March 2021
In LIGHT of the data.
The Q4 2020 report from the DGE marks the end of one of the most challenging years in the history of casino gaming in Atlantic City. A year that began with so much hope and the expectation of record high revenues, ended instead with record lows. The 2020 year-end net revenue ($1.86 billion) was the lowest since 2015 ($2.64 billion) the recent record low.
Gross Operating Profit, often used as an indicator of industry health, finished out the year 80.2% behind 2019. A historic 107-day shutdown, occupancy restrictions, increased operating costs and a curfew for food and beverage services made it especially difficult for operators to turn a profit in 2020.
It is testament to the importance of dining as part of the recovery for the region and overall Atlantic City experience that New Jersey Governor, Phil Murphy, chose an Atlantic City restaurant as venue for the signing of restaurant relief legislation.
The number of occupied room nights at casino hotels (2.3 million) was down 46.7% for 2020 compared to 2019 (4.3 million), and the occupancy rate (61.7%) was 17.2 percentage points behind 2019 (78.9%). Average 2020 RevPAR ($85.47) was down 23.7% compared to 2019 ($112.12). Atlantic City casino hotels fared better than most regarding occupancy. Average Hotel Occupancy rates in the U.S. during the pandemic remained below 50% even in the summer months.
The data tells a story of perseverance and adaptation in the face of significant obstacles. There is every reason to hope that as these obstacles are removed or overcome, the industry will again flourish, fueled by nationwide pent-up demand for travel and entertainment.
An analysis of the impact of a year of COVID-19 on Atlantic City gaming, tourism, travel and employment is available on the LIGHT website – https://www.stockton.edu/light/research.html.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
March 2021 |
% Change from Prior Year | March 2020 | YTD March 2021 | % Change from Prior Year | YTD March 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | $324,994 | 107.4% | $156,714 | $878,960 | 25.2% | $702,145 |
| Sports Wagering Revenue | $26,451 | 311.9% | $6,422 | $74,596 | 115.6% | $34,602 |
| Internet Gaming Win | $113,669 | 75.4% | $64,822 | $311,240 | 81.1% | $171,896 |
| Casino Gaming Win | $184,874 | 116.3% | $85,470 | $493,125 | -0.5% | $495,646 |
| Quarterly Revenue (Industry, $ In Thousands) | Q4 2020 | % Change from Prior Year | Q4 2019 | YTD December 31, 2020 | % Change from Prior Year | YTD December 31, 2019 |
|---|---|---|---|---|---|---|
| Casino | $372,012 | -8.3% | $405,624 | $1,213,630 | -27.9% | $1,682,701 |
| Rooms | $76,059 | -39.1% | $124,949 | $317,163 | -47.8% | $607,373 |
| Food & Beverage | $54,390 | -59.8% | $135,147 | $209,029 | -63.5% | $572,851 |
| Entertainment & Other | $35,659 | -41.1% | $60,559 | $120,694 | -51.1% | $247,059 |
| Casino Licensees Total Revenue | $538,120 | -25.9% | $726,279 | $1,860,516 | -40.2% | $3,109,984 |
[Note: The online operations of Golden Nugget (GNAC) were transferred to an affiliate called Golden Nugget Online Gaming (GNOG) in the 4th quarter of 2021. The 4th quarter 2021 report is the first in which the revenues of each entity are listed seperatly. Previous reports have not yet been restated to reflect this change. Totals in the table above have been adjusted to match as nearly as possible reporting from the DGE as of April 9, 2021.]
