This new operating model is focused on maximizing gaming revenues, streamlining our cost structure, targeting our marketing investments and reducing lower margin offerings, which allows us to flow a higher percentage of our revenues to the bottom line and strengthen our free cash flow.
Our goal is to identify and pursue opportunities that grow our business, are available at the right price and deliver a solid return for shareholders.
We benefited from increased visitation to Las Vegas as convention business recovered and grew over the prior year, as Hawaiian travel restrictions were lifted, and as we were able to hire additional labor to meet customer demand.
The Las Vegas Locals segment benefited from the COVID-19 recovery year over year as visitation to Las Vegas increased year over year with the return of convention business and as discussed further in the items impacting the Company's total revenue growth, as well as the continued focus on our core customer.
Growing Revenues and Operating Efficiently
These items were offset by an increase in the income tax provision of $49.3 million due to the Company's improved operational performance.
As we reopened our properties and adjusted our operations to address the impacts of the COVID-19 pandemic, the efficiencies of our disciplined business model positions us to flow a substantial portion of our revenue directly to the bottom line.
Maintaining our Brand The ability of our employees to deliver great customer service helps distinguish our Company and our brands from our competitors.
This recovery, while building since we reopened our properties, accelerated in the second quarter of 2021 and drove revenue growth in the first quarter of 2022, excluding online revenues, of $95.9 million.
While we saw growth in our core customer year over year, we saw a decline in unrated play as gaming revenues for the second quarter of 2021 through July 2021 were favorably impacted by government stimulus payments to our customers.
The growth in online gaming is driven by launches in Louisiana and Kansas in January 2022 and September 2022, respectively, a strong football season in the fourth quarter 2022, and contributions from our acquisition of Pala Interactive on November 1, 2022.
Our strategy is to increase shareholder value by pursuing strategic initiatives that improve and grow our business.
Other revenues increased by $10.5 million as entertainment venues expanded the number of events and demand for other amenities grew over the prior year.
These committees are tasked with promoting diversity and inclusion across our workplaces nationwide, as well as the successful execution of our Company’s diversity goals.
Additionally, we benefited from limited competing entertainment options early on in the prior year period.
We are committed to growing revenues and building loyalty among core customers through targeted marketing investments and a focus on maximizing gaming revenues while operating as efficiently as possible.
We are committed to maintaining the strength of our balance sheet and finding opportunities to diversify and increase our cash flow.
We are committed to the well-being of our communities and future generations through reducing our carbon footprint and economic contributions, strive to be an employer of choice where every team member is treated with dignity and respect, and conduct business with the highest level of integrity.
Operating income was favorably impacted by a $20.4 million reduction of the allowance on a note receivable with Wilton Rancheria ("Wilton Note") for development advances over the last 10 years as we evaluated the current expected credit losses with the opening of Sky River Casino in August 2022.
Through these efforts, we strive to find ways to continue to reduce our carbon footprint, lower water stress on our communities and reduce the amount of waste sent to the landfills, helping ensure the health of our shared environment for future generations.
We know that our long-term success is intertwined with healthy and vibrant communities.
Room revenue was the primary driver, increasing $16.1 million due to an increase in hotel occupancy rate of 5.6% and average daily rate of 11.0% from the prior year.
Downtown Las Vegas Total revenues increased $59.5 million, or 38.2%, during 2022 as compared to the prior year, reflecting revenue increases in all departmental categories.
Operating income was also favorably impacted by a $12.6 million gain from insurance proceeds received for business interruption and lost profits related to Hurricane Laura.
Las Vegas Locals Total revenues increased $44.7 million, or 5.0%, during 2022 as compared to the prior year, reflecting revenue increases in all departmental categories.
25 Table of Contents Midwest & South Total revenues increased $81.4 million, or 3.5%, in 2022 as compared to 2021, reflecting revenue increases in all departmental categories, with the exception of gaming revenue.
