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鈥檝e 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 鈥 boosting returns in 2021 and 2022. The present slowdown may be simply the system righting itself 鈥 overcorrecting after the swell.
The initial return to travel was focused on local, drivable destinations 鈥 favoring Atlantic City鈥檚 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 鈥渘ormal,鈥 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鈥檛 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鈥檚 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鈥檚 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鈥 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:
| 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 for individual properties, includes amended totals as of August 22, 2023. May not match totals from which represent a 'snapshot' of data at the time of publication and are not retroactively updated.
Atlantic City Hotel Lodging
Source:
| 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:
| 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:
| 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, 黑料社 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 T, 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 .
Atlantic City Dave & Buster's to open December 2023 - As reported by , 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 , 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 , 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 , 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 鈥渓uxury modern apartments鈥 and a gro