July 2023 Snapshots
In LIGHT of the data.
Atlantic City’s casino operators closed out the first half of 2023 on a hopeful note. Despite market competition, changes in gross gaming revenue mix, and an increase in payroll expenses resulting from a new labor contract signed in July of 2022, Atlantic City’s operators realized $1.57 billion in total net revenue and $281 million in gross operating profit in the six months ended June 2023. While net revenue compared favorably to the same period in 2022 ($1.55 billion) and pre-pandemic 2019 ($1.49 billion), GOP declined noticeably in comparison to 2022 ($342.6 million). GOP still exceeded pre-pandemic 2019 ($244.9 million).
Net revenue for the quarter ($819 million) fell slightly compared to the same period in 2022 ($828.8 million), but outperformed 2021 ($726.6 million) and pre-pandemic 2019 ($796.8 million). Gross operating profit for the quarter ($146 million), as for the year to date, declined noticeably compared to the same period in 2022 ($183.6 million), 2021 ($186.1 million) and pre-pandemic 2019 ($159.2 million). Given the increases in labor expenses that did not exist prior to July 2022 and increases in operational expenses overall this decline is not unexpected.
Nongaming revenue is becoming increasingly important to the industry’s overall revenue mix. At $399.6 million, nongaming revenues represented nearly half (48.8%) of total net revenues for second quarter 2023. This represents a notable increase in comparison to the same period in 2022 when nongaming revenues represented 45.2% of total net revenue for the quarter. The increase is a bit surprising because second quarter is not typically the busiest period for in-person activity in Atlantic City.
The nongaming revenue share increase is not the result of recent declines in net gaming revenue but rather part of a longer trend of increases in non gaming revenue overall. In recent months, Atlantic City’s casino hotels have made substantial investments in their in-person resort experiences. These investments may indeed be paying off.
Delivering an expected peak season month-to-month bump in gaming revenue at $477.13 million, July 2023 generated the highest single month total gross gaming revenue (GGR) in recent history. At $2.95 billion, the year-to-date GGR (the first seven months of 2023) has outpaced total year-end GGR for seven of the past 10 years. If total GGR performs at least as well in the second half of 2023 as it did in the second half of 2022, we could be flirting with Atlantic City’s first $5 billion year since 2006 (when the industry peaked at $5.22 billion in total GGR according to UNLV’s record).
Brick-and-mortar gaming operations (slots, poker and table games) performed well at $289.97 million in July 2023, exceeding pre-pandemic 2019 and eight of the past 10 years, but falling short of 2022 by 3%. As is the nature of the gaming industry, there are always fluctuations in the monthly revenues and this 3% decline does not appear to be part of a lastly trend. Year-to-date, brick-and-mortar GGR ($1.65 billion) has outpaced every year since 2013 ($1.66 billion). This includes nine casinos compared to the 12 operating in Atlantic City before the casino closures in 2014. If the year continues at this trajectory, we should expect comparable year-end total brick-and-mortar gross revenues in 2023 as in 2022.
The Atlantic City gaming market and gaming product has evolved substantially since its revenue peak in 2006. The addition of new gambling products like internet gaming, which has grown rapidly since 2020 and shows no signs of slowing, has not diminished interest in slots and table games. Through June of this year, slot revenue exceeded $1 million, a near-term record, and table games revenue has returned to pre-pandemic 2019 levels.
Despite this impressive revenue performance, other forces (inflation, revenue share arrangements, operating costs, etc.) will influence what this GGR really means for the industry in terms of growth and profitability. We will have to wait for the second-quarter report from the DGE on Aug. 22, and the third-quarter release (Nov. 22) to get a better picture of how this gross gaming revenue translates into net revenue and gross operating profit for the Atlantic City gaming industry.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Thousands |
July 2023 |
% Change from Prior Year | July 2022 | YTD
July 2023 |
% Change from Prior Year | YTD July 2022 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 477,139 | 5.3% | 453,140 | 2,951,953 | 9.8% | 2,687,595 |
| Sports Wagering Revenue | 31,997 | 83.4% | 17,448 | 220,325 | 73.1% | 127,255 |
| Internet Gaming Win | 155,165 | 13.5% | 136,701 | 1,085,978 | 14.2% | 951,221 |
| Casino Gaming Win | 289,977 | -3.0% | 298,991 | 1,645,650 | 2.3% | 1,609,119 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q2 2023 | % Change from Prior Year | Q2 2022 | YTD June 30, 2023 | % Change from Prior Year | YTD June 30, 2022 |
|---|---|---|---|---|---|---|
| Casino | 419,297 | -7.8% | 454,541 | 838,621 | -7.1% | 902,877 |
| Rooms | 179,634 | 3.9% | 172,942 | 319,283 | 9.2% | 292,341 |
| Food & Beverage | 140,970 | 7.0% | 131,757 | 270,105 | 14.7% | 235,471 |
| Entertainment & Other | 79,059 | 13.7% | 69,545 | 147,589 | 21.7% | 121,274 |
| Casino Licensees Total Revenue | 818,961 | -1.2% | 828,785 | 1,575,598 | 1.5% | 1,551,963 |
| Gross Operating Profit (GOP) | 145,996 | -20.5% | 183,629 | 281,432 | -17.9% | 342,647 |
** Data agregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of August 22, 2023. May not match totals from Quarterly Press Releases and Statistical Summaries, which represent a 'snapshot' of data at the time of publication and are not retroactively updated.
