November 2021
In LIGHT of the data.
In September and October 2021, Atlantic City’s casino operators saw real gains in brick-and-mortar revenues over 2019 levels in spite of the lingering effects of the pandemic on in-person patronage of casinos and other large-scale events and meetings.
With the return of colder weather and the resurgence of COVID-19 infection rates, a decline in revenue in November is not entirely unexpected if a little disappointing.
Of note, with one month remaining, year-to-date brick-and-mortar casino gaming revenues ($2.34 billion) are $343.9 million (12.8%) shy of year-end 2019 revenues ($2.68 billion). If December performs at least as well as November, Atlantic City will be within 6% of 2019 levels for the year-end a meaningful improvement over the 16% decline in 2020 and after nearly two years of pandemic suppressed operations.
The year’s best performing revenue sectors, online and sports gaming, are revenues that Atlantic City’s casino operators must share with third party business providers, limiting the bottom-line earnings for those operations. Overall, New Jersey’s gaming operators have managed a respectable recovery, putting up record total gaming revenue numbers through innovation and adaptation in implementing non-traditional gaming products.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
November 2021 |
% Change from Prior Year | November 2020 | YTD November 2021 | % Change from Prior Year | YTD November 2020 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 362,323 | 38.9% | 260,859 | 3,856,896 | 62.5% | 2,373,726 |
| Sports Wagering Revenue | 37,483 | 66.8% | 22,471 | 280,543 | 104.2% | 137,391 |
| Internet Gaming Win | 117,953 | 28.5% | 91,827 | 1,233,679 | 41.7% | 870,887 |
| Casino Gaming Win | 206,887 | 41.2% | 146,561 | 2,342,673 | n/a | 1,365,447 |
| 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 | October 2021 |
Change from Prior Year |
October 2020 |
YTD October 2021 |
Change from Prior Year |
YTD October 2020 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,539,261 | 31.7% | 1,168,775 | 14,765,205 | 22.5% | 12,050,673 |
| AC Airport | ||||||
| Scheduled Service Passengers | 64,755 | 101.5% | 32,141 | 660,700 | 83.7% | 359,754 |
| Charter Passengers | 10,555 | 580.1% | 1,552 | 55,588 | 118.7% | 25,421 |
| Total Air Passengers | 75,310 | 123.5% | 33,693 | 716,288 | 86.0% | 385,175 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| November '21 | November '20 | % Change from Prior Year |
TOTAL 2021 YTD |
TOTAL 2020 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 3 | 0 | n/a | 27 | 23 | 17% |
| # of Room Nights | 11,257 | 0 | n/a | 33,694 | 72,188 | -53% |
| # of Delegates | 22,415 | 0 | n/a | 96,393 | 217,217 | -56% |
| Delegate Spending | $9,752,090 | 0 | n/a | $29,344,231 | $56,795,304 | -48% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 2 | 0 | n/a | 5 | 11 | -55% |
| # of Attendees | 9,418 | 0 | n/a | 44,333 | 129722 | -66% |
| Hotel Bookings | ||||||
| # of Shows | 7 | 0 | n/a | 104 | 40 | 160% |
| # of Room Nights | 2,983 | 0 | n/a | 94,156 | 27,730 | 240% |
| # of Attendees** | 2,830 | 0 | n/a | 123,772 | 41,700 | 197% |
| Delegate Spending | $1,735,494 | 0 | n/a | $54,347,817 | $15,887,942 | 242% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 12 | 0 | n/a | 136 | 74 | 84% |
| # of Room Nights | 14,240 | 0 | n/a | 127,850 | 99,918 | 28% |
| # of Attendees | 34,663 | 0 | n/a | 264,498 | 388,639 | -32% |
| Delegate Spending | $11,487,584 | 0 | n/a | $83,692,048 | $72,683,246 | 15% |
Notes:
Reduction in figures beginning mid-March 2020 are due to cancellations and/or shut downs as a result of COVID-19
January 2021 hotel attendees reflect virtual attendance numbers
*Includes Meet AC events booked at Boardwalk Hall
** 2020 figures may have been adjusted due to COVID-19 related updates
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
Ground broken for Atlantic City ShopRite project - As reported by The Press of Atlantic City, on November 18 ground was broken on the 444,000 square-foot ShopRite supermarket to be located at 1801 Baltic Avenue in Atlantic City. Atlantic City has been without a major grocery store for more than 15 years.
