Atlantic City’s casino landscape is shifting, with online revenue outpacing traditional brick-and-mortar establishments in recent months. This trend highlights the evolving preferences of gamblers in New Jersey.
Key Takeaways:
- Atlantic City’s in-person casino revenue declined in 2024 and early 2025
- Online gambling revenue surpassed brick-and-mortar casinos for two consecutive months
- Sports betting in New Jersey is predominantly occurring online
Atlantic City’s Changing Casino Landscape
The gambling scene in Atlantic City is undergoing a significant transformation. Recent data from 2024 and the initial months of 2025 reveal a decline in revenue for the city’s physical casinos. This downturn coincides with a notable uptick in online casino earnings, signaling a shift in player preferences.
Revenue Trends in Atlantic City
The nine land-based casinos in Atlantic City experienced a 1.1% decrease in Gross Revenue Retention (GRR) for 2024 compared to the previous year. While January 2025 showed promise with a 3% year-over-year increase, February 2025 saw a sharp 3.8% decline from the same month in 2024.
In-person slot machine revenue took a particularly hard hit, dropping 4.3% year-over-year in February 2025. Overall, Atlantic City casinos’ winnings from players decreased by 2.5% compared to the previous year.
The Rise of Online Gambling
As traditional casinos struggle, online gambling platforms are thriving. In February 2025, iGaming GRR, including online slots, table games, and poker, reached $207.8 million. This figure not only surpassed the in-person casino revenue by $4.4 million but also marked a 14% increase from the previous year.
Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, noted that the slower month for in-person patrons created an opportunity for online casino operations to outperform brick-and-mortar establishments for the second consecutive month.
Sports Betting Dominance
The shift towards online platforms is not limited to casino games. Sports betting in New Jersey is now predominantly occurring online. Of the total $988.9 million wagered in February 2025, a mere $39.3 million came from in-person bets. Sportsbooks recorded $73.6 million in winnings, representing a 9% year-over-year increase.
Future Outlook for Atlantic City Casinos
While the recent figures paint a challenging picture for Atlantic City’s physical casinos, it’s important to note that the overall situation has improved since the COVID-19 pandemic. The decline in February’s in-person numbers could be attributed to New Jersey’s winter weather, leaving room for optimism as spring and summer approach.
The total iGaming and online sports betting revenue in New Jersey for February 2025 reached $484.8 million, marking a 5% increase from the previous year. This growth underscores the increasing popularity of online gambling options among New Jersey residents and visitors.
Adapting to Changing Player Preferences
The shift towards online gambling platforms presents both challenges and opportunities for Atlantic City’s casino industry. While traditional establishments may need to innovate to attract in-person visitors, the overall gambling market in New Jersey appears to be expanding.
As player preferences continue to evolve, casinos will need to adapt their strategies to cater to both online and in-person experiences. The coming months will be crucial in determining how Atlantic City’s gambling industry navigates this changing landscape and capitalizes on the growing interest in online betting and gaming options.