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended December 31, 2020 |
Q4 2020 | Q4 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|
| Occupancy percentage | 46.3% | 72.2% | 61.7% | 78.9% |
| Average Daily Room Rate (ADR) | $121.58 | $132.70 | $138.52 | $142.11 |
| Revenue Per Available Room (RevPAR)* | $56.24 | $95.78 | $85.47 | $112.12 |
* 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 | February 2021 |
Change from Prior Year |
February 2020 |
YTD February 2021 |
Change from Prior Year |
YTD February 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
923,004 | 37.6% | 1,479,501 | 1,894,514 | -35.5% | 2,938,407 |
| AC Airport | ||||||
| Scheduled Service Passengers | 32,166 | -67.0% | 97,341 | 62,831 | -66.9% | 190,043 |
| Charter Passengers | 1,459 | -77.5% | 6,497 | 2,723 | -78.3% | 12,525 |
| Total Air Passengers | 33,625 | -67.6% | 103,838 | 65,554 | -67.6% | 202,568 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| Mar '21 | Mar '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings | ||||||
| # of Shows | 1 | 5 | -80% | 2 | 22 | -91% |
| # of Room Nights | 1,778 | 9,582 | -81% | 1,778 | 72,188 | -98% |
| # of Delegates | 7,000 | 88,029 | -92% | 7,036 | 217,187 | -97% |
| Delegate Spending | $1,846,392 | $12,683,288 | -85% | $1,859,517 | $56,790,400 | -97% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 0 | 2 | -100% | 0 | 11 | -100% |
| # of Attendees | 0 | 42,911 | -100% | 0 | 129,722 | -100% |
| Hotel Bookings | ||||||
| # of Shows | 5 | 3 | 67% | 8 | 25 | -68% |
| # of Room Nights | 1,970 | 2,804 | -30% | 2,418 | 15,689 | -85% |
| # of Attendees | 5,106 | 4,480 | 14% | 16,481 | 22,250 | -26% |
| Delegate Spending | $978,389 | $1,122,924 | -13% | $3,210,852 | $8,875,160 | -64% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 6 | 10 | -40% | 10 | 58 | -83% |
| # of Room Nights | 3,748 | 12,386 | -70% | 4,196 | 87,877 | -95% |
| # of Attendees | 12,106 | 135,420 | -91% | 23,517 | 369,159 | -94% |
| Delegate Spending | $2,824,781 | $13,806,212 | -80% | $5,061,369 | $65,665,560 | -92% |
Note: Reduction in figures beginning mid-March 2020 are due to cancellations and/or shut downs as a result of COVID-19
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
AtlantiCare breaks ground on new medical facility in Atlantic City - As reported by The Press of Atlantic City, on March 30, AtlantiCare broke ground on a $38 million Medical Arts Pavillion on South Ohio Avenue in Atlantic City. The three-story, 69,700 square-foot facility will include an urgent care center, dialysis unit, maternal and fetal health program, and teaching facilities for medical students and physician residents. The pandemic delayed the project, which is expected to be finished late 2022.
Atlantic City International chosen for FAA testing - According to a March 2 Press Release from the Federal Aviation Admonistration. Atlantic City International Airport has been selected as one of five airports to test and evaluate unmanned aircraft detection and mitigation systems. The testing, which will begin later in 2021 and continue to 2023, will "lead to the implementation of new technologies that will make airports safer for passengers and manned aircraft" and create standards for the future.
Atlantic City finalizes plans to rivise Atlantic Avenue traffic flow, improve safety - As reported by The Press of Atlantic City, city leaders are considering a plan to reengineer one of the city's main roadways, Atlantic Avenue. The $8 million to $10 million dollar project (90% federally finded) would reduce the four-lane roadway to two lanes separated by a center median. Protected bike lanes would take the place of the outside travel lanes and cars would continue to park at the curb. The project, which could start construction as early as December 2021, aims to improve safety by slowing down traffic and improving visibility for vehicles, cyclists and pedestrians.
Demolition begins on Black Horse Pike motels - According to The Press of Atlantic City, the first of four motels along the Black Horse Pike in West Atlantic City has been demolished. The four properties, Bay Point Inn, Hi-Ho Motel, Destiny Inn and Budget Motel, should all be demolished by May 1, as part of an ongoing project to address blight and flooding along one of the three main entryways to Atlantic City.