The additional revenue growth is from other amenities, such as entertainment and group business, returning after the COVID-related closures and lifting of large group restrictions.
Other revenue increased $122.5 million, as compared to the prior year, due to $31.9 million in Sky River Casino development and management fees and online revenue growth of $81.4 million, which is inclusive of our acquisition of Pala Interactive and Pala Canada, tax payment reimbursements from our market access partners and general overall growth as we expanded into Louisiana and Kansas.
Total Revenues Total revenues increased $185.6 million, or 5.5%, for 2022 as compared to 2021 due primarily to the continued recovery from the COVID-19 pandemic.
Food & beverage revenues increased $13.5 million due to an increase in food covers of 13.3% and average guest check of 4.6% from the prior year.
We strive to be an employer of choice, creating a workplace environment that embraces diversity and inclusion, where team members of every background have the ability to realize their full potential and build a rewarding career with us.
Other revenues increased by $135.5 million, or 48.4%, during 2022 as compared to the prior year, due primarily to an $81.4 million increase in online gaming revenues, including the revenues from reimbursements of gaming taxes paid on behalf of our online partners, and $31.9 million in Sky River Casino development and management fees.
Food & beverage revenue increased by $19.1 million, as compared to the prior year, due primarily to a 3.8% increase in average guest check as food covers were flat to prior year.
Operating Income In 2022, our operating income increased $81.1 million, or 9.0%, as compared to 2021 primarily due to the 5.5% growth in revenue, as discussed above.
In 2022, revenues from our online gaming operations increased $81.4 million compared to 2021.
Since our Company’s founding more than 45 years ago, we have followed a philosophy built upon sharing our success with others, treating every stakeholder of our Company with respect and integrity, and making sure that our home communities are better places because we are a part of them.
Room margins rose slightly from prior year due to the increase in average daily rate being greater than the 1.1% increase in cost per room.
Adjusted EBITDAR increased $34.7 million during 2022 as compared to the prior year, primarily due to revenue growth from the Hawaiian customer and return of destination travel combined with the reopening of one of our properties, as discussed above.
To fulfill our commitment to our shareholders to operate with the highest level of integrity and respect, we follow a robust set of corporate governance policies and procedures and have assembled an experienced Board of Directors that shares our commitment.
Room revenue increased by $8.8 million, as compared to the prior year, as average daily rate increased 1.4% with occupancy flat to prior year.
Room Room revenues increased $34.9 million, or 22.6%, in 2022 compared to 2021 due primarily due to a 4.4% increase in occupancy and 4.1% increase in average daily rate.
Gaming revenues increased $4.6 million primarily due to an increase in table game hold of 4.0% from the prior year.
Food & Beverage Food & beverage revenues increased $45.9 million, or 20.0%, during 2022 as compared to prior year, primarily due to an increase in food covers of 11.0% and an increase in average guest check of 4.4%.
Decades ago, we made this commitment a defined part of our Company’s mission statement, pledging it was our mission to provide opportunities for all while we support and enhance our communities.
Our commitment to being an employer of choice has been recognized by Newsweek magazine, which awarded Boyd Gaming a perfect five-star rating in America’s Greatest Workplaces for Diversity in 2023, as well as Forbes magazine, which named Boyd one of America’s Best Large Employers for 2023.
We believe that our focus on ESG issues are consistent with our values and an integral part of our success as a Company.
After the property re-openings in 2020, we implemented a strategic shift in our operating philosophy to increase our focus on building loyalty with core customers and we adopted a more efficient approach to doing business.
We have committed ourselves to a comprehensive effort to help protect the environment and meaningfully reduce our consumption of natural resources across our nationwide operations.
Room occupancy related to our Hawaiian customers increased 41.8% over the prior year.
Also contributing to the decline was a $19.7 million interest income increase over the prior year due primarily to a reduction of the allowance for the expected loss for interest on the Wilton Note and interest earned on such note.