Atlantic City: Short-Term Casino Labor Deals Amid New York Competition

The gambling hub on the US East Coast is bracing for turbulent times. UNITE HERE Local 54 closed the final gap in its negotiation rounds this week. With the agreement at Bally's Atlantic City, all nine of the city's casino operations now have new labor contracts in place. However, the joy over labor peace is tempered by a unique feature. The contracts run for only one year, which is considered a significant warning signal in an industry typically accustomed to terms of three years or more. This short commitment shows how nervous operators and employees in New Jersey are about developments in neighboring New York.

Uncertainty is palpable. Atlantic City is fighting on two fronts simultaneously. On one hand, the online gaming market in New Jersey is growing rapidly, competing with land-based houses. On the other hand, the opening of mega-casinos directly in New York City is imminent. A one-year pause in labor negotiations is intended to buy time to better assess the extent of the looming changes. It is about securing standards at a time when the traditional business model of the boardwalk is faltering.

Numbers and facts

The economic pressure can be clearly quantified. In 2025, the nine casinos in Atlantic City generated a Gross Gaming Revenue (GGR) of $2.8 billion. In the first half of 2026, this value stood at $1.5 billion. While this sounds stable at first, a look at profitability reveals cracks in the foundation. Despite higher revenues, operating profits fell by 15 percent in the first half of 2026 compared to the same period last year. James Plousis, chair of the New Jersey Casino Control Commission, noted that casino hotels encountered their highest second-quarter costs and expenses in nine years, significantly constraining reported profits.

The comparison with the competition is also worrying. Resorts World NYC, currently the only active casino in the New York market, averages about $30 million per week in GGR. Extrapolated over a year, this corresponds to $1.5 billion in GGR for a single property. That is exactly as much as all nine Atlantic City casinos combined generated in the entire first half of 2026. A new report by the Atlantic County Economic Alliance warns under a so-called stress scenario that 8,000 jobs could be lost by 2035, representing more than a third of the current workforce of approximately 21,100 employees.

Background

The strategic decision for short contract terms is a response to the unclear schedules of New York projects. While Resorts World is already flourishing, other projects are delayed. The Metropolitan Park project is behind schedule, and Bally's Bronx is struggling to finance its $4 billion venture. Both are currently planning openings in 2030. Donna DeCaprio, president of Local 54, nevertheless emphasized the importance of the current agreement:

"We are proud of our negotiating committee, our members and our staff who stood up and fought to maintain and improve the contractual pay, benefit and employment standards that make these jobs good union jobs." - Donna DeCaprio, President of UNITE HERE Local 54

In addition to physical competition from New York, online gambling is causing internal tension. In 2025, online revenue in New Jersey reached $2.9 billion, surpassing land-based casino revenue for the first time in the state's history. By July 2026, online sales rose again by 14.5 percent to $1.8 billion. While some experts see iGaming as a growth engine, others fear cannibalization of traditional casinos as operating costs for physical locations steadily rise.

Why it matters for German players

For German players, the situation in Atlantic City primarily shows one thing: a regulated market must constantly adapt to new competitive conditions. In Germany, the State Treaty on Gambling 2021 is the central pillar for safety and player protection. Those playing online in Germany should exclusively use offers with a license from the Joint Gambling Authority of the States (GGL). These providers are on the so-called whitelist and guarantee compliance with strict limits, such as the cross-provider deposit limit of 1,000 euros per month.

In contrast to the US market, where aggressive expansion and high revenues are often the focus, Germany relies on prevention through technology. The LUGAS system monitors compliance with limits and prevents parallel play at multiple providers. German customers benefit from a 1-euro stake limit per spin for virtual slot games. These rules serve to protect against over-indebtedness, while in Atlantic City, the fear of job losses and physical infrastructure currently dictates the actions of those in charge.

What it means for GGL-licensed casinos

For casinos with a GGL license, the US crisis illustrates the importance of a stable legal basis. While in New Jersey there is debate about the cannibalization of retail casinos by online offerings, the German market offers a more transparent structure through clear separation and strict monitoring. The GGL ensures that only reputable companies gain access, which strengthens player trust. In times of global economic uncertainty, a license from Germany is a quality feature that creates legal certainty for operators and customers alike.