February 2022
In LIGHT of the data.
February, traditionally a transitional month for the resort, has both fewer days and greater risk of weather-related impacts on visitation to the resort. Popular holiday weekends such as Presidents’ Day and Valentine’s Day and waning public concern for public health threats related to COVID-19 however, may have given a boost to brick-and-mortar gaming figures which increased month-to-month over January 2022 by 16%. While a marked improvement month-to-month and year-to-year, February 2022 brick and mortar gaming revenues fell short of February 2020 (just barely pre-pandemic) by 3%.
Monthly sports betting handle for the state increased over February 2021, but fell below 1 billion for the first time since September 2021. An observed decline in handle from January into February followed a similar pattern to previous years and is not necessarily indicative of increased competition from New York operators.
Recent investments by casino operators to expand and improve their property offerings are a testament to their commitment to the in-person gaming experience. Ocean Casino Resort’s unveiling of a $5 million sports book venue is just one example of confidence that New Jersey will continue to compete with neighboring jurisdictions for in-person patrons.
Further relaxation of pandemic related precautions nationwide give us hope that spring 2022 will return operators to a pre-pandemic operating environment.
Recent fluctuations in gas prices, resulting from the hostilities in Ukraine may or may not have a positive impact on brick-and-mortar gaming revenue and visitation to the resort. Atlantic City may see an increase in visitation from guests this spring and summer who wish to save gas by traveling to destinations closer to home. Alternatively, rising costs my eventually reduce the amount of discretionary spending by individuals who may decide to limit their gaming and entertainment budgets accordingly.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
February 2022 |
% Change from Prior Year | February 2021 | YTD February 2022 | % Change from Prior Year | YTD February 2021 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 356,728 | 38.0% | 258,455 | 696,839 | 25.8% | 553,966 |
| Sports Wagering Revenue | 14,333 | -12.7% | 16,415 | 32,952 | -31.6% | 48,145 |
| Internet Gaming Win | 129,976 | 38.6% | 93,799 | 267,826 | 35.6% | 197,571 |
| Casino Gaming Win | 212,419 | 43.3% | 148,240 | 396,061 | 28.5% | 308,251 |
| 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 | January 2022 |
Change from Prior Year |
January 2021 |
YTD January 2022 |
Change from Prior Year |
YTD January 2021 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,061,208 | 9.2% | 971,508 | 1,061,208 | 9.2% | 971,508 |
| AC Airport | ||||||
| Scheduled Service Passengers | 55,399 | 80.7% | 30,866 | 55,399 | 80.7% | 30,665 |
| Charter Passengers | 6,585 | 421.0% | 1,264 | 6,585 | 421.0% | 1,264 |
| Total Air Passengers | 61,984 | 94.1% | 31,929 | 61,984 | 94.1% | 31,929 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| February '22 | February '21 | % Change from Prior Year |
TOTAL 2022 YTD |
TOTAL 2021 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 5 | 1 | 400% | 9 | 1 | 800% |
| # of Room Nights | 6,745 | 0 | N/A | 22,129 | 0 | N/A |
| # of Delegates | 27,928 | 36 | 77478% | 81,337 | 36 | 225836% |
| Delegate Spending | $5,759,148 | $4,125 | 139516% | $19,231,430 | $4,125 | 466116% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 3 | 0 | N/A | 6 | 0 | N/A |
| # of Attendees | 16,868 | 0 | N/A | 31,885 | 0 | N/A |
| Hotel Bookings | ||||||
| # of Shows | 8 | 2 | 300% | 12 | 3 | 300% |
| # of Room Nights | 7,854 | 400 | 1864% | 13,641 | 448 | 2945% |
| # of Attendees** | 9,240 | 375 | 2364% | 25,240 | 11,375 | 122% |
| Delegate Spending | $5,478,830 | $166,220 | 3196% | $9,379,644 | $2,232,463 | 320% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 16 | 3 | 433% | 27 | 4 | 575% |
| # of Room Nights | 14,599 | 400 | 3550% | 35,770 | 448 | 7884% |
| # of Attendees | 54,036 | 411 | 13047% | 138,462 | 11,411 | 1113% |
| Delegate Spending | $11,237,978 | $170,345 | 6497% | $28,611,074 | $2,236,588 | 1179% |
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 Arts Foundation Director, Joyce Hagen, to leave organization - According to The Press of Atlantic City, Joyce Hagen, the first executive director of the Atlantic City Arts Foundation, is stepping down after seven years. The Arts Foundation is known for its support of Atlantic City artists through its Chalk About AC and ARTeriors projects as well as the 60 murals spread accross the city's 48 blocks.
