Snapshots January 2021
In LIGHT of the data.
Almost exactly one year ago LIGHT was celebrating the promising start to a landmark year. Year-end 2019 revenues had exceeded 2018 by 15%, breaking the $3 billion revenue threshold for the first time since 2012 . January 2020 also marked the 20th consecutive month of month-to-month total gaming revenue gain, surpassing January 2019 by an impressive 22.6%. The view from January 2021 is significantly different, but in a way no less full of hope and expectation.
The story of COVID-19’s impact on the Atlantic City casino industry is by now a familiar one, culminating in a more than 19% decline in total annual gaming revenue for 2020. This decline includes an almost 44% decrease in gaming revenue from brick and mortar casino operations.
Looking forward into 2021, January’s 9.3% increase in total gaming revenue, a pleasant surprise resulting from increases in sports wagering and internet gaming, takes some of the sting out of a 16.7% decline in land-based casino win. We can anticipate a similar decline in land-based casino win in February as revenues are compared to the last two months of pre-pandemic operations. As vaccine distribution continues to roll out and consumer confidence returns, we can expect to see Atlantic City’s land-based revenue improve. When combined with continued increases in sports wagering and internet gaming win, recovery in land-based gaming revenue will lead to significant improvement in 2021 over 2020. However, it may be well into summer or perhaps into early 2022 before we see a return to 2019 levels of monthly total gaming revenue. Much will depend on how quickly the pandemic is brought under control and how ready consumers are to return to pre-pandemic gaming and travel habits.
Even knowing this, it would be only too easy to be drawn in to a negative pattern of reporting on Atlantic City’s prospects, and in so doing lose sight of an important truth. The pain experienced by Atlantic City’s casinos in 2020 was not a solitary one, and the path to recovery will be shared by gaming jurisdictions nationwide. When comparing New Jersey’s year-over-year declines in brick and mortar casino gaming revenue with other gaming jurisdictions, including the Las Vegas Strip, Pennsylvania, Maryland and New York, it is clear that New Jersey’s declines are in keeping with those of its peers. In 2020 the Las Vegas strip saw a 43.3% decline in brick and mortar casino gaming revenue and Pennsylvania saw a similar 43.1% decline. Some jurisdictions like Maryland saw less of a decline in the same period (30.2%) while others like New York’s commercial casinos experienced more significant declines (59.2%).
Barring any significant differences in how each state addresses persisting COVID-19 related concerns, we should expect Atlantic City’s fortunes to improve alongside those of other gaming and tourism destinations. Atlantic City may even have an advantage on gaming market leader Nevada, in that New Jersey is far less dependent on a ‘fly-in’ visitor base and can draw ‘drive-in’ visitors from the dense population centers of the Mid-Atlantic region.
When pandemic conditions improve and the pent-up demand of consumers is let loose, Atlantic City is well positioned to capitalize on the lessons of 2020 and the momentum of 2019 to forge a successful 2021 summer season and an even more promising 2022.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
January 2021 |
% Change from Prior Year | January 2020 | YTD January 2021 | % Change from Prior Year | YTD January 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | $295,782,062 | 9.3% | $270,553,170 | $295,782,062 | 9.3% | $270,553,170 |
| Sports Wagering Revenue | $32,000,121 | 36.7% | $23,406,258 | $32,000,121 | 36.7% | $23,406,258 |
| Internet Gaming Win | $103,771,312 | 88.4% | $55,086,590 | $103,771,312 | 88.4% | $55,086,590 |
| Casino Gaming Win | $160,010,629 | -16.7% | $192,060,322 | $160,010,629 | -16.7% | $192,060,322 |
| 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 | December 2020 |
Change from Prior Year |
December 2019 |
YTD December 2020 |
Change from Prior Year |
