October 2024 Snapshots
In LIGHT of the data.
This month’s release from the DGE brought encouraging news to some and perhaps more
concerning news for others. Despite a historically dry and very mild October, brick-and-mortar
gaming operators in Atlantic City did not see strong gains over 2023 instead declining
by 8.5% year-over-year ($208.7 million in October 2024 over $228.1 million in October
2023).
Despite this decline, the month finished 9% over 2023 for total gaming revenue ($461.7
million in October 2024 over $423.0 over October 2023) in no small part due to internet
gaming, which continued a record streak.
Internet gaming for the resort’s operators broke $200 million in revenue for the second
consecutive month, setting a new record for single month revenue at $213 million.
This is also the first time (since the pandemic when properties were closed) that
revenue from internet gaming operations surpassed land-based operations for Atlantic
City.
Year to date, brick-and-mortar casino revenue has decreased 1.6%, ($2.36 billion year-to-date 2024 compared to $2.40 billion in 2023) while total gaming revenue has increased year-over-year by nearly 8% ($4.70 billion in 2024 compared to $4.36 billion in 2023) — likely again due to the strong performance of internet gaming and sports betting. While it is common to have fluctuations in all areas of gaming revenue, brick-and-mortar revenue in 2024 has been particularly variable this year — gaining over 2023 in some months while declining in others.
Regarding the third quarter, consumer demand may have been an issue for Atlantic City’s casino operators in Summer 2024. Although occupancy rates, at 84.15%, compared well to previous third quarters (85.61% and 86.66% in 2023 and 2022, respectively), average daily room rate dropped by almost $17 this summer ($201.08 in third quarter 2024 compared to $217.70 in Q3 2023 and $216.55 in Q3 2022), indicating that operators may have needed to drop their average daily room rates to attract patrons.
It is possible that the lack of annual large-scale events such as the Atlantic City Airshow and beach concert series may have contributed to this struggle.
In addition to dropping average daily room rates -- which has an impact on Revenue Per Available Room (RevPAR) an important indicator of lodging profitability which was also down year-over-year -- operators likely also increased their spending on promotions. According to the quarterly financial reports of the individual properties, operators spent a total $423 million in promotional allowances and $38.3 million in promotional expenses in third quarter 2024. This was more than 18% higher in allowances and nearly 2% higher in expenses than third quarter 2023 ($399.8 million in allowances, $34.1 million in expenses) and nearly 6% higher in allowances and more than 12% higher in expenses pre-pandemic 2019 ($357.8 million in allowances, $37.7 million in expenses).
Nongaming revenues (which are historically strongest in the peak summer months of the third quarter) did not perform well in 2024 compared to prior third quarters. At $511.6 million, nongaming revenue for the period fell 5% short of the same period in 2023 ($538.28 million), despite exceeding third quarter 2019 ($438.53) by 16.7%.
With this reduced revenue (2.9% less total net revenue in third quarter 2024 compared to the same period in 2023), and increased expenses (both in promotion and in general operating costs), it is no surprise that gross operating profit for the period also declined (13.6% less compared to the same period in 2023).
Year-to-date, total net revenues appear essentially flat compared to 2023, but this was not enough to prevent further decline in gross operating profit. At the end of the second quarter, operators reported a nearly 5% decline in year-over-year gross operating profit – this gap has grown to nearly 9% as of the end of the third quarter.