Atlantic City casino payment-in-lieu-of-taxes (PILOT) law contested - According to continuing coverage by The Press of Atlantic City, the state of New Jersey and Atlantic County continue to debate PILOT. On February 25, a judge ruled that the law (passed in December) which restructured the original PILOT agreement was in violation of a 2018 consent order. The state has requested reconsideration. If the law holds, casino payments would be lowered from the original PILOT law and online sports betting and internet gaming removed from calculations of gross gaming revenue. Further coverage from Casino.org.
Casino Reinvestment Development Authority approves Atlantic City Convention Center addition - As reported by The Press of Atlantic City, the Casino Reinvestment Development Authority (CRDA) board of directors voted to approve the construction of an addition to the Atlantic City Convention Center. The 5,330-square-foot modular addition is being built by Continent 8 LLC, a company which provides infrastructural support for the growing online gaming industry, to house a data center.
Development of Bader Field - According to The Press of Atlantic City, as part of a February 11 speech at the Metropolitan Business and Citizens Association’s annual winter luncheon at Caesars Atlantic City, Atlantic City Mayor, Marty Small Sr., said the city is pursuing a $2.7 billion deal to redevelop Bader Field. The project "Renaissance at Bader Field" as proposed by DEEM Enterprises would include hundreds of condominiums, a high-rise hotel/event space, retail space along Albany Avenue, educational facilities to teach people to become mechanics and a Formula One track.
South Jersey Transportation Authority issues RFP to develop land near Atlantic City Interanational Airport - As reported by The Press of Atlantic City, in February, the South Jersey Transportation Authority (SJTA) issued a request for proposals to develop 400 acres in the northwest quadrant of the Atlantic City International Airport, including 1.5 million square feet of cargo and facility space. Development of the land is seen by the Atlantic County Economic Alliance (ACEA) as an opportunity to "'leverage the area's aviation industry for economic development."
New Jersey Gaming News
Casino Association of New Jersey releases report on impact of permanent smoking ban for Atlantic City casinos - According to a report prepared by Spectrum Gaming Group on behalf of the Casino Association of New Jersey and released February 23, a permanent smoking ban for the state's casinos could result in the loss of up to 2,500 jobs and "a substantial decline of up to 10.9 percent in gaming revenue, up to $93 million in non-gaming revenue, and a loss of between $17.2 million and $44 million for the State of New Jersey and the City of Atlantic City in tax revenue." Further reporting by Forbes.
Ocean Casino Resort names general manager - As reported by the Associated Press, owners of Ocean Casino Resort announced interim CEO, Bill Callahan as the property's new permanent general manager. Callahan has served as interim CEO since November 2021 following the departure of former CEO Terry Glebocki. Further coverage by New Jersey Business Magazine and Casino.org.
National Gaming News
Ameircan Gaming Association (AGA) reports record $53 Billion in gaming revenue in 2021- According to a February 15 press release from the AGA, the U.S. commercial gaming industry realized a record $53 billion in gaming revenue in 2021. The total surpasses the previous record of $43.65 billion set in 2019. The industry's recovery was lead by brick-and-mortar operations.The 2021 combined slot and table gaming revenue totaled $44.94 billion, a 6.6 percent increase over 2019’s previous record. Further coverage by Las Vegas Review Journal and The Press of Atlantic City.
BetMGM sportsbook opens at Nationals Park in Washington, National D.C. - According to Legal Sports Report, on January 31, BetMGM opened a new retail sportsbook at Nationals Park. While district-wide mobile wagering is restricted to the GamebetDC app opperated through the DC Lottery, the BetMGM app will be available within a two-block radius of Nationals Park.
