A new report says New Jersey’s casino industry faces significant economic headwinds from increased competition in New York and the growth of online gaming.
The Atlantic County Economic Alliance (ACEA) said Tuesday that Atlantic City casinos face major economic threats that could see the industry shed thousands of jobs by 2035. The city’s nine casinos already face the lowest employment levels in the last nine years.
Along with a major impact on the casinos themselves, falling revenue could also greatly impact tax dollars coming into state coffers, according to the ACEA report.
“ACEA is responsible for the health of Atlantic County’s economy, and that responsibility means giving our leaders more than an educated guess,” ACEA President Lauren Moore said.
“We invested extensive time and resources to produce this report because decisions of this magnitude affecting thousands of hardworking New Jerseyans and two important revenue sources for New Jersey – casino gaming, and the conventions and meetings market – must be grounded in real data and facts, not speculation.”
Several Issues Affecting Industry
In recent months, New Jersey legislators considered adding two casinos in the northern part of the state at the Meadowlands and Monmouth Park in reaction to New York approving three downstate casino projects.
The ACEA used those potential casino expansion projects as part of the study. It also considered the growth of online gaming. Atlantic City could face job losses of more than 5,100. ACEA Director of Business Development Dr. Max Slusher authored the study.
The potential job losses extend beyond the casinos. They could include employees in other sectors that do business with the city’s gaming properties.
“This is a planning document, not a doomsday prophecy,” Slusher said. “But the size of the exposure is real, and the region needs to see it clearly before more competitive pressure is added. History has taught us that Atlantic City is resilient and can absorb one shock at a time.
“But the region cannot absorb five monumental challenges stacking on top of each other unless we develop a plan. We built four planning cases instead of a single forecast, so decision-makers can see the full range of what is at stake, and act before the choice is made for them.”
Casino Closings, Residents Moving Out
Over the last few years, the casino industry’s revenue has been up and down. Online casino revenue has topped revenue from brick-and-mortar casinos at times. However, the city’s nine casinos saw a 7.1% revenue increase in July and the industry is up 3.1% year to date.
The city saw several casinos close over the last decade-plus. That included the Showboat in 2014. Trump Plaza was demolished the same year. The Atlantic Club closed in 2016. The Trump Taj Mahal, a longtime East Coast poker hotspot, was shuttered in 2016.
Online gaming and casino expansion continues to be a major factor in New Jersey’s gaming fortunes. Several neighboring states now allow casinos. Mobile sports betting is legal in 39 states.
Gamblers in the region no longer have to head to Atlantic City to wager.
An additional obstacle could be the number of residents moving out. According to the United Van Lines 2025 National Movers Study, the Garden State led the country in outbound migration for the eighth consecutive year. Since 2020, 192,000 residents have moved to other parts of the country.
