Atlantic City Casinos Generate US$1.1 Billion in Taxes Amid Competition
United States.- 27 October 2026 | www.zonadeazar.com The casino industry in Atlantic City, New Jersey, remains one of the region’s main economic drivers, although it faces increasing challenges from interstate competition, rising operating costs and the expansion of online gambling.
According to economic reports covering 2025, the city’s casinos generated approximately US$1.1 billion in taxes and fees, representing an increase of nearly 25% compared with the previous year.
The industry also plays a fundamental role in employment, tourism and investment in modernising hospitality infrastructure.
Casinos’ Economic Contribution
The 2025 Impact: Atlantic City Casino Industry report, prepared by Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) in partnership with the Casino Association of New Jersey, highlights the following figures:
- US$1.1 billion in taxes and fees.
- US$661.7 million allocated to the Casino Revenue Fund.
- 22,500 jobs supported by the industry.
- US$634 million spent with New Jersey suppliers.
- US$196 million reinvested in facilities during 2025.
The Casino Revenue Fund supports state programmes primarily benefiting older residents and people with disabilities.
Profitability Faces Growing Pressure
Despite its economic contribution, the land-based casino sector has struggled to maintain profitability.
During 2025, operators generated US$3.29 billion in net revenue, representing a year-on-year decrease of 0.5%.
Gross operating profit reached US$681.6 million, down 3.9%.
The main factors include rising labour costs, inflation and the need to invest additional resources in promotions and commercial improvements.
New York Increases Regional Competition
One of Atlantic City’s main challenges is the expansion of casinos in the New York metropolitan area.
In December 2025, New York authorities selected three projects for new casino licences:
- Bally’s Bronx.
- Hard Rock Metropolitan Park in Queens.
- Resorts World New York City.
The addition of these properties could change the behaviour of visitors who have traditionally travelled to Atlantic City.
Industry representatives believe this competition will require the city to strengthen its tourism offering and improve the visitor experience.
Investment to Maintain Competitiveness
Atlantic City casino operators have invested more than US$1.2 billion over the past five years in upgrading their properties.
These investments include hotel rooms, restaurants, entertainment facilities and gaming floor improvements.
The strategy aims to establish Atlantic City as a comprehensive tourism destination, competing not only through casinos but also through live entertainment, dining, beaches and conventions.
Online Gambling Reshapes the Market
The growth of online casinos is also transforming New Jersey’s gambling economy.
Although iGaming makes a substantial contribution to tax revenue, its expansion creates additional challenges for land-based operators.
Regulators and industry specialists have highlighted that gross gaming revenue does not always accurately reflect profitability, particularly when operators face higher costs and complex revenue-sharing agreements.
This reinforces the importance of examining financial results alongside land-based activity and digital market performance.
Industry Impact and Next Steps
Atlantic City retains an important position within the US gambling industry, contributing significantly to employment, tax revenue and tourism development.
However, casino expansion in New York and rising operating expenses could increase competitive pressure over the coming years.
Tourism diversification, property modernisation and the ability to attract visitors will be essential to maintaining Atlantic City’s competitiveness.
Editó: @fonta
