May 2023
In LIGHT of the data.
In May 2023, we saw the continuation of a trend with significant month-over-month growth in total gross gaming revenue for Atlantic City operators driven primarily by internet gaming revenue.
At $423.4 million, May 2023 total gross gaming revenue for Atlantic City’s operators set a new near-term record for May monthly revenue and contributed to total year-to-date gross gaming revenues of over $2 billion — another near-term record. May 2023 Internet Gaming at $161.4 million represented approximately 38% of Atlantic City gaming operators’ total gross gaming revenue for the month, compared to nearly 35% of total gross gaming revenue in May 2022 and 14.4% in May 2019.
Although down 2.4% from last year ($233.02 million), at $227.3 million, May 2023 brick-and-mortar gross gaming revenues exceeded 2019 ($222.9 million). This is the continuation of a return to pre-pandemic levels, but not the amount of growth many may have hoped to see from this sector. Traditional gaming products like slots and table games are not growing as quickly as newer products (for example, online slots and mobile sports betting). This hints at a lasting change in consumer behavior as casino patrons have made these newer products part of their regular casino experience.
Nongaming resort amenities are also becoming a larger part of the casino experience. In the first quarter of 2023, we saw rooms, food & beverage and entertainment revenue grow while casino revenue was down slightly. Even with internet gaming growing in popularity, the resort experience, with a diverse offering of dining and entertainment options, is something that consumers seem to be demanding more of — and operators are planning to supply more of based on recent investments in their properties.
As noted in April, Atlantic City’s operators are right at the beginning of what is expected to be an important summer season. In future reports from the DGE we look forward to seeing how recent investment in casino properties, increases in personnel costs and changing customer behavior in response to regional competition impact the industry’s profitability and the balance of gaming and nongaming revenue streams.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Thousands |
May 2023 |
% Change from Prior Year | May 2022 | YTD
May 2023 |
% Change from Prior Year | YTD May 2022 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | $423,412 | 8.4% | $390,500 | $2,048,263 | 10.3% | $1,856,989 |
| Sports Wagering Revenue | $34,654 | 61.5% | $21,460 | $152,630 | 61.3% | $94,623 |
| Internet Gaming Win | $161,412 | 18.7% | $136,016 | $781,520 | 14.7% | $681,381 |
| Casino Gaming Win | $227,347 | -2.4% | $233,024 | $1,114,112 | 3.1% | $1,080,986 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q1 2023 | % Change from Prior Year | Q1 2022 | YTD March 31, 2023 | % Change from Prior Year | YTD March 31, 2022 |
|---|---|---|---|---|---|---|
| Casino | $419,324 | -6.5% | $448.34 | $419,324 | -6.5% | $448.34 |
| Rooms | $139,649 | 17.0% | $119.40 | $139,649 | 17.0% | $119.40 |
| Food & Beverage | $129,135 | 24.5% | $103.71 | $129,135 | 24.5% | $103.71 |
| Entertainment & Other | $68,530 | 32.5% | $51.73 | $68,530 | 32.5% | $51.73 |
| Casino Licensees Total Revenue | $756,638 | 4.6% | $723.18 | $756,638 | 4.6% | $723.18 |
| Gross Operating Profit (GOP) | $135,436 | -14.8% | $159.02 | $135,436 | -14.8% | $159.02 |
** Data agregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of April 13, 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 March 31, 2023 & 2022 |
Q1 2023 | Q1 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Occupancy percentage | 65.18% | 63.05% | 65.18% | 63.05% |
| Average Daily Room Rate (ADR) | $156.52 | $152.20 | $156.52 | $152.20 |
| Revenue Per Available Room (RevPAR)* | $102.02 | $95.96 | $102.02 | $95.96 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | April 2023 |
Change from Prior Year |
April 2022 |
YTD April 2023 |
Change from Prior Year |
