Atlantic City Casinos Struggle as iGaming Surges in Popularity
Atlantic City was once the home of East Coast gambling; however, over the last few months, its land casinos have seen their revenues continually decline. Instead, players are increasingly turning to online casinos to enjoy games such as online baccarat.
In February 2025, Atlantic City’s casinos saw in person gaming revenues decrease by roughly 4%, which was a continuation of a worrying downward trend. Slot machine revenues fell by 4.3% to $152.1 million and table games suffered a 2.5% decrease, bringing in just $51.3 million. It was the second consecutive month in which iGaming revenue was above physical casino earnings, as online slots, interactive tables, and online poker generated nearly $207.8 million, a 14% increase compared to February 2024.
Harsh Winter Discourages Casino Visitors
Industry analysts have suggested that harsh winter conditions, including two severe snowstorms, were a major reason why casino visitor numbers were down. Jane Bokunewicz, the director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, hypothesized that the poor weather reduced in-person activity and indirectly boosted online gambling numbers.
The land casino industry’s problems continued in March 2025, when Atlantic City’s physical casino revenue fell 3.7% year-over-year to $230.9 million. The main reason was a nearly 15% decline in table game revenue to $57.3 million. Despite this downturn, James Plousis, chair of the New Jersey Casino Control Commission, pointed out that March was the second-best month for in-person Gross Gambling Revenue (GGR) in the last 12 years. Impressively, online gaming revenue reached a record high of $243.9 million and it was the eighth consecutive month in which iGaming revenues were greater than those from traditional casinos.
From January through April 2025, brick-and-mortar casino revenues dropped by approximately 2% compared to the same period in the previous year. April specifically saw a 2.7% year-over-year decline, which resulted in nearly $5.9 million less than in April 2024. While slot machine revenues increased by 2.1% to $162.2 million, table games saw a significant downturn and declined by roughly $9.3 million year-over-year to under $48.8 million.
Sports Betting Also Down
Sportsbooks, another important revenue stream, are also suffering. Total sports betting activity in New Jersey dropped from nearly $5.2 billion in the first four months of 2024 to just $4.2 billion over the same period in 2025. As a result, sportsbooks’ earnings fell 18% and reached just $357.6 million.
There are a number of possible reasons for the downturn in sports betting activity. For instance, bettors are reportedly increasingly dissatisfied with local sportsbooks’ odds. Furthermore, many are feeling financial pressures due to ongoing inflation and economic uncertainties. It is also possible that responsible gambling campaigns are having an effect.
Nonetheless, while traditional casino gaming and sportsbooks are suffering, Atlantic City’s iGaming sector has consistently flourished. April 2025 alone saw online casinos generate $235.2 million in revenue, up 25% from the previous year. Overall, online gaming for the first four months of 2025 surged by 21% to reach a total of more than $908.4 million.
High Hopes for summer Visitors
There are hopes that Atlantic City’s fortunes will improve as summer approaches. The summer months typically attract large numbers of visitors from Philadelphia, North Jersey, and New York. The industry is hoping that recent beach restoration projects along the northern section of the iconic Boardwalk that promise enhanced visitor experiences will ultimately lead to high visitor numbers for land casinos.
James Plousis has spoken of the importance of the high-quality service that is provided by casino workers in Atlantic City and believes that it will help restore the industry’s fortunes. Celebrating the city’s workforce at events such as the Casino Reinvestment Development Authority’s “Host Awards”, Plousis argued that exceptional hospitality is of great importance in increasing summer visitation and patron satisfaction. Additionally, the casinos are looking for more than 1,700 new employees, which suggests that they are optimistic about the upcoming summer season.
However, Atlantic City’s casino operators will be very aware that three major casino resorts are due to be built in nearby New York. These establishments, backed by gaming giants such as MGM Resorts, Caesars, and Hard Rock, pose a serious threat to Atlantic City’s long term revenue streams as they have the potential to divert visitors to the city who currently travel from New York.
As such, the outlook for Atlantic City’s casinos is less than clear. As land casino revenues and sports betting numbers decline and iGaming continues to thrive, the city’s casinos are facing several challenges, none of which will be easy to overcome.