NJSIAA wrestling tournament will not be held in Atlantic City - As reported by NorthJersey.com, the annual NJSIAA individual wrestling tournament will not be held at Boardwalk Hall in Atlantic City this year. Tournament organizers announced alternative locations for the tournament, which has held individual championship matches at Boardwalk Hall since 2001 and has a history with the city going back to 1992.
Ocean Casino Restort to host Professional Fighters League (PFL) 2021 regular season bubble - According to a release from The Professional Fighters League (PFL), Ocean Casino Resort will host the league's six week 2021 regular season in a 'state-of-the-art bubble environment.' No fans will be in attendance at the events, which will be broadcast live on ESPN2 and ESPN+. According to The Press of Atlantic City, Ocean Casino Resort has previously hosted PFL events during the 2018 and 2019 seasons.
U.S. Economic Development Authority awards $3 million to Atlantic County - As reported by The Press of Atlantic City, the U.S. Economic Development Authority has awarded $3 million to Atlantic County for the construction of a second building at the National Aviation Research and Technology Park (NARTP) in Egg Harbor Township. Once complete the two-story, 40,000 square-foot building will house at least three aviation technology companies, generating an additional 165 technology-based jobs. Economic development leaders hope the $11 million project will help strengthen Atlantic County’s growing aviation cluster and attract additional investment.
New Jersey Gaming News
Atlantic City Casinos, indoor dining establishments allowed to operate at 50% capacity - According to Executive Order 230, effective March 19, Atlantic City Casinos, indoor dining establishments and other businesses statewide were permitted to increase operating capacity from 35% (since February 5) to 50%. The order was signed by New Jersey Governor, Phil Murphy on March 11.
FanDuel sportsbook opens at Bally's Atlantic City -According to a March 15 release via PRNewswire, the FanDuel Sportsbook has opened its permanent sports betting lounge at Bally's Atlantic City Hotel and Casino. The sporksbook has been operating out of a temporary location on site since December 2020. Features of the lounge include a 25-foot-wide LED video wall and a 'curated food and beverage menu.' The retail sportsbook is Fanduel's second in New Jersey and sixteeth in the United States.
Steve Callender announces his retirement - As reported by the Associated Press, Steve Callender, eastern regional president of Caesars Entertainment and longtime executive at Tropicana Atlantic City, has announced his retirement. After nearly 43 years in the industry, Mr. Callender, who will also be stepping down as president of the Casino Association of New Jersey, told the press on March 26 that he would be retiring. Caesars Entertainment has yet to announce his successor.
National Gaming News
A number of states make advances in sports betting legislation - According to Legal Sports Report, Arizona, Kansas, Maryland and South Dakota have all made progress toward the passage of sports betting legislation. All four states have made provisions for online/mobile sports betting. In Maryland, Bill H940, initially proposed with 23 available sports betting licenses was amended to allow 37 licenses in response to demand from interested businesses.
Conecticut could launch sports and online casino gambling by fall 2021 - as reported by CTPost, the state of Connecticut, the Mohegan and Mashantucket Pequot tribal nations (who own casinos in the state), and the quasi-public Connecticut Lottery Corp. have come to an agrement regarding sports betting and online gambling. Before expanded gaming operations launch, the state must pass legislation and obtain federal approval from the U.S. Department of the Interior (DOI) for the proposed changes to a nearly 30-year-old tribal compact. State leaders hope to expedite the process, which traditionally takes a year, to see sports betting launch before the start of the 2021 NFL season. Under the agreement, the Connecticut Lottery Corp.will be permitted to sell current lottery products online and operate a sports betting platform simmilar to the tribal casinos with up to 15 retail sports betting locations. Tribal casinos, Foxwoods and Mohegan Sun have already signed contracts with sports betting vendors.