Stockton University receives grant for police reform initiative in Atlantic City - According to a November 16 press release from Stockton University, the University has received a $700,000 grant from the U.S. Department of Justice to conduct and assess a new policing intervention in Atlantic City and Pleasantville that focuses on improving police-citizen interactions during traffic stops with residents and visitors. The project will beging Summer 2022 and last 18 months. Further reporting from The Press of Atlantic City.
"Stronger Shores" effort announced in Atlantic City - As reported by The Press of Atlantic City, on November 23, U.S. Rep. Jeff Van Drew announced the "Stronger Shores" innitiative at the U.S. Coast Guard Station Atlantic City near Absecon Inlet. Brett Matik, chairperson of the Atlantic County Economic Alliance; Stockton University President Harvey Kesselman; Capt. Jonathan Theel, commander of U.S. Coast Guard Sector Delaware Bay; and Lt. Col. Ramon Brigantti, commander of the Philadelphia District of the U.S. Army Corps of Engineers joined Van Drew for the announcment. "Stronger Shores" promises a series of policies and projects, costing billions of dollars, aimed at increasing the resilience of New Jersey coastal communities. Announced projects include the dredging of the mouth of the Maurice River, back bays and shipping routes from Cape May to north of Atlantic City. Funding for the projects may come from the bipartisan Infrastructure Investment and Jobs Act.
Teachers convention returns to Atlantic City - As reported by The Press of Atlantic City, after a virtual meeting in 2020, the annual New Jersey Education Assonciation (NJEA) convention returned to the Atlantic City Convention Center on November 4 and 5. The NJEA convention is one of the largest conventions held in Atlantic City. According to a press release from Meet AC, including two other events, the annual New Jersey State League of Municipalities Conference (November 16-18) and the Import Expo (November 7-8), Atlantic City welcomed 37,800 convention attendees in November. The estimated economic impact for the three events is over $20 million.
Work begins on replacement of Venice Park bridge - As reported by The Press of Atlantic City, on December 6, work to replace the bridge crossing Primrose Avenue in the Venice Park neighborhood of Atlantic City began. This $2.5 million infrastructure project, aimed at improving connectivity and safety for residents, is being paid for with funds from the state Department of Transportation and the South Jersey Transportation Authority.
New Jersey Gaming News
Amendment to Atlantic City PILOT Bill considered - As reported by the Associated Press, Play NJ and The Press of Atlantic City, legislators are considering an ammendment to the 2016 bill that established a payment-in-lieu-of-taxes (PILOT) for Atlantic City's casinos. A number of bills have been proposed. The state Senate Budget and Appropriations Committee reported favorably on Senate Bill S4077 (A5587) on December 6. According to The Press of Atlantic City, the Assembly committee passed an amended version of A5587 (now identical to S4077) on December 13. The bill will now go to the full Senate and Assembly for a final vote. Linked here is comment from Casino Association of New Jersey President Joe Lupo
Casino Association of New Jersey names new president - As reported by the Associated Press and The Press of Atlantic City, Hard Rock Hotel & Casino Atlantic City President Joe Lupo has been appointed president of the Casino Association of New Jersey. Lupo's appointment follows the unexpected resignation of Terry Glebocki, former CEO of Ocean Casino Resort.
Voters reject college sports betting ballot question - As reported by The Press of Atlantic City, Legal Sports Report, and the Associated Press, New Jersey voters rejected a ballot measure (Public Question 1) that would have permitted wagering on New Jersey-based collegiate sports teams and
collegiate events occuring in New Jersey. Poling conducted by the William J. Hughes Center for Public Policy at
Stockton University predicted the ballot question would be rejected.
National Gaming News
Esports Trade Association chooses head of an Atlantic City-based esports company to help develop betting standards for esports and video games - As reported by The Press of Atlantic City, Anthony Gaud, CEO and co-founder of G3 Esports, has been named to the Esports Trade Association's 2022 Board of Directors. Gaud will will establish and chair a committee tasked with developing betting standards and processes for esports and video games nationally.
Jim Allen of Hard Rock International to lead American Gaming Association - According to a Novemer 5 press release from the American Gaming Association (AGA), Jim Allen, Hard Rock International Chairman and Seminole Gaming CEO, has been named as the incoming AGA Board Chair. Allen's two year term will begin January 2022. He has served on the AGA board of directors since 2015.
Nevada casinos report revenue of at least $1 billion for eigth consecutive month - As reported by Las Vegas Review Journal, Nevada casinos have tied a record for most consecutive months of more than $1 billion in gaming revenue (win). October 2021 marked the eigth consecutive month that casino gaming operators reported revenue in excess of $1 billion in total gaming revenue. The previous record was set in the eight months October 2006 to May 2007. The Las Vegas Strip saw its second-highest single-month total gaming revenue with October 2021 generating $702.2 million.
