October 2024 Snapshots
In LIGHT of the data.
This month鈥檚 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鈥檚 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) 鈥 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 鈥 gaining over 2023 in some months while declining in others.
Regarding the third quarter, consumer demand may have been an issue for Atlantic City鈥檚 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 鈥 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 | $18,485,479 | -20% | $148,120,652 | $150,282,998 | -1% |
*Includes Visit Atlantic City events booked at Boardwalk Hall
Atlantic City Information
Atlantic City considers ending Class II police officer program in favor of hiring a smaller number of full-time officers - As reported by T, the Atlantic City Police Department continues to struggle to staff the 70 part-time Class II officer positions presently funded by the city. A resolution has been introduced that would end the Class II police officer program and use its funding to staff a smaller number of full-time officers.
Atlantic City traffic down in August 2024 compared to August 2023 - As reported by, according to the , traffic at the Pleasantville Toll Plaza on the Atlantic City Expressway was down 3.3% in August 2024 compared to the prior year. The decline has been attributed to the absence of the Atlantic City Airshow and other large events.
Local Finance Board approves continuation of state supervision of Atlantic City - As reported by , the state Local Finance Board has approved the continuation of supervision of the city under the state Supervision Act. The Supervision Act lays out particular financial controls that are not available under the Municipal Stabilization and Recovery Act, the 2016 law that initiated the state takeover of Atlantic City, which is set to lapse in 2026.
Department of Community Affairs鈥 Office of Homelessness Prevention hires 'homelessness czar' for Atlantic City - As reported by , city resident Debra Evora White has been hired as a special advisor to the city on issues of homelessness. White, previously director of business services for the Chelsea Economic Development Corp., has a background in community building and promoting homeownership.
New Jersey Gaming News
DraftKings closes in-house live dealer studio, transitions to third-party studio in Atlantic City - As reported by DraftKings has announced plans to transition its in-house live dealer operations to a third-party studio in Atlantic City. The action is part of the the company's integration of GNOG, which will be complete as of Jan. 31, 2025.
In New Jersey, 'tier 2' online gaming apps gaining ground - As reported by , recent analysis from Eilers & Krejcik Gaming suggests that 'tier 2' gaming apps such as Hard Rock, ESPN Bet, and bet365 may be gaining ground on industry leading DraftKings and FanDuel. Using data from the first two weeks of the 2024 NFL season, EKG determined that the top five operators across the country 鈥渓ost share on a relative basis,鈥 while other brands picked up the slack.
老司机福利社 Atlantic City Summer Experience: Live-Work-Learn
National Gaming News
Bally Bet Sportsbook app launches in Tennessee - According to an Oct. 17 , Bally's Interactive, the digital and sports betting division of Bally's Corporation has launched the Bally Bet Sportsbook app in Tennessee. The launch marks the company's expansion into a 10th state.
Bensalem, Pennsylvania, host of Parx Casino, passes local ordinance banning skill games - As reported by and , the Bensalem Township Council adopted an ordinance outlawing real-money gambling on skill machines effective Nov. 7. The ordinance prohibits skill games 鈥 commonly branded Pennsylvania Skill 鈥 in all businesses other than those holding state-issued liquor licenses and for businesses that do possess liquor licenses, the ordinance requires that skill games be placed within view of employees, be inaccessible to anyone under the age of 18, and have video surveillance. Businesses without liquor licenses that continue to offer skill games face a daily fine of $1,000.
Boyd Gaming in partnership with Virginia鈥檚 Pamunkey Indian Tribe breaks ground on Norfolk casino - As reported by , on Oct. 30, following the approval of the Norfolk City Council, Boyd Gaming in partnership with Virginia鈥檚 Pamunkey Indian Tribe broke ground on a $500 million resort casino in Norfolk, Virginia. The resort is expected to include a 200-room hotel and a casino floor with 1,500 slot machines, 50 live-dealer table games and a sportsbook. Amenities will also include eight restaurants and bars, 13,000 square-feet of meeting and event space, a spa, fitness center and 1,300-space parking garage.
Caesars Entertainment selling the LINQ Promenade on the Las Vegas Strip - As reported by , Caesars Entertainment has that it will be selling the LINQ Promenade on the Las Vegas Strip as part of the company's ongoing debt reduction efforts. the property is expected to sell for $275 million.
DraftKings Upgrades Loyalty Plan - As reported by , DraftKings has recently made improvements to its Dynasty Rewards customer loyalty program. Included in the upgrades is the launch of the 2025 Elite Rewards Gifts and Experience Catalog debuting in January.
Florida Gaming Control Commission issues Invitation to Negotiate for Compulsive or Addictive Gambling Prevention Program - As reported by , the Florida Gaming Control Commission has for Compulsive or Addictive Gambling Prevention Program. The commission is actively seeking a partner to help regulators craft responsible gaming protocols and create an educational and awareness campaign for Florida residents.
Pennsylvania considers joining Multi-State Internet Gaming Agreement - As reported by and , the Pennsylvania Gaming Control Board (PGCB) has begun negotiations for the state to join the Multi-State Internet Gaming Agreement (MSIGA). The agreement allows member states to share online poker player pools. Pennsylvania would become the fifth state to enter the agreement joining Nevada, Delaware, Michigan and New Jersey.
Renderings released for new stadium and casino in Las Vegas - As reported by , renderings have been released for the new A's stadium and Bally's casino planned for the former site of the Tropicana () on the Las Vegas Strip. Additonal reporting by .
Seminole Hard Rock Hotel & Casino Tampa closes some operations, remains largely open through Hurricane Milton - As reported by , Seminole Hard Rock Hotel & Casino Tampa remained largely open through Hurricane Milton, choosing to close the sportsbook, poker room and some dining establishments out of safety concerns.
Hospitality & Tourism News
Apartments, shipping container park project approved for Tennessee Avenue - As reported by , the Casino Reinvestment Development Authority voted to approve two proposals for development in the Tennessee Avenue neighborhood. One project would see the redevelopment of a long-vacant hotel into 12 apartment units with retail space on the first floor, while another, MAP 3, would use repurposed shipping containers to create a new park with retail and performance space at 112 and 114 S. Tennessee Ave.
Gillian's Wonderland Pier closes - As reported by , Gillian's Wonderland, which opened in Ocean City in 1965, ended its 59-year run on Oct. 13. As of Nov. 14, a 252-room hotel "Icona in Wonderland" has been proposed for the site. A to discuss the project is planned for Nov. 25.
Officials break ground for new airport terminal building in Ocean City, New Jersey - As reported by , officials broke ground on the Leon and Elizabeth Grisbaum Terminal Building at the Ocean City Airport. Leon Grisbaum was honored at the event for his $3 million donation toward the project, which was .
U.S. District Judge dismises price-fixing lawsuit agains Atlantic City casino hotels - As reported by , a U.S. District judged has dismissed a class action lawsuit alleging Atlantic City's casino hotels and an online room booking platform conspired to overcharge room rentals using a price-fixing algorithm. Since the judge dimissed the suit 'with prejudice' it cannot be filed again.
LIGHT Snapshots is a publication of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism, 老司机福利社 School of Business
Jane Bokunewicz, Ph. D., Faculty Director and Professor of Hospitality
