Atlantic City Information

 

Atlantic City mayor wants city to have 3-5 year exclusive right to sell recreational marijuana - As reported by The Press of Atlantic City on November 11, Atlantic City Mayor Marty Small proposed the state grant Atlantic City exclusive right to sell recreational marijuana for 3-5 years. The proposal met opposition from Senate President Steve Sweeney and other state legislators. 

Atlantic County Workforce Development Board addresses high unemployment rate - As reported by The Press of Atlantic City, due to the impact of COVID-19 on the hospitality and tourism industries, Atlantic County has the highest unemployment rate in the state of New Jersey and led the nation in job losses last June. The Atlantic County Workforce Development Board, which provides training and support services for dislocated or qualified unemployed residents, has partnered with Atlantic Cape Community College to sponsor the Foundation for Success Program. The program aims to train up to 100 residents who are eligible for Work First New Jersey and Workforce Innovation and Opportunity Act funding to fill current job vacancies.

Boardwalk Hall restoration project on schedule - As reported by The Press of Atlantic City, a $1.8 million restoration and masonry project for Boardwalk Hall, which began earlier this year, is on track for completion by Summer 2021. The project includes structural repairs to the building's limestone and steel facade and the removal of two rusty and inoperable light towers that had been installed in 1980. The last renovation of the building exterior was conducted in 2010, and prior to that in 1980. Boardwalk Hall, built in 1929, is on the National Register of Historic Places. 

New restrictions announced on outdoor gatherings and youth sports - As reported by The Press of Atlantic City on November 30, New Jersey Governor, Phil Murphy, announced new restrictions on outdoor gatherings and youth sports. Effective December 5, all indoor youth and adult sports were put "on pause" through January 2, 2021 and effective December 7, the outdoor gathering limit was reduced to 25 people. There are exceptions for collegiate-level and professional team indoor sporting events, and for outdoor gatherings for religious or political activities, funerals, memorial services and wedding ceremonies. Earlier in the month, Governor Murphy announced that effective November 17, the indoor gathering limit would be reduced from 25 to 10 people. 

Tourism District measures approved by Casino Reinvestment Development Authority (CRDA) Board of Directors; operating budget reduced for 2021 - According to a November 17 release from the CRDA, several measures, including a public/private partnership with AC Development Company (ACDevco) for the Phase II development of Stockton University’s Atlantic City campus, were approved. The Board of Directors voted to approve Preliminary Determination of Project Eligibility (PDPE) for an Entrepreneurship Center serving women and minority-owned businesses, and  PDPE for the Showboat Resort Hotel Entertainment Retail District (EDR). The EDR project includes the construction of a water park and family entertainment center as well as the renovation of the existing Showboat Hotel Tower. The project will only receive final approval after a public hearing. According to The Press of Atlantic City,  the authority also announced a 2.4% reduction in its 2021 operating budget compared to 2020. Budgets for MeetAC (down by 20.3%), CRDA Marketing (down nearly 22%) and Capital Improvements (down nearly 66%) were reduced, and spending for the Special Improvement Division, which oversees maintenance and sanitation of Atlantic City’s Tourism District, was slightly increased (up 8%).

 

New Jersey Gaming News

 

Caesars closes on Bally's sale - As reported by Las Vegas Review Journal, on November 18, Caesars Entertainment Inc. completed the sale of Bally's to Bally's Corporation (Formerly Twin River Worldwide Holdings Inc.). As part of the $25 million transaction, which has been in the works since April, Bally's Corporation will receive  three sports betting and five iGaming skins in New Jersey. Bally's Corp. owns 10 casinos and racetracks nationwide with around 11,859 slot machines, 405 gaming tables, 54 stadium gaming positions, 49 dining establishments, 26 bars, 2,538 hotel rooms and four entertainment venues, and off-track wagering. According to the Philadelphia Inquirer, Bally's Corp. has also purchased a sports betting technology company, Bet.Works, for $125 million.Bally's Corp. plans to split into two divisions "Bally's Casinos" and "Bally's Interactive."

Governor Murphy says there is no evidence that Atlantic City Casinos are responsible for COVID outbreaks - As reported by The Press of Atlantic City, New Jersey Governor, Phil Murphy told reporters on November 18 that there was no evidence that casinos in Atlantic City were responsible for outbreaks of COVID-19. "We believe, based on the evidence that we have, that they’ve been able to responsibly manage their casino floors,” Murphy said during a briefing with other state officials. “Whether it’s through (personal protective equipment), whether it’s through dividers, capacity management, temperature checks, review of symptoms checks with people who go onto the floor, which is happening in all the casinos ... there is not any evidence that there is either bad management of the floor or that there is a big outbreak coming from participating on the floor.”

