In a report done by the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, an analysis of the gaming sector in Atlantic City showed that AC casinos face an imminent threat from the would-be gaming sector of New York City. While the overall GGR saw an increase of 9% from 2023, on-site gross gaming revenue has still not come back to revenues that were last seen before the pandemic - and, in fact, AC casino revenue has remained flat in recent years.

Atlantic City's casino industry remains profitable and a vital economic engine for South Jersey, but a newly released report from the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University has raised red flags about the city's long-term competitiveness - especially as New York City prepares to enter the brick-and-mortar casino market.

All nine Atlantic City casinos reported profits in 2024, even amid rising operating costs and a flat trajectory in in-person gaming revenues. While total gross gaming revenue rose 9% over the previous year, much of that growth was driven by online gambling and sports betting. Meanwhile, land-based casino win - a key measure of in-person play - actually declined by more than 1%.

"In-person gaming revenues are still not back to pre-pandemic levels, even though casinos continue reinvesting in their properties," said Jane Bokunewicz, LIGHT Faculty Director. "This flat performance, combined with inflation and market pressures raises serious questions about future sustainability."

Costs climb as visitor numbers lag

The LIGHT study, titled Impact: Atlantic City Casino Industry, offers a comprehensive look at the sector's performance and its wider implications for the region. While 2024 brought approximately 18 million visitors to Atlantic City - a slight increase from 2023 - that number remains roughly two million below 2019 levels and six million less than 2009.

Casinos have responded to rising expenses by raising prices. Compared to 2019, the resorts collected $109.1 million more from accommodations and $1.6 million from F&B services. However, this additional revenue has largely been absorbed by increased labor, benefits, and supply costs.

Another financial strain comes from the structure of online gaming revenue. A significant share of that income is funneled to third-party partners such as DraftKings and FanDuel, reducing what casino operators ultimately retain. As a result, total net revenues declined by 0.5% in 2024, totaling $3.31 billion.

A cornerstone of the South Jersey economy

Despite challenges, Atlantic City's casino industry continues to deliver meaningful economic benefits across South Jersey. The sector supported 23,000 jobs in 2024 and contributed $883 million in taxes and fees. Operators also spent $605 million on goods and services from New Jersey-based vendors, reinvested $205 million into property upgrades, donated $1 million to charitable causes, and collectively volunteered over 7,000 hours.

Atlantic City's casinos are not just entertainment venues - they are critical to the regional economy, Bokunewicz noted. That's why it's vital for public and private stakeholders to work together to ensure the city remains competitive.

New York City threat looms large

The most significant challenge to Atlantic City's future may come from across the Hudson River. By the end of 2025, New York State is expected to award three downstate casino licenses, paving the way for multibillion-dollar resorts in or near New York City.

Each license will carry a $500 million fee and allow operators to offer slot machines, table games, and retail sports betting in key feeder markets like Manhattan, Westchester County, and Long Island - areas that have historically provided a steady stream of visitors to Atlantic City.

The next few years are critical, Bokunewicz emphasized. New York's gaming expansion will reshape the landscape, and we must respond with continued investment, innovation, and a renewed commitment to making Atlantic City a premier destination.

As Atlantic City faces increased pressure, the LIGHT report serves as both a progress check and a call to action for industry leaders, policymakers, and the local community. While the city's gaming industry has proven resilient, the coming wave of competition means there is little room for complacency.