YTD December 2019 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
955,311 | -35.9% | 1,489,747 | 13,992,828 | -29.9 | 19,948,035 |
| AC Airport | ||||||
| Scheduled Service Passengers | 30,866 | -68.9% | 99,261 | 422,761 | -59.2% | 1,035,093 |
| Charter Passengers | 902 | -82.9% | 5,286 | 27,875 | -72.0% | 99,652 |
| Total Air Passengers | 31,768 | -69.6% | 104,547 | 450,636 | -60.3% | 1,134,745 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| Jan '21 | Jan '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings | ||||||
| # of Shows | 0 | 6 | -100% | 0 | 6 | -100% |
| # of Room Nights | 0 | 40,137 | -100% | 0 | 40,137 | -100% |
| # of Delegates | 0 | 67,378 | -100% | 0 | 67,378 | -100% |
| Delegate Spending | $0 | $25,780,577 | -100% | $0 | $25,780,577 | -100% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 0 | 4 | -100% | 0 | 4 | -100% |
| # of Attendees | 0 | 25,650 | -100% | 0 | 25,650 | -100% |
| Hotel Bookings | ||||||
| # of Shows | 1 | 7 | -86% | 1 | 7 | -86% |
| # of Room Nights | 48 | 4,901 | -99% | 48 | 4,901 | -99% |
| # of Attendees | 11,000 | 6,925 | 59% | 11,000 | 6,925 | 59% |
| Delegate Spending | $2,066,243 | $3,184,270 | -35% | $2,066,243 | $3,184,270 | -35% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 1 | 17 | -94% | 1 | 17 | -94% |
| # of Room Nights | 48 | 45,038 | -100% | 48 | 45,038 | -100% |
| # of Attendees | 11,000 | 99,953 | -89% | 11,000 | 99,953 | -89% |
| Delegate Spending | $2,066,243 | $28,964,847 | -93% | $2,066,243 | $28,964,847 | -93% |
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
2021 Atlantic City Beer and Music Festival moves to Bader Field - According to an announcement from AC Beer Fest organizers, the popular event has been moved from April indoors at the Atlantic City Convention Center to June 4 and 5 outdoors at Bader Field. Organizers plan to implement comprehensive COVID-19 policies and procedures so visitors can enjoy the event safely. According to The Press of Atlantic City, the 2019 event (the festival was canceled for 2020) attracted 26,000 people over two days in late March.
Atlantic City Boat Show postponed - As reported by The Press of Atlantic City, the 2021 Atlantic City Boat Show has been postponed from its traditional February dates to April 7-11. Operators cited COVID-19 health concerns in making the change and said they would continue to monitor impacts of the virus in the region.
Former Trump Plaza demolition - As reported by The Press of Atlantic City, Atlantic City Mayor Marty Small Sr. announced that the vacant former casino is set to be demolished at 9 a.m. on Wednesday, February 17. An auction for the right to "push the button" to implode the building has been called off, but building owner Carl Ichan has pledged to make a $175,000 donation to the Atlantic City Boys & Girls Club. Small also announced a new fundraising innitiative. In partnership with One Atlantic Events and Ocean Casino Resort, the city will auction spots to view the implosion safely from the windows of Playground Pier. Winners of the auction will also receive an overnight stay at either Hard Rock or Ocean and a dinner for two. All proceeds will go to the Boys & Girls Club. The Trump Plaza was successfully imploded at 9:08a Wednesday, February 17th. Coverage by The Press of Atlantic City.
Governor Murphy signs New Jersey Economic Recovery Act of 2020 into law - As reported by New Jersey Business Magazine, New Jersey Governor Phil Murphy signed into law an omnibus package of bills designed to provide economic stimulus and aid New Jersey in post-COVID recovery. In their remarks to The Press of Atlantic City, local Assemblyman Vince Mazzeo and Atlantic City Mayor, Marty Small Sr., called attention to two components of the Economic Recovery Act of 2020, the New Jersey Aspire Program and the Emerge Program Act, which they believe will "directly and positively impact Atlantic City." The New Jersey Aspire Program will provide tax incentives for developers building residential, commercial and mixed-use projects and the Emerge Program Act will provide incentives for businesses looking to expand or relocate to New Jersey.
