Atlantic City at a Crossroads: Report Warns of Massive Job Losses Due to Online Gaming

The glittering facade of Atlantic City is showing cracks that reach deep into the region's economic foundation. While tax coffers in Trenton are overflowing, concern for the livelihoods of thousands of families is growing in the streets of the casino city. A current report by the Atlantic County Economic Alliance (ACEA) paints a grim picture for the coming years. Experts warn that the combination of rapid growth in online gaming and the planned expansion of land-based casinos in New York City and Northern New Jersey represents an existential threat. This is not just about a few lost positions at gaming tables, but about the entire ecosystem of hotels, restaurants, and suppliers that has supported the region for decades.

The current situation is particularly paradoxical: the 2025 fiscal year marked a historic record for gambling in New Jersey with $6.98 billion in total revenue. However, this success has a downside. For the first time, revenue from the online sector ($2.91 billion) exceeded the classic business of on-site casinos ($2.89 billion). Since an online casino does not require large numbers of housekeepers, cooks, or security guards, financial growth is increasingly decoupling from local employment. In April 2026, the number of people directly employed in casino hotels reached a new low of 21,172, which is even below pandemic-era levels.

Numbers and facts

The report by Dr. Max Slusher calculates various scenarios through 2035. In the so-called Stress case, 8,005 jobs and approximately $1.805 billion in regional economic output could be lost. This represents about 44.2 percent of the total revenue base of land-based casinos from 2025. Even without new casinos in the north of the state, 5,105 positions are already considered highly at risk. The economic damage would primarily hit poorer regions. While Atlantic County ranks 19th out of 21 counties in New Jersey in terms of purchasing power, the planned competitive locations are in wealthy areas like Bergen County.

„This report confirms what we see on our casino floors and in our hotel operations every day: Atlantic City's casino-hotels aren't just gaming revenue for the state; they're thousands of family-sustaining jobs.“ - George Goldhoff, President of the Casino Association of New Jersey and President of Hard Rock Hotel and Casino.

The ACEA is now calling for rapid political action. This involves investments in the convention and meetings market, which is seen as the only realistic chance to absorb jobs lost in the gaming sector. With over 1.8 million square feet of meeting space, Atlantic City has an infrastructure that must be strengthened before competitors in New York or Northern New Jersey take over this market. Dependence on pure gambling must decrease so that the region does not collapse when the next economic storm hits.

Background

Since the legalization of online gambling, user behavior has changed massively. The convenience of betting from the sofa draws capital away from physical locations. In New Jersey, these funds continue to flow into the Casino Revenue Fund, which finances important programs for seniors and people with disabilities, such as prescription assistance or transportation. However, local value creation is shrinking. According to the report, 30.6 percent fewer jobs are created in the online sector per million dollars in revenue compared to the classic casino business. Specifically, 3.66 full-time positions in the online sector compare to 5.28 positions in the land-based sector. This difference adds up to a social crisis given the billions in revenue.

Why it matters for German players

For German players, the situation in Atlantic City shows how important balanced regulation is. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) strictly regulates the market to maintain a healthy balance between online offers and the protection of land-based casinos. While in the US, the online boom is displacing local jobs, the German Joint Gambling Authority of the States (GGL) relies on strict limits. German players must adhere to the deposit limit of 1,000 euros per month, which is monitored via the LUGAS system. In addition, the stake limit of 1 euro per spin applies to virtual slot machines. These rules serve not only player protection but also prevent a too-rapid cannibalization of the market, which, as in Atlantic City, could lead to massive social disruption. Anyone playing with a provider with a GGL license supports a regulated system that pays taxes in Germany and guarantees legally secure jobs.

What it means for GGL-licensed casinos

German providers with a GGL license must closely observe the US market. The development there proves that pure revenue growth in the online sector can become a political boomerang if the stationary infrastructure collapses. For White-List providers, this means they must emphasize their role as part of a responsible entertainment industry. The focus on player protection and compliance with strict German rules is the best insurance against regulatory headwinds. Unlike illegal providers from Malta or Curacao, which show no consideration for local labor markets, licensed German operators are integrated into a system that prioritizes long-term stability over short-term profit maximization.