Once known as a prime destination for in-person casino gambling, Atlantic City has adapted significantly in recent years, carving out a substantial role in the fast-evolving U.S. sports betting market.
Since the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), Atlantic City’s sportsbooks have become integral to New Jersey’s booming gambling industry and positioned the city as a critical player in the nationwide sports betting scene.
Atlantic City's casinos, which generated over $3.32 billion in total revenue in 2023, are increasingly shifting their focus from traditional table games and slot machines to online platforms.
The main reason behind this changing focus is driven by the explosive growth of mobile sports betting, which accounted for a significant portion of the city's total gaming revenue. In fact, mobile sports betting far outpaced retail betting, with $460.43 million in revenue compared to just $11.24 million from in-person sports bets. The surge is consistent with broader national trends, as more bettors turn to convenient, app-based platforms rather than visiting physical locations.
By embracing this digital transformation, Atlantic City has maintained its competitive edge in a market that has been diversifying rapidly since the legalization of sports betting across multiple states.
The city’s strong infrastructure of online sportsbooks, including giants like DraftKings and FanDuel, plays a key role in drawing bettors not only from New Jersey but also from neighboring states that have more restrictive gambling laws.
Despite the dominance of mobile betting, physical sportsbooks in Atlantic City continue to offer unique experiences that attract a dedicated clientele. Venues like Borgata, Ocean Casino Resort, and Hard Rock have invested heavily in their sportsbook facilities, offering high-end lounges with large screens, comfortable seating, and food and drink services, all of which appeal to bettors looking for a more immersive, social atmosphere.
For example, Ocean Casino Resort’s sportsbook generated impressive revenue, contributing to a 17.6% increase in its overall gaming income in 2023.. While physical sports betting does not generate the same revenue as online platforms, it remains an essential part of the city's appeal, especially for tourists visiting for events or vacations.
The success of these venues suggests that Atlantic City’s hybrid approach, combining online convenience with on-site entertainment, strengthens its position in the national market.
New Jersey has become one of the most lucrative states for sports betting, largely thanks to Atlantic City's contributions. The state consistently outpaces others in terms of total handle (the amount of money wagered), with Atlantic City’s casinos and the best betting sites playing a pivotal role. In June 2023 alone, New Jersey sportsbooks generated $66.4 million in revenue from more than $591 million in legal wagers.
Atlantic City’s presence as a betting hub directly contributes to these figures. With well-established casinos and a deep understanding of the gaming industry, the city continues to be a driving force behind the state's overall betting success. The influence extends beyond sports betting, as iGaming has also grown considerably, with Atlantic City’s online casino operators leading the charge. In 2023, online gambling revenue reached nearly $1.92 billion, contributing significantly to the state’s total gaming revenue.
However, Atlantic City’s future in the sports betting market is not without challenges. Increased competition from neighboring states, especially with New York’s 2022 entry into the mobile betting arena, has impacted the city’s growth trajectory. New York quickly established itself as a top market for sports betting, drawing many bettors who previously crossed into New Jersey to place wagers.
Moreover, Atlantic City casinos face the dual pressures of rising operational costs and declining profit margins. Despite high revenues, profits in the sector have declined, primarily due to inflation and increasing labor costs.
As more states legalize sports betting and develop their infrastructure, Atlantic City’s ability to retain its dominance will depend on continued innovation, both in its digital offerings and in the experience it provides to visitors.
To counter these challenges, Atlantic City’s casinos are reinvesting in both their physical properties and digital platforms. In 2023, casino operators poured $258 million into capital improvements, the highest annual investment since 2008.
On the digital front, Atlantic City's casinos and sportsbooks are exploring ways to enhance their mobile offerings, incorporating live betting and integrating more seamless user experiences. This adaptability will be essential as betting habits continue to shift towards in-play and mobile-first wagering.
