October 2023 Snapshots
In LIGHT of the data.
While the industry would have liked to see more growth, the performance of net revenue in the third quarter of 2023 was relatively flat compared to last year and the year prior. Gross operating profit was down, perhaps reflecting an overall increase in the cost of doing business and attracting patrons to the resort amid local and regional competition.
In keeping with the experiences of many resort communities along the New Jersey shore, Atlantic City saw a bit of a cooling off in summer 2023 compared to the pent-up post-pandemic energy seen in 2021 and 2022. That said, it did outperform pre-pandemic 2019 for both net revenue and gross operating profit, suggesting that this could be part of a cycle of stabilization.
With such significant disruptions in the market as we’ve seen recently, pendulum swings should be expected. After coming to a near standstill with the pandemic lockdowns, there was a burst of activity once people were able to travel freely again — boosting returns in 2021 and 2022. The present slowdown may be simply the system righting itself — overcorrecting after the swell.
The initial return to travel was focused on local, drivable destinations — favoring Atlantic City’s proximity to major population centers and contributing to the highs observed in 2021 and 2022. This year, people may have traveled further abroad, after foregoing international travel since the pandemic, contributing to the observed decrease in activity in the city in 2023.
For those that did come to the resort, inflation may have changed their spending behaviors. They may have shortened their trip, eaten out less, or participated in more free activities as observed by operators in Cape May and other New Jersey resort destinations.
The three years since the pandemic have not been “normal,” but with 2024 and 2025, we may be entering a new phase in the cycle of recovery and a better understanding of how the city will perform moving forward. This of course assumes there won’t be new market forces further disrupting the gaming, hospitality and tourism industries of the region.
Following predictable seasonal trends, October 2023 total gross gaming revenues for Atlantic City’s casinos declined slightly compared to September 2023 but increased compared to October 2022. The same pattern was seen in brick-and-mortar gaming revenues for Atlantic City’s operators, however internet gaming revenues increased slightly month-to-month.
A slight decline in year-over-year revenue for Atlantic City sportsbook operators is likely part of normal fluctuations in gambling activities, especially as the handle for the month remained strong.
Despite anecdotal observations suggesting a decline in on-property activity, the numbers for brick-and-mortar activity for 2023 year-to-date are favorable. With $2.4 billion in brick-and-mortar gaming revenue to date, casino operators’ year-end 2023 brick-andmortar revenues are on track to surpass year-end 2019 and have a chance of surpassing year-end 2022.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Casino Licensees, $ In Thousands |
October 2023 |
% Change from Prior Year | October 2022 | YTD
October 2023 |
% Change from Prior Year | YTD October 2022 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | 423,047 | 6.6% | 396,831 | 4,359,219 | 10.4% | 3,948,295 |
| Sports Wagering Revenue | 28,167 | -3.0% | 29,031 | 386,842 | 69.8% | 227,758 |
| Internet Gaming Win | 166,799 | 13.3% | 147,176 | 1,571,842 | 15.1% | 1,365,081 |
| Casino Gaming Win | 228,081 | 3.4% | 220,623 | 2,400,534 | 1.9% | 2,355,457 |
| Quarterly Revenue (Industry, $ In Thousands)** | Q3 2023 | % Change from Prior Year | Q3 2022 | YTD September 30, 2023 | % Change from Prior Year | YTD September 30, 2022 |
|---|---|---|---|---|---|---|
| Casino | 433,501 | -7.6% | 469,191 | 1,272,122 | -7.3% | 1,372,068 |
| Rooms | 263,111 | 0.5% | 261,869 | 582,394 | 5.1% | 554,210 |
| Food & Beverage | 169,137 | 5.3% | 160,595 | 439,242 | 10.9% | 396,066 |
| Entertainment & Other | 106,032 | 19.8% | 88,486 | 253,621 | 20.9% | 209,760 |
| Casino Licensees Total Revenue | 971,781 | -0.9% | 980,141 | 2,547,378 | 0.6% | 2,532,104 |
| Gross Operating Profit (GOP) | 281,213 | -7.5% | 304,070 | 632,127 | -4.2% | 660,140 |
** Data aggregated from New Jersey Division of Gaming Enforcement Quarterly Financial Reports for individual properties, includes amended totals as of August 22, 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 September 30, 2023 & 2022 |
Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Occupancy percentage | 85.6% | 86.7% | 75.2% | 76.2% |
| Average Daily Room Rate (ADR) | $217.74 | $216.55 | $185.61 | $184.71 |
| Revenue Per Available Room (RevPAR)* | $186.38 | $187.75 | $139.58 | $140.75 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | September 2023 |
Change from Prior Year |
September 2022 |
YTD September 2023 |
Change from Prior Year |