Atlantic City Gaming Win & Total Casino Revenue
Source:
| Monthly Revenue (Casino Licensees, $ In Thousands |
October 2024 |
% Change from Prior Year | October 2023 | YTD
2024 |
% Change from Prior Year | YTD 2023 |
|---|---|---|---|---|---|---|
| Casino Gaming Win | 208,717 | -8.5% | 228,081 | 2,361,805 | -1.6% | 2,400,535 |
| Internet Gaming Win | 213,630 | 28.1% | 166,799 | 1,945,131 | 23.7% | 1,571,842 |
| Sports Wagering Revenue | 39,351 | 39.7% | 28,167 | 396,711 | 2.6% | 386,842 |
| Total Gaming Win (includes Internet & Sports Wagering) | 461,699 | 9.1% | 423,047 | 4,703,648 | 7.9% | 4,359,219 |
| Quarterly Revenue (Industry, $ In Millions)** | Q3 2024 | % Change from Prior Year | Q3 2023 | YTD September 30, 2024 | % Change from Prior Year | YTD September 30, 2023 |
|---|---|---|---|---|---|---|
| Casino | $431.61 | -0.4% | $433.5 | $1,263.01 | -0.7% | $1,272.122 |
| Rooms | $238.33 | -9.4% | $263.11 | $569.15 | -2.3% | $582.39 |
| Food & Beverage | $165.13 | -2.4% | $169.14 | $439.40 | -0.0% | $439.24 |
| Entertainment & Other | $108.10 | 1.9% | $106.03 | $271.30 | 6.97% | $253.62 |
| Casino Licensees Total Net Revenue | $943.16 | -2.9% | $971.78 | $2,542.85 | -0.2% | $2,547.38 |
| Gross Operating Profit (GOP) | $242.86 | -13.6% | $281.21 | $576.64 | -8.8% | $632.13 |
** Data agregated from New Jersey Division of Gaming Enforcement for individual properties, includes amended totals as of November 22, 2024. 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, 2024 & 2023 |
Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Occupancy percentage | 84.1% | 86.6% | 74.1% | 75.2% |
| Average Daily Room Rate (ADR) | $201.08 | $217.70 | $182.97 | $185.61 |
| Revenue Per Available Room (RevPAR)* | $169.20 | $186.39 | $135.64 | $139.51 |
* RevPAR= ADR X Occupancy Percentage
Atlantic City Casino Operator Taxes & Fees
Source:
Total Paid Taxes & Fees |
$207,872,000 | $183,378,000 | 13.4% | |||
|---|---|---|---|---|---|---|
Taxes & Fees |
Q2 2024 | Q2 2023 | % | |||
|
Casino Gaming Gross Revenue Tax |
$45,303,000 | $43,860,000 | 3.3% | |||
|
Internet Gaming Gross Revenue Tax |
$85,137,000 | $70,339,000 | 21.0% | |||
|
Sports Wagering - Retail Gross Revenue Tax (includes racetracks) |
$460,000 | $778,000 | -40.9% | |||
|
Sports Wagering - Internet Gross Revenue Tax (includes racetracks) |
$31,483,000 | $27,279,000 | 15.4% | |||
| Investment Alternative Tax/CRDA Obligations | $22,940,000 | $20,479,000 | 12.0% | |||
| 1.25% Additional Tax | $1,195,000 | $1,255,000 | -4.8% | |||
| 1.25% EDT | $1,899,000 | $1,504,000 | 26.3% | |||
| Luxury Tax | $12,497,000 | $11,114,000 | 12.4% | |||
| Tourism Promotion Fee | $2,264,000 | $2,172,000 | 4.2% | |||
| Hotel Room Fee | $3,070,000 | $3,111,000 | -1.3% | |||
| Hotel Room Surcharge | $2,047,000 | $2,074,000 | -1.3% | |||
| Parking Fees | $4,694,000 | $4,598,000 | 2.1% | |||
Atlantic City Casino Operator Spending
Source: - Member Reported
| Total | $154,678,000 | $183,102,000 | -15.5% | ||
|---|---|---|---|---|---|
Purchase of Goods and Services From New Jersey Vendors(By County) |
Q2 2024 | Q2 2023 | % Change | ||
| Atlantic | $100,051,000 | $129,091,000 | -22.5% | ||
| Bergen | $2,542,000 | $3,808,000 | -33.3% | ||
| Burlington | $3,859,000 | $5,057,000 | -23.7% | ||
| Camden | $5,117,000 | $6,243,000 | -18.0% | ||
| Cape May | $2,021,000 | $2,834,000 | -28.7% | ||