New Jersey Gaming News
Bally's acquires Daily Fantasy Sports company - According to Legal Sports Report, Bally's acquired Monkey Knife Fight (MKF) a Daily Fantasy Sports (DFS) company. According to Bally's, MKF is the third largest DFS operator in North America, active in 37 states and boasting 180,000 registered users. The acquisition is reportedly part of Bally's efforts to become the first "truly vertically integrated" online gamling company and complements the company's pending acquisition of Bet.Works betting technology company.
Caesars Entertainment announces new leaders for Atlantic City properties - As reported by the Associated Press, Caesars named new leaders for Atlantic City's Harrah's and Caesars casinos, Gregg Klein and Joe Lodise respectively. They will replace Ron Baumann who previously oveersaw both properties.
Governor Murphy signs executive order raising indoor capacity limits from 25 to 35 percent - According to a press release from the office of New Jersey Governor Phil Murphy, the governor signed Executive Order 2019 on February 3. Effective Friday, February 5, casinos and other select businesses were permitted to increase their capacity limit from 25 to 35 percent (not to exceed 150 persons). A curfew prohibiting indoor dining or beverage service between the hours of 10 p.m. and 5 a.m. has also been lifted, however the prohibition on seating at indoor bar areas remains in effect.
National Gaming News
American Gaming Association marks the passing of Sheldon Adelson - In a January 12 press release, the American Gaming Association (AGA) offered their sympathies to the Adelson family at the passing of Las Vegas Sands founder and chairman Sheldon Adelson. AGA President and CEO Bill Miller remembered Adelson's leadership and generocity saying, he was "a true visionary and pioneer of modern casino gaming for more than three decades." Mr. Adelson's obituary appeared in The New York Times.
Bally's reaches deal for new casino in Pennsylvania - According to Online Poker Report, Bally's has struck a deal to build a Category 4 Satellite Casino in Center County, Pennsylvania. The project is expected to begin constuction within the first half of 2021 and be completed in 2022. An exact location has yet to be announced but a bid for the project specified a 10-mile radius close to Penn State University.
Entain rejects takeover bid from MGM - According to Legal Sports Report, gaming technology company Entain (formerly GVC) has rejected an $11 billion takeover bid from MGM Resorts. Representatives for Entain said the offer was declined because it undervalued the company and its prospects. MGM would benefit from a takeover of Entain, gaining full ownership of BetMGM profits and the technology supporting the site.
First Circuit Court rules in favor of the New Hampshire Lottery Commission in Wire Act case - According to Online Poker Report, the First Circuit Court ruled that the Federal Wire Act only applies to wagers on sports events and not all forms of gambling. This is positive news for the New Hampshire Lottery Commission and others that were concerned that a 2018 opinion from the Office of Legal Counsel would reverse its previous (2011) opinion that the federal Wire Act only applied to sports betting. The decision lifts concerns for online betting operators that interstate lotteries and interstate liquidity agreements for online poker would be deemed illegal and forced to end.
Live! Philadelphia casino opens to public on February 11 - As reported by Play NJ, Live! Casino and Hotel Philadelphia opened to the public February 11. The 520,000 square-foot facility includes a 12-story "upscale" hotel, a number of dining establishments, and a casino gaming floor including a retail sportsbook operated by FanDuel.
Massachusetts governor lifts 9:30 p.m. curfew for casinos - As reported by Calvin Ayre, Massachusetts Governor, Charlie Baker is lifting a 9:30 p.m. curfew placed on casinos as of November 6. Casinos in the state will be permitted to resume 24-hour operations, but must continue to adhere to a 25% capacity limit imposed as of December 26.
Michigan launches online sports betting - According to Legal Sports Report, Michigan online sportsbooks went live at noon on January 22. Retail sportsbooks launched in the state in March 2020. As many as 10 sportsbooks were expected to launch on day one including market leaders BetMGM, DraftKings and FanDuel. Online gambling and online poker were also permitted to go live on January 22.
New York City developer proposes casino to anchor mixed-use project on Broadway - As reported by Bloomberg, development company L&L Holding Co. has proposed the inclusion of a casino to anchor a $2.5 billion mixed-use project planned for Times Square (1568 Broadway). The project, "TSX Broadway," includes plans for retail space, a stage for live events and a hotel, and is scheduled for completion by the end of 2022. New York state can issue up to three new casino licenses beginning in 2023, although the state may be pressured to speed up that timeline.