YTD September 2022 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,602,210 | 1.6% | 1,576,641 | 13,837,922 | 3.9% | 13,315,633 |
| AC Airport | ||||||
| Scheduled Service Passengers | 62,423 | 2.1% | 61,153 | 578,765 | -12.1% | 658,067 |
| Charter Passengers | 12,624 | 7.0% | 11,799 | 104,266 | 15.6% | 90,196 |
| Total Air Passengers | 75,047 | 2.9% | 72,952 | 683,031 | -8.7% | 748,263 |
Atlantic City Meetings and Conventions Data
Source: VistAC
| October '23 | October '22 | % Change from Prior Year |
TOTAL 2023 YTD |
TOTAL 2022 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 9 | 8 | 13% | 70 | 71 | -1% |
| # of Room Nights | 16,168 | 13,448 | 20% | 95,488 | 107,769 | -11% |
| # of Delegates | 25,197 | 21,264 | 18% | 430,032 | 402,619 | 7% |
| Delegate Spending+ | $10,726,966 | $10,770,436 | 0% | $102,870,356 | $98,336,989 | 5% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 2 | 5 | -60% | 32 | 33 | -3% |
| # of Attendees | 8,211 | 26,371 | -69% | 155,231 | 147,103 | 6% |
| Hotel Bookings | ||||||
| # of Shows | 18 | 19 | -5% | 109 | 134 | -19% |
| # of Room Nights | 12,980 | 19,478 | -33% | 82,284 | 109,847 | -25% |
| # of Attendees** | 12,064 | 19,730 | -39% | 113,596 | 169,059 | -33% |
| Delegate Spending | $7,758,513 | $10,485,045 | -26% | $52,256,111 | $68,123,514 | -23% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 29 | 32 | -9% | 211 | 238 | -11% |
| # of Room Nights | 29,148 | 32,926 | -11% | 177,772 | 217,616 | -18% |
| # of Attendees | 45,472 | 67,365 | -32% | 698,859 | 718,781 | -3% |
| Delegate Spending | $18,485,479 | $21,255,481 | -13% | $155,126,467 | $166,460,503 | -7% |
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
+May 2022 Convention Center delegate spending updated due to an error in calculation formula
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 Beer & Music Festival returns with two events for 2024 - As reported by The Press of Atlantic City, the Atlantic City Beer & Music Festival will return for 2024 with three sessions held at the Convention Center from April 12-13 and two additional sessions held on July 13 at Bader Field. The event has become a staple of the Atlantic City event calendar drawing thousands to the city.
Atlantic City Dave & Buster's to open December 2023 - As reported by The Press of Atlantic City, Dave & Busters, a 21,187-square-foot arcade, sports bar, restaurant and entertainment complex, originally slated to open in July 2023 has pushed back its opening to December. The business, one of 155 franchise locations in the United States, will bring another noncasino amenity to Atlantic City.
Casino Reinvestment Development Authority (CRDA) hires armed security - As reported by Casino.org, according to CRDA officials, a recent security review of its offices conducted by the New Jersey State Police determined that armed security guards were warranted. In response, the CRDA board approved spending $136,906 for armed guards to patrol the building for the next 12 months. The winning bid for the work came from Expert Investigation Group, a Somers Point-based security firm run by retired Atlantic City Police Department Detective Patrick Hurley.
Developer, DEEM Enterprises seeks extension on Bader Field project - As reported by The Press of Atlantic City, DEEM Enterprises, which entered into an agreement with Atlantic City Mayor Marty Small Sr. on March 24, 2023 giving them six months to convince the city and state that their $3.2 billion car-centric residential and commercial project for Bader was viable, has requested an extension. To date, the company has spent $25 million on the site for engineering, architectural and brownfield work over the past few years.
Developer proposes luxury apartments near Atlantic City outlets - As reported by The Press of Atlantic City, a local real estate firm has submitted plans to the city planning board for the development of four vacant lots (1801 to 1815 Arctic Ave.). The Block 330 Redevelopment Plan would convert the lots into a five-story mixed commercial- and residential-use property including 32 one- and two-bedroom “luxury modern apartments” and a ground-floor restaurant and/or retail space.
Former Atlantic City Housing Authority Director sues agency, tenants ask for "more forceful action" from judge - As reported by The Press of Atlantic City, following his firing "for convenience" on Sept. 7, former executive director of the Atlantic City Housing Authority, Matt Doherty filed a lawsuit against the agency on Oct. 23. Doherty claims his firing was unlawful retaliation for being a whistleblower about illegal procurement practices. Tenants of the troubled Stanley Holmes Village have asked the Superior Court judge to “take more forceful action” with the housing authority to protect their health and safety. It has been almost a year since the tenants filed their complaints regarding conditions at the 420-unit public housing complex.
