New York’s Downstate Casinos Pose an Immediate Threat to Atlantic City’s Boardwalk Empire

Growing concerns about the sustainability of Atlantic City’s Boardwalk casinos have increased with the looming specter of three downstate New York casinos whose licenses will be awarded by the end of this year. 

iGaming Threat 

Atlantic City’s casino operators have been pouring money into their properties to make them more enticing for locals and tourists alike. However, the arrival of iGaming has eroded some of those profits, even though the casinos get a piece of the action, but most of the revenue is earmarked for the third-party platform providers, ala FanDuel and DraftKings. 

According to a study released by Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, otherwise known as the acronym LIGHT, gross gaming revenue generated by the Boardwalk casinos increased 9% in 2024 compared to 2023, thanks to mobile sports betting and online casino gambling. 

However, land-based gaming is what matters the most to the casinos because they don’t need to split the profits with any other entities. And in that category, in-person gaming profits decreased by more than 1% in 2024 compared to the previous year. 

“The ‘flat’ trajectory of traditional, brick-and-mortar casino revenues has become concerning to some, especially considering recent, substantial investments Atlantic City properties have made to enhance [the] in-person integrated casino resort experience,” wrote LIGHT Faculty Director Jane Bokunewicz. “Given inflation and other continuing market pressures, this performance was not enough to offset operators’ expenses.” 

Using data collected from the Pleasantville Toll Plaza along the Atlantic City Expressway, LIGHT revealed Atlantic City welcomed 18 million people in 2024, which was slightly more than the previous year but two million fewer visitors than pre-COVID 2019 and six million fewer than in 2009. 

New York City Competition 

The Boardwalk casinos’ ability to maintain relevance once the three downstate New York casinos open for business is currently unknown. That uncertainty has led to an industry-wide anxiety in Atlantic City, and although those New York City casinos won’t be open for several years, they are indeed coming, and the competition won’t do any favors for the Boardwalk casinos’ foot traffic or revenue. 

Understanding that many New York City residents take a trip to Atlantic City to experience a bit of Las Vegas-style gambling on the East Coast, that border-crossing sojourn will no longer be necessary once the downstate casinos open for business. 

In anticipation of the increased and unwelcome competition, Bokunewicz wrote, “The continued reinvestment and revitalization in our great city is more important than ever with the expansion of downstate New York casinos on the horizon.” 

Atlantic City Mayor Marty Small said at a gaming conference that the city must be ready to diversify its economic options, stating, “Now more than ever we know there’s a threat coming with New York City gaming coming. We understand the threat. We want to continue to work together to do things right to put Atlantic City into a prime position, no matter where these casinos are, that we diversify our options.” 

Mark Giannantonio, president of Atlantic City’s Resorts casino and the Casino Association of New Jersey, believes in the Boardwalk casinos’ ability to battle the increased competition and be better because of it. “I’m always going to rely on hotel, entertainment, retail, and the experience on the casino floor,” Giannantonio said. “I believe in my heart that Atlantic City, with some hard work, will be an opportunity. We’re excited about the future.”