"Home" of World Series of Poker, Rio All-Suite Hotel & Casino to be rebranded as Hyatt Regency Hotel - According to Online Poker Report, in December 2019 Caesars Entertainment Corp. sold the Rio All-Suite Hotel & Casino, home to the World Series of Poker (WSOP), to an "affiliate of Dreamscape Companies" for $516 million. The sale raised questions about the future location of WSOP which remains under Caesars ownership. With the March 18 announcement of a multi-phase plan to renovate the Rio property to house multiple Hyatt full-service offerings, it is less certain where WSOP will be housed after 2022. WSOP events were held entirly online in 2020 due to pandemic concerns, and Caesars has yet to announce plans for 2021.
Las Vegas Sands to sell Las Vegas Holdings, focus on core Asia operations - As reported by the Wall Street Journal and Associated Press, Las Vegas Sands Corp. has announced plans to sell its Las Vegas properties for $6.25 billion. VICI Properties will buy the casino and resort and all assets associated with the Venetian Resort Las Vegas and the Sands Expo for $4 billion. And Apollo Global Management will acquire the operations of the Venetian for $2.25 billion. While the company's headquarters will remain in Las Vegas, the majority of its income is generated by casinos in Singapore and Macau.
Launch of Bally's online sportsbook delayed - According to Legal Sports Report, Bally's plans to launch online sportsbook Bally Bets have been delayed. The company had hoped to close on a deal to purchase sportsbook platform Bet.Works in first quarter 2021, however the Indiana Gaming Commission, which meets quarterly, has decided to consider the Bet.Works acquisition alongside the company's acquisition of Tropicana Evansville at their next meeting in June. Colorado, Indiana, Iowa and New Jersey are likely to be the first states where Bally Bets goes live.
Michigan reports nearly $80 million in online gross gaming revenue for first full month of operations - According to Online Poker Report, the February report from the Michigan Gaming Control Board recorded $79,729,343.32 in gross gaming revenue for the state's 11 internet gaming operators. After promotional expenses, operators averaged $2.69 million in gross revenue per day over the 28 days of February 2021. Michigan launched online casinos on January 21.
Mississippi's two-year journey to $1 billion in sports betting handle evidence of importance of mobile options - According to Legal Sports Report, after 31 months of operations, in February 2021 Mississippi finally broke $1 billion in handle since launch. While the state was among the first to lauch sports betting in August 2018, it hasn't authorized mobile sports betting, potentially slowing its path to $1 billion. All handle was generated from retail sportsbooks at the state's 26 commercial casinos. For comparison, New Jersey, which launched retail sports betting in June 2018 and online/mobile sports betting in July 2018, reached $1 billion in handle since launch in 7 months.
New York legalizes mobile sports betting under state-run model - According to Play NY and Legal Sports Report, as of April 6, New York legalized mobile sports betting under a state-run model supported by Governor Andrew Cuomo. Under this model, one or two operators would be selected by RFP to operate no less than four skins. Operators would be expected to share 50% to 55% of their profits with the state. Mobile sports betting would be overseen by the New York Lottery. Multiple entities, including the state's tribal casino operators, are not satisfied with the model and could challenge it.
Study of Massachusetts residents finds lack of gambling literacy among younger gamblers - According to Online Poker Report and Casino.org, a study of Massachusetts residents conducted by Canadian Research and Consulting firm Gamres, found that the majority of people are well equipped to gamble responsibly, however gambling literacy is an issue. Over a quarter of gamblers were playing games they didn't entirly understand and gamblers 44 and younger were less likely than gamblers 45 and older to understand they games they were playing. The study found a high corellation between responsible gambling behaviors and age, which has potential ramifications for online gambling. While U.S. demographic numbers are not yet available, European studies suggest 50% or more of online gamblers are 35 or younger compared to 18% of visitors to in-person casinos. Online gaming operators, the study suggests, can support gamblers of all ages, but especially younger gamblers, by providing educational materials on game play and responsible gambling techniques.
