Atlantic City Information

 

Assembly State and Local Government Committee unanimously passes bill to extend state takeover of Atlantic City Governement an additional four years, reinstate rights to city employees by 2022 - As reported by The Press of Atlantic City, on May 12, the Assembly State and Local Government Committee voted unanimously to pass a bill (A5590) extending state oversight of Atlantic City through late 2026 and reinstating Civil Service rules, collective bargaining and government worker protections starting in 2022. The state has overseen the city since the passage of the Municipal Stabilization and Recovery Act of 2016. 

Atlantic City Restart and Recovery Group releases report, examines post-pandemic reality of city - As reported by The Press of Atlantic City and Associated Press, on Wednesday, May 5 the Atlantic City Restart and Recovery Group released a report examining the post-pandemic reality for Atlantic City and recommending steps they hope will help the city "launch forward as we emerge from this pandemic." The 57-page report is the product of the group's five subcommittees focusing on Restart and Recovery, Workforce Development, Economic Diversification, Public Health and Wellness, and Community Outreach. Rebuilding the Boardwalk to resist future severe storms, improving the appearence of the city's downtown, providing more activities for city youth, reducing the city's economic dependance on the casino industry, increasing services to address drug abuse and poor nutrition, and embracing the "blue economy" were among the group's recommendations. Many of these recommendations are not new and projects in response to them are already underway. 

Atlantic City streetlights repaired - As reported by The Press of Atlantic City, according to Atlantic City mayor, Marty Small Sr., more that 850 streetlights in the city have been replaced or repaired since the beginning of 2021. Of the 2,600 streetlights for which city workers are responsible, 75 are not functioning or are currently being repaired. Of the remaining 5,665 publicly owned streetlights in the city, maintained by Atlantic City Electric, only 10 need to be repaired or replaced. The stree light maintenance is being funded by a $500,000 grant from the Casino Reinvestment Development Authority awarded in March 2020. The project has also helped to identify parts of the city where lighting is needed, and steps have been taken install the appropriate fixtures or develop plans for future installation. 

Atlantic County Board of Commisssioners approves $4.8 million for improvements to Atlantic Cape Community College (ACCC) - As reported by The Press of Atlantic City, County Commissioners passed an ordinace providing $4.8 million in funding for ACCC to complete improvements on its Mays Landing and Atlantic City campuses. 

City Council approves police substation for The Walk - As reported by The Press of Atlantic City, on May 19 Atlantic City's City Council voted in favor of adding an unmanned police substation at Tanger Outlets The Walk. The space, paid for by the outlets, will allow police and detail personnel employed by the outlets to file reports closer to the areas they patrol. It will also provide a place for officers to store bikes and use the bathroom. Poilice Interim Officer-in-Charge James Sarkos said, “In some ways, it will keep the officers on the street and more accessible to the community." Discussion of the substation at The Walk led to conversations about the creation of substations in each of the city's wards and along the boardwalk. These conversations are expected to continue at future City Council and Public Safety Committee meetings. 

Indiana Avenue transformed through collaborative effort - As reported by The Press of Atlantic City, through the collaborative efforts of City Council, community members, and the Chicken Bone Beach Historical Foundation, the 700 block of Indiana Avenue in Atlantic City is being transformed. A $650,000 project, funded by the Casino Reinvestment Development Authority and Atlantic City Community Development Block Grant, will renovate a building for the Chicken Bone Beach Youth Jazz Institute and update Weekes Park with Wi-Fi, lighting, security cameras and a stage for jazz performances. Work is expected to be complete by 2023. Efforts on Indiana avenue also include the rehabilitation of two abandoned houses which community leaders hope to sell to new owners as private residences. 

Seven newly refurbished bathroom facilities open on the Boardwalk - As reported by The Press of Atlantic City, seven Boardwalk bathroom facilities, refurbished with $4.7 million in funds from the Casino Reinvestment Development Authority (CRDA), opened on May 14. CRDA representatives hope the bathrooms, located on the Boardwalk at Chelsea, Mississippi, Caspian, Albany, Bartram, New Hampshire and New York avenues, will improve the Atlantic City tourism experience and appeal to families. The CRDA approved the project in August after years of complaints from tourists about the poor condition of the facilities.

New Jersey Gaming News

Atlantic City casinos reinvest - As reported by The Press of Atlantic City, several casinos have announced signifficant reinvestment in their properties including hundreds of millions of dollars to be spent on upgrades to gaming and non-gaming amenities. Bally's Corp., Caesars Entertainment, Hard Rock Hotel & Casino Atlantic City, Ocean Casino Resort and Resorts have each recently announced 'significant investment' in new gaming equipment, hotel room rennovations, new dining outlets, and upgrades to event venues and other resort amenities.