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended June 30, 2023 & 2022 |
Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Occupancy percentage | 74.4% | 77.4% | 69.8% | 70.39% |
| Average Daily Room Rate (ADR) | $173.22 | $171.79 | $165.50 | $163.21 |
| Revenue Per Available Room (RevPAR)* | $128.86 | $132.99 | $115.56 | $114.89 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | June 2023 |
Change from Prior Year |
June 2022 |
YTD June 2023 |
Change from Prior Year |
YTD June |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,657,588 | 6.6% | 1,554,800 | 8,374,031 | 4.3% | 8,028,859 |
| AC Airport | ||||||
| Scheduled Service Passengers | 58,359 | -23.2% | 76,011 | 382,166 | -7.8% | 414,463 |
| Charter Passengers | 14,653 | 57.2% | 9,321 | 64,287 | 10.0% | 58,464 |
| Total Air Passengers | 73,012 | -14.4% | 85,332 | 446,453 | -5.6% | 472,927 |
Atlantic City Meetings and Conventions Data
Source: VistAC
| July '23 | July '22 | % Change from Prior Year |
TOTAL 2023 YTD |
TOTAL 2022 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 7 | 8 | -13% | 51 | 50 | 2% |
| # of Room Nights | 11,175 | 18,109 | -38% | 74,287 | 72,378 | 3% |
| # of Delegates | 52,476 | 80,665 | -35% | 391,005 | 348,806 | 12% |
| Delegate Spending | $11,761,005 | $19,861,473 | -41% | $86,489,005 | $73,343,055 | 18% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 1 | 5 | -80% | 25 | 22 | 14% |
| # of Attendees | 2,514 | 21,405 | -88% | 128,653 | 110,152 | 17% |
| Hotel Bookings | ||||||
| # of Shows | 7 | 13 | -46% | 70 | 92 | -24% |
| # of Room Nights | 14,692 | 19,436 | -24% | 55,535 | 74,193 | -25% |
| # of Attendees** | 6,325 | 29,311 | -78% | 78,972 | 125,374 | -37% |
| Delegate Spending+ | $6,414,283 | $10,809,254 | -41% | $34,984,002 | $47,973,481 | -27% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 15 | 26 | -42% | 146 | 164 | -11% |
| # of Room Nights | 25,867 | 37,545 | -31% | 129,822 | 146,571 | -11% |
| # of Attendees | 61,315 | 131,381 | -53% | 598,630 | 584,332 | 2% |
| Delegate Spending | $18,175,288 | $30,670,727 | -41% | $121,473,007 | $121,316,536 | 0% |
Notes:
*Includes Visit Atlantic City events booked at Boardwalk Hall
**January 2023 vs January 2022 Hotel Attendee variance is due to an event moved from hotel venue in 2022 to Boardwalk Hall* in 2023
+May 2022 Convention Center delegate spending updated due to an error in calculation formula
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, Casino Reinvestment Development Authority pause approval of new canabis businesses - As reported by The Press of Atlantic City the City and Casino Reinvestment Development Authority (CRDA) has agreed to a temporary pause in approving new cannabis businesses "at least long enough for some of the already-proposed businesses to open up." Members at a July CRDA meeting voiced concern that so many canabis businesses had come forward for approval possibly resulting in too many such businesses for the city. The CRDA has approved more than a dozen applications for cannabis-related businesses in the board’s role as the planning and zoning authority for the city’s Tourism District, however, according to CRDA President, Modia Butler, many cannabis business applications don’t result in operating businesses because of issues with financing or real estate. The city has agreed to the pause to assess, but continues to hope that Atlantic City will become a cannabis capital on the East Coast.
