FAA Tech Center in Atlantic County. NASA and FAA employess will work on Advanced Air Mobility (AAM) projects including advancing drone technology and electric aircraft operating at low-altitude in urban environments.
New Jersey Gaming News
Caesars Entertainment Group enters multi-state market access agreement with Carousel Group to launch SportsBetting.com - According to NJ Gambling Sites, Caesars is set to partner with Malta-based Carousel Group to launch online sportsbook, SportsBetting.com, in three states (New Jersey, Indiana and Iowa). The New Jersey launch is expected before the end of 2021. The agreement expands Carousel's U.S. market access from $109 million to an estimated $1.8 billion. The online arm of Caesars Entertainment, Caesars Interactive NJ claims nearly 10% of market revenue $970.34 million.
Former Trump Plaza Casino tower imploded - As reported by The Press of Atlantic City and the New York Times, the 39-story tower was imploded at 9:08 a.m. on Wednesday, February 17th. The former casino opened in 1984 and remained vacant after closing in 2014. Current owner Carl Icahn purchased the building out of bankruptcy in 2016. The 70-80 foot pile of debris left by the implosion is expected to be cleared by summer. Plans for the site remain unclear, although Atlantic City Mayor Marty Small has said he'd like to see the land redeveloped for multi-use purposes, perhaps catering to families.
January 2021 the first month with over $100 million in New Jersey online gaming revenue - According to Online Poker Report, for the first time in state history, New Jersey operators generated over $100 million in revenue from online casino and poker games in one month. In January 2021, online casino operators generated $103,771,312 in revenue a modest increase over December 2020 ($99,450,065), but the first time the market realized nine firgure, single month revenue. Combined daily average revenue for online casinos and poker rooms totaled $3,347,462 in January, up 4.35% over December. Net revenue after promotions was up 5.65% in January compared to December making it the best month for that metric since the March 2020 casino shutdown.
New Jersey sportsbooks see 116% increase in handle for Super Bowl wagers - As reported by The Press of Atlantic City, Super Bowl bets at New Jersey sportsbooks totaled approximately $117.4 million in 2021 resulting in a win of $11.3 million. In 2020 Super Bowl wagers totaled $54.3 million, with sportsbooks paying out $58.6 million for a loss of more than $4.2 million.
National Gaming News
Borgata partners with Rivers Casino on Pensylvania online casino offering - According to Online Poker Report, on February 24, Borgata Online Casino went live in Pennsylvania. It is the second online casino in the state to be operated by BetMGM. Both online casinos have different land-based partners. The BetMGM online casino operates in partnership with Penn National; the Borgata online casino is operated in partnership with Rivers Casino.
District of Columbia becomes 8th jurisdiction to authorize instant online lottery games - According to Online Poker Report, Washington DC is the latest jurisditiction to authorize instant online lottery or "iLottery" games, joining a list of seven other jurisdictions including Georgia, Kentucky, Michigan, New Hampshire, Pennsylvania, Rhode Island and Virginia. In addition to these states, six others offer online sales of lottery 'draw' tickets.
DraftKings expands DFS deal with NFL, looks to gain access to Canadian market ahead of sports betting legalization - According to Legal Sports Report, DraftKings expanded its agreement with the NFL, to include NFL branding and content opportunities for the Canadian market. DraftKings is the exclusive DFS sponsor of the league. The Canadian government is in the process of ending a federal ban on single-game sports betting and the province of Ontario may soon end a lottery-run monopoly on online gambling. DraftKings has positioned itself to be one of the first private operators in the market. TheScore estimates the Ontario sports betting market could be worth $1.5-$2.1 billion annually and could be live by the second half of 2021.
Georgia legislature advances mobile-only sports betting bill - According to Legal Sports Report, the Georgia House of Representatives, Economic Development and Tourism Committee passed House Bill 86. The bill, viewed by its sponsors as an opportunity to increase fan engagement, would allow for six sports betting operators with no limit on the number of potential licenses. Sports betting would be regulated by the Georgia Lottery, taxed at 14% and sportsbooks would pay $900,000 annually for their license. There would be no betting on any college sports. As reported by Legal Sports Report, the constitutionality of HB86 and a similar Senate Bill (SB142) have been called into question, as the state requires a constitutional ammendment to permit the expansion of casino gambling.
Illinois pursues internet gaming legislation - According to Online Poker Report, legislation has been introduced (HB3142) which would, if passed, become known as the Internet Gaming Act (IGA) for Illinois. The legislation would allow up to 39 online casinos and would exact a 12% tax on adjusted gross gaming revenue. The state passed a Sports Wagering Act (SWA) in 2019 and began accepting legal sports bets in March 2020.
