Atlantic City’s casino industry continues to prove its significance to New Jersey’s economy, contributing an impressive $572 million to the state’s Casino Revenue Fund in fiscal year 2024. However, despite this substantial tax contribution, the industry saw a minor dip in overall profits, according to a report released by Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism (LIGHT) and the Casino Association of New Jersey (CANJ).
The “2024 Impact: Atlantic City Casino Industry” report provides a comprehensive look into the casino sector’s financial performance, showing both challenges and strengths in the current economic climate.
Record Tax Contributions Despite Lower Profits
The latest data revealed that Atlantic City’s nine casinos generated a total of $883.2 million in taxes and fees during 2024, marking an 11% increase from the previous year. This boost is a reflection of the resilience of the sector, even as casinos faced a slight dip in profits due to various market conditions.
The gross gaming tax revenue, which is the primary source of funding for the state’s Casino Revenue Fund, saw a remarkable 15.4% rise, reaching $538.43 million. The tax money is not only vital for state finances but plays an integral role in funding programs that support vulnerable populations in New Jersey.
How Atlantic City’s Tax Revenue Benefits New Jersey
The taxes collected from the casino industry are allocated to several key programs that benefit both seniors and individuals with disabilities across the state. The largest portion of these funds, a total of $541 million, is directed toward housing programs for people with developmental disabilities. These funds help ensure that some of the state’s most vulnerable populations receive the support they need for safe and accessible living conditions.
In addition to housing, the Casino Revenue Fund also supports a wide range of other essential services:
-
$17 million for senior services, ensuring that elderly residents receive the care and assistance they deserve.
-
$5 million for pharmaceutical assistance programs, easing the financial burden of prescription medications for those in need.
-
$4 million for personal assistance services, providing help with day-to-day tasks for individuals with disabilities.
These allocations show the tangible, life-improving impacts of the taxes generated by Atlantic City’s casinos, illustrating how the gambling industry plays a vital role in maintaining social welfare programs.
Dip in Profits Reflects Wider Trends in the Casino Industry
While the tax contributions are impressive, the report also highlighted a slight decrease in casino profits for 2024. Gross gaming revenue dipped in some areas, particularly in non-gaming amenities like hotel bookings and food and beverage sales.
The decrease in overall profits is partly attributed to increased competition from neighbouring states, which have seen a rise in their own casino revenues. Additionally, shifts in consumer spending and economic uncertainty have made it more difficult for Atlantic City to maintain its once booming profits.
Despite the minor dip in profitability, the tax revenue figures demonstrate that Atlantic City’s casinos continue to be major contributors to the state economy, and their economic importance far outweighs the decline in profits.
Atlantic City Casinos and Future Growth
Looking ahead, the outlook for Atlantic City’s casino industry is cautiously optimistic. The report suggests that despite facing stiff competition, the region’s casinos remain integral to New Jersey’s tourism and entertainment landscape. Additionally, the increasing popularity of online gambling and sports betting may help mitigate some of the negative impacts on traditional casino revenue streams.
Industry leaders, such as Jane Bokunewicz, faculty director at LIGHT, continue to stress the importance of the Casino Revenue Fund, particularly its impact on funding services for seniors and those with disabilities. Bokunewicz commented that the taxes generated by the casinos support crucial programs, helping to “ensure the continued well-being of New Jersey residents.”
For now, the focus remains on stabilising the casino industry and ensuring it can adapt to changing trends, such as the growth of online gaming and shifting consumer preferences.
A Vital Economic Pillar
Despite the slight dip in profits, Atlantic City’s casinos are undeniably one of the most important contributors to New Jersey’s economy. The sector provides thousands of jobs and generates significant tax revenue that supports social welfare programs across the state.
In addition to its role in local government funding, the casino industry remains an essential player in New Jersey’s tourism economy. With ongoing efforts to adapt and grow, the casino industry’s ability to innovate and contribute to the state’s economy seems poised to remain strong, even as market conditions continue to evolve.
Leave a Reply