Cooperative effort reduces homeless population in tourism district - As reported by The Press of Atlantic City, a cooperative effort between the city and county law enforcement and casino executives has resulted in fewer homeless individuals in tourist areas. Hundreds of people who have committed crimes have been taken off the streets into drug or alcohol treatment or incarceration. Atlantic County Prosecutor William Reynolds, said at the biweekly Clean and Safe Atlantic City meeting at City Hall that the County is now number one statewide in not remanding cases. Increased patrols by city police, Casino Reinvestment Development Authority Boardwalk Ambassadors and casino security personnel have also changed the Atlantic City Boardwalk experience.
National Governors Association Annual Meeting convenes in Atlantic City - As annonced by the New Jersey Governor's Office, the nation's governors met in Atlantic City from July 12 through 14. Youth mental health was a central focus of the meeting which also featured an speech from First lady Jill Biden. Further coverage from The Press of Atlantic City, NJ.com, NJ Spotlight News, C-Span and the National Governors Association.
Stockton University partners with 15 Atlantic City Businesses for Summer work experience program - Stockton University shared news of the 2nd annual Stockton Atlantic City Summer Experience. In 2023 Stockton has partnered with 15 local businesses to provide hands-on summer work experience for approximatly 245 students. The students will live work and study in Atlantic City over the summer gaining valuable real-life experiences. Further reporting from NJBiz and ROI-NJ.
Stockton University to receive record state appropriation in Fiscal Year 2024 - As reported by Stockton University, the University will receive a record $42.18 million in state aid from the fiscal year 2024 budget. This is a 17.7% increase from 2023’s $35.8 million and a 129% increase over the amount Stockton received five years ago, $18.4 million. The funding includes $4.6 million for Stockton’s Atlantic City campus, $250,000 for the newly renamed Dr. Elizabeth Elmore Center for Economic Development and Financial Literacy and $1 million to support continuing planning for the future of the Atlantic City campus.
The Chelsea Economic Development Corp. highlights local food markets with video series - As reported by The Press of Atlantic City, The Chelsea Economic Development Corp. is featuring area food markets in a social media video series called "Chelsea Global Pantry." Local markets, restaurants and beauty businesses are also featured on the organization's webpage.
Work to "prove" proposed development of Bader Field continues -As reported by The Press of Atlantic City, more than half-way into a six month exclusivity period, DEEM Enterprises has paid $500,000 to the city and provided information to state agencies and city professionals. Soil testing and a traffic study have also begun. Although the full budget for the proposed car-centric development is $3.2 billion, DEEM plans to begin by raising $750 million to finance the first phase of building which would cover site remediation, raising the site by six feet and preparing infrastructure to support future building. $25 million has already been spent to date on engineering, architectural and brownfield work for the site.
New Jersey Gaming News
Michael Pollock announces retirement - According to Legal Sports Report, Spectrum Gaming Group co-Managing Director and longtime executive director of the National Council of Legislators from Gaming States, Michael Pollock, has announced his retirement. Pollock, who was with Spectrum for twenty years, will have an honorary title of senior policy advisor and remain active in the industry. Spectrum's Founder Fredric Gushin will serve as president and CEO while Juliann Baretto, COO, will take a bigger role in developing Spectrum’s global business. Pollock will continue to oversee the East Coast Gaming Congress, the longest-running gaming conference in the U.S.Further reporting from CDC Gaming Reports.
Playup no longer allowed to offer sports wagering in New Jersey - As reported by SBC Americas, The New Jersey Division of Gaming Enforcement (DGE) has officially revoked the transactional waivers granted to PlayUp that allow the company to operate in the state.In addition to not providing payroll and payroll tax information on request, the company also owes money to the DGE for outstanding invoices and claimed to be investigating a fraud charge from March 2023 that was never reported to the regulator. Further reporting from Legal Sports Report and Legal Sports Betting.
UNITE HERE Local 54 names new president - On July 17, UNITE HERE Local 54, the union representing most of Atlantic City's casino workers, announced Donna DeCaprio as president. DeCaprio, who replaces Bob McDevitt, is the organization's first female president. DeCaprio previously served for many years as the Union’s Financial Secretary-Treasurer and Negotiator, long time Organizing Director Ben Albert has been appointed to fill that role. Further reporting by The Associated Press. According to Casino.org, DiCaprio 'ruffled feathers' during her first week by likening the proposed smoking ban to economic 'suicide' - her predessessor McDevitt voiced a similar view.
