Atlantic City, once synonymous with bustling casinos and iconic boardwalks, is experiencing a shift as it increasingly focuses on digital platforms to drive revenue. In 2023, the city’s casinos generated over $3.32 billion in total revenue, with mobile sports betting accounting for a significant portion of that figure. This pivot to online betting reflects broader national trends where convenience and accessibility have become the driving forces behind consumer behavior.
The rise of mobile sports betting has been meteoric. In Atlantic City alone, mobile sports betting generated nearly $460 million in revenue in 2023, dwarfing the $11 million brought in by in-person sports betting. The success of online platforms such as DraftKings and FanDuel has made it clear that bettors prefer the convenience of placing bets from their smartphones rather than traveling to physical casinos.
However, the shift towards digital platforms does not mean the end of the traditional casino experience. Atlantic City’s sportsbooks, such as those at Borgata and Hard Rock, continue to offer an immersive, social atmosphere that draws in a dedicated clientele. While physical sportsbooks may not generate the same level of revenue as online platforms, they remain a crucial part of the city’s appeal, particularly for tourists looking for a more traditional betting experience. This hybrid model, where digital and physical experiences coexist, is part of what makes Atlantic City’s gambling industry resilient in the face of changing consumer habits.
New Jersey’s success in the sports betting arena is largely tied to Atlantic City’s presence as a gaming hub. The city’s established casinos and deep understanding of the gaming market have helped the state become one of the most lucrative in terms of total sports betting handle. In 2023, the city’s online casinos contributed nearly $1.92 billion to the state’s gaming revenue, demonstrating the significant role that digital gambling now plays in the overall industry.
However, the road ahead is not without challenges. With New York entering the mobile betting market in 2022, Atlantic City faces increased competition for bettors, many of whom previously traveled across state lines to place wagers. Additionally, rising operational costs and inflation are squeezing profit margins, even as revenues increase.
To maintain its competitive edge, Atlantic City is reinvesting in both its physical properties and digital platforms. Casino operators spent over $258 million on capital improvements in 2023, the highest level of investment since 2008. On the digital front, operators are enhancing their mobile offerings, focusing on live betting and seamless user experiences to keep up with evolving consumer preferences.
Atlantic City’s future in the sports betting market will depend on its ability to innovate and adapt. By balancing the convenience of online betting with the immersive experience of physical sportsbooks, the city is positioning itself to remain a leader in the rapidly changing landscape of the gambling industry.
