August 2022 Snapshots

 

LIGHT Snapshots

 
August 2022
 

In LIGHT of the data.

With the release of August 2022 data from the New Jersey Division of Gaming Enforcement (DGE), we get our first good look at the performance of the 2022 summer season in terms of gross gaming revenues (GGR).  For nongaming activity and traffic into the city via the Pleasantville Toll Plaza we will need to wait a bit longer until those reports are released by the DGE and the South Jersey Transportation Authority, respectively. 

August, traditionally one of the strongest months for Atlantic City鈥檚 casino industry, especially regarding brick-and-mortar gaming revenues, put in a solid showing for 2022. Brick and mortar GGR for the month outperformed 2021 (4.4% increase) and though it fell short of pre-pandemic 2019 it beat out every other August since 2015. 

Although it did not surpass August 2019, August 2022鈥檚 strong brick-and-mortar results, when combined with July 2022鈥檚, offset the summer鈥檚 slow start to deliver a solid performance that is an encouraging sign for continued post-COVID recovery for the city鈥檚 casino industry. June 2022 brick-and-mortar revenues lagged both June 2019 and May 2022 leading to concerns that gas prices and inflation would negatively impact the summer season. Despite these concerns, the three months ended August 2022, outpaced the same period in pre-pandemic 2019 by a narrow margin of 0.3% in brick-and-mortar revenues.

Total GGR positioned August 2022 as one of the strongest Augusts in recent history outperforming 2019 (27.8%), 2021 (8.9%) and setting a new near-term record for August monthly revenues.

The three months ended August 2022 surpassed 2019 total GGR by a significant margin of 34.4%. Gains in total GGR for the period are largely attributable to the contributions of internet gaming. In the three months June through August 2022, internet gaming accounted for 31.8% of total GGR compared to 12.6% for the same period in 2019. 

It is difficult to say with certainty that any observed trends in recent data will last due to the variability of the local gaming industry鈥檚 performance. Some direct and indirect impacts on the industry include regional gaming expansion, economic conditions and the lingering effects of the COVID-19 pandemic.

The relatively slow growth of brick-and-mortar gaming revenues compared to the increasing contribution of internet gaming to total revenue could potentially suggest a change in consumer behavior that doesn鈥檛 cannibalize in-person gaming but includes significant internet gaming activity.

Brick-and-mortar operations will still represent the greater share of overall activity, and also generate complementary revenues from nongaming operations. A decreased reliance on exclusively in-person gaming activity has the potential to keep the New Jersey casino industry competitive with its neighbors and make it more resilient to market disruptions that might potentially occur in the future.

 

Atlantic City Gaming Win & Total Casino Revenue

Source:

Monthly Revenue (Casino Licensees, $ In Thousands)

August 2022

 % Change from Prior Year August 2021 YTD August 2022 % Change from Prior Year YTD August 2021
Total Gaming Win (includes Internet & Sports Wagering) 432,891 8.9% 397,657 3,120,486 15.7% 2,696,339
Sports Wagering Revenue 27,477 24.8% 22,022 154,732 -14.3% 180,493
Internet Gaming Win 131,438 16.1% 113,230 1,082,659 25.0% 866,130
Casino Gaming Win 273,976 4.4% 262,404 1,883,095 14.1% 1,649,717

 

Quarterly Revenue (Industry, $ In Thousands)** Q2 2022 % Change from Prior Year Q2 2021 YTD June 30, 2022 % Change from Prior Year YTD June 30, 2021
Casino 454,541 2.0% 445,541 899,484 9.3% 822,932
Rooms 172,942

18.9%

 145,472 292,341 24.0% 235,696
Food & Beverage 131,757 44.9% 90,933 235,471 52.3% 154,653
Entertainment & Other 69,545 56.5% 44,445 121,274 55.2% 78,138
Casino Licensees Total Revenue 828,785 14.1% 726,630 1,548,570 19.9% 1,291,418
** Data agregated from New Jersey Division of Gaming Enforcement for individual properties, includes amended totals as of August 22, 2022. 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
June 30, 2022 & 2021		 Q2 2022 Q2 2021 YTD 2022 YTD 2021
Occupancy percentage 77.4% 70.0% 70.4% 61.2%
Average Daily Room Rate (ADR) $171.79

$158.00

 $163.21 $146.32
Revenue Per Available Room (RevPAR)* $132.99 $110.56 $114.90 $89.55

* RevPAR= ADR X Occupancy Percentage

Atlantic City Statistical Transportation Data

Source:

Travel Mode July
2022		 Change
from Prior
Year		 July
2021		 YTD
July
2022		 Change
from Prior
Year		 YTD July
2021
AC Expressway
Total Toll-Paying Traffic
Pleasantville Toll Plaza		 1,901,558 -4.8% 1,997,463 9,962,554 4.0% 9,579,590
AC Airport
Scheduled Service Passengers 84,218 -9.0% 92,511 496,918 6.2% 468,145
Charter Passengers  13,818 32.3% 10,448 74,045  202.4% 24,486
Total Air Passengers 98,036 -4.8% 102,959 570,963  15.9% 492,631

Atlantic City Meetings and Conventions Data

Source:

  August '22 August '21 % Change
from Prior Year		 TOTAL
2022 YTD		 TOTAL
2021 YTD		 % Change
from Prior Year
Conventions/Tradeshows/Meetings*
# of Shows 6 4 50% 56 14 300%
# of Room Nights 8,658 3,755 131% 81,036 13,161 516%
# of Delegates 16,223 9,701 67% 365,029 54,507 570%
Delegate Spending $4,313,661 $3,695,603 17% $116,856,716 $12,935,007 803%
Boardwalk Hall Bookings
# of Shows 5 0 N/A 27 0 N/A
# of Attendees 7,780 0 N/A 117,932 0 N/A
Hotel Bookings
# of Shows 5 9 -44% 97 74 31%
# of Room Nights 2,094 4,719 -56% 76,287 69,533 10%
# of Attendees 14,900 13,234 13% 140,274 89,080 57%
Delegate Spending $2,284,142 $3,527,667 -35% $50,257,623 $40,785,993 23%
Monthly Totals
# Convs_Trade_Mtgs / Boardwalk Hall / Hotel 16 13 23%