Stockton Atlantic City Summer Experience: Live-Work-Learn
National Gaming News
Entain to acquire, US sports data analytics company, Angstrom Sports support BetMGM - According to a July 17 press release, Entain, which owns BetMGM in a joint venture with MGM Resorts, announced its acquisition of US sports data analytics company, Angstrom Sports. According to Legal Sports Report, the acquisition could "enrich BetMGM’s menu of betting options and capabilities." The acquisition is expected to be completed in third quarter 2023. No timeline for technology integration was announced.
Fox Bet closes - According to a July 31 press release from parent companies, Flutter Entertainment and Fox Corp., sports betting platform Fox Bet will close. The phased closure of the platform's operations will take place between July 31 and August 31, 2023. Fox will retain future use of the Fox and Fox bet brands including Fox bet Super 6 and intends to launch a new Fox Super 6 game later in Summer 2023. Further reporting from Casino.org.
Hard Rock rebrands sports book ap, potential for relaunch in Florida - As reported by Casino.org, Hard Rock Sportsbook has been renamed Hard Rock Bet. The sports betting platform is already operational in Arizona, Indiana, Ohio, Tennessee, and Virginia, and is set to relaunch in New Jersey soon. Following a series of legal decisions, the Seminole Tribe of Florida, which owns and operates Hard Rock International, may be poised to relaunch onine sports betting in Florida.
Pensylvania sees record gross gaming and tax revenue for fiscal year 2022/2023 - Acording to a July 18 press release from the Pennsylvania Gaming Control Board, gross gaming revenue (GGR) from casino slot machines and table games, iGaming, sports wagering, video gaming terminals (VGTs) and fantasy sports contests during the 12-month period ending June 30 totaled a record $5,513,729,520 - surpassing the previous record, $5.04 billion, set in fiscal year 2021/2022. As a result, the state reached a record level of $2,369,249,258 in tax contributions from the industry. Further reporting from Casino.org.
Hospitality & Tourism News
Atlantic City Aquarium, shuttered for pandemic, to reopen - As reported by The Press of Atlantic City, Atlantic City Mayor, Marty Small, told the press that he expects the Aquarium, which has been closed since March 2020, to reopen "in the very near future." During its closure the aquarium has undergone several capital improvements including new lighting, ceilings, flooring and the addition of four new interactive touch tanks. Improvements were financed by the CRDA ($1.16 million) and partly from the $3.6 million Gardner's Basin received from the NJ Green Acres and state Department of Community Affairs for park improvements.
Busy summer weekend interupted by power outage in Wildwood - As reported by The Press of Atlantic City, a fire at an Atlantic City Electirc Substation (cause unknown) temporarily knocked out power for 24,000 customers around noon on Friday July 7. Power was fully restored by Sunday July 9, 75% of cutomers who lost power on Friday had power restored by 3pm Saturday. According to further reporting by The Press of Atlantic City, Wildwood Mayor, Pete Byron, believes the outage may have resulted in the loss of millions of dollars for local buinesses. Further coverage by WHYY and 6ABC.
MGM ends partnership with Hyatt, announces agreement with Marriott - As reported by Forbes, MGM will soon end a relationship with Hyatt to begin a "deeper relationship" with Hyatt's larger rival Marriott. According to a press release from Hyatt, World of Hyatt and MGM Rewards will be ending their decade-long strategic relationship effective September 30, 2023. On July 17, MGM Resorts International announced "an exclusive long-term strategic licensing agreement" with Marriott. The agreement, launching in October 2023, will allow the 180 million Marriott Bonvoy members to earn and redeem points for stays at a selection of MGM properties, and allow the 40 million MGM Rewards members to link accounts with Marriot Bonvoy and receive select member benefits. The agreement includes 17 MGM properties (15 located in Las Vegas) and creates a new resort collection "MGM Resorts with Marriott Bonvoy" which will include eight Las Vegas properties and five other MGM properties nationwide (Borgata in Atlantic City, New Jersey; Beau Rivage in Biloxi, Mississippi; MGM Grand Detroit in Detroit, Michighan; MGM National Harbor in Baltimore, Maryland; and MGM Springfield in Western Massachusetts).
TSA approves "Airside-toAirside" bus connection between Atlantic City and Philadelphia - As reported by The Press of Atlantic City, travelors making use of the Atlantic City International Airport to Philadelphia International Airport bus connection for American Airlines flights will no longer need to go through security when they arrive in Philadelphia, but will instead be brought directly to the 'secure side' of the airport. See TSA press release.
Visit Atlantic City debuts newly rebanded website - This month Visit Atlantic City, formerly MeetAC debuted its fully rebranded website visitatlanticcity.com.
