March 2021

LIGHT Snapshots

 
March 2021
 

In LIGHT of the data.

The Q4 2020 report from the DGE marks the end of one of the most challenging years in the history of casino gaming in Atlantic City. A year that began with so much hope and the expectation of record high revenues, ended instead with record lows. The 2020 year-end net revenue ($1.86 billion) was the lowest since 2015 ($2.64 billion) the recent record low.

Gross Operating Profit, often used as an indicator of industry health, finished out the year 80.2% behind 2019. A historic 107-day shutdown, occupancy restrictions, increased operating costs and a curfew for food and beverage services made it especially difficult for operators to turn a profit in 2020.

It is testament to the importance of dining as part of the recovery for the region and overall Atlantic City experience that New Jersey Governor, Phil Murphy, chose an Atlantic City restaurant as venue for the signing of restaurant relief legislation.

The number of occupied room nights at casino hotels (2.3 million) was down 46.7% for 2020 compared to 2019 (4.3 million), and the occupancy rate (61.7%) was 17.2 percentage points behind 2019 (78.9%). Average 2020 RevPAR ($85.47) was down 23.7% compared to 2019 ($112.12).  Atlantic City casino hotels fared better than most regarding occupancy. Average Hotel Occupancy rates in the U.S. during the pandemic remained below 50% even in the summer months.

The data tells a story of perseverance and adaptation in the face of significant obstacles. There is every reason to hope that as these obstacles are removed or overcome, the industry will again flourish, fueled by nationwide pent-up demand for travel and entertainment. 

An analysis of the impact of a year of COVID-19 on Atlantic City gaming, tourism, travel and employment is available on the LIGHT website – /light/research.html.

 

Atlantic City Gaming Win & Total Casino Revenue

Source:

Monthly Revenue (Industry, $ In Thousands)

March 2021

% Change from Prior Year March 2020 YTD March 2021 % Change from Prior Year YTD March 2020
Total Gaming Win (includes Internet & Sports Wagering) $324,994 107.4% $156,714 $878,960 25.2% $702,145
Sports Wagering Revenue $26,451 311.9% $6,422 $74,596 115.6% $34,602
Internet Gaming Win $113,669 75.4% $64,822 $311,240 81.1% $171,896
Casino Gaming Win $184,874 116.3% $85,470 $493,125 -0.5% $495,646

 

Quarterly Revenue (Industry, $ In Thousands) Q4 2020 % Change from Prior Year Q4 2019 YTD December 31, 2020 % Change from Prior Year YTD December 31, 2019
Casino $372,012 -8.3% $405,624 $1,213,630 -27.9% $1,682,701
Rooms $76,059 -39.1% $124,949 $317,163 -47.8% $607,373
Food & Beverage $54,390 -59.8% $135,147 $209,029 -63.5% $572,851
Entertainment & Other $35,659 -41.1% $60,559 $120,694 -51.1% $247,059
Casino Licensees Total Revenue $538,120 -25.9% $726,279 $1,860,516 -40.2% $3,109,984
[Note: The online operations of Golden Nugget (GNAC) were transferred to an affiliate called Golden Nugget Online Gaming (GNOG) in the 4th quarter of 2021. The 4th quarter 2021 report is the first in which the revenues of each entity are listed seperatly. Previous reports have not yet been restated to reflect this change. Totals in the table above have been adjusted to match as nearly as possible reporting from the DGE as of April 9, 2021.] 

Atlantic City Hotel Lodging

Source:

Casino Hotel Lodging Statistics
For the Period Ended
December 31, 2020
Q4 2020 Q4 2019 YTD 2020 YTD 2019
Occupancy percentage 46.3% 72.2% 61.7% 78.9%
Average Daily Room Rate (ADR) $121.58 $132.70 $138.52 $142.11
Revenue Per Available Room (RevPAR)* $56.24 $95.78 $85.47 $112.12

* RevPAR= ADR X Occupancy Percentage

[Note: Atlantic City’s casino hotels were closed in April, May and June due to COVID-19 restrictions.]


Atlantic City Statistical Transportation Data

Source:

Travel Mode February
2021
Change
from Prior
Year
February
2020
YTD
February
2021
Change
from Prior
Year
YTD February
2020
AC Expressway
Total Toll-Paying Traffic
Pleasantville Toll Plaza
923,004 37.6% 1,479,501 1,894,514 -35.5% 2,938,407
AC Airport
Scheduled Service Passengers 32,166 -67.0% 97,341 62,831 -66.9% 190,043
Charter Passengers  1,459 -77.5% 6,497 2,723 -78.3% 12,525
Total Air Passengers 33,625 -67.6% 103,838 65,554 -67.6% 202,568

Atlantic City Meetings and Conventions Data

Source:

