Winning (or Losing) Streaks: The Battle Between New York City Casinos and Atlantic City
Anticipation Grows Regarding Potential Shoe Drop Incident on New York City Boardwalk
In the world of gambling, it's all about the cards you're dealt and how you play them. A recent report from the Division of Gaming Enforcement paints a promising picture for the gaming industry in New Jersey, with the state generating a total of $526.1 million in gaming revenue in March 2025. But beneath the surface, things might not be as rosy as they seem.
The casinos of Atlantic City generated $230.9 million in revenue, a 3.7 percent decrease compared to 2024. However, the online and sports betting sectors emerged as the real winners, with a combined revenue of $315.2 million. This represents a significant 15.5 percent increase compared to the same period in 2024. New Jersey residents placed a staggering $1.1 billion on sports betting alone, showcasing a growing appetite for winning big.
However, the celebrated uptick in gaming revenue comes at a time when the gaming industry in Atlantic City is facing fierce competition. The looming entry of casinos in New York City presents a substantial threat to the established gambling market in Atlantic City.
Over the years, Atlantic City has struggled to maintain its standing against the expanding gambling market in its region. The legalization of casinos in Pennsylvania was a considerable blow, as over 50 percent of Atlantic City's customers hailed from Pennsylvania before the casinos began to crop up. The Rich Get Richer
The casinos in Pennsylvania proved to be fierce competitors, with their multi-billion-dollar resorts surpassing anything Atlantic City had to offer. Once considered a serious rival to Las Vegas, Atlantic City has failed to keep up with the region's Indian casinos and commercial casinos in other jurisdictions.
The casinos of New York City will not be simple slot parlors. With established annual revenues of $1.46 billion in 2022, these much-anticipated integrated resorts are poised to draw a substantial share of high-value customers from Mid-Atlantic states. This, in turn, directly threatens Atlantic City's $2.57 billion market, which has yet to fully recover from the effects of the pandemic.
Properties such as Ocean Casino Resort are already preparing for this competition, investing $50 million in upgrades to modernize and retain guests. However, the scale of investment needed to maintain relevance in the face of stiff competition remains to be seen.
Atlantic City's reliance on regional patrons makes it particularly vulnerable to competition from New York City's casinos. These new casinos are expected to capture demand from northern New Jersey and the New York metro areas, historically important sources of visitors for Atlantic City.
While the exact impacts of the new casinos in New York City are yet to be seen, it's clear that Atlantic City will need to adapt strategically to maintain its market share. The city may need to accelerate investments in non-gambling attractions such as entertainment and dining to differentiate itself, following the example set by Las Vegas.
In short, the battle for dominance in the gambling industry is ongoing. The opening of New York City's casinos could lead to marginal revenue declines for Atlantic City, particularly in the slot and table game segments. In the long run, Atlantic City may need to reinvent itself to remain competitive, riding the wave of change rather than being swept away by it.
- The casinos in New York City, predicted to generate annual revenues of $1.46 billion, are poised to challenge Atlantic City's market share, potentially drawing high-value customers from nearby states.
- In the wake of stiff competition, properties like Ocean Casino Resort are investing $50 million in upgrades to maintain their guest base, demonstrating the investment needed to keep up with the competition.
- The impending casinos in New York City pose a significant threat to Atlantic City's $2.57 billion market, which is still recovering from the impact of the pandemic.
- The growing popularity of sports betting, with New Jersey residents placing $1.1 billion on sports betting alone, indicates a shift in the gambling trends, adding another layer of competition to the casino industry.
- If Atlantic City is to remain competitive, it may need to diversify its offerings beyond casino games, emulating the success of Las Vegas in attracting visitors with entertainment and dining options.
- Responsible gambling remains crucial in the gaming industry as both Atlantic City and Las Vegas navigate the changing landscape of casino-personalities and casino-culture.
- As the battle for dominance in the casino-and-gambling industry continues, with lotteries, sports betting, and casinos all vying for a piece of the pie, the city that embraces change and innovation is likely to come out on top.