Harrah's Resort Atlantic City celebrates 40th anniversary - According to a November 20 press release, Harrah's celebrated its 40th anniversay in Atlantic City on November 22. 

 

National Gaming News

 

FanDuel still growing according to third quarter release from parent company - According to Legal Sports Report, FanDuel had 46% online sportsbook market share during third quarter 2020 and added 450,000 users in the three months ending September 30. With net revenue margins of 2.1%, down from 5.2% in Q3 2019, sportsbook revenues in Q3 2020 only grew 3% despite a 155% increase in handle. The company reported that it was on track to generate more than $1.1 billion in gross gaming revenue in 2020. Read the third quarter report from FanDuel parent company Flutter here. 

Illinois Casinos enter second lockdown - As reported by the Chicago Tribune, effective November 20, Illinois casinos were ordered to close to the public. Casinos in the state were ranked 41st on a list of types of establishments where people were possibly exposed to COVID-19. In a 30-day period ending November 13, 23 people statewide reported visiting casinos in the two weeks prior to being diagnosed with COVID-19. As of December 10, Illinois casinos remained closed. According to the American Gaming Association COVID-19 Casino Tracker, 112 of 996 casinos nationwide were closed. 

Michigan progresses toward early 2021 launch of online sports betting, commercial casinos lose revenue due to shutdown - According to the South Bend Tribune, the Michigan Gaming Control Board, which expected to launch online sports betting before the end of 2020, is now eying an early 2021 release. In-person sports betting launched March 2020, but the majority of sports betting revenues are expected to come from online activity especially during the present pandemic. Michigan's commercial casinos were expected to lose an estimated $67 million in revenue during a state mandated three-week shutdown that began November 15, and lost millions during a previous closure March 16-August 5 before reopening at 15% capacity. The launch of online sports betting is expected to provide an immediate boost to revenues. 

Nevada casinos and restaurants reduce operating capacity from 50 to 25% - As Reported by Calvin Ayre, effective November 24, Nevada Governor, Steve Sisolak ordered casinos and restaurants to 'pause' operations reducing capacities from 50% to 25% for a period of three weeks. This measure is an attempt to avoid a complete shutdown. 

Number of U.S. states to legalize sports wagering increases to 27 - According to Legal Sports Report, with the addition of Louisiana, Maryland and South Dakota, which approved sports wagering by referendum via November 3 elections, more than half the states in the nation have legalized sports wagering. Of the 27 jurisdictions that allow sports wagering, seven have yet to launch and four are restricted to tribal gaming operations. 

Pensylvania satellite casino opens outside Pittsburgh - As reported by Casino.org, The first of five planned Pennsylvania satellite casinos opened November 24. Live! Casino Pittsburgh is a 100,000-square-foot, two-story facility anchoring the Westmoreland Mall 30 miles east of Pittsburgh. 

Tennessee sports betting handle reaches $27 million in first week of operation - According to Legal Sports Report, $27.4 milllion was wagered in the first week of legal sports wagering in Tennessee. This included $5.1 million bet on November 1, the first day Tennessee sportsbooks went live. 

 

Hospitality & Tourism News

 

Atlantic City slowly resumes live entertainment - As reported by The Associated Press on November 24, casinos in Atlantic City have been slowly resuming live entertainment. Operators have gotten creative; unable to host large gatherings, they've begun offering smaller acts in venues that can comply with public health guidelines.

Despite warnings, travel spiked over Thanksgiving holiday but continues to trail 2019 by wide margin - According to the Associated Press, over a 10-day period ending November 29, the Transportation Security Administration (TSA) screened about 975,000 people a day on average. That’s down 60% from a year ago, when more than 2.3 million people per day went through U.S. airports. Airline companies continue to experience declines in customer volume and revenue. JetBlue, the nation’s sixth-largest airline, plans to reduce its number of flights by half in the fourth quarter, with revenue expected to fall about 70% from the same period last year. While visitor volumes are substantially down from previous years, public health experts express concern that increased travel over the December holidays could lead to increases in COVID infection rates.

New York tourism economy may not recover until 2025 - According to The New York Times, tourism, a staple of the New York City economy, may take at least four year to recover to pre-pandemic levels. The city, which drew a record 66.6 million visitor in 2019, is likely to reach just one-third of that total in 2020. Before the March 2020 shutdown, the tourism industry in New York employed nearly 400,000 people and generated $46 billion annually. 

Resorts Casino Hotel to partner with owners of Knife & Fork Inn and Dock's Oyster House to launch new restaurant in spring 2021 - As reported by The Press of Atlantic City,  a new dining concept, operated by the owners if the Knife & Fork Inn, will take the place of Gallagher's Steak House and Gallagher's Burger Bar at the Resorts Casino Hotel property. The new concept slated to open in spring 2021, will feature a classic steakhouse, raw bar and live entertainment.