November 2022
In LIGHT of the data.
Going into winter 2022, internet gaming continues to be the star of Atlantic City gaming operations — representing 37.7% of total gross gaming revenue earned by Atlantic City’s casino operators in the month of November, compared to 32.6% in November 2021 and 17.0% in pre-pandemic November 2019. Year-to-date, internet gaming revenue for 2022 ($1.5 billion) has increased 22% over year-to-date 2021 ($1.2 billion) and 248.7% over year-to-date 2019 ($433.4 million). Internet gaming revenues have seen remarkable gains since the start of the pandemic, more than doubling their share of total year-to-date gaming revenue for Atlantic City operators in November 2022 (34.9%) compared to the same period ended November 2019 (14.3%).
This has become indisputably a major source of revenue and economic activity for Atlantic City’s casino operators. But it is not a substitute for in-person gaming, which, in addition to generating gaming revenue, generates complementary revenues from the resorts’ nongaming amenities, such as lodging, dining and entertainment. It should also be noted, casino operators share a portion of the revenue from internet gaming with third-party providers.
In comparison, gross gaming revenues earned from slots, table games and poker have struggled in recent months to meet 2019 revenue levels. Year-to-date ended November 2022 brick-and-mortar gaming revenues ($2.57 billion) exceeded the same period in 2021 and compare favorably to the same pre-pandemic period ended November 2019 ($2.48 billion). While an encouraging sign of post-pandemic recovery, this modest performance may not be enough to offset recent increases in operating expenses, which are now well above those of 2019.
The industry could be facing strong headwinds finishing out 2022 and beginning the first quarter of 2023, as a traditionally slow seasonal period aligns with ongoing broader economic concerns. While impossible to predict, it may be reasonable to expect a slowing of internet gaming revenue growth and modest, if any, growth in brick-and-mortar revenues because of these external pressures. Depending on their business models, each Atlantic City gaming property may weather these challenges differently.
It is important to keep in mind that, despite these challenges, the Atlantic City industry, as a whole, is still trending ahead of total 2021 gaming revenues and is on track to generate near-term record total gross gaming revenue by year-end.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Millions |
November 2022 |
% Change from Prior Year | November 2021 | YTD November 2022 | % Change from Prior Year | YTD November 2021 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 388.10 | 7.1% | 362.32 | 4,336.40 | 12.4% | 3,856.90 |
| Sports Wagering Revenue | 27.41 | -26.9% | 37.48 | 255.16 | -9.0% | 280.54 |
| Internet Gaming Win | 146.16 | 23.9% | 117.95 | 1,511.24 | 22.5% | 1,233.68 |
| Casino Gaming Win | 214.53 | 3.7% | 206.89 | 2,569.99 | 9.7% | 2,342.67 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q3 2022 | % Change from Prior Year | Q3 2021 | YTD September 30, 2022 | % Change from Prior Year | YTD September 30, 2021 |
|---|---|---|---|---|---|---|
| Casino | $469.19 | -7.3% | $505.87 | 1,368.67 | 3.0% | 1,328.80 |
| Rooms | $261.87 | 6.1% | $246.86 | $554.21 | 14.8% | $482.56 |
| Food & Beverage | $160.59 | 13.1% | $142.03 | $396.07 | 33.5% | $296.68 |
| Entertainment & Other | $88.49 | 20.8% | $73.27 | $209.76 | 38.5% | $151.41 |
| Casino Licensees Total Revenue | $980.14 | 1.3% | $968.03 | $2,528.71 | 11.9% | $2,259.45 |
** Data agregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of August 22, 2022. 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 September 30, 2022 & 2021 |
Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 |
|---|---|---|---|---|
| Occupancy percentage | 86.66% | 81.25% | 76.2% | 68.0% |
| Average Daily Room Rate (ADR) | $216.55 | $224.61 | $184.71 | $178.07 |
| Revenue Per Available Room (RevPAR)* | $187.66 | $182.50 | $140.75 | $121.09 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | October 2022 |
Change from Prior Year |
October 2021 |
YTD October 2022 |
Change from Prior Year |
YTD October 2021 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,418,479 | -7.9% | 1,539,261 | 14,736,614 | -0.2% | 14,765,203 |
| AC Airport | ||||||
| Scheduled Service Passengers | 60,300 | -6.9% | 64,755 | 718,367 | 8.7% | 660,700 |
| Charter Passengers | 12,132 | 14.9% | 10,555 | 102,328 | 84.1% | 55,588 |
| Total Air Passengers | 72,432 | -3.8% | 75,310 | 820,695 | 14.6% | 716,288 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| November '22 | November '21 | % Change from Prior Year |