New York publishes rules for mobile sportsbooks; no launch date set - According to Legal Sports Report, rules for mobile New York sportsbooks were published on November 24. The state's nine temporarily-licensed operators could go live whenever they are ready. Senator Joe Addobbo Jr. has requested that the New York State Gaming Commission set a start date for the market, but they have yet to do so.
NFL branded slot machines coming in 2023 - As reported by Casino.org, through a multi-year licensing agreement, Aristocrat Gaming has received permission to release an NFL-branded slot machine expected to reach casino floors by 2023. This partnership can be seen as futher proof that the NFL, which had been resistant (like other major sports leagues) to gaming, has become more open to partnerships with gaming companies. Such partnerships, according to a league representative speaking to The Washington Post in September, will generate $270 million in revenue for the NFL in 2021 and as much as $1 billion annually within the next ten years.
Rush Street Interactive announces new iGaming engine for multiplayer events - As reported by Casino.org, Rush Street Interactive has launched a new iGaming platform called "RushArena." The 'multiplayer engine' facilitates tournament style play for users. The first offering in the 'arena' space is a slot tournament contest called RushRace. The company also plans to offer peer-to-peer contests using the same platform in the future.
U.S. social casino revenue nears $1 billion - According to Online Poker Report, American iOS users spent a record $990 million in social casino apps from Q3 202 to Q2 2021. While a fraction of what 'real-money' casinos earn, revenue generated by 'social gaming' apps has increased in tandem with that of 'real-money' operators: 2021 Social Casino Gaming Apps Report.
Wynn CEO steps down, names successor - As reported by Casino.org, Wynn Resorts CEO Matt Maddox, who took over after founder Steve Wynn resigned in February 2018, has announced his resignation effective February 1. Craig Billings, president and CFO of Wynn Resorts and CEO of Wynn Interactive will succeed him.
Hospitality & Tourism News
Beach concerts to return to Atlantic City in Summer 2022 - As reported by The Press of Atlantic City, a country music festival is planned for the Atlantic City beach August 12-14, 2022. The 2021 three-day beach concert series by Phish brought an estimated 30,000 people into the city each day.
International travel ban lifted, modified - As reported by the Washington Post and New York Times, U.S. officials lifted a ban on international travel from 33 countries on November 8. Under new rules travelers will need to show proof of a negative coronavirus test before boarding a flight: Presidential Proclimation on Advancing the Safe Resumption of Global Travel During the COVID-19 Pandemic. Following the announcment of omicron as a "varient of concern" a presidential proclamation established new restrictions on travel from 8 African countries.
New Jersey bill to create Black Heritage Trail and Commission - As reported by WHYY and The Philadelphia Tribune, the N.J. Senate State Government, Wagering, Tourism & Historic Preservation Committee voted to approve Bill S3727, which would create a Black Heritage Trail and Commission. According to the committee's November 15 statement, "The purpose of the Black Heritage Trail would be to promote awareness and appreciation of Black history, heritage, and culture in the state through education, public programs, and historical markers."
Playland’s Castaway Cove, damaged by fire, submits rebuilding plan to Ocean City Planning Board - As reported by The Press of Atlantic City, Playland's Castaway Cove in Ocean City, has submitted an application to replace the arcade building which was destroyed by fire on January 30. The Boardwalk amusement opened for Summer 2021, but has yet to rebuild.
Shuttered B.L. England plant sold, new owners considering site for hotel, marina, and other development - As reported by The Press of Atlantic City, New Jersey's last coal-powered electrical plant, B.L. England, which closed May 1, 2019, has been sold to Beesleys Point Development LLC. Upper Township, N.J. Mayor Richard Palombo told the press that while a plan has yet to be finalized, the new owners were considering a marina and retail areas, a restaurant and a hotel for the site. Plans are still in motion to bring electricity generated by Ocean Wind, offshore wind turbines, into New Jersey’s power grid at the site.
United States and New Jersey respond to reports of new COVID-19 virus strain - On November 26, the World Health Organization (WHO) designated a COVID-19 strain ("Omicron" - B.1.1.529) as a varient of concern. New Jersey Governor, Phil Murphy responded to the WHO's announcement at his November 29 Coronavirus Briefing. Governor Murphy said, "The reality is that our region is a hub of international travel and commerce, we must be ready now in anticipation of this variant hitting us." Further reporting from The Press of Atlantic City, New Jersey Business Magazine.