| Cumberland | $5,585,000 | $6,628,000 | -15.7% | ||
| Essex | $10,880,000 | $5,005,000 | 117.4% | ||
| Gloucester | $2,621,000 | $2,269,000 | 15.5% | ||
| Hudson | $621,000 | $800,000 | -22.4% | ||
| Hunterdon | $28,000 | $32,000 | -12.0% | ||
| Mercer | $3,690,000 | $678,000 | 444.2% | ||
| Middlesex | $3,425,000 | $3,422,000 | 0.1% | ||
| Monmouth | $2,689,000 | $3,195,000 | -15.8% | ||
| Morris | $1,565,000 | $1,285,000 | 21.8% | ||
| Ocean | $880,000 | $1,413,000 | -37.7% | ||
| Passaic | $926,000 | $777,000 | 19.1% | ||
| Salem | $122,000 | $81,000 | 50.3% | ||
| Somerset | $2,630,000 | $2,132,000 | 23.4% | ||
| Sussex | $0 | $10,000 | -100.0% | ||
| Union | $5,421,000 | $7,258,000 | -25.3% | ||
| Warren | $4,000 | 1,000 | 245.4% | ||
Other Spending |
Q2 2024 | Q2 2023 | % | |||
|---|---|---|---|---|---|---|
| Capital Expenditures | $47,678,000 | $82,333,000 | -42.1% | |||
| PILOT Contributions (Includes PILOT & additional payments under PILOT legislation) | $29,788,000 | 29,126,000 | 2.3% | |||
| CRDA Special Improvement District | $331,000 | $314,000 | 5.3% | |||
| Municipal/Atlantic City Fees- Water | $1,253,000 | $1,207,000 | 3.8% | |||
| Municipal/Atlantic City Fees- Sewer | $3,445,000 | $3,963,000 | -13.1% | |||
|
Municipal/Atlantic City Fees- Other (permits, boardwalk seating, mercantile etc.) |
$1,190,000 | $1,229,000 | -3.2% | |||
| Charitable Contributions | $310,000 | $333,000 | -6.8% | |||
Total Spending |
$238,673,000 | $301,606,000 | -20.9% |
|---|
Atlantic City Statistical Transportation Data
Source:
| Travel Mode | September 2024 |
Change from Prior Year |
September 2023 |
YTD 2024 |
Change from Prior Year |
YTD 2023 |
|---|---|---|---|---|---|---|
| AC Expressway | ||||||
| Total Toll-Paying Traffic Pleasantville Toll Plaza |
1,556,850 | -2.8% | 1,602,210 | 13,927,414 | 0.7% | 13,837,922 |
| AC Airport | ||||||
| Scheduled Service Passengers | 59,600 | -4.5% | 62,423 | 718,328 | 24.1% | 578,765 |
| Charter Passengers | 14,089 | 11.6% | 12,624 | 99,106 | -5.0% | 104,266 |
| Total Air Passengers | 73,689 | -1.8% | 75,047 | 817,434 | 19.7% | 683,031 |
Atlantic City Meetings and Conventions Data
Source:
| October '24 | October '23 | % Change from Prior Year |
TOTAL 2024 YTD |
TOTAL 2023 YTD |
% Change from Prior Year |
|
|---|---|---|---|---|---|---|
| Conventions/Tradeshows/Meetings* | ||||||
| # of Shows | 7 | 9 | -22% | 51 | 70 | -27% |
| # of Room Nights | 14,868 | 16,168 | -8% | 88,864 | 95,488 | -7% |
| # of Delegates | 21,970 | 25,197 | -13% | 341,428 | 409,032 | -17% |
| Delegate Spending | $10,439,757 | $10,726,966 | -3% | $86,673,410 | $98,026,887 | -12% |
| Boardwalk Hall Bookings | ||||||
| # of Shows | 1 | 2 | -50% | 26 | 32 | -19% |
| # of Attendees | 6,345 | 8,211 | -23% | 117,569 | 155,231 | -24% |
| Hotel Bookings | ||||||
| # of Shows | 15 | 18 | -17% | 127 | 109 | 17% |
| # of Room Nights | 6,463 | 12,980 | -50% | 94,534 | 82,284 | 15% |
| # of Attendees | 9,285 | 12,064 | -23% | 124,177 | 113,596 | 9% |
| Delegate Spending | $4,359,330 | $7,758,513 | -44% | $61,447,242 | $52,256,111 | 18% |
| Monthly Totals | ||||||
| # Convs_Trade_Mtgs / Boardwalk Hall / Hotel | 23 | 29 | -21% | 204 | 211 | -3% |
| # of Room Nights | 21,331 | 29,148 | -27% | 183,398 | 177,772 | 3% |
| # of Attendees | 21,331 | 45,472 | -17% | 583,174 | 677,859 | -14% |
| Delegate Spending | $14,799,087 | |||||