TOTAL 2022 YTD |
TOTAL 2021 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 8 | 3 | 167% | 87 | 27 | 222% |
| # of Room Nights | 11,896 | 11,257 | 6% | 131,561 | 33,694 | 290% |
| # of Delegates | 24,251 | 22,415 | 8% | 451,121 | 96,393 | 368% |
| Delegate Spending | $11,141,642 | $9,752,090 | 14% | $159,820,273 | $29,344,231 | 445% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 5 | 2 | 150% | 43 | 5 | 760% |
| # of Attendees | 28,108 | 9,418 | 198% | 203,319 | 44,333 | 359% |
| Hotel Bookings | ||||||
| # of Shows | 12 | 7 | 71% | 158 | 104 | 52% |
| # of Room Nights | 5,862 | 2,983 | 97% | 121,571 | 94,156 | 29% |
| # of Attendees | 5,105 | 2,830 | 80% | 179,269 | 123,772 | 45% |
| Delegate Spending | $6,846,303 | $1,735,494 | 294% | $81,816,120 | $54,347,817 | 51% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 25 | 12 | 108% | 288 | 136 | 112% |
| # of Room Nights | 17,758 | 14,240 | 25% | 253,132 | 127,850 | 98% |
| # of Attendees | 57,464 | 34,663 | 66% | 833,709 | 264,498 | 215% |
| Delegate Spending | $17,987,945 | $11,487,584 | 57% | $241,636,393 | $83,692,048 | 189% |
Notes:
January 2021 hotel attendees reflect virtual attendance numbers
March and August 2021 conventions/tradeshow numbers updated based on information received after reporting deadline
January 2022 conventions/tradeshow numbers updated based on information received after reporting deadline
March 2022 Boardwalk Hall Bookings updated based on information received after reporting deadline
*Includes Meet AC events booked at Boardwalk Hall
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
Casino Reinvestment Development Authority (CRDA) extends agreement with Atlantic City to finance Streetlight work - As reported by The Press of Atlantic City, the CRDA agreed to extend a standing agreement with the City for the inspection, repair, maintenance, replacement and provision of streetlights. In 2020, the CRDA set aside $500,000 to finance this work, according to details presented November 15, when the CRDA's original agreement with the City ended last July, $395,000 of that money had yet to be spent. In October, the New Jersey Governor's Office ordered the CRDA "to take all necessary measures to immediately take control of the citywide streetlight outages issue within the city of Atlantic City.” The new agreement will be in effect through 2024 and makes nearly $600,000 available for the project.
Effort to improve city services 'kicks off' with public meeting - As reported by The Press of Atlantic City, city officials held a public meeting November 16 to kick off the CitiStat program for improving city services. In the first of what will be recurring bi-weekly meetings, officials and residents met on the Atlantic City campus of Stockton University to discuss residents' complaints and city actions to address them. The CitiStat program is a system of bi-weekly public meetings, data collection and public reporting intended to keep the city accountable on issues including city-wide infrasturctural maintenance and repairs (pot holes, street lights etc.), trash collection and code enforcement. A second meeting was held on November 29 and, as of December 1, 88 complaints had been reported via the CitiStat process with six issues reported as closed, 76 in process and six not yet started.
Owners of former Atlantic Club Casino Hotel say property will be redeveloped as luxury condos - As reported by The Press of Atlantic City, current owners of the building, New York-based Colosseo Atlantic City Inc., say plans are in the works to redevelop the property that has been vacant for eight years following the closure of the casino in January 2014. Representatives of Colosseo told the Press more specific plans would be available by early January.
Residents of Stanley Holmes Village sue - As reported by The Press of Atlantic City, residents of Atlantic City's Stanley Holmes Village are suing the Atlantic City Housing Authority over the condition of the aging housing complex, particularly the availability of heat and hot water. Village residents met with city officials at a special meeting on November 29 to discuss the complex. According to representatives of the Atlantic City Housing Authority Board, the U.S. Department of Housing and Urban Development has agreed to begin issuing Section 8 vouchers in January to Stanley Holmes residents who want to try to find housing elsewhere. From December 7 through 9, the city deployed inspectors to all 420 units at Stanley Holmes Village to document existing problems.
