January 2022
In LIGHT of the data.
In January 2022, New Jersey’s gaming operators faced challenges both new and familiar. Major winter weather events in the region suppressed in-person wagering while the launch of mobile sports wagering in New York threatened to cut into the state’s revenues from sports betting.
Despite the launch of New York sportsbooks last month, activity at New Jersey sportsbooks did not appear to decline in January 2021. Handle for the month, $1.35 billion exceeded handle from December 2021 and each of the past three Januarys.
Being more populated (20.2 million) than New Jersey (9.3 million), and benefiting from the lessons learned by New Jersey operators, it is not surprising that New York is already a major player in the online sports wagering market so soon after launch. It may be many months yet before a clear picture of how the New York and New Jersey mobile sports betting markets will coexist especially in the context of markets in other neighboring states.
Meanwhile as the nation moves from a pandemic to endemic posture regarding COVID-19 there is reason to hope for a strong spring and a surge in in-person wagering come summer 2022.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
January 2022 |
% Change from Prior Year | January 2021 | YTD January 2022 | % Change from Prior Year | YTD January 2021 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 340,111 | 15.1% | 295,511 | 340,111 | 15.1% | 295,511 |
| Sports Wagering Revenue | 18,620 | -41.3% | 31,729 | 18,620 | -41.3% | 31,729 |
| Internet Gaming Win | 137,850 | 32.8% | 103,771 | 137,850 | 32.8% | 103,771 |
| Casino Gaming Win | 183,642 | 14.8% | 160,011 | 183,642 | 14.8% | 160,011 |
| 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 | December 2021 |
Change from Prior Year |
December 2020 |
YTD December 2021 |
Change from Prior Year |
YTD December 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,288,670 | 34.9% | 955,303 | 17,396,768 | 24.3% | 13,992,820 |
| AC Airport | ||||||
| Scheduled Service Passengers | 63,675 | 106.3% | 30,866 | 795,183 | 88.1% | 422,761 |
| Charter Passengers | 6,376 | 606.9% | 902 | 71,856 | 157.8% | 27,875 |
| Total Air Passengers | 70,051 | 120.5% | 31,768 | 867,039 | 92.4% | 450,636 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| January** '22 | January '21 | % Change from Prior Year |
TOTAL 2022 YTD |
TOTAL 2021 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 4 | 0 | N/A | 4 | 0 | N/A |
| # of Room Nights | 15,384 | 0 | N/A | 15,384 | 0 | N/A |
| # of Delegates | 53,409 | 0 | N/A | 53,409 | 0 | N/A |
| Delegate Spending | $13,472,282 | 0 | N/A | $13,472,282 | 0 | N/A |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 3 | 0 | N/A | 3 | 0 | N/A |
| # of Attendees | 15,017 | 0 | N/A | 15,017 | 0 | N/A |
| Hotel Bookings | ||||||
| # of Shows | 4 | 1 | 300% | 4 | 1 | 300% |
| # of Room Nights | 5,787 | 48 | 11956% | 5,787 | 48 | 11956% |
| # of Attendees | 16,000 | 11,000 | 45% | 16,000 | 11,000 | 45% |
| Delegate Spending | $3,900,814 | $2,066,243 | 89% | $3,900,814 | $2,066,243 | 89% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 11 | 1 | 1000% | 11 | 1 | 1000% |
| # of Room Nights | 21,171 | 48 | 44006% | 21,171 | 48 | 44006% |
| # of Attendees | 84,426 | 11,000 | 668% | 84,426 | 11,000 | 668% |
| Delegate Spending | $17,373,096 | $2,066,243 | 741% | $17,373,096 | $2,066,243 | 741% |
Notes:
*Includes Meet AC events booked at Boardwalk Hall
** January 2022 numbers for conventions/tradeshows and Boardwalk Hall have been updated as of March 15, 2022.
January 2021 hotel attendees reflect virtual attendance numbers
March and August 2021 conventions/tradeshow numbers updated based on information received after reporting deadline
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
Casino Reinvestment Development Authority (CRDA) approves Tennesse Avenue apartments, Bally's Beer Hall site plan - As reported by The Press of Atlantic City on January 18, the CRDA approved a plan for 14 apartments to be built at the site of the former John Brooks Recovery Center on Tennessee Avenue. Douglas Development Corp. will purchase the facility formerly known as the Tate Building for $100,000. Douglas Development also owns other properties on Tennesee Avenue and future plans call for the redevelopment of the entire block totaling 47 new apartments. At the same January 18 meeting, the CRDA approved a site plan for a project known as the Bally's Beer Hall. The plan calls for a 5,100-square-foot indoor-outdoor beer hall in the courtyard of the Dennis Hotel formerly the site of Harry's Bar and Grill.
