Atlantic City Casinos Provided Close to $500M in Tax Revenue Last Year
The Atlantic City casino industry demonstrated robust performance in 2023, generating $467 million in gross gaming tax revenue. This figure not only signifies a substantial contribution to the state's economy but also marks a significant milestone, a nearly 12% jump over the industry's last peak in 2006.
Atlantic City's casino row viewed from the air. (Source: Caesars Entertainment)
LISTEN TO THIS ARTICLE:The Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, in collaboration with the Casino Association of New Jersey, detailed these achievements in a new report, 2023 IMPACT: Atlantic City Casino Industry. They show an industry that is capable of overcoming challenges while providing significant benefits to New Jersey.
Related: Atlantic City Casinos Remain Strong, despite Revenue DipDespite facing unprecedented challenges due to the COVID-19 pandemic, which led to prolonged shutdowns and operational restrictions, the industry has shown commendable tenacity. The path to recovery has been arduous, with casino wins from six of the nine properties still trailing behind pre-pandemic figures.
One of the key factors contributing to this recovery has been the growth in online gaming revenue. iGaming operators pay a higher tax rate than their land-based counterparts, and this shift has compensated for some of the losses incurred during COVID-19 closures. It has also propelled the industry to record-high total gaming tax contributions for the year. The adaptability of the Atlantic City casino industry to embrace online platforms has played a pivotal role in this regard.
Casinos drive employment
Employment within the industry has also been a focal point of the report. The casino sector remains one of the primary employers in New Jersey, with a workforce of 22,634 employees.
This employment level underscores the industry's role as a major economic engine, providing livelihoods to thousands and supporting the broader state economy. The industry's ability to maintain such a significant number of jobs is indicative of its commitment to the region's prosperity.
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However, the journey towards full recovery is ongoing; the Atlantic City casino industry continues to grapple with the aftereffects of the COVID-19 shutdowns. The report underscores that, despite the positive financial outcomes, there is still a considerable way to go before the industry can declare a complete rebound.
The Continuing Atlantic City Transformation
The economic impact of Atlantic City's casinos can hardly be overstated. Since the inception of the casino industry in this vibrant city over four decades ago, the financial contributions have been staggering. $12 billion in tax revenue has been generated, which has been instrumental in supporting public services and infrastructure.
Beyond taxes, the casinos have demonstrated a deep commitment to the city's development through massive capital investments amounting to $20 billion. These investments have rejuvenated the cityscape, leading to the creation of state-of-the-art facilities, luxurious accommodations, and cutting-edge gaming experiences. Such developments not only enhance the appeal of Atlantic City as a premier destination but also stimulate further economic activity and job creation.
Perhaps most significantly, the casinos have been a major employer in the area, with $35 billion paid out in salaries and wages. This figure reflects the vast number of individuals and families who rely on the casino industry for their livelihood. The ripple effect of this expenditure is felt throughout the local economy, as employees spend their earnings on goods and services, thereby supporting a wide array of businesses beyond the casino walls.
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