Atlantic City Casinos Give $572M to State Aid Despite Profit Drop

A new report from Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism (LIGHT), working with the Casino Association of New Jersey (CANJ), shows that Atlantic City’s casino industry sent a record $572 million to the state’s Casino Revenue Fund in Fiscal Year 2024. These findings highlight how the industry remains crucial to South Jersey‘s economy even as it faces tough economic times.

Half of Atlantic City Casino Revenue Now Comes From Non-Gambling Sources

The nine casinos’ combined net revenue saw a small drop to $3.31 billion, a 0.5% decrease from 2023. Despite this, the industry still had a big impact on state programs that help older residents and people with disabilities. The report broke down where the money went: $541 million for housing projects for people with developmental disabilities, $17 million for programs for seniors, and smaller amounts for medicine and personal help services.

Casino operators also brought in $883.2 million in taxes and fees, showing an 11% jump from the year before. While overall revenue stayed the same, a big change kept happening in how casinos make money. Notably, only about half the money came from gambling in 2024, with the rest coming from hotel stays, food and drink sales, and other perks. Hotel stays alone pulled in $716 million, up from $536 million in 2018, while food and drink sales hit $574 million.

Jane Bokunewicz, who heads LIGHT, stressed that casinos play a key role in the area’s financial flow. She pointed out that besides paying lots in taxes, the industry keeps giving jobs to thousands of locals and boosts spending across New Jersey by working with vendors.

Casinos Invest $1B to Stay Competitive Amid Flat Gaming Income and Rising Costs

Job numbers stayed high in 2024, with 23,000 people working in the field. Out of these, 19,000 call Atlantic County home and 5,000 live right in Atlantic City, making up a big chunk of the city’s workers.

Even so, problems remain. The industry saw its gross operating profit drop 9.2% to $709.2 million, showing the strain from increasing expenses and a shifting entertainment scene. Regular gaming income has plateaued in recent years, while online and sports betting, though expanding, do not generate the same direct earnings due to profit-sharing with outside parties.

To address this, casinos keep putting money back into their venues. They have invested over $1 billion in upgrades and fresh attractions since 2020, aiming to boost visitor satisfaction and keep up with rival states nearby. Atlantic City casinos drew close to 18 million visitors in 2024, a small 1.2% uptick from the year before. This suggests these establishments aim to keep their place as a prime spot for tourists, while the sector adjusts to fresh economic conditions.