November 2021

 

LIGHT Snapshots

 
November 2021
 

In LIGHT of the data.

In September and October 2021, Atlantic City鈥檚 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鈥檚 best performing revenue sectors, online and sports gaming, are revenues that Atlantic City鈥檚 casino operators must share with third party business providers, limiting the bottom-line earnings for those operations. Overall, New Jersey鈥檚 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:

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:

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:

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:

  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, 91视频 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 , 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. 

91视频 receives grant for police reform initiative in Atlantic City - According to a November 16 press release from 91视频, 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 . 

"Stronger Shores" effort announced in Atlantic City - As reported by , 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; 91视频 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 , after a virtual meeting in 2020, the annual 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 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 , 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 ,  and  , 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 () on December 6. According to 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 cfrom Casino Association of New Jersey President Joe Lupo

Casino Association of New Jersey names new president - As reported by the and , 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 , , and, New Jersey voters rejected a ballot measure () 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
91视频 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 , Anthony Gaud, CEO and co-founder of G3 Esports, has been named to the . 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 from the (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 , 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 , 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 . 

NFL branded slot machines coming in 2023 - As reported by , 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 , 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 , 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: . 

Wynn CEO steps down, names successor - As reported by , 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 , 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 and , 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: . Following the announcment of omicron as a "varient of concern" a established from 8 African countries. 

New Jersey bill to create Black Heritage Trail and Commission - As reported by and , the N.J. Senate State Government, Wagering, Tourism & Historic Preservation Committee voted to approve Bill which would create a Black Heritage Trail and Commission. According to the committee's November 15 "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鈥檚 Castaway Cove, damaged by fire, submits rebuilding plan to Ocean City Planning Board - As reported by , 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 , 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, , into New Jersey鈥檚 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 . New Jersey Governor, Phil Murphy responded to the WHO's announcement at his . 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 , .