Stockton University and The Press of Atlantic City partner to open community reporting lab - According to a November 17 news release from Stockton, the University and The Press of Atlantic City celebrated the opening of a new Community Innovation Reporting Lab located at the John F. Scarpa Academic Center, which is part of Stockton's Atlantic City campus, on November 16. Additional reporting by The Press of Atlantic City.
Sun Country Airlines adds nonstop service to Atlantic City International Airport - According to a November 15 news release, Sun Country Airlines added 15 new nonstop routes beginning in summer 2023. Included in the new routes is nonstop service between Minneapolis-St. Paul International Airport (MSP) and Atlantic City International Airport (ACY).
New Jersey Gaming News
Bragg Gaming Group announces launch of new content and technology with Rush Street Interactive in New Jersey - According to a December 1 news release, Bragg Gaming Group is partnering with Rush Street Interactive to provide new igaming products to New Jersey players through the Betrivers.com platform. The partnership is the first launch of Bragg's new Remote Games Server technology in the state. This technology was previously released in Ontario, Canada and Michigan earlier this year as part of the companies' existing collaboration in the North American market.
Evolution launches second live casino studio in New Jersey - As reported by iGamingBusiness, Evolution Gaming announced the opening of a second purpose-built live online casino gaming studio in New Jersey. The studio launched on November 10 following approval from the New Jersey Division of Gaming Enforcement. The first studio opened in August of 2018.
New Jersey voters oppose north Jersey casino expansion - As reported by Casino.org, a poll conducted by Fairleigh Dickinson University found only 37% of New Jersey voters supported adding new casinos to the state outside of Atlantic City and 51% opposed. These findings are simmilar to what Fairleigh Dickinson University found among voters six years ago. Read the statement from Fairleigh Dickinson.
National Gaming News
After announcing deal with FanDuel, Churchill Downs Incorporated announces plan to open DraftKings-branded gaming site - As reported by Casino.org, Churchill Downs announced plans to partner with DraftKings on DK Horse, "a standalone, advance-deposit wagering (ADW) site for horse racing." The DK Horse App will remain separate from the main DraftKings Sports Betting app for now. Three months ago, Churchil Downs announced a multi-year partnership with FanDuel. Further reporting from Gambling Insider and PlayUSA.
American Gaming Association releases report on illegal and unregulated gaming markets - The American Gaming Association released "Sizing the Illegal and Unregulated Gaming markets in the United States" a report examining illegal and unregulated gaming markets in the U.S. Researchers estimate Americans gamble an estimated "$511 billion each year with illegal and unregulated sportsbooks, iGaming websites and so-called 'skill games.'" Further coverage from Casino.org, Gambling Insider,Las Vegas Review Journal and SBCAmericas.
Broadway League, Shubert Organization oppose Times Square Casino Proposal - As reported by Casino.org, the national trade association for the Broadway industry and the largest theater owner in the U.S. have voiced their oposition to a Times Square casino project proposed by Caesars Entertainment and SL Green Realty.
East Coast Gaming Congress & Nexgen Gaming Forum (ECGC) returning in Spring 2023 - As reported by The Press of Atlantic City, ECGC will return to the Hard Rock Hotel & Casino Atlantic City on April 19 and 20, 2023. The event had been held in fall the past few years following the postponement of the 2020 conference due to the COVID-19 pandemic.
Maryland launches online sports betting – As reported by Legal Sports Report, Maryland launched online sports betting on November 23 with seven operators. An additional seven operators are expected to join the market for a total of 14 operators within the next few months. A May 2022 Eilers & Krejcik predicts Maryland’s online sports betting market could generate $123.3 million in sports betting revenue in its first year. In the first five days of operating, Maryland sportsbooks registered 16.5 million transactions, just shy of the 17.1 million transactions measured for New Jersey in the same period, according to GeoComply. According to Play USA, Maryland’s governor, expects to see as much as $30 million in tax revenue generated from sports betting in 2023 and almost $100 million by 2027.
Massachusetts accepts sports betting operator applications – As reported by Legal Sports Report, the Massachusetts Gaming Commission received 15 sports betting operator applications including six applications for online only operations. The state is permitted up to 15 online operators. Massachusetts is expected to launch retail sports betting in January and online sports betting in early March. According to Casino.org, Encore Boston Harbor received the state’s first sports betting license on December 8.
Nevada wins $1 billion in October 2022, 20th consecutive month with at least $1 billion in casino win - As reported by Forbes,Las Vegas Review Journal and Casino.org, Nevada's casinos generated over $1 billion in gaming revenue for the 20th consecutive month in October 2022. The industry's previous record streak of over $1 billion monthly win was eight months, October 2006 through May 2007.
