February 2022

 

LIGHT Snapshots

 
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