We sat down with Sage Zaree is a business executive with a background in economics and has been watching Atlantic City's local business sector change. He has a deep understanding of the numbers and trends. We discussed with him about the biggest business trends happening in Atlantic City right now and what they mean for the future.
Thanks for sitting down with us today, Sage. In your opinion, what are some of the major business trends you're seeing in Atlantic City?
What's really exciting is that Atlantic City is going through a major transformation that goes far beyond what most people realize. AC is not just a casino town anymore, its a diverse business hub driven with digital innovation.
The biggest trend I'm seeing is digital transformation across all industries and the numbers prove it's working. New Jersey's gambling industry actually set a new record in 2024, bringing in nearly $5.7 billion. But here's what's more fascinating is a huge chunk of that came from internet betting and digital platforms. Local businesses are demonstrating that they can successfully adapt to digital first customers.
Atlantic City's gaming industry is undergoing a very technical shift where casinos are now coexisting with online platforms and this is creating a hybrid experience.
But this digital revolution extends far beyond gaming. Hotels are implementing comprehensive digital ecosystems with apps for check ins, smart room technology and AI powered customer service. Restaurants are building entire digital infrastructures around delivery platforms, automated kitchen systems and data driven menu optimization. Even local retail shops are creating sophisticated online presences with eCommerce platforms, social media marketing and customer relationship management systems.
It’s interesting to see businesses in Atlantic City aren't just adding digital features but the restructuring their operations around digital capabilities. Companies that understand this push to innovate are positioning themselves to dominate this markets for years.
These changes sound expensive. Are businesses actually seeing a positive return from these digital investments?
It’s a mixed story, local casinos generated $883 million in taxes in 2024, which represents massive economic impact supporting jobs. However, there was a loss of profit that reveals the true cost of transformation. Profits at Atlantic City's casinos fell by over 9% in 2024, with only 2 of 9 properties seeing increases. Although this may seem bleak, it actually tells us that businesses are investing heavily in their future rather than just maximizing quarterly profits.
The reality is that digital transformation requires significant upfront investment and companies are spending money on new technological infrastructure and system integration for customer experience. Only around one third of digital transformation initiatives are considered successful so there is a lot of trial and error but here's this is what separates successful businesses from struggling ones and so many casinos and businesses in tourism are willing to make that investment
I'm seeing three main investment patterns among successful Atlantic City businesses. First, they're investing in customer experience technology that creates seamless interactions across all touchpoints. They're also building data analytics capabilities that help them understand customer behavior and optimize operations. And finally they are developing mobile first strategies that meet customers where they actually are on their phones.
What about industries beyond gaming and tourism? How is Atlantic City's economy diversifying?
Atlantic City has been working strategically on diversifying the economy with new industries without neglecting the tourism and entertainment industries.
There has been significant growth in healthcare technology and telemedicine companies that want to take advantage of AC’s location. These companies serve patients all throughout the Northeast while operating at a fraction of the cost they'd face in New York or Philadelphia.
The financial services sector is also expanding; it is often inspired by the gaming industry's need for secure, fast financial transactions. These companies are creating technologies that have applications far beyond casinos.
They are also an increasing number of logistics and distribution centers, taking advantage of our proximity to major highways and ports. Companies that leverage eCommerce platforms are discovering that Atlantic City offers excellent access to both urban and suburban markets throughout the Northeast.
The city is seeing growth in agritourism and ecotourism that's creating new opportunities for local entrepreneurs as Atlantic County's tourism sector remains a leading industry but there's growing interest in experiences that showcases its natural environment.
How are these technological trends changing the day to day operations of local businesses?
The operational transformation happening in Atlantic City is remarkable and it's happening at every level of business operations. The biggest trend is intelligent automation businesses are automating not just simple tasks but complex decision making processes.
Restaurants are implementing new automation systems that can prepare certain dishes consistently and use AI to predict demand and then optimize inventory. Hotels are also deploying smart room technology that learns guest preferences and automatically adjusts services around their preferences.
There is also a shift toward hybrid business models. Companies aren't just physical or just digital anymore; they are creating experiences that work across multiple channels. A restaurant might simultaneously operate dine in service, delivery, meal kit subscriptions, cooking classes and catering services, all supported by a unified technology platform.
Data has become the foundation of operational excellence. Businesses are collecting information about customer behavior and then turn that data into actionable insights are the ones that consistently outperform their competitors. There is a local Atlantic City restaurant that tracks which menu items sell best at different times of day and that maximizes customer satisfaction. That data helps them make better decisions about everything from menu design to staffing to marketing spend.
What trends do you think will shape Atlantic City's business landscape in the coming years?
Looking ahead, I see several major trends that will fundamentally reshape how business is done in Atlantic City and I'm genuinely excited about the opportunities they represent.
The experience economy is going to dominate. People don't just want products or services anymore they want memorable, shareable experiences. Businesses that can create unique, Instagram worthy moments while delivering real value will dominate their markets. This plays perfectly to Atlantic City's strengths as an entertainment destination but it also creates opportunities for businesses in every sector.
Atlantic City is at an exciting crossroads because they have the infrastructure, the location and the financing to become a major business hub that extends beyond their current tourism economy. The businesses in the region that invest in technology and focus on customer experience will not only survive but thrive.
