december_2020
In LIGHT of the data.
December 2020 marks the end of perhaps the most challenging year in over forty years of casino gaming in Atlantic City.
While we may never truly know the full impact of COVID-19 on New Jersey鈥檚 casino gaming industry in terms of lost jobs, revenue and opportunity, this much is clear. Compared to 2019, year end 2020 New Jersey鈥檚 gaming operators realized $643.5 million less in year-end gross gaming revenue.
The brunt of this decline was borne by brick and mortar gaming operations in Atlantic City which earned $833.8 million less in slots revenue (-43.4%) and $321.8 million less in table games revenue (-43.6%) in 2020 than in 2019. When fourth quarter non-gaming revenues are reported this Spring, we expect similar declines in revenue for Food & Beverage and Lodging operations which have historically complemented gaming revenues at these properties. Seven of Atlantic City鈥檚 nine casinos reported year-over-year declines - all in double digits. But it could have been worse.
Unlike many gaming jurisdictions across the country, New Jersey has active internet gaming and online sports wagering products. While land-based gaming operations continued to be subject to restrictions which limited operational capacity and consumer volumes, internet based casino gaming and sports wagering continued to serve customers with relatively little disruption (early shutdowns of major league sports, and the cancelation/postponement of games and competitions due to the threat of COVID-19 did disrupt sports wagering). Internet gaming realized $487.6 million more in gross gaming revenue at year-end 2020 (101.0% increase) than 2019, and online sports wagering alone (without retail sportsbooks) generated $49.8 million (46.9%) more in 2020 than in the prior year. These gains in no small way served to off-set significant declines in land-based gaming revenues, but were still not enough to replace the activity lost as a result of the industry鈥檚 longest shut down in history from March to July 2020.
As we have said before,the public health crisis of 2020 was a perfect storm for gaming operators who tried to weather a simultaneous increase in operating expenses and decrease in demand for land-based gaming and resort services. Through the remarkable efforts of operators and their determined staffs Atlantic City casinos rallied in the Summer and Fall to create safe and inviting spaces for customers and team members alike. Along with safe and healthy, adaptation and innovation were buzz words for the year which saw the expansion of outdoor dining and the implementation of new technology tools across multiple operational areas.
If any silver lining can be found in the storm clouds of 2020 it is this, gaming hospitality and tourism businesses across our region used the crisis as an opportunity to examine their relationship with consumers and consider ways to serve them better. Crisis has strained the industry, tested the resilience of many businesses, but it has also been the catalyst for significant changes strengthening the industry and positioning it for successful recovery in 2021.
Atlantic City Gaming Win & Total Casino Revenue
Source: N.J. Division of Gaming Enforcement
| Monthly Revenue (Industry, $ In Thousands) |
December 2020 |
% Change from Prior Year | December 2019 | YTD December 2020 | % Change from Prior Year | YTD December 2019 |
|---|---|---|---|---|---|---|
| Total Gaming Win (includes Internet & Sports Wagering) | $275,468 | 1.9% | $270,234 | $ 2,649,194 | -19.5% | $3,292,787 |
| Sports Wagering Revenue | $28,943 | 134.3% | $12,353 | $166,334 | 34.6% | $123,552 |
| Internet Gaming Win | $99,450 | 101.6% | $49,328 | $970,338 | 101.0% | $482,695 |
| Casino Gaming Win | $147,074 | - 29.5% | $208,553 | $1,512,522 | -43.7% | $2,686,540 |
| Quarterly Revenue (Industry, $ In Thousands) | Q3 2020 | % Change from Prior Year | Q3 2019 | YTD September 30, 2020 | % Change from Prior Year | YTD September 30, 2019 |
|---|---|---|---|---|---|---|
| Casino | $398,733 | -18.7% | $490,347 | $865,604 | -34.2% | $1,315,609 |
| Rooms | $143,490 | -29.2% | $202,711 | $241,104 | -50.0% | $$482,424 |
| Food & Beverage | $50,900 | -68.8% | $162,918 | $154,639 | -64.7% | $437,704 |
| Entertainment & Other | $36,191 | -50.4% | $72,896 | $85,035 | -54.4% | $186,500 |
| Casino Licensees Total Revenue | $629,314 | -32.2% | $928,872 | $1,346,355 | -44.42% | $2,422,236 |
Atlantic City Hotel Lodging
Source: N.J. Division of Gaming Enforcement
| Casino Hotel Lodging Statistics For the Period Ended September 30, 2020 |
Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|
| Occupancy percentage | 72.9% | 90.8% | 70.6% | 81.2% |
| Average Daily Room Rate (ADR) | $159.11 | $161.06 | $144.89 | $145.51 |
| Revenue Per Available Room (RevPAR)* | $115.99 | $146.24 | $102.29 | $118.15 |
* RevPAR= ADR X Occupancy Percentage
[Note: Atlantic City鈥檚 casino hotels were closed in April, May and June due to COVID-19 restrictions.]
Atlantic City Statistical Transportation Data
Source: South Jersey Transportation Authority
| Travel Mode | November 2020 |
Change from Prior Year |
November 2019 |
YTD November 2020 |
Change from Prior Year |
YTD November 2019 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
986,844 | -35.7% | 1,534,947 | 13,037,517 | -29.4% | 18,458,288 |
| AC Airport | ||||||
| Scheduled Service Passengers | 32,141 | -60.8% | 82,059 | 391,895 | -58.1% | 935,832 |
| Charter Passengers | 1,552 | -82.3% | 8,749 | 26,973 | -71.4% | 94,366 |
| Total Air Passengers | 33,693 | -62.9% | 90,808 | 418,868 | -59.3% | 1,030,198 |
Atlantic City Meetings and Conventions Data
Source: MeetAC
| Dec '20 | Dec'19 | % Change from Prior Year |
TOTAL 2020 YTD |
TOTAL 2019 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings | ||||||
| # of Shows | 1 | 12 | -92% | 21 | 87 | -76% |
| # of Room Nights | 0 | 20,064 | -100% | 68,752 | 263,863 | -74% |
| # of Delegates | 40 | 17,620 | -100% | 145,239 | 387,212 | -62% |
| Delegate Spending | $3,162 | $12,052,113 | -100% | $75,647,524 | $202,649,006 | -63% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 0 | 3 | -100% | 11 | 56 | -80% |
| # of Attendees | 0 | 1,518 | -100% | 129,722 | 329,424 | -61% |
| Hotel Bookings | ||||||
| # of Shows | 0 | 10 | -100% | 42 | 178 | -76% |
| # of Room Nights | 0 | 6,053 | -100% | 30,390 | 126,703 | -76% |
| # of Attendees | 0 | 3,673 | -100% | 46,200 | 131,254 | -65% |
| Delegate Spending | 0 | $2,206,245 | -100% | $24,624,740 | $72,595,552 | -66% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 1 | 25 | ||||