  Mar '21 Mar '20 % Change
from Prior Year
TOTAL
2021 YTD
TOTAL
2020 YTD
% Change
from Prior Year
Conventions/Tradeshows/Meetings
# of Shows 1 5 -80% 2 22 -91%
# of Room Nights 1,778 9,582 -81% 1,778 72,188 -98%
# of Delegates 7,000 88,029 -92% 7,036 217,187 -97%
Delegate Spending $1,846,392 $12,683,288 -85% $1,859,517 $56,790,400 -97%
Boardwalk Hall Bookings
# of Shows 0 2 -100% 0 11 -100%
# of Attendees 0 42,911 -100% 0 129,722 -100%
Hotel Bookings
# of Shows 5 3 67% 8 25 -68%
# of Room Nights 1,970 2,804 -30% 2,418 15,689 -85%
# of Attendees 5,106 4,480 14% 16,481 22,250 -26%
Delegate Spending $978,389 $1,122,924 -13% $3,210,852 $8,875,160 -64%
Monthly Totals
# Convs_Trade_Mtgs / Boardwalk Hall / Hotel 6 10 -40% 10 58 -83%
# of Room Nights 3,748 12,386 -70% 4,196 87,877 -95%
# of Attendees 12,106 135,420 -91% 23,517 369,159 -94%
Delegate Spending $2,824,781 $13,806,212 -80% $5,061,369 $65,665,560 -92%

Note: Reduction in figures beginning mid-March 2020 are due to cancellations and/or shut downs as a result of COVID-19


LIGHT Snapshots is a publication of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at ºÚÁÏÉç
Jane Bokunewicz, Ph. D., Institute Coordinator and Associate Professor of Hospitality

Atlantic City Information

 

AtlantiCare breaks ground on new medical facility in Atlantic City - As reported by , on March 30, AtlantiCare broke ground on a $38 million Medical Arts Pavillion on South Ohio Avenue in Atlantic City. The three-story, 69,700 square-foot facility will include an urgent care center, dialysis unit, maternal and fetal health program, and teaching facilities for medical students and physician residents. The pandemic delayed the project, which is expected to be finished late 2022. 

Atlantic City International chosen for FAA testing - According to a March 2 from the Federal Aviation Admonistration. Atlantic City International Airport has been selected as one of five airports to test and evaluate unmanned aircraft detection and mitigation systems. The testing, which will begin later in 2021 and continue to 2023, will "lead to the implementation of new technologies that will make airports safer for passengers and manned aircraft" and create standards for the future.  

Atlantic City finalizes plans to rivise Atlantic Avenue traffic flow, improve safety - As reported by , city leaders are considering a plan to reengineer one of the city's main roadways, Atlantic Avenue. The $8 million to $10 million dollar project (90% federally finded) would reduce the four-lane roadway to two lanes separated by a center median. Protected bike lanes would take the place of the outside travel lanes and cars would continue to park at the curb. The project, which could start construction as early as December 2021, aims to improve safety by slowing down traffic and improving visibility for vehicles, cyclists and pedestrians. 

Demolition begins on Black Horse Pike motels - According to , the first of four motels along the Black Horse Pike in West Atlantic City has been demolished. The four properties, Bay Point Inn, Hi-Ho Motel, Destiny Inn and Budget Motel, should all be demolished by, as part of an ongoing to address blight and flooding along one of the three main entryways to Atlantic City. 

NJSIAA wrestling tournament will not be held in Atlantic City - As reported by , the annual NJSIAA individual wrestling tournament will not be held at Boardwalk Hall in Atlantic City this year. Tournament organizers announced alternative locations for the tournament, which has held  individual championship matches at Boardwalk Hall since 2001 and has a history with the city going back to 1992. 

Ocean Casino Restort to host Professional Fighters League (PFL) 2021 regular season bubble - According to a release from , Ocean Casino Resort will host the league's six week 2021 regular season in a 'state-of-the-art bubble environment.' No fans will be in attendance at the events, which will be broadcast live on ESPN2 and ESPN+. According to , Ocean Casino Resort has previously hosted PFL events during the 2018 and 2019 seasons. 

U.S. Economic Development Authority awards $3 million to Atlantic County - As reported by , the U.S. Economic Development Authority has awarded $3 million to Atlantic County for the construction of a second building at the National Aviation Research and Technology Park (NARTP) in Egg Harbor Township. Once complete the two-story, 40,000 square-foot building will house at least three aviation technology companies, generating an additional 165 technology-based jobs. Economic development leaders hope the $11 million project will help strengthen Atlantic County’s growing aviation cluster and attract additional investment.

New Jersey Gaming News

 

Atlantic City Casinos, indoor dining establishments allowed to operate at 50% capacity - According to , effective March 19, Atlantic City Casinos, indoor dining establishments and other businesses statewide were permitted to increase operating capacity from 35% (since February 5) to 50%. The order was signed by New Jersey Governor, Phil Murphy on March 11. 

FanDuel sportsbook opens at Bally's Atlantic City -According to a March 15 release via , the FanDuel Sportsbook has opened its permanent sports betting lounge at Bally's