New Jersey Casino Reports Loss of Earnings in Q1 2025

Land -based casino industry in the US is concerned about the revenue decline in New Jersey this year. New Jersey’s casino industry are pointing to increasing operational costs, competition from neighbouring states, and the emergence of the thriving online market from the likes of Coinpoker as its main challenges. This once-thriving casino hub, with its very own ‘Las Vegas of the East Coast’ in Atlantic City, is very much feeling the effects of the saturated market now present in America. 

The 5.1% year-on-year decline in Q1 sees a decline of £132m in the gross operating profit earned at casinos in the state. Generating a $730m profit, the industry is by no means on its knees, but these figures display a downward trend that continues to adversely affect the industry and builds on the 1.7% revenue drop copped by the industry in Q4 of 2024. 

The report, released by the Division of Gaming Enforcement (DGE), also noted hotel occupancy across the Atlantic City casinos fell to a 62.9% low. This is down from 64.8% that was evidenced in Q1 of 2024, and highlights the downturning trend further. The lack of residency in these hotels emphasises exactly what the land-based casino bosses had feared: many in the USA are now turning to online casinos and the iGaming market to bet instead of attending casinos in person as much. 

The news from operators in the seven states with regulated digital casino platforms generating a monumental $905m gross revenue, a more than 25% increase from last year, puts the spotlight on exactly where bettors in America are placing their money. The upward trajectory of these revenues year-on-year, combined with the continued laxing of the laws across several states in the US, is contributing to creating this rapidly growing market, which has been restricted from the people for so long. This is a clear indication of a changing consumer preference in the market that saw the online casino revenue surpass that of land-based revenue for the second consecutive month in February 2025. 

Whilst the DGE’s earlier report noted that New Jersey’s 2024 casino revenue fell only 0.5% to $3.3bn in 2024 as a whole, the $9.2m decline in gross operating profit combined with the extreme levels of competition the industry is facing from both neighbouring states and the gargantuan, and ever expanding, online market is sure to trouble land-based casino bosses in New Jersey. Legislative changes in neighbouring New York and Pennsylvania have no doubt affected New Jersey’s revenue also. 

Huge names in the New Jersey casino industry, including Caesar's Interactive and Borgata, both reported losses, 31.3% and 6.8%, respectively, from the same period in 2024. Bosses in the industry explained that it is not just the competition they are having to cope with. The rising operational costs are causing bills to rise and profits to drop. Something that online casinos don’t need to worry about just as much. 

A generally gloomy picture has been painted for casinos in New Jersey, with the continued downturn in profits. There was some optimism offered in February 2025, where a 5.1% increase was reported over the month, but with the quarter as a whole displaying a decline, New Jersey and Atlantic City’s gambling scene remains in muddy waters. Leaders in the industry can only hope for a change over the summer months.