YTD April |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,341,194 | -2.9% | 1,381,021 | 5,176,401 | 3.8% | 4,985,484 |
| AC Airport | ||||||
| Scheduled Service Passengers | 74,640 | 1.0% | 73,902 | 259,650 | -2.5% | 266,245 |
| Charter Passengers | 11,533 | -3.0% | 11,894 | 35,433 | -1.4% | 35,927 |
| Total Air Passengers | 86,173 | 0.4% | 85,796 | 295,083 | -2.4% | 302,172 |
Atlantic City Meetings and Conventions Data
Source: VistAC
| May '23 | May '22 | % Change from Prior Year |
TOTAL 2023 YTD |
TOTAL 2022 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 6 | 9 | -33% | 37 | 36 | 3% |
| # of Room Nights | 10,228 | 12,138 | -16% | 56,846 | 52,982 | 7% |
| # of Delegates | 55,244 | 53,136 | 4% | 318,920 | 256,849 | 24% |
| Delegate Spending | $11,236,694 | $11,064,576 | 2% | $68,620,331 | $68,620,331 | 34% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 4 | 5 | -20% | 16 | 14 | 14% |
| # of Attendees | 29,634 | 29,634 | 1% | 95,461 | 84,594 | 13% |
| Hotel Bookings | ||||||
| # of Shows | 11 | 18 | -39% | 49 | 54 | -9% |
| # of Room Nights | 8,973 | 10,763 | -17% | 34,648 | 41,034 | -16% |
| # of Attendees** | 6,225 | 9,235 | -33% | 33,842 | 56,758 | -40% |
| Delegate Spending | $5,283,502 | $5,492,870 | -4% | $21,167,475 | $26,935,930 | -21% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 21 | 32 | -34% | 102 | 104 | -2% |
| # of Room Nights | 19,201 | 22,901 | -16% | 91,494 | 94,016 | -3% |
| # of Attendees | 91,103 | 91,816 | -1% | 448,223 | 398,201 | 13% |
| Delegate Spending | $16,520,196 | $16,557,446 | 0% | $89,787,806 | $78,065,292 | 15% |
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
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 Chamber, Casino Association to commission traffic study - As reported by The Press of Atlantic City, the Casino Association of New Jersey and the Greater Atlantic City Chamber are commissioning an independent traffic study to examine the impact on Atlantic Avenue of a proposed 'Road Diet.'
Ribbon cut on new Stockton University residence hall in Atlantic City - On May 3, Stockton University celebrated the official opening of a new 135,000 square-foot, 416-bed residential facility in Atlantic City. Read the University news release.
Sister Jean's Kitchen, closed in 2019, set to reopen - As reported by The Press of Atlantic City, Sister Jean's Kitchen, closed in 2019 due to issues related to their original location at Victory First Presbyterian Church, is set to reopen Fall 2023 in the Fellowship Hall of Sister Monica's Parish Church located at 108 N. Pennsylvania Ave. Sister Jean's Kitchen operated by the nonprofit organization, Friends of Jean Webster, continues the longtime mission of its namesake to serve hot meals to the homeless of Atlantic City.
Stockton University to offer undergraduate degree in Esports Management - On May 10, Stockton University announced it will offer a new Bachelor of Science in Esports Managementwith classes begining Fall 2023. Additional reporting from NJ Biz.
New Jersey Gaming News
Atlantic City's first casino, Resorts Casino Hotel, celebrates 45th Anniversary - According to a news release from Resorts Casino Hotel, the property celebrated its 45th anniversary on May 26 with the Annual Opening of the Sea and Annual Beach Ball Drop. Further reporting by The Press of Atlantic City.
Borgata completes $55 million renovation, opens rebranded MGM Tower in time for 20th Anniversary - As reported by Forbes and Casino.org, Borgata has completed a $55 million renovation and rebranding of The Water Club as MGM Tower. Completion of the project coincides with the 20th anniversary of the opening of Borgata on July 2, 2003.
Kindred launches in New Jersey - As reported by iGaming Business, on May 10, Kindred announced that its proprietary tech platform had gone live in New Jersey. The company described the new platform as an “important” step in rolling out the enhanced offering throughout all its gambling services in the U.S.
