Atlantic City Casino Struggles Continue, as iGaming Outpaces Brick-and-Mortar
Casinos in Atlantic City faced challenges in February, with in-person gross gaming revenue (GGR) decreasing by 4%.
In 2024, the nine casinos along the New Jersey shore earned 1.1% less from gamblers compared to 2023. While January marked a robust beginning to 2025, with retail operations' GGR increasing nearly 3%, February reverted to concerning patterns as physical play fell by 3.8% compared to February 2024.
Last month, in-person venues generated $152.1 million, reflecting a 4.3% drop compared to the previous year. Felt's win declined by 2.5% to reach $51.3 million.
The estimated in-person GGR of $203.4 million fell behind iGaming revenue for the second month in a row. Meanwhile, online slots and interactive tables, which encompass poker rake, reached nearly $207.8 million. The iGaming revenue increased by 14% compared to last year.
"A less busy month for in-person patrons opened the door to more internet gaming activity and the opportunity for online casino operations to pass brick-and-mortar for a second consecutive month with a 14% increase over February 2024,” explained Jane Bokunewicz, the director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism.
Bokunewicz attributed the lack of in-person performance to the weather. February brought harsh cold to Atlantic City, with two winter storms depositing about eight inches of snow in the seaside city.
Oddsmakers retained approximately $73.6 million of the $988.9 million bet, reflecting a 9% increase compared to the previous year. Except for $39.3 million, all bets were placed online.
After all calculations were completed, New Jersey's GGR from casinos, iGaming, and sports betting amounted to $484.8 million in February 2025. That represents a 5% increase compared to the previous year. So far this year, GGR has increased to over $1 billion, reflecting a 1.8% rise.
Atlantic City 2025
Following the closure of five Atlantic City casinos from 2014 to 2016, each year since appears increasingly vital to the town's casino future.
Following years of assessing whether the market had appropriately adjusted, Atlantic City’s casinos endured the financial ruin brought on by the COVID-19 pandemic. Nonetheless, every casino declared a gross operating profit for three quarters of 2024, the latest quarter reported. When annual profits are revealed, 2024 will probably mark the first year since prior to the pandemic that all properties have turned a profit.
Numerous issues and obstacles persist, yet attention is focused on New York, where three comprehensive casino licenses that include slots, live dealer games, and sports betting rights will be granted in the upcoming months. New York serves as a significant source market for Atlantic City.
Integrated resort casinos worth billions, such as those from MGM Resorts, Las Vegas Sands, Caesars, and Hard Rock, pose a significant risk to Atlantic City’s future prospects. Although MGM, Caesars, and Hard Rock have investments in Atlantic City, downstate New York is viewed as the most significant untapped gaming market opportunity in the US in many years.
During the initial two months of 2025, the GGR from Atlantic City casinos has decreased by 0.7%, which is nearly a $2.8 million change. Nevertheless, in contrast to early 2019 before COVID, the initial two months show a 10.5% rise, equivalent to an increase of roughly $39.5 million. A significant portion of that GGR rise has been used to balance out elevated overhead expenses for products and rising labor costs in a competitive environment for skilled workers.
Accountable Gambling Month
James Plousis, the chair of the New Jersey Casino Control Commission, is urging gamblers to gamble responsibly, as March marks Problem Gambling Awareness Month in New Jersey.
“This time each year, we pause to acknowledge that some people develop problems with gambling or are at risk for addiction,” Plousis said in prepared remarks. “Education and treatment programs are available. If you or anyone you know has a gambling problem, call 1-800-GAMBLER.”