Hard Rock considers three locations for New York City casino - As reported by The Associated Press and NJ.com, Hard Rock Chair Jim Allen has announced that the company is considering three potential sites in New York City for the construction of a $2 billion casino. The company will open a new $400-500 million, 446-room, hotel in Manhattan in April and has operated a Hard Rock Cafe near Times Square for many years. Location selection is expected to begin late summer or early fall 2022.
Nevada governor lifts indoor mask mandate, Nevada Gaming Control Board follows suit - As reported by Las Vegas Review Journal, following a February 10 announcement from Nevada Governor Steve Sisolak, the Nevada Gaming Control Board issued new guidance to operators indicating that masks would no longer be required inside casinos.
Record 31.4 million American adults to bet on Super bowl LVI - According to a February 8 press release from the American Gaming Association (AGA), a record 31.4 million American adults planned to wager on Super Bowl LVI. This represents a 35% increase over 2021. An estimated $7.61 billion will be wagered on the event a 78% increase over 2021 ($3.33 billion). With the opening of sportsbooks in new jurisdictions, 45 million more Americans could legally wager on the Super Bowl in their home state in 2022 than in 2021. Further coverage by The Associated Press.
Sportsbook operators register with Ontario, Canada regulators - According to Legal Sports Report, three operators, PointsBet, theScore and Rivalry Corp. have announced ther status as registered online gaming operators with the Alcohol and Gaming Commission of Ontario. On April 4, Ontario will become the first province in Canada to open to commercial sports betting operations. The province's lottery launched a sports betting offering, ProLine+ in August 2021.
Hospitality & Tourism News
Cape May County, New Jersey invests in "Reconnect Canada" tourism campaign - As reported by NJ 101.5, The Cape May County Department of Tourism has launched a campaign with the aim of
reconnecting Canadian visitors with the destination. Canadian visitors, which represent
the largest group of international visitors and nearly 10% of all visitors to the
resort in July and August, have been cut off from the resort for two years due to
pandemic-related border closures and travel restrictions. The campaign is funded by the Cape May County Board of Commissioners via American Rescue Plan.
Economic development organization, Choose New Jersey reports record job growth in 2021- As reported by NJ Business Magazine, economic development organization, Choose New Jersey's efforts in 2021 resulted in the creation and retention of 7,629 jobs and the generation of $1.6 billion in capital investment. Last year, Choose New Jersey supported 32 companies in relocating or expanding to New Jersey. In the nearly 11 years since its foundation, the organization has assisted a total of 335 companies resulting in nearly 39,000 new and retained jobs and generating $7.7B in capital investment.
National Restaurant Association releases 2022 State of the Restaurant Industry Report - According to a February 1 press release, the National Restaurant Association has released its annual State of the Industry Report (summary). According to the report, more than half of restaurant operators said it would be a year or more before business conditions return to normal. Food, labor and occupancy costs are expected to remain elevated.
Phish to return to Atlantic City for Summer beach concert series in 2022 - As reported by The Press of Atlantic City, on February 15 the band announced they would return to Atlantic City for a beach concert series August 5 - 7, 2022. Phish's performances in Atlantic City in 2021 drew an estimated 30,000 attendees per day to the resort.
Shore businesses continue to face staffing challenges going into summer 2022 - As reported by NJ.com, Jersey Shore businesses are “cautiously optimistic,” but still concerned about staffing for summer opperations as a continued shortage of international workers and the 'great resignation' impact workforce numbers. According to data from the Bureau of Labor Statistics, the leisure and hospitality industry continues to "take the brunt'" of dynamic, national workforce trends as between 800,000 and 1 million people nationwide quit the industry each month from August to December 2021. According to reporting by The Press of Atlantic City conflict in Ukraine may further complicate staffing efforts for businesses that rely on international workers.
Spirit and Frontier Airlines to merge - According to a February 7 news release from Frontier Airlines, the two budget airlines are set to merge, becoming America's fifth-largest airline. The combined company will offer more than 1,000 daily flights to over 145 destinations. Further coverage by The Press of Atlantic City, CNN and The New York Times