Stockton University students train with Bally's Atlantic City - As reported by PlayNJ, 17 Stockton University students are participating in Bally's dealer training program as part of the Stockton Atlantic City Summer Experience: Live, Work, Learn. The Live, Work, Learn program, now in its second year, connects Stockton University students with Atlantic City businesses for on-the-job learning experiences.
Stockton Atlantic City Summer Experience: Live-Work-Learn
National Gaming News
NCAA releases results of college sports betting survey - According to a May 24 news release, the NCAA commissioned Opinion Diagnostics to conduct a survey of Sports Betting Activities among United States residents between the ages of 18 and 22. According to published key findings, 58% of survey respondents reported engaging in at least one sports betting activity. 67% of students living on college campuses were bettors and tended to bet with greater frequency. Among U.S. residents 18-22, 16% reported having engaged in at least one risky behavior and 6% reported that they have previously lost more than $500 on sports betting in a single day. Further reporting by Casino.org
New York State/Seneca Nation reach new 20-year gaming compact agreement - As reported by Casino.org, representatives of the Seneca Nation and New York state reached a new Class III gaming compact agreement that will allow the tribe to continue operating its three casinos (Seneca Niagara Resort & Casino, Seneca Buffalo Creek Casino and Seneca Allegany Resort & Casino) for at least annother 20 years.
Pennsylvania passes sports betting handle milestone - According to Legal Sports Report, with the addition of $572.1 million in handle for April 2023, Pennsylvania has become the fifth U.S. state to surpass $21 billion in all-time sports betting handle. Pensylvania is currently ranked fifth in all-time sports betting handle behind (as of April) New Jersey ($37.5 billion), Nevada ($31.9 billion), New York ($22 billion) and Illinois ($21.6 billion).
Resorts World Las Vegas submits plans for own Convention Center - As reported by Casino.org, Resorts World Las Vegas submitted plans to Clark County for a large convention center on the northwest corner of its property. The new facility would be 370,000 square-feet with 70% dedicated to convention and public space.
Tennessee passes sports betting handle tax - According to Legal Sports Report, beginning July 1, Tennessee will replace the current 20% tax on sports betting gross gaming revenue with a 1.85% tax on sports betting handle. The state will become the first in the nation to tax based on handle rather than gross gaming revenue. Details of Senate Bill 0475 from Tennessee General Assembly. Additional reporting from Casino.org.
Wagering on Kentucky Derby reached new record - According to Legal Sports Report, wagering on the Kentucky Derby set a new record with $188.7 million in total handle - $10 million more than last year's previous record of $179 million.
Hospitality & Tourism News
Atlantic City to host national indoor pickleball tournament - Visit Atlantic City announced May 8 that the USA Pickleball Indoor National Championships will be held at the Atlantic City Convention Center from September 19-23, 2023. The 2022 tournament, held at the Finley Center in Hoover, Alabama, saw 704 total participants. Further reporting by The Press of Atlantic City,
Beach Replentishment work finishes in Avalon, Stone Harbor next - As reported by The Press of Atlantic City, a federal project to add 600,000 cubic yards of sand to Avalon beaches has finished. Stone Harbor will be the next town to have beaches rebuilt.
Consumers sue Atlantic City casino hotels, allege conspiracy to raise room rates - As reported by Reuters, on May 9, two New Jersey residents filed a lawsuit naming several Atlantic City casino hotels and a Florida-based hospitality technology company Cendyn Group LLC, which sells the pricing algorithm platform the properties use, alleging a conspiracy to raise room rates. Further reporting from Casino.org.
New Jersey Division of Travel & Tourism releases 2022 Economic Impact Report - On May 11, the New Jersey Division of Travel & Tourism released the tourism economic impact report for 2022. According to the report, prepared by Tourism Economics, "Visitors to New Jersey spent $45.4 billion in 2022, an increase of 22% over the prior year. Visitor volumes increased 19% as strong room demand bolstered the overnight travel sector. Visitor volumes reached 99% of 2019 levels in 2022."