Nevada 2021 Super Bowl handle lowest since 2016 - According to Las Vegas Review Journal, Nevada's 184 sportsbooks saw $136.1 million in wagers on Super Bowl LV. This was the lowest handle for the state since 2016 ($132.5 million). Sportsbooks won $12.6 million on the event for a hold (win) percentage of 9.2. Nevada set records for Super Bowl handle in 2016 and again 2017 before peaking in 2018 with $158.6 million in wagers. Nevada had a higher handle than New Jersey in 2021 ($117.4 million), but New Jersey surpassed Nevada with a hold percentage of 9.6 or $11.3 million.
Record number of Americans wager on Super Bowl - As reported by the American Gaming Association, an estimated 23.2 million americans wagered on Super Bowl LV. Betters wagered $7.6 million with online sports books a 63% increase year over year; 1.8 million Americans planned to wager with a bookie, down 21% year over year.
Vermont legislators propose sports betting bill - As reported by CalvinAyre, on February 11, a bill (Senate Bill 77) authorizing sports betting in Vermont through the state's lottery was introduced. The bill would permit up to 6 mobile sportsbooks, prohibit wagering for individuals under 18 and ban wagering on in-state college sporting events. Details regarding taxes and licensing fees were left out of the bill. The bill was referred to the Vermont Senate Committee on Economic Development, Housing and General Affairs.
Virgin Hotels announces opening date for Las Vegas Casino Hotel - As reported by Travel Weekly, Virgin Hotels announced that its new Las Vegas property would open on March 25. The off-strip complex is comprised of three hotel towers totaling 1,500 guestrooms, a 60,000-square-foot Mohegan Sun Casino operated by Mohegan Gaming & Entertainment, a five-acre pool area and event lawn, a theater with capacity for 4,500 and a dozen different food and beverage venues.
Virginia to become major sports betting market - According analysis by PlayVirginia shared via PRNewswire, Virginia's sports betting market could reach $5 billion in annual wagers in three years. The $5 billion in wagers (or handle) would result in an estimated $400 million in operator revenue and $60 million in state tax revenue annually. Like New Jersey, Virginia is expected to benefit from its proximity to large markets including Baltimore, Washington D.C. and North Carolina.
Hospitality & Tourism News
Federal Highway Administration designates 130-mile route through South Jersey as National Scenic Byway - As reported by the Philadelphia Inquirer, the Pine Barrens Byway, managed by the New Jersey Pinelands Commission, has been designated by the U.S. Department of Transportation's Federal Highway Administration as a National Scenic Byway. The 130-mile loop runs mostly through the lower half of the one million-acre Pinelands National Reserve in Atlantic, Burlington, Cape May, Cumberland, and Ocean counties.
Greater Newark Convention and Visitors Bureau partners with United Airlines on Shop Local innitiative- According to a press release shared via PRNewswire, The Greater Newark Convention and Visitors Bureau (GNCVB) and United Airlines have partnered to support small businesses in Newark New Jersey. According to a spokesperson for GNCVB, Ricardo Salazar, "United is the first major airline to endorse and promote the small business community in Newark." United has operated a transportation hub out of Newark Liberty International Airport for more than 20 years.
Marriott International announces passing of President and CEO, Arne Sorenson - According to a release from Marriot International, President and CEO Arne Sorenson passed away on February 15 after a battle with pancreatic pancer. Mr. Sorenson became Marriott International's third CEO in 2012 and saw the company through a period of great progress.
U.S. Senate votes in favor of budget resolution amendment to support restaurants; bipartisan bill reintroduced in Congress - As reported by Nation's Restaurant News, the U.S. Senate voted 90-10 in favor of "The Restaurant Rescue Plan," a bipartisan amendment to the budget resolution aimed at providing financial relief for the restaurant industry. Once passed, the budget resolution will provide funding for the $1.9 trillion 'American Rescue Plan' which includes a $25 billion dedicated grant relief program for restaurants. Also as reported by Nation's Restaurant News, the RESTAURANTS Act of 2021 was reintroduced to Congress. The bipartisan bill, which was passed by the house in the previous congressional session, would create a $120 billion fund to provide relief for food service businesses with less than 20 units. The bill updates and unifies language from multiple bills previously proposed by the House and Senate, and would be a seperate relief fund from the $25 billion approved by the Senate's budget resolution amendment.
