Atlantic City Casinos Contribute $572M to State Aid Despite Decline in Profits

Atlantic City’s vibrant casino industry has continued to bolster New Jersey’s economy despite facing financial challenges. According to a new report from Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism (LIGHT) in collaboration with the Casino Association of New Jersey (CANJ), the industry contributed an impressive $572 million to the state’s Casino Revenue Fund in Fiscal Year 2024. This substantial contribution underscores the pivotal role that these casinos play in supporting South Jersey’s economic infrastructure. Even with a slight 0.5% decline in the nine casinos’ combined net revenue to $3.31 billion, their positive impact on state-aid programs for the elderly and people with disabilities remains significant.

Despite the minor dip in revenue, casino operators have continued to demonstrate their economic importance through hefty tax and fee payments, totaling $883.2 million—a notable 11% increase from the previous year. This increase is primarily attributed to diversified revenue streams. While gambling still constitutes a considerable portion of their income, other avenues like hotel stays, food, and beverage sales have seen remarkable growth. For instance, revenue from hotel stays soared to $716 million, and food and drink sales climbed to $574 million. Jane Bokunewicz, who leads LIGHT,

The Atlantic City casino sector continues to be a significant employment generator, with 23,000 individuals employed in 2024. Of these, 19,000 reside within Atlantic County, and a notable 5,000 are based in Atlantic City itself. These employment figures highlight the industry’s vital role as a substantial workforce provider. However, challenges persist. The sector experienced a 9.2% drop in gross operating profit, down to $709.2 million. This decline reflects the increasing operational costs and a rapidly changing entertainment landscape. While traditional gaming revenue has plateaued, the rise of online and sports betting adds complexity, given the necessity of profit-sharing with external partners.

In an effort to navigate these challenges and maintain their competitive edge, Atlantic City casinos have been reinvesting heavily in their properties. Since 2020, over $1 billion has been funneled into improvements and new attractions aimed at enhancing visitor experiences. This strategy appears to be paying off, as the number of visitors reached nearly 18 million in 2024—a modest yet encouraging 1.2% increase from the previous year. This visitor uptick, although small, indicates a strong potential for the city to retain its status as a leading tourist destination. All these efforts