New York set to enter mobile sports betting market - On January 6, as part of his 2021 State of the State address, New York Governor Andrew Cuomo announced legislation authorizing mobile sports wagering. The governor acknowledged the state's "potential to be the largest sports wagering market in the United States," and said "by legalizing online sports betting we (New York) aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis." According to Legal Sports Report, support is growing in the New York legislature for a pair of bills (S1183/A1257) offering an alternative to the state-run "monopoly" format proposed by the governor. Under these bills each of the state's four commercial and three tribal casinos would be allowed to operate two mobile sportsbooks - a total of 14 for the state. Revenue would be taxed at 8.5% on retail bets and 12% online. Sports stadiums and off-track betting establishments would be permitted to have betting kiosks and consumers would be allowed to register online.
Sports betting goes live in Virginia - According to Legal Sports Report, FanDuel launched Virginia's first sports book on January 21 with DraftKings a close second on January 24. BetMGM became the state's third sportsbook on January 27.
Hospitality & Tourism News
Bureau of Labor Statistics releases December 2020 jobs report - Acording to the Employment Situation Summary, released by the US Bureau of Labor Statistics on January 6, nationwide nonfarm employment declined by 140,000 jobs in December 2020 and unemployment held at 6.7%. While many employment sectors showed growth for the month, the hard-hit leisure and hospitality sector lost 498,000 jobs in December 2020, three-quarters of the decrease (372,000) in food service and drinking places. Amusements, gaming and recreation jobs declined 98,000 and accommodations jobs declined 24,000. Since February 2020, leisure and hospitality sector emploment is down 23.2% (3.9 million jobs).
Fan attendance at February MAAC Tournaments in Atlantic City in doubt - As reported by The Press of Atlantic City, fans may not be allowed to attend the Metro Atlantic Athletic Conference (MAAC) basketball tournaments scheduled for February at Jim Whelan Boardwalk Hall. The 2020 MAAC tournaments brought a significant crowd to Atlantic City last March before being forced to close early due to COVID-19 precautions.
Four-Alarm fire at Playland’s Castaway Cove in Ocean City, NJ ruled accidental - As reported by The Press of Atlantic City, the January 30 fire destroyed the building that housed an arcade and offices for the amusement park, a juice bar, and the adjacent Dairy Queen and Hamburger Construction Company businesses. No one was injured and the outdoor portion of the ammusement part was undamaged. Owners of the property say they keep the park open as they rebuild.
Hotels offer properties as vaccine administration sites - As reported by The Hill, in a letter to Biden administration coronavirus coordinator Jefferey Zients, The American Hotel & Lodging Association (AHLA) offered over 50,000 hotels nationwide as possible locations for vaccine administration. Citing the properties' infrastructure (24-hour opperation, parking, refridgeration etc.) and cleanliness protocols, the AHLA offered the existing network of hotels as a means to support vacine distribution in communities across the country.
Record autumn helps soften blow of pandemic-related revenue losses in Cape May County - As reported by the Cape May County Herald and The Press of Atlantic City, record occupancy tax collections for September and October 2020 helped to offset a more than 90% decrease in occupanct tax collections through the spring and summer. A record fall (both September and October 2020 outperformed the previous records set in September and October 2019) did not completly make up for losses earlier in the year - a total decline of 20% is expected for 2020 year-over-year compared to 2019. Camping and remote work are being credited for the county's late season success.
Yelp to add COVID-19 health and safety practices to reviewing platform - As reported by Nation's Restaurant News, the consumer review platform, Yelp, is adding a new feature that will allow reviewers to provide specific feedback as to how well restaurants adhere to public health precautions. While the feedback will not affect a business' overall score, it will appear as a categorization of the business like "family friendly" or "Romantic." Yelp has also added features to its "Health & Safety Measures" page for businesses, making it easier for operators to communicate COVID-19-related offerings like "Heated Outdoor Seating" and "Disposable or Contactless Menus."