Pennsylvania has record-breaking October - As reported by SBCAmericas, Pennsylvania realized record sports betting handle ($797 million) and online casino revenue (over $124 million) in October 2022.
Pennsylvania to open fourth satellite casino in Febraury 2023 - As reported by Casino.org, a fourth satellite casino, Parx Casino Shippensburg, will open in February 2023. The new Parx owned, 73,000 square-foot, Category 4 casino is opening at the site of a former Lowe's Home Improvement Store 40 miles southwest of Harrisburg. "The facility will open with 500 slot machines and 48 electronic table game positions, plus a 100-seat restaurant and sports bar with self-service sports betting kiosks. No live dealer table games will initially be offered."
Resorts World and Sightline announce launch or 2nd generation cashless technology – As reported via Business Wire and Gambling Insider, Resorts World Las Vegas is implementing updates to Sightline’s cashless technology which improve functionality by “dramatically decreasing the customer’s time to play.” An example of Sightline’s technology is available on the Resorts World Las Vegas Mobile+ app which features a cashless wallet that uses biometrics for enhanced security.
Hospitality & Tourism News
Cardinal Bistro to reopen at site of former Bourre restaurant on South New York Avenue in Atlantic City - As reported by The Press of Atlantic City the Ventnor restaurant that closed in 2019 will reopen in place of Bourre, a Cajun barbecue restaurant and bar, in the Orange Loop.
Las Vegas Visitation 1% shy of 2019 levels in October - As reported by Casino.org, more than 3.6 million tourists visited Las Vegas in October 2022, a 7% increase over October 2021 and just 1% (29,000) behind October 2019. In the 10 months ended October 2022, the city welcomed just under 32.3 million visitors just 3 million short of visitation levels in the same period of 2019.
Market rate rental housing project proposed for Bader Field, Atlantic City - As reported by The Press of Atlantic City, Bart Blatstein, CEO of Tower Investments and owner of Showboat Atlantic City proposed a $3 billion redevelopment plan for Bader Field that would include the construction of 10,000 units of mid-market level rental homes and 400,000 square feet of and office space, along with 20 acres of open, recreational space and trails at the former airport. The project would be developed in five phases over twelve years. Further reporting from The Associated Press.
New Jersey Governor announces $25 million investment in state historical sites - According to a November 29 news release from the Office of Governor Phil Muphy, $25 million from federal American Rescue Plan funds "will be allocated to the New Jersey Department of the Treasury and distributed to Revolution NJ, in partnership with the New Jersey Historical Commission and Crossroads of the American Revolution" to aid in the restoration of Revolutionary War sites in New Jersey. Restorations will be in preparation for the United States of America’s Semiquincentennial (250th) anniversary taking place in 2026.
Ocean City High School adds esports program - As reported by The Press of Atlantic City, Ocean City High School has announced plans to introduce a new esports program to students over the next three years. Matthew Friedman, the district superintendent, told the Press, "It’s really about creating career pathways and opportunities for students,” Friedman said. “It’s not just creating a space to game. It’s creating an educational space. it’s creating cross-content connections.”
Port Authority of New York and New Jersey unvels new Terminal A at Newark Liberty International Airport - As reported by ROI-NJ, the Port Authority debuted the 1 million-square-foot, $2.7 billion terminal on November 15. Tne new Terminal A is 20% larger than its predecessor and is "estimated to generate $4.6 billion for the regional economy and serve 13 million visitors."
Resort brand, Icona, pursues deal to redevelop former Ocean City bank building as a boutique hotel - As reported by The Press of Atlantic City and NJ.com, Icona has offered $6.5 million to buy a former bank building in downtown Ocean City. The purchase would be part of plans to develop the site as a boutique hotel, which would require an investment of millions of dollars more and a use variance from the city as hotels are not permitted in downtown Ocean City.
Stockton University Poll finds inflation impacting holiday spending and travel - According to polling results released by the William J. Hughes Center for Public Policy at Stockton University, two-thirds of New Jersey adults surveyed said inflation was impacting their holiday spending and one in three said they will spend less this year compared to a year ago. Read the full Stockton University news release.
Theme park ride manufacturer announces two new roller coasters for Steel Pier, Atlantic City - As reported by NJ Biz, and NJ 101.5 during the International Association of Amusement Parks and Attractions Expo in Orlando, Florida, Baltimore-based ride manufacturer Premier Rides annouced that two of its roller coasters would be coming to Atlantic City's Steel Pier.
