In 2023, the casino business in Atlantic City proved to be resilient, overcoming market obstacles to provide a notable rise in gross gaming tax income. The Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at Stockton University, in partnership with the Casino Association of New Jersey (CANJ), released the first “2023 Impact: Atlantic City Casino Industry” report. The report details the industry’s astounding rise in revenue, which reached $467 million in gross gaming tax revenue. This represents an almost 12% increase over the industry’s previous peak in 2006.
Challenges Persist Amid Success
Despite these gains, the report highlights persistent challenges facing the Atlantic City casino industry, particularly its struggle to rebound fully from the impact of the Covid-19 pandemic. Revenue generated from guests at six of the nine Atlantic City properties remained below pre-pandemic levels. Additionally, the industry faced headwinds from regional gaming competition, rising operating expenses, inflation, labor costs, and shortages.
LIGHT Faculty Director Jane Bokunewicz remarked, “Despite its triumphs and challenges, Atlantic City continues to persevere. The casino industry remains the economic engine of not only South Jersey, but the entire state of New Jersey,” She emphasized the industry’s critical role as the economic engine of South Jersey and the entire state, projecting its enduring significance in the region’s long-term prosperity.
In 2023, Atlantic City’s casino operators collectively achieved $3.32 billion in total net revenue, contributing $681.95 million in total casino taxes and fees. Notably, operators allocated $258 million towards capital improvements, representing the highest reinvestment in the city since 2008. This substantial investment bolstered tax revenue and created employment opportunities, with the industry currently supporting 22,634 employees and welcoming approximately 17.8 million visitors in 2023.
Mark Giannantonio, President of CANJ, emphasized the symbiotic relationship between the industry’s success and its positive impact on employees and communities. He said, “As one of the largest employers in southern New Jersey, we know that when our properties are successful, so are our employees and the communities we serve.”
“This new report from the LIGHT at Stockton University is meaningful because it helps shed light on how the revenue the casino industry generates is dedicated to supporting some of New Jersey’s most vulnerable citizens. It also shows our support for vendors from all corners of the state and the investments we are making to continue Atlantic City’s transformation.”
A significant contributor to the industry’s robust performance was the growth in online gaming revenue, which reached record highs in 2023. Internet gaming, taxed at a higher rate than brick-and-mortar gaming revenue, played a pivotal role, generating $1.92 billion in gross revenue. Mobile sports betting also outpaced retail sports, recording $460.43 million in revenue compared to $11.24 million.
Despite the surge in online gaming, traditional slots retained their popularity, generating $2.11 billion in revenue, comprising nearly half of the total gross gaming revenue for 2023.
The post Atlantic City Casinos Deliver $467M in Tax Earnings for 2023 appeared first on iGaming.org.