March 19, 2022
NJ Casino News: Weekly Roundup
Get the latest casino news and updates in New Jersey for this week (March 5, 2022 – March 11, 2022).
In-Person Revenue at AC Casinos Up 43% in February
The February 2022 in-person revenues for Atlantic City casinos was 43% higher than in February 2021 and only about 3% below the numbers for February 2020, which was right before the coronavirus lockdowns. The state’s nine casinos won $214.4 million from in-person gaming:
When internet gambling and sports betting money is included, the February total for casinos and the three horse tracks that accept sports bets rose to $373.2 million, an increase of 29.5% over last year.
“The Casino Association of New Jersey is very pleased with the industry’s performance this past month,” said Joe Lupo, president of the trade organization and also of the Hard Rock casino. He called February "one of the best months the industry has had since our casinos reopened in 2020. We attribute this growth in part to the warmer weather we experienced at the Jersey Shore after the record snow fall in January.”
Ocean Casino Resort to Open New Sportsbook Lounge This Summer
To round out Ocean Casino Resort’s $25 million casino floor transformation, the casino will open the Gallery Bar, Book & Games in summer 2022. This 12,000-square-foot renovated space will feature sports betting, an elevated center bar, blackjack and roulette tables, three video walls, and more. A staircase will connect the new space to Balcony bar, a mezzanine bar and lounge:
“Ocean is dedicated to being the premier gaming destination in the Atlantic City market,” Bill Callahan, general manager of Ocean Casino Resort, said. “This new venue will enhance the guest experience by providing an unbeatable atmosphere right in the heart of the casino floor.”
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Ocean recently announced over $75 million in resort investment, featuring the highly anticipated addition of more than 460 guest rooms and suites. Ocean recently completed over $15 million in property improvements, featuring a redesigned casino floor and the addition of three new high-limit venues.
State Attorneys Expected to Appeal Judge’s PILOT Ruling
Superior Court Judge Joseph Marczyk had ruled on Feb. 25 that the state’s amended payment-in-lieu-of-tax arrangement with Atlantic City casinos was in violation of a previous consent order. Now, Atlantic County Executive Dennis Levinson has said that attorneys representing the state plan to appeal. The judge’s ruling did not prevent the state from moving ahead with its revised PILOT framework, but it did require the state to reimburse Atlantic County on the full tax amount it would have received:
The new law lowered casinos’ payments from what they would have been had the original PILOT law continued. Then Senate President Steve Sweeney, a Democrat and the law’s sponsor, said last December that without the new law up to four casinos could close.
The law removed online sports betting and internet gaming from calculations of gross gaming revenue.
In Gov. Phil Murphy’s budget, fiscal year 2022 casino revenues (July 1, 2021 to June 30, 2022) are reported up considerably from what had been projected.
“Collections continue to exceed projections in FY2022, rising above pre-pandemic levels,” the governor’s budget reported. “Online wagering and sports betting activity grew substantially and have continued to be strong even after casinos fully re-opened their brick-and-mortar premises.”
The budget said the FY2022 forecast of $397.9 million is $41.1 million above the certified (expected) level, and revenues are projected to grow to $425.1 million for FY2023.
