As Atlantic City Casinos Face a Shifting Landscape, Lingering Concerns Persist
Financial Analysis Underscores Brick-and-Mortar Casino Struggles as New York City Competition Intensifies
Posted on: May 11, 2025, 11:37h.Last updated on: May 11, 2025, 01:01h.By: Devin O'Connor for CasinoorgContributor: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics, Atlantic City Casinos
The radiant neon lights of Atlantic City's iconic casinos may soon lose their charm as the city prepares for intensified competition from the newest slot machines and table games in New York City. A looming expansion of gaming properties in nearby Manhattan is casting a long shadow over the East Coast gaming capital.
While Atlantic City's casinos reported a collective profit last year, a recent study sheds light on a troubling long-term outlook for the resorts. The report, published annually by Stockton University's Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, highlights concerns about the casinos' ability to remain competitive in the face of upcoming multibillion-dollar gaming properties in the Big Apple.
Stagnant In-Person Gaming Income
Despite significant investments made by Atlantic City properties to enhance the in-person casino experience, oftentimes paired with high costs, it seems like these numbers aren't enough to offset operators' expenses. Brick-and-mortar gaming revenue still hasn't returned to pre-pandemic levels, growing only by 0.6% in 2024, according to the 2024 "Impact" study.
On the flip side, online sports betting and iGaming revenues are skyrocketing—taking a considerable chunk of traditional casino incomes. As a result, net revenues in 2024 decreased by 0.5%, reaching $3.31 billion.
Artificial Intelligence in the World of GamblingTechnology-driven changes also pose a threat to the traditional gambling industry. The use of machine learning and artificial intelligence (AI) algorithms is on the rise to enhance various casino operations. AI’s ability to predict customer preference, streamline operations, and even oversee security measures is fast becoming a differentiator for casinos in an increasingly competitive market.
Atlantic City’s older casinos, built decades ago, tend to have structural limitations that make them less flexible to incorporate AI technology seamlessly. This tech-gap could leave some of them struggling against the more agile, tech-savvy newcomers springing up in New York City.
Attracting Visitors in the Face of the Future
Atlantic City remains a popular destination, welcoming close to 18 million people in 2024, a slight increase from the previous year. But, it's still far from pre-pandemic numbers. With higher costs, casinos were able to charge more for hotel rooms and food, but much of the added revenue went to cover increased overhead due to lingering inflation and higher wages.
Yet, Atlantic City casinos remain a significant driving force in the local economy. In 2024, they directly employed over 23,000 people, generated $883 million in casino taxes, contributed $605 million to New Jersey vendors, invested $205 million into their properties, donated $1 million to charity, and volunteered thousands of hours for various causes.
The Countdown to New York's Gaming Boom
The bidding war for three downstate New York casino licenses is expected to reach its climax by 2025's end. Each concession carries a $500 million entrance fee, allowing the winners to operate slot machines, live dealer table games, and retail sports betting in New York City, Long Island, or Westchester County.
Experts argue that the upcoming gaming properties in New York City would further intensify the competition in the Atlantic City market. The city's feeder market will likely be pulled toward the newly opened casinos, potentially leading to a decline in Atlantic City's visitor numbers.
Bringing New Life to the City by the Sea
As the pressure mounts, it's increasingly crucial for Atlantic City to stay a step ahead. The continued reinvestment and revitalization are more important than ever, especially in light of the anticipated expansion in downstate New York. To remain competitive, city officials must focus on implementing modern technologies and preserving the unique charm of Atlantic City that has attracted visitors for decades.
- Atlantic City's casinos are preparing for increased competition from new gaming properties in New York City, particularly Manhattan.
- While the 2024 "Impact" study reported growth in online sports betting and iGaming revenues, brick-and-mortar gaming revenue still hasn't returned to pre-pandemic levels.
- The use of artificial intelligence (AI) is becoming a differentiator for casinos in a competitive market, but older Atlantic City casinos may struggle to incorporate AI technology due to structural limitations.
- Despite higher costs and stagnant in-person gaming income, Atlantic City casinos remain a significant driving force in the local economy, creating jobs, generating taxes, and contributing to New Jersey vendors.
- The bidding war for three downstate New York casino licenses is expected to reach its climax by the end of 2025, potentially leading to a decline in Atlantic City's visitor numbers.
- To remain competitive, city officials must focus on implementing modern technologies and preserving the unique charm of Atlantic City that has attracted visitors for decades.
