Atlantic City’s brick-and-mortar casinos were once the undisputed kings of gambling revenue. But this January, they found themselves trailing online casinos—a trend that’s becoming harder to ignore. Despite an overall revenue increase from last year, the numbers reveal a shifting industry landscape that could reshape the city’s gambling market for good.
Atlantic City Casinos Report Modest Growth, But Online Gambling Dominates
Atlantic City’s retail casinos pulled in $210.1 million in revenue this January, according to the New Jersey Division of Gaming Enforcement. That’s a 2.6% uptick from January 2024—a positive sign, but one that still left land-based casinos playing second fiddle to online operators.
For only the second time in January’s history, internet gambling revenue surpassed what physical casinos brought in. This marks a growing divide, one that suggests a long-term shift in how gamblers are choosing to place their bets.
Seasonal Slump or Long-Term Shift?
Every winter, Atlantic City’s casinos take a hit. The boardwalk gets quieter, foot traffic slows, and revenue naturally dips until the warmer months roll around. But this time, something feels different.
One key takeaway? Online gambling isn’t just holding steady during the winter—it’s thriving. While in-person casino visits dwindle, digital platforms are keeping players engaged, effectively eating into what used to be retail casinos’ exclusive market.
This could spell trouble for traditional casino floors. If online operators can capture more players now, what’s stopping them from keeping those customers when the summer rush returns?
The Numbers Paint a Clear Picture
To understand the shift, it’s worth looking at the numbers behind the revenue figures. Here’s how Atlantic City casinos fared in January compared to online gambling:
| Revenue Source | January 2024 Revenue | January 2025 Revenue | Year-over-Year Change |
|---|---|---|---|
| Retail Casinos | $204.8M | $210.1M | +2.6% |
| Online Casinos | $211.7M | TBD | Expected Increase |
While retail casinos managed a modest gain, online gambling continues its rapid ascent. The final internet gaming revenue figure hasn’t been confirmed yet, but it’s expected to post a stronger growth rate than its physical counterpart—potentially pushing the divide even further.
What This Means for Atlantic City Casinos
The rise of online casinos doesn’t mean the end of Atlantic City’s physical gambling scene, but it does signal a need for adaptation. Some key takeaways:
- Convenience matters. Online gambling lets players skip the travel, the crowds, and the expenses of an in-person casino trip.
- Seasonal trends could be shifting. Traditionally, winter has meant low revenue for casinos, but online platforms are changing that dynamic.
- Future competition will be fierce. If online casinos continue to outperform retail operations, Atlantic City operators may need to rethink their strategies—whether through digital expansion, new in-person experiences, or other incentives to attract foot traffic.
What’s Next?
The big question is whether this trend will carry into the summer months. Historically, warm weather and vacation season have been a major boost for Atlantic City’s casinos. But if online gambling continues pulling ahead, it may become the dominant force in New Jersey’s gaming industry—seasonal slump or not.
The summer numbers will tell a more complete story. For now, Atlantic City’s casinos are still in the game, but their position at the top is looking more fragile by the month.