Borgata drops trade secrets lawsuit against Ocean Casino Resort - As reported by The Associated Press, on May 7 Borgata announced it had dropped a lawsuit filed in August 2020 against Ocean Casino Resort following a settlement agreed to by both parties. 

New Jersey Divison of Gaming Enforcement (DGE) approves gaming license for Esports Entertainment Group (EEG)- According to a May 24 press release from EEG, the company's application for a New Jersey Gaming license has been accepted by the DGE. The decision will allow the company to move forward in its efforts to offer legal esports wagering in the state within the next few months. 

Possible updates to PILOT legislation - As reported by the Assocated Press,  in the wake of the pandemic, New Jersey legislators are considering changes to the 2016 "PILOT" or payment in lieu of taxes bill on the basis that much has changed for the industry since it was enacted. The bill established predictable annual payments for casino operators based on a property's total gross gaming revenue (GGR), amount of hotel rooms and geographic footprint. As reported by Play NJ and Casino.org, legislation (A5587) has been proposed which would remove revenue generated via internet gaming and sports betting from the tax assessment equation. Supporters of the bill argue that much of the gaming revenue generated online goes to third-party vendors and not the casinos,which are presently paying taxes based on that total revenue. 

National Gaming News

American Gaming Association (AGA) releases Q1 2021 Commercial Gaming Revenue Tracker - According to the Q1 2021 Commercial Gaming Revenue Tracker released by the AGA, U.S. commercial casinos generated $11.13 billion in gaming revenue from January through March 2021. This represents a 17.7% increase over the same three month period in 2020 and a 4.0% increase over the same period in 2019. Q1 2021 comercial gaming revenue was within a tenth of a percent of the highest quarterly revenue total in the history of U.S. gaming.  

California sports betting to go to constitutional ammendment vote in November 2022 - As reported by the Los Angeles Times on May 27, a constitutional ammendment to allow sports betting qualified for inclusion in the November 2022 ballot. The initiative, advanced by tribal casinos and racetracks, excludes the state's card clubs from offering sports betting. If the amendment passes, sports betting would be limited to in-person wagering at tribal casinos and state-licensed racetracks by persons 21 and older. Wagering on high school and college sports events involving California teams would be prohibited. Gross gaming revenue tax would be assessed at 10%. Analysis from Eilers and Krejcik Gaming estimates sports betting could generate $1 billion in gross annual revenue for the state without online/mobile sportsbooks and $3 billion if online/mobile sportsbooks are permitted. The amendment is expected to face opposition from the excluded card clubs, represented by the California Gaming Association, and the California Coalition Against Gambling Expansion. 

Connecticut legislators approve gambling expansion - As reported by the Hartford Courant and Legal Sports Report, members of the Connecticut House of Representatives voted on May 20 in favor of gambling expansion. The bill (HB 6451) approves updated agreements with the state's tribal gaming operators and authorizes sports betting and online gambling in the state. Online gambling would include casino games, sports betting and the lottery. The bill still requires approval by the Federal Bureau of Indian Affairs at the U.S. Department of Interior, but supporters are hopeful sports betting will launch in the state by September and the start of the National Football League season. 

Florida gaming legislation, sports betting compact signed into law - As reported by Tampa Bay Times and Legal Sports Report, on May 25, Florida Governor Ron DeSantis signed into law a series of gaming-related measures, among them a bill making way for a new gaming compact between the State of Florida and the Seminole Tribe of Florida. The compact, which needs approval from the federal Department of the Interior,  would establish the Seminole Tribe as the state's sports betting hub. A provision, allowing for mobile sports betting not restricted to tribal lands, is expected to face oposition. 

Louisiana passes sports betting regulatory bill - According to Legal Sports Report, the Louisiana state Senate voted on May 19 to pass the main regulatory bill (SB247) which, along with an appropriations bill (SB142) and tax bill HB697), would enact sports betting in the state. 

Maryland sports betting market projected to be worth $217 million - According to a press release provided by  PR Newswire on behalf of MarylandSharp.com, Maryland Governor Larry Hogan signed legal sports betting into state law on May 18. An anylyst from MarylandSharp.com, predicts that a mature Maryland sports betting market could produce $217 million. Taxed at 15%, the mature market could produce $32.55 million in revenue for the state. According to Gambling News, even without sports betting, revenues at DC-Maryland casinos have continued to rise. Maryland casinos reported $172.4 million in revenue for the month of May 2021. 

MGM Resorts International sells Springfield integrated resort real estate to MGM Growth Properties (MGP)- As reported by Casino.org, in continuation of asset-light business model, MGM Resorts sold its integrated resort in Springfield, Massachusetts to MGP for $400 million in cash in a sale-leaseback transaction. MGM Resorts will maintain operational control of the facility while MGP becomes the owner of the property's assets. MGM Springfield will be added to an existing Master Lease between the two companies. 