Joint effort seeks to address quality of life issues around Atlantic City's Boardwalk - As reported by The Press of Atlantic City, the Boardwalk Improvement Group (BIG), a joint effort by the city, state and Casino Association of New Jersey, seeks to address quality of life issues, including homelessness, near the historic Boardwalk. The group has been at work since early 2023 and has adopted an internal app called See It, Click It, Fix It to streamline reporting and response to quality-of-life issues. Alongside these efforts, the city has also been working to bring a homeless czar and additional personnel into the city to address the long standing problem of homelessness and loitering on, under and around the Boardwalk.
More than 3,600 compete in two-day Atlantic City Marathon Series - As reported by The Press of Atlantic City, over 3,600 competitors participated in the Atlantic City Marathon series held on Oct. 21 and 22. The Jewish Community Center in Margate hosted the event, with Bally’s Atlantic City as the main sponsor. The marathon, established in 1958, is the third oldest continuing marathon in the country.
Morris Guards Armory in Atlantic City to be converted for residential use - As reported by The Press of Atlantic City, real estate development company LPMG Companies continues to work on the conversion of the 122-year-old Morris Guards Armory on New York Avenue to approximately 32 apartments and ground-floor retail space. The project, delayed in part by pandemic-related, supply-chain disruptions is expected to be completed within the next few months. Developers and local stakeholders hope that the redevelopment of the long vacant building and the addition of more people living in the neighborhood will help improve the area.
Showboat opens new indoor pickleball court - As reported by The Press of Atlantic City, on Nov. 2 Showboat opened a new indoor pickleball court billed as the first to open on the city's Boardwalk. Pickleball is the fastest growing sport in the country and the the court adds a new amenity to the city that hosted the USA Pickleball (USAP) Indoor Nationals at Atlantic City Convention Center this past September.
New Jersey Gaming News
Borgata debuts real-money arcade games - As reported by Casino.org, on Nov. 2 BetMGM, which powers the Borgata Online casino platform in New Jersey, debuted new real-money arcade games on the Borgata Online app and website. The arcade features nontraditional iGaming content with an emphasis on classic amusements and nostalgia.
Caesars Entertainment reduces carbon footprint in Atlantic City with installation of solar panels - As reported by Casino.org, Caesars Entertainment announced the completion of a major project to add four solar canopies, with two each at Caesars Atlantic City and Harrah’s Resort & Casino Atlantic City. A fifth canopy is planned at Harrah’s Waterfront Conference Center next year. Once the fifth canopy is installed, the Caesars properties will have a solar portfolio of 7.3 MW offsetting approximately 6% of the properties' energy needs in Atlantic City. The work is in keeping with the Caesars Entertainment's 2018 pledge of becoming carbon neutral by 2050.
Harrah's Atlantic City sets opening date for expanded arcade - As reported by Casino.org and Play NJ, Harrah's Atlantic City opened its newly expanded (5,238-square-foot) arcade space on Nov. 1. The arcade is one of several that have opened or are scheduled to open soon in the city.
New Jersey Supreme Court to rule on pandemic-related insurance guidance - As reported by The Press of Atlantic City, WHYY and Casino.org, the New Jersey Supreme Court heard arguments in a case brought by Ocean Casino Resort, which is seeking insurance payouts from business interruption insurance for losses during the COVID-19 outbreak. The ruling could potentially provide guidance for policyholders nationwide regarding the scope of coverage for pandemic-related losses. Listen to the Sept. 27 oral arguments and follow the case in the New Jersey Courts.
Stockton Atlantic City Summer Experience: Live-Work-Learn
National Gaming News
AGA Report on Gaming Industry Impact Released - The American Gaming Association (AGA) released its annual report on the economic impact of casino gaming in the United States. According to their findings, gaming contributes $328.6 billion to the U.S. economy including $52.7 billion in tax revenues to federal, state and local governments. Further reporting from Casino.org and NJBiz.
Massachusetts' Encor Boston Harbor Expansion receives city planning board approval, stalled by environmental review - As reported by Casino.org and Play.MA, Encor Boston Harbor parent company Wynn Resorts received approval from the City of Everett Planning & Development Board for the expansion of the casino resort. The first phase of expansion includes 142,000 square feet of additional floor space, with a WynnBet Sportsbook, a 979-seat theater, and a poker room among the development’s highlights. As the next step in implementation, the plans were reviewed by the Massachusetts Office of Energy and Environmental Affairs (EEA). The EEA found that the project “does not adequately and properly comply” with the Massachusetts Environmental Protection Act citing anticipated increases in traffic to the site.
