The emerging casinos in New York pose “more than an existential threat” to Atlantic City, primarily by syphoning off a critical portion of its customer base and outmatching the Boardwalk’s ability to invest in competitive facilities.
The New York City Threat and Competitive Disadvantage
The approval of three casino licenses for New York City represents an “existential threat” to the Atlantic City Boardwalk. This development mirrors the entry of Pennsylvania into the market 20 years ago, which decimated Atlantic City’s regional dominance.
Customer Capture: New York City casinos are expected to capture the same customer base that Atlantic City relies on. Atlantic City, already struggling with stagnant retail growth, has “no customers to spare.”
Investment Gap: Atlantic City casinos currently lack the revenue and return on investment (ROI) necessary to fund the multi-billion-dollar upgrades required to compete with new NYC resorts.
While Atlantic City has a brief window of approximately two years before Resorts World NYC completes its full resort transition, other major competitors like Hard Rock and Bally’s will follow shortly thereafter.
Immediate and Long-term Competition: Resorts World NYC is slated to open table games as early as March, providing immediate competition, while full resort developments by operators like Hard Rock and Bally’s will take at least two years to construct.
This external pressure from New York creates a “triple-barreled shotgun” scenario for Atlantic City when combined with internal factors, such as the growth of online gambling (“igaming”) which continues to “eat into casino revenues”.
Executive Summary
The Atlantic City gaming market is undergoing a fundamental paradigm shift, as 2025 marks the first year that remote wagering revenue officially eclipsed retail casino revenue. While the New Jersey gaming industry reported a record total Gross Gaming Revenue (GGR) of $6.98 billion for 2025—a 10.8% increase over the previous year—this growth is driven exclusively by digital channels. Revenue from physical casino operations remains stagnant.
Historical Context and the Retail Stagnation
The current state of Atlantic City must be viewed through the lens of a long-term decline that began nearly two decades ago.
Atlantic City Mayor, his wife, and the high school principal recently found not-guilty.
Atlantic City reached its peak in 2006 with $5.2 billion in casino GGR. The decline began in 2007, accelerated by the introduction of slot machines in Pennsylvania and the onset of the Great Recession in 2008. By 2015, retail revenue plummeted to $2.5 billion, less than half of its peak value.
Digital Lifeline: Growth returned in 2016 with the legalization of online gambling, followed by sports betting in 2018.
Stagnant Brick-and-Mortar: While overall GGR has grown, physical casino revenue has stalled.
“Digital Veil” over Industry Trends
The success of digital expansion is masking a troubling trend across the broader gaming industry: a decline in physical casino visitation.
This “veil” of high GGR, Gross Gaming Revenue (money from betting minus winnings) in the gambling industry from igaming and mobile sports wagering hides the fact that there are fewer customers entering physical properties.
The AC casinos are troubled by a decline in physical casino visitation? They should look in their back yard. Their downbeach customer base — for playing, for shopping, for dining — is put off more and more by exorbitant parking fees.
There are plenty of other more relevant reasons to not go to AC than parking fees.
Atlantic City will NEVER return to greatness with Marty and LaQuetta Small in charge. Combined, this slippery couple controls a $500 million budget. Still, AC streets are dark, dangerous, and filled with empty storefronts. BLM riot, Defund Police efforts, and C-19 lockdowns were supported by Gov Murphy and Mayor Small.