Nebraska legislature passes gaming expansion bill - According to Legal Sports Report, on May 20, the Nebraska state legislature passed a gaming expansion bill (LB 561 with emergency clause 44-3) which includes retail sports betting and a constitutional amendment to allow casino gaming at the state's six commercial racetracks. The Nebraska governor was expected to sign the bill into law ahead of the June 2 deadline. Under the new bill, Nebraska would levy a 20% tax on casino revenues including revenue from retail sportsbooks. Wagering on in-state college sports would be prohibited. According to a legislative fiscal note, the state's six casino/racetracks could generate up to $245.3 million in the near term. 

Hospitality & Tourism News

American Hotel & Lodging Association (AHLA) releases statement on updated CDC mask guidance - On May 17th, the AHLA responded to recent updates to CDC mask guidance with a statement. Chip Rogers, president and CEO of the American Hotel & Lodging Association, announced that the association would recommend properties relax mask requirements for guests who are fully vaccinated. Hotels were not encouraged to require proof of vaccination status. Rodgers indicated that that AHLA would continue to update industry 'Safe Stay' guidlines "in accordance with all applicable federal, state, local, tribal, or territorial laws, rules and regulations."

Phish, confirms three-day beach concert in Atlantic City - As reported by The Press of Atlantic City, Phish, originally scheduled to play a beach concert in Atlantic City last summer before shows were cancelled due to COVID-19, confirmed it would play a three-day beach concert in the city August 13 to 15. 

New Jersey boardwalks to be considered for 'public highway' designation, gain access to New Jersey Transportation Trust funding - As reported by NJ Spotlight News, the state Assembly Transportation and Independent Authorities Committee voted in favor of a bill (A4894), which would expand the definition of 'public highways' to include boardwalks and promenades. Under the new definition, boardwalks could receive at least $4 million annually over the next decade from New Jersey' Transportation Trust Fund for maintenance and revitalization projects. 

New Jersey Economic Development Authority (NJEDA) to fund eSports Innovation Center at Stockton University - According to an NJEDS press release, members of the NJEDA board voted to support the establishment of an esports Innovation Center on Stockton University's Atlantic City campus. NJEDA will provide staff support and $200,000 in funding for the center with the aim of establishing New Jersey as a hub for the US esports industry and creating economic growth for Atlantic City. Additional coverage by NJ Biz. See NJ Online Gambling for a perspective of esports as it relates to gambling in New Jersey. 

New Jersey governor lifts most COVID-19 restrictions - On May 3, New Jersey Governor Phil Murphy, along with New York Governor Andrew M. Cuomo, and Connecticut Governor Ned Lamont, announced a 'significant easing' of COVID-19 pandmic retrictions. With infection and vacination rates 'headed in the right direction,' the governors announced that business capacity limits would be replaced with 'space available to maintain six feet of social distnancing' on May 19. For many of the state's larger venues, including Atlantic City's casinos, that meant a return to operation at 100% capacity. Later, on May 24, Governor Phil Murphy announced a lifting of most COVID-19 restrictions in New Jersey. The restrictions were lifted in two phases as per Executive Order 242. Effective May 28, the mask mandate for indoor public spaces, six-foot social distancing requirement and prohibition on dance floors and bars at restaurants were lifted. Effective June 4, the general indoor gathering limit (50 persons), limit on indoor event gatherings (250 persons) and 30% capacity cap for large, fixed-seating venues were all lifted. As per CDC guidance, masks were still required in some settings. As reported by NJ Biz and The Press of Atlantic City, as a result of the lifted restrictions, the Atlantic City Convention Center returned to full operation effective June 4. 

Study provides insight into economic impact of Cape May-Lewes Ferry - According to an economic impact study commissioned by the Delaware River and Bay Authority (DRBA), the Cape May-Lewes Ferry has a positive impact on the local economies of South Jersey and Southern Delaware. Economic activity stimulated by the ferry was found to support 4,130 jobs, $152 million in annual wages, $21 million in state and local taxes, and $236 million in added value. Analysts estimate every $1 invested in the ferry stimulates $20 of economic activity. 

U.S. Travel Association calls for reopening of international travel - As reported by Travel Weekly in a May 11 letter, representatives of the U.S. Travel Association called on President Joe Biden to create a public-private task force dedicated to the reopening of international travel to the U.S.  Association representatives suggested a "public health corridor" between the U.S. and the U.K. as a place to start.

VisitNJ releases 2020 Economic Impact of Tourism report - According to the report prepared on behalf of VisitNJ by Tourism Economics, visitors in 2020 spent $29.4 billion in New Jersey, 17 billion (37%) less than in 2019. Visitation (84.6 million) declined 27% compared to 2019 to levels last seen in 2012. Despite pandemic losses, the industry supported 236,000 jobs and generated $4 billion in state and local tax revenue in 2020.