Atlantic City Casino Report Highlights Brick-and-Mortar Concerns Amid NYC Threat

All nine Atlantic City casinos turned a profit last year, but a recent report highlights increasing worries about the resorts' long-term competitiveness once multibillion-dollar gaming establishments launch in nearby New York City. 

For the second straight year, Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, known as LIGHT, published a study titled “Impact: Atlantic City Casino Industry.” The yearly report assesses the economic impact of the gaming industry in Atlantic City and "demonstrates the significance of collaboration among all stakeholders to maintain its ongoing success," stated LIGHT Faculty Director Jane Bokunewicz. 

The 2024 "Impact" indicates that although total gross gaming revenue (GGR) increased by 9% from 2023, land-based winnings fell by over 1%. In addition to the rise in online sports wagering and internet casino gaming, physical GGR has yet to rebound to pre-pandemic figures despite ongoing reinvestments by the nine casinos. 

Income Failing to Match Expenses 

As casinos allocate a significant portion of their online sports and iGaming revenue to third-party partners such as FanDuel and DraftKings, net revenues dropped by 0.5% in 2024 to reach $3.31 billion.

"The ‘flat’ trajectory of traditional, brick-and-mortar casino revenues has become concerning to some, especially considering recent, substantial investments Atlantic City properties have made to enhance [the] in-person integrated casino resort experience,” Bokunewicz wrote. “Given inflation and other continuing market pressures, this performance was not enough to offset operators’ expenses.”

LIGHT, using vehicle counts at the Pleasantville Toll Plaza on the Atlantic City Expressway, estimated that the East Coast casino capital attracted around 18 million visitors in 2024. Although that represented a small rise from 2023, it was still roughly two million less than in 2019, and six million fewer than in 2009. 

Due to increased expenses, the nine casinos were able to collect approximately $1.6 million more for food and beverage and $109.1 million more for hotel accommodations compared to 2019. Nevertheless, because of persistent inflation from the pandemic combined with rising wage and benefit expenses, a significant portion of the additional revenue was allocated to address elevated overhead. 

Still, the casinos in Atlantic City remain the key engine of the regional economy. The resorts hired 23,000 individuals, contributed $883 million in casino taxes and fees, acquired $605 million in products and services from New Jersey suppliers, invested $205 million into their facilities, gave $1 million to charitable initiatives, and engaged in over 7,000 hours of volunteer work. 

New York Approaching 

By the end of 2025, it’s anticipated that the competition for the three downstate New York casino licenses will conclude. Every concession carries a fee of $500 million for the right to manage slot machines, live dealer table games, and retail sports betting in New York City, Long Island, or Westchester County. 

Bokunewicz states that the upcoming years are essential for reinforcing Atlantic City’s position in a continually expanding competitive environment. For decades, NYC has served as a significant source market for the New Jersey coastal town.

"The continued reinvestment and revitalization in our great city is more important than ever with the expansion of downstate New York casinos on the horizon,” she concluded.