All nine casinos in Atlantic City were profitable last year, but there are growing concerns about their ability to compete over the long term. It could be a challenge once multi-billion-dollar gaming properties open in New York. An annual report from Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT) highlights the concerns. It stresses the importance of all stakeholders working together to ensure Atlantic City’s continued success.
Online gambling is thriving
The online casino industry in New Jersey is thriving. At a New Jersey online casino, players can download a casino app and play casino games or place sports bets at their own convenience. They can make use of bonuses to extend their gameplay and play from anywhere at any time.
Atlantic City casinos make upgrades
In-person play at Atlantic City has been flat in recent years. Overall gross gaming revenue in New Jersey climbed by 9% in 2023, but land-based revenue fell by more than 1%.
This is one of the reasons several Atlantic City casinos have been investing more in their properties. They intend to attract players who not only want to play casino games but also want a full casino-resort experience. Many of them have invested in world-class restaurants and state-of-the-art venues for live entertainment. Some have added spas and updated their rooms.
The revenue is not keeping up with the costs
Despite making substantial investments in their properties, the revenue from Atlantic City casinos isn’t keeping up with costs. They may be able to charge more, but much of their additional revenue has gone into covering expenses.
Wages have been rising, and inflation has been lingering since the pandemic. This year, there were six million fewer visitors than there were in 2009 and two million fewer than in 2019. The casinos haven’t yet recovered to their pre-pandemic performance levels. Challenges of rising expenses can result in bankruptcy concerns for a business. The years 2014 to 2016 saw five casinos in Atlantic City close. Two of them have reopened since then under new ownership.
The challenge from New York
New York has been a major feeder for Atlantic City casinos for years. By the close of 2025, the bidding war for three downstate New York casino licenses will be over. Each concession comes with a $500 million fee for being able to operate slot machines, live table games, and retail sports betting in New York City, Long Island, or Westchester County.
Online casino legislation debates in New York have been sidelined by the focus on the land-based casino bids.
The new casino properties in New York could threaten the gambling dominance of New Jersey. Located across from the Hudson River, downstate mega-resorts in Queens or Manhattan could attract locals and tourists who currently visit Atlantic City.
A push for new casinos in Northern Jersey
New Jersey is pushing for casinos in Northern Jersey at Meadowlands and Monmouth Park. New Jersey Governor Phil Murphy says he’s keeping an open mind about allowing casinos outside of Atlantic City if this can help to limit the damage. This would give gamblers in Northern Jersey the option to gamble without having to cross the Hudson. These casinos could help to counter the threat, but voter approval is uncertain.
These new casinos could also mean that Atlantic City casinos won’t just face competition from New York casinos, but from within the state, too. Facing challenges on multiple fronts and the lack of an upward trend in the US economy could have a severe impact on Atlantic City.