Virginia issues temporary sports betting permits to three more operators - According to Legal Sports Report, Virginia has authorized three more sportsbetting vendors - Barstool Sportsbook, Golden Nugget Online and Bally’s. The state already has six live sportsbooks: BetMGM, BetRivers, DraftKings Sportsbook, FanDuel Sportsbook, William Hill and WynnBET.
Wire Act applies only to sports betting, according to First Circuit Court of Appeals - According to Online Poker Report and Casino.org, the First Circuit Court of Appeals has issued the mandate of its January ruling in the case of New Hampshire Lottery Commission vs. Garland in which the court determined that the Federal Wire Act only applies to sports betting and not other forms of interstate gambling. The ruling, which may yet be appealed to the Supreme Court, has implications for interstate poker agreements, such as the one between New Jersey, Delaware and Nevada, and multi-state lottery games like Powerball. A conclusion in favor of interstate online gambling could see greater interstate gaming liquidity, and the entry of states like Michigan and Pennsylvania into the existing interstate poker compact.
Hospitality & Tourism News
Global Business Travel Association (GBTA) survey finds members are ready to resume non-essential domestic business travel sometime in 2021 if they have not already - As reported by Travel Weekly, a survey of 302 members of the GBTA found that 60% of respondents believe their organization will restart non-essential domestic business travel in the second half of 2021. Another 7% of respondents indicated that non-essential domestic business travel had already restarted and 24% predicted that such travel would not restart until 2022.
Hotel occupancy rates show signs of recovery - As reported by Travel Weekly, according to data from STR for the week ended March 13, U.S. hotel occupancy hit 52.1%. This is the highest level in a year. When compared to 2019 levels, the U.S. hotel industry has recaptured 70-75% occupancy in recent weeks.
New Jersey and New York Governors announce expansion of indoor dining capacities; New Jersey increases gathering limits -According to a March 10 press release from the office of New Jersey Governor Phil Murphy, effective 6 a.m. March 19, restaurants in New Jersey were permitted to expand indoor dining capacity from 35% to 50%. New York restaurants will be permitted to increase indoor dining capacity from 50% to 75%. A March 11 press release from Governor Murphy adds that by executive order No. 230, indoor gathering limits will increase from 10 to 25 and outdoor gathering limits from 25 to 50 also effective March 19th. Limits for religious services or ceremonies, political events, weddings, funerals, memorial services, or performances will remain unchanged.
New York becomes 15th state to legalize recreational marijuana -As reported by The New York Times, New York Governor, Andrew Cuomo signed cannabis legislation on March 31 legalizing the recreational use of marijuana. While certain elements of the new law went into effect immediately, other elements will be phased in over time. As of the bill's signing, individuals are allowed to posses up to 3 ounces of marijuana or 24 grams of marijuana concentrate (ex. oils) for personal use, and to smoke cannabis in public wherever smoking of tobacco products is permitted - excluding at work, school or in a car. As further regulation of cannabis is developed, individuals will be able to receive home deliveries of cannabis, consume cannabis products at lounge-like “consumption sites” and cultivate up to six plants at home for personal use. Municipalities will be permitted to enact their own regulations regarding public smoking of marijuana and will be allowed to opt out of allowing dispensories to operate within their jurisdiction. A March 28 announcement from the N.Y. Governor's Office summarized details of the legislation (S.854-A/A.1248-A) including estimates that cannabis legalization would genreate $350 million annually in taxes and create potentially 30,000 - 60,000 new jobs.
U.S. Travel industry looses nearly $500 billion in travel spending due to COVID-19 - According to an end-of-year report released by the U.S. Travel Association, total U.S. travel spending for 2020 was $680.3 billion, $492.3 billion (42%) less than 2019. Spending related to conferences, conventions or trade shows declined by $107.1 billion (down 77%) for the year. Total travel-generated taxes also declined $56.9 billion (34%) in 2020. Industry workers were particularly hard hit with direct and indirect travel jobs accounting for the loss of 5.6 million jobs, 65% of all jobs lost in 2020.
