Atlantic City, traditionally known as the “Las Vegas of the East Coast,” is currently experiencing a downturn. Recent data released by the New Jersey Division of Gaming Enforcement (DGE) revealed a sharp drop in revenue and profits for the city’s nine casinos during the first quarter of the year.
In the first quarter of 2025, Atlantic City’s casinos recorded a net revenue of $730.3 million, representing a 5.1% decrease compared to the same period in 2024. This drop covers income from casino games, accommodations, food, drinks, and digital operations, including sports betting and online gaming.
Gross operating profit, a key indicator of the sector’s financial health, fell by 15.1%, totalling approximately $132 million. Only the Hard Rock Hotel & Casino and Tropicana Atlantic City managed to increase their profits compared to the previous year, with growths of 2.9% and 7.1%, respectively. On the other hand, Bally’s was the only one to report an operational loss, with a deficit of $6.6 million.
James Plousis, president of the New Jersey Casino Control Commission, attributes the decline in revenue to broader economic pressures affecting leisure tourism and gaming in the region. In addition, the start of the second quarter was no better. In April, in-person betting dropped by almost 3%, while sports betting revenue fell by 15% compared to the same month the previous year.
Hotel occupancy also fell, reaching an average of 62.9% in the first quarter, the lowest since 2014, excluding the pandemic-affected period in 2021. The average room rate decreased by 3%, resulting in a rate of $159.
According to the LIGHT 2024 Impact report, casino operators invested over $200 million last year in improvements to food, retail, and gaming areas. In the past five years, the sector has allocated over $1 billion to revitalisation efforts.
Mark Giannantonio, president of Resorts Atlantic City and the Casino Association of New Jersey, described the city as undergoing a “renaissance”. He highlighted that casinos used the winter season to renew their offerings in preparation for the summer.
Events such as the return of the air show, now renamed the Visit Atlantic City Soar & Shore Festival, and the completion of a $40 million beach restoration project are expected to attract many visitors. Other big names in music and comedy are scheduled to perform in the casinos throughout the season.
Gary Musich, president and CEO of Visit Atlantic City, commented on the city’s variety of attractions, including food, entertainment, and unique seaside experiences.
Despite the revitalisation plans, Atlantic City still needs to face intense competition from neighbouring states. The opening of new casinos in New York and the possibility of a casino in the Meadowlands, New Jersey, may pose threats. Jim Allen, president of Hard Rock International, predicts a 20% to 30% drop in in-person gaming revenue due to regional competition.
This article was first published in Portuguese on 26 May 2025.