Master lease for Atlantic City Skate Zone reverts to Atlantic City April 14 -As reported by The Press of Atlantic City, the Casino Reinvestment Development Authority's (CRDA) lease from the city of the 23-year-old Atlantic City Skate Zone is set to expire April 14, 2022. When the lease expires, ownership of the property will revert to the city, which, as of January 26, has agreed to continue operating the facility as an ice skating rink through April 2023. However, Black Bear Sports Group, which currently leases the building from the CRDA and operates the rink, said it plans to vacate the building by March 7. Black Bear Sports Group had previously sought a long-term lease of the property due to the need for extensive repairs to the facility. Further reporting by NJ 101.5. and ESPN 97.3.
Matt Doherty to leave Casino Reinvestment Development Authority - According to a January 13 press release from the Casino Reinvestment Development Authority (CRDA), Matthew J. Doherty stepped down as Executive Director effective January 28. A press release dated January 19 announced CRDA General Counsel Mónica de los Ríos as Interim Executive Director of the authority. Further reporting by The Press of Atlantic City.
Chris Brown to take more visible role - As reported by The Press of Atlantic City, on January 24, former N.j. Senator Chris Brown said that he would be taking a more visible, "hands on" role as the senior adviser on Atlantic City for the Department of Community Affairs, a position he has held since July 2021.
New Jersey Gaming News
Borgata Hotel Casino & Spa names new president - According to a January 5 press release from MGM Resorts International, Travis Lunn has been named as President & Chief Operating Officer (COO) of Borgata Hotel Casino & Spa. Mr. Lunn replaces Melonie Johnson, who is returning to the company’s MGM National Harbor property as President & COO. Further coverage by the Associated Press and The Press of Atlantic City.
Esports betting begins in New Jersey - As reported by the Associated Press, on January 24 the New Jersey Division of Gaming Enforcement granted approval to Esports Entertainment Group (EEG) to begin accepting bets on competative video gaming. EEG will be affiliated with Bally's Atlantic City's casino license, but will only accept bets on esports. Further coverage by NJ Business Magazine.
Governor signs bill allowing deduction of promotional gaming credit from sports wagering gross revenue for tax purposes - As recorded by the New Jersey Legislature and reported by Casino.org, on January 18, Governor Phil Murphy signed Assembly Bill 4002 into law. The bill allows sportsbook operators to deduct certain promotional gaming credits from the calculation of gross gaming revenue for purposes of taxation. As stipulated in the bill promotional gaming credits may only be deducted for betting credits in excess of $8 million annually for land-based books and in excess of $12 million annually for online books. Further coverage by NJ.com.
Legislators consider bill that would ban smoking in Atlantic City Casinos - As recorded by the New Jersey legislature and reported by the Associated Press, on January 11 state legislators proposed a bill (S264/A2151) that would "eliminate the smoking ban exemption for casinos and simulcasting facilities." The bill was refered to the Senate Health, Human Services and Senior Citizens Committee and Assembly Health Committee. Both the Senate and Assemby bills are derived from bills that failed to pass during the 2021 legislative session (S1878/A4541). Smoking is presently allowed on no more than 20% of a casino's floor. Further coverage by Casino.org.
National Gaming News
Maryland casinos see $16 million handle in sports betting in first month - As reported by the Baltimore Sun, Maryland's casinos experienced their second-best revenue month ever in December 2021 generating $172.9 million in gaming revenue a 45% increase over December 2020. Maryland's single month gaming revenue record was set in July 2021 with $180.1 million. In their first month in operation, Maryland sportsbooks generated a total $16 million in handle in December 2021 with a hold of 19.2%.
