In 2023, Atlantic City’s casino industry marked a significant milestone, showcasing robust growth despite ongoing challenges. According to the latest report from the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT) at Stockton University, in collaboration with the Casino Association of New Jersey (CANJ), the sector not only rebounded but surpassed previous records in various financial metrics.
Financial Performance
The Atlantic City casinos reported a remarkable $3.32 billion in net revenue for the year 2023. This figure represents a substantial economic impact, driven largely by a resurgence in gaming activities both online and offline. Gross gaming tax revenue soared to $467 million, marking a nearly 12% increase from the previous record set in 2006. Such financial gains underscore the resilience and profitability of the region’s gaming sector, reinforcing its role as a cornerstone of South Jersey’s economic landscape.
Revenue Streams
A standout feature of the 2023 financial landscape was the dominance of online gaming revenue. Internet gaming alone contributed $1.92 billion in gross revenue, outperforming traditional casino offerings such as slots ($2.11 billion), table games ($715.36 million), and poker ($20.82 million). Mobile sports betting also made significant strides, generating $460.43 million in revenue. These figures highlight a shifting consumer preference towards digital platforms, a trend accelerated by technological advancements and changing consumer behaviors post-pandemic.
Tax Contributions and Investments
Beyond revenue, Atlantic City casinos made substantial contributions to state coffers through taxes and fees, totaling $681.95 million. This financial injection supports various public services and infrastructure projects vital to New Jersey’s communities. Moreover, casino operators invested $258 million in capital improvements, the highest since 2008. This investment not only enhances the region’s tourism appeal but also underscores the industry’s commitment to sustainable growth and infrastructure development.
Employment and Visitor Trends
The casino industry remains a significant employer in southern New Jersey, supporting 22,634 jobs in 2023. Despite challenges, including fluctuations in visitor numbers, the industry welcomed 17.8 million customers, marking a 3.2% increase from the previous year. However, this figure still falls short of pre-pandemic levels observed in 2019, indicating ongoing recovery efforts and market dynamics impacting tourism and hospitality sectors nationwide.
Industry Perspective
Jane Bokunewicz, LIGHT’s faculty director, emphasized the enduring resilience of Atlantic City amid triumphs and challenges. She highlighted the casino industry’s pivotal role as an economic engine not only for South Jersey but the entire state. According to Bokunewicz, the sector’s contributions over five decades have yielded substantial dividends for the local economy, underscoring its long-term importance.
Mark Giannantonio, President of CANJ, echoed these sentiments, emphasizing the industry’s impact on local communities and vulnerable populations in New Jersey. He emphasized that the report sheds light on how casino revenues directly support essential social services and community initiatives, thereby reinforcing the sector’s broader societal contribution beyond financial metrics.
The 2023 Impact Report on Atlantic City’s casino industry paints a picture of resilience, growth, and adaptation. Despite challenges, the sector has demonstrated robust financial performance, significant tax contributions, and ongoing investments in infrastructure and employment. Looking ahead, continued adaptation to digital trends, economic fluctuations, and evolving consumer preferences will be critical for sustaining growth and profitability. The industry’s ability to navigate these challenges while supporting local economies underscores its enduring importance to New Jersey’s economic landscape.