How Online Casinos and Declining Tourism Led to Atlantic City's 14% Profit Drop in 2024
Thursday, January 23, 2025
A zoomed-out shot of Atlantic City - Free Stock Image
Atlantic City’s casinos endured a tough year in 2024, marked by a significant decline in operating profits during the third quarter. Compared to the same period in 2023, profits dropped by nearly 14%, with the nine casinos collectively reporting earnings of $236.5 million. Caesars and Hard Rock were exceptions, managing slight profit increases despite the overall downward trend.
The industry's challenges stemmed from several factors, with economic conditions playing a major role. High inflation throughout 2024 tightened household budgets, leading many consumers to cut back on discretionary spending. Gambling, often considered a luxury, saw reduced in-person participation as visitors opted to save money. At the same time, New Jersey’s online gambling sector continued to grow, setting a record in November 2024 by generating over $214 million in revenue.
While this underscores the industry's capacity for adaptation, the success of online platforms has further impacted foot traffic and revenue at physical casinos. Many of the best online casinos continue to drive the shift toward increased online gambling activity by offering players enticing benefits, such as enhanced anonymity, robust safety measures, convenience through no KYC procedures, faster withdrawal speeds, and support for a wide range of cryptocurrencies. Additionally, these platforms provide access to thousands of provably fair casino games and attract players with appealing bonuses and promotions (source: anonymouscasinos.ltd/).
The key difference between online and offline casino resorts, like those in Atlantic City, is that they generate revenue from more than just gaming—something online platforms cannot replicate. However, even with these additional sources of revenue, such as dining, entertainment, and accommodations, they have also struggled.
Tourism in Atlantic City remained sluggish, worsened by competition from other regional destinations. With fewer visitors and reduced spending per trip, casinos faced compounded financial difficulties, emphasizing the critical role of non-gaming attractions in their overall business model.
Despite these challenges, some bright spots emerged. Caesars and Hard Rock demonstrated that strategic initiatives could yield positive results, even in difficult times. Investments in promotions, entertainment, and upgraded amenities likely contributed to their ability to maintain growth. These examples point to the critical role of innovation and adaptability in an industry where competition is fierce.
The strength of online gambling also presents an opportunity for traditional operators. Expanding digital platforms and integrating them with in-person experiences could attract a wider audience and help offset declining on-site traffic. Mobile apps, loyalty programs linking online and in-person activities, and hybrid events that combine virtual and physical elements are just some ways casinos could leverage this trend to strengthen engagement.
Looking ahead, Atlantic City’s casinos are rethinking their strategies to regain momentum in 2025. Enhancing the overall visitor experience remains a top priority, with plans to diversify entertainment options, improve customer service, and introduce attractions that cater to changing consumer preferences. At the same time, continued investment in digital platforms is expected to play a significant role in capturing the growing demand for online gaming while complementing traditional offerings.
State and local governments are also exploring ways to support the industry, including marketing campaigns to attract more tourists, infrastructure upgrades, and fostering innovation within the gaming sector. Collaboration between public and private stakeholders could help stabilize the industry and create pathways for sustainable growth in the future.
The hurdles faced by Atlantic City’s casinos in 2024 highlight the importance of staying adaptable in a constantly evolving landscape. While economic pressures and the rise of online gambling presented considerable challenges, there are clear opportunities for strategic growth. By prioritizing customer experiences and embracing innovation, Atlantic City’s casinos could reclaim their reputation as a premier gaming and entertainment destination in 2025 and the years to come.