Nevada casinos see record gross gaming revenue in 2021, net loss for fiscal year 2021 as Las Vegas visitation numbers begin to recover- As reported by Casino.org, statewide Nevada casino operators generated a record $13.42 billion in annual gross gaming revenue a 9% increase over pre-pandemic 2019 and a 71% increase over 2020 in the 12 months ended December 31, 2021 (Nevada Monthly Gaming Revenue Report). Also as reported by Casino.org, the Nevada Gaming Control Board report for the 12 months ended June 30, 2021 (Fiscal Year 2021) records a statewide net operating loss of $206.4 million in FY2021 largely due to a more than $1.95 billion net operating loss for casinos on the Las Vegas Strip. The Las Vegas Conventions and Visitors Authority (LVCVA) in a January 27 press release announced that more than 32 million visitors had visited the city in 2021 a significant increase over 2020 visitation (19 million), but still behind pre-pandemic 2019 visitation (42 million) by approximately 24 percent.
New York launches mobile sports wagering - According to a press release from the New York State Gaming Commission, four licenced Mobile Sports Wagering Operators - Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive were granted approval to begin acccepting bets at 9 a.m. on January 8. According to the state report, in the first month of operation (January 9 through 30), New York Mobile Sports Wagering generated $1.6 billion in handle and nearly $113 million in gross gaming revenue. New Jersey's best month for handle, October 2021, generated $1.3 bilion from both online and retail sportsbooks. Further coverage by ESPN, Forbes, The Press of Atlantic City and Casino.org.
Ontario, Canada to launch online gaming April 4 - According to a January 28 press release from regulatory body iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO), Ontario is set to launch legal online casino gaming and sports betting April 4. According to Legal Sports Report, an Eilers & Krejcik report estimates Ontario sportsbooks could generate up to CAD $570 million in sports betting revenue in 2022.
Pennsylvania casinos generate record revenue in 2021 - As reported by Casino.org, Pensylvania gaming operators generated more than $4.73 billion in gross gaming revenue from all gambling verticals. This represents a 39 percent increase over the prior annual gross gaming revenue record set in 2019 ($3.41 billion) and a $2 billion improvement over 2020 when operators generated $2.65 billion.
Pennsylvania Gaming Control Board approves Category 4 license for Parx Casino Shippensburg - As reported by Casino.org, the Pennsylvania Gaming Control granted a Category 4 (satellite) casino license to Greenwood Gaming & Entertainment, the parent company of Parx Casino Bensalem (Category 2). The company's "mini-casino" will be located in Shippensburg on the site of a former Lowe’s home improvement store.
Hospitality & Tourism News
American Hotel & Lodging Association (AHLA) forecasts uneven, volitile recovery of industry in 2022 - According to a report released by AHLA on January 24, the hotel industry is moving toward recovery in 2022, "but the path will be uneven and potentially volatile, and full recovery is still several years away." Hotel occupancies are projected to recover to 2019 levels in 2022 however, the outlook for food & beverage and meeting space revenues is less positive. Business travel (52.5% of industry room revenue in 2019) will remain suppressed representing 43.6% of industry room revenue in 2022. Further coverage by New Jersey Business Magazine.
Bills to fund Atlantic City public safety and cost of hosting NAACP national convention become law - As reported by the Press of Atlantic City, Senate Bill 4218 and Assembly Bill 6257 passed the New Jersey Legislature on January 10 and were signed into Law January 18. Senate Bill 4218 appropriates $2 million from the state Department of Human Affairs to the CRDA to cover the cost of hosting the national NAACP convention in July 2022. Assembly Bill 6257 imposes a surcharge of $2 per night on casino hotel rooms to fund public safety innitiatives in their host community.
Ground broken for Showboat water park - As reported by The Press of Atlantic City, on January 13 developer Bart Blatstein broke ground on a $100 million indor water park. The 103,000-square-foot facility, to be called "Island Waterpark," is expected to open by Memorial Day weekend 2023.
MGM Resorts International announces update to loyalty rewards program - As reported by SBCAmericas and confirmed by a February 1 press release from MGM Resorts International, effective February 1, non-gaming customers will be able to earn MGM Rewards points. Previously only casino patrons could earn points toward the company's loyalty rewards program.
New Jersey municipalities permited to designate open container areas for outdoor drinking of beer, wine and other alcohol
- As recorded by the New Jersey legislature, Bill S2921/A5554 became law January 18. The new law grants municipalities the ability to "designate outdoor areas upon which people may consume alcoholic beverages." This effectively
makes temporary open container areas, instituted in response to pandemic restrictions,
permanent. Further coverage by NJ 101.5.