Florida's Seminole Tribe to offer sports bets, craps and roulette in December after U.S. Supreme Court declines to block 2021 gaming compact - As reported by Casino.org, on Oct. 25, the U.S. Supreme Court declined to block the gaming compact between Florida and the Seminole Tribe, which has been held up in litigation since its passage in 2021. As per further reporting from Casino.org, the Seminole Tribe announced on Nov. 1 its intention to begin taking sports bets, as well as offering craps and roulette, at its six Florida casinos starting Dec. 7.
Nevada sportsbooks cleared by Nevada Gaming Commission to offer esports odds without event approval - As recorded by the Nevada Gaming Control Board and reported by Casino.org, Nevada sportsbooks no longer have to petition state gaming regulators on an event-by-event basis to offer odds on esports. The regulation, formally 2022-07R, “explicitly” includes esports within other sporting events. The rule allows sportsbooks to accept wagers on esports in the same manner as traditional sporting events.
New York Gaming Commission reports cybersecurity 'event' - As reported by Casino.org, the New York Gaming commission reported that a cybersecurity "event" temporarily shut down or disrupted machines at several of the state's casinos. An attack on the state's central lottery system affected slot-like, video lottery terminals (VLTs) across the state. The greatest impact was for Jake's 58 on Long Island, which shuttered its gaming floor and more than 1,000 VLT machines from Oct. 17 through 20. Further reporting from GamblingInsider and PlayUSA.
Pennsylvania's Parx Casino dominates states land-based gaming revenues, remains smoke-free - As reported by Casino.org, Parx Casino of Bensalem, Pennsylvania, generated $50.1 million in gross gaming revenue (GGR) from slots and table games in August 2023 - the highest earner among the state's 18 land-based casinos despite remaining smoke-free in the aftermath of the COVID-19 pandemic. Parx was the top land-based earner last year despite not allowing smoking, with GGR of roughly $598.6 million. As reported by Casino.org, a smoking ban for Atlantic City casinos may be considered after the November elections.
Virginia skill games ruled illegal by state supreme court - As reported by Casino.org, after temporarily legalizing controversial gaming machines that look, sound, and operate closely to traditional slot machines, lawmakers in Virgina have ruled the "skill games" illegal.
Hospitality & Tourism News
Atlantic City Electric works to modernize, improve electrical infrastructure in Wildwood following substation fire, costly summer power outages - As reported by The Press of Atlantic City, work began in October to modernize the Lake Avenue substation after a fire on July 7 left 24,000 customers without power and caused millions of dollars' worth of losses for shore tourism businesses. The work, which is expected to be completed in December, will replace underground cables to one of three transformers at the site, one of which will also be replaced. Over the next year, inspectors will check the system throughout the resort and recommend further equipment replacement as needed. Power lines will be upgraded over the next six months and permanent switchgear installed by next fall making the Wildwoods' energy grid more reliable even when the population swells in summer.
Cape May County tourism industry reports strong occupancy tax collections through June 2023 - According to a news release from Cape May County, occupancy tax collection was up double digits every month during the first two quarters in 2023 over 2022. This includes a more than 70% spike in the first quarter over the same period in 2022. The work of the Cape May County Department of Tourism to increase fall and winter marketing over the past five years is being credited for continued growth in both Fall of 2022 and Winter of 2023. Cape May County outpaced all other counties in New Jersey in occupancy tax collection for July and is trending to surpass the 2022 total of $19.4 million.
Deputy Executive Director of the New Jersey Division of Travel and Tourism named - According to an Oct. 12 news release, Alicia M. Quinn has been named Deputy Executive Director of the New Jersey Division of Travel and Tourism. Quinn will succeed the division’s longtime Director of Marketing Anthony Minick, who has served NJTT since 1998 and will retire next month.
Formula One race comes to Las Vegas - As reported by The Athletic, Las Vegas will host the Las Vegas Grand Prix on Nov. 18. Preparations for the race, which supporters hope will become a regular offering in the city, have been complex and disruptive especially along the famous Vegas Strip. Further reporting by Casino.org.
Island Waterpark reduces hours, ticket prices ahead of winter season - As reported by PlayNJ and Casino.org, after its inaugural summer, Island Waterpark at Showboat Hotel Atlantic City will close most weekdays and reduce ticket prices ahead of the winter season.
Ørsted scraps offshore wind projects - As reported by the Associated Press, on Oct. 31, the Danish energy developer Ørsted announced that it would be canceling its Ocean Wind I and II projects planned for southern New Jersey, citing supply chain issues and rising interest rates. The projects had also faced opposition from local interest groups concerned with their impact on a number of issues, including area tourism and marine life. Further reporting from The Press of Atlantic City 1, 2, 3. As reported by The Press of Atlantic City and NBC Philadelphia, the smokestack of the B.L. England Generating Station, visible from the Garden State Parkway, was demolished on Oct. 26 to make way for a connection point for several offshore wind farms.
