Atlantic City may see a staggering reduction of over 8,100 casino jobs and a loss of nearly $1.3 billion in annual revenue by 2035. This alarming forecast comes from a report released by the Greater Atlantic City Casino-Hotel Employment Exposure Assessment, which highlights the potential impact of new casinos in New York City and North Jersey, coupled with the ongoing rise of online gambling and persistent inflation.
The anticipated job losses would account for more than one-third of the current casino workforce and over 44% of the region's revenue. In a scenario that excludes the potential North Jersey casinos, the report estimates that 5,100 jobs could be lost, along with nearly $815 million in revenue by 2035.
The Atlantic County Economic Alliance, a nonprofit organization established in 2017 to promote business in the county, collaborated with various stakeholders, including local governments, casino operators, and educational institutions, to analyze the situation. Casino executives and analysts reviewed the report's findings prior to its release.
Max Slusher, the director of business development for the alliance, emphasized that while the report serves as a planning tool rather than a dire prediction, the risks are significant. He noted that the region must recognize these challenges before facing increased competitive pressure.
Slusher remarked, “Atlantic City has shown resilience in the past, but it cannot handle multiple significant challenges without a strategic plan. We created four planning scenarios to help decision-makers understand the full spectrum of risks and act proactively.”
The report outlines five key threats: the shift from traditional casino gambling to online gambling and sports betting; the development of three new casinos in New York City by Hard Rock, Bally's, and Resorts World; potential new casinos in North Jersey; ongoing inflation; and a proposed convention center at the Meadowlands.
If all these developments occur, the report warns that the situation could mirror the crisis experienced by Atlantic City from 2013 to 2016, during which five casinos closed, with two later reopening under new management.
Approximately 70% of casino-hotel employees in Atlantic City, totaling 14,723 out of 21,172 jobs reported statewide, reside in nearby communities such as Pleasantville, Egg Harbor Township, Galloway Township, and Hamilton Township, indicating that these areas would be significantly affected.
The report advocates for enhancing conventions, meetings, and non-gambling tourism, as well as improving the city's infrastructure and aesthetics. It also stresses the importance of continued investment in casino and hotel properties, along with efforts to diversify the regional economy and create living-wage jobs.
Conventions are highlighted as a viable avenue for absorbing displaced casino workers, as skills in areas like banquet service, culinary arts, housekeeping, transportation, and audiovisual support can transition more easily into the meetings and conventions sector than into online gambling roles.
Gary Musich, president and CEO of Visit Atlantic City, cautioned that the proposed Meadowlands convention center could jeopardize these efforts. He stated, “If a new facility is built to compete with an existing one that hasn’t been updated in 29 years, there needs to be investment in the Atlantic City Convention Center to ensure its viability.”
Musich added that investing in Atlantic City would position it as a development hub, benefiting the entire state of New Jersey rather than merely shifting business from South to North Jersey.
However, as casino profitability declines, ongoing investments may become more challenging. Recent figures indicate a 9.3% drop in the industry's combined gross operating profit for the second quarter.
The alliance also suggested postponing the consideration of new casinos in New Jersey until adequate protections for the Casino Revenue Fund are established, alongside measures for worker retraining, social assistance, union job protections, and support for businesses reliant on the casino-hotel sector in Atlantic City and surrounding areas.