Borgata Bets $107 Million on Atlantic City With Major Renovation of Original Tower

ATLANTIC CITY — Borgata Hotel Casino & Spa is making another major investment in Atlantic City, announcing a $107 million renovation of its original hotel tower at a time when the city's casino industry is confronting falling profits and major new competition from New York.

The project will reimagine all guestrooms and suites in the Borgata Tower, along with guestroom corridors, elevator lobbies and the tower's main lobby, known as The Living Room.

Construction is scheduled to begin Sept. 13, with newly renovated guestrooms returning to service on a floor-by-floor basis beginning in October.

"The reimagining of the Borgata Tower is the latest step in our broader investment across the property as we continue to enhance the overall guest experience," Borgata President and COO Nik Rytterstrom said in announcing the project.

Rytterstrom said the original tower remains one of the most important parts of the guest experience at the resort.

"As one of the most important touchpoints within the resort, this reinvestment gives us the opportunity to thoughtfully evolve the Borgata Tower for today's guests," Rytterstrom said.

The $107 million investment represents a major overhaul of the original hotel tower that welcomed guests when Borgata opened in 2003 and helped change the competitive landscape of Atlantic City's casino industry.

Modern Italian Inspiration

Avenue Interior Design, a longtime Borgata collaborator, is designing the project. The company also worked on the tower's previous design, the recent renovation of MGM Tower and the transformation of B Bar.

The new rooms will draw inspiration from modern Italian design and fine tailoring.

Guestrooms and suites will feature warm woods, camel and cognac tones, cream, deep blue and burnished metals, along with upholstered headboards, custom woodwork, integrated metal detailing and sculptural furniture.

Lighting and furniture placement will also be designed to draw guests' attention toward views of Atlantic City.

Ashley Justman, co-founder and chief creative officer of Avenue Interior Design, said fashion played a significant role in developing the concept.

"We routinely find ourselves referencing fashion when first concepting for any scope," Justman said.

She said designers kept returning to the idea of a "beautifully tailored wardrobe" for the new rooms and suites.

"Our goal was to create a style, loosely based on Italian craftsmanship, that endured," Justman said.

The guestrooms will feature a more restrained and residential look, while the corridors and elevator lobbies will allow designers to use bolder colors, artwork and graphic patterns.

New carpeting will include an abstract interpretation of Italian mosaic design.

The Living Room will retain its existing architecture but receive new furniture and finishes intended to brighten the space and create a stronger sense of arrival.

Borgata says the project is part of a broader transformation of the resort that will continue into 2027.

More Than $160 Million in Tower Investments

The latest project follows another major Borgata hotel investment completed just three years ago.

In 2023, Borgata announced a $55 million redesign and rebranding of The Water Club as MGM Tower. That project renovated more than 700 guestrooms and suites and added new Vista Suites with wraparound views.

Combined, the two tower projects represent at least $162 million in announced hotel investment since 2023, not including other improvements Borgata has made to its casino floor, bars, restaurants and other areas of the resort.

The new $107 million project is particularly significant because it turns MGM Resorts International's attention back to the hotel tower that was at the center of the original Borgata when the casino opened more than 23 years ago.

Investment Comes as Casino Profits Fall

The timing of the investment is also notable.

Atlantic City's casino industry continues to generate substantial revenue, but the latest financial reports from the New Jersey Division of Gaming Enforcement show significant pressure on profitability.

For the first six months of 2026, Atlantic City casino licensees reported $1.57 billion in net revenue, up 0.2% from the same period last year.

Gross operating profit, however, fell 15.5% to $269.6 million.

The DGE defines gross operating profit as earnings before interest, taxes, depreciation, amortization and certain other expenses and describes it as a widely accepted measure of profitability in the Atlantic City casino industry.

The numbers underscore a challenge facing the industry: Casino properties can generate substantial revenue while rising operating expenses squeeze the amount of money they ultimately retain.

Borgata is making its $107 million commitment against that backdrop.

New York Competition Arriving

Atlantic City is also preparing for a major change in the Northeast casino market.

In December 2025, the New York State Gaming Commission unanimously approved licenses for three downstate commercial casinos: Bally's Bronx, Hard Rock Metropolitan Park in Queens and Resorts World New York City at Aqueduct in Queens.

The projects will put full-scale casino gambling much closer to millions of customers in the New York metropolitan area who have historically been an important feeder market for Atlantic City.

State Sen. Vince Polistina, R-Atlantic, discussed that threat this week during an appearance on "Off The Press with Scott Cronick" on WOND.

"Obviously, the competition in New York is going to have an impact," Polistina said.

Polistina said Atlantic City's casino industry is already dealing with pressure from inflation and labor expenses.

"Some challenging times there," Polistina said. "I really am fearful for some of the properties."

He also pointed to internet gaming and emerging prediction markets as additional competition for traditional brick-and-mortar casinos.

"The prediction markets and the online gaming are absolutely having an impact," Polistina said. "People can sit on their couch and gamble."

Polistina later described what he is hearing from people closely connected to the industry as particularly concerning.

"No one is more concerned than me right now because I talk to them all," Polistina said. "I talk to the industry."

He added that "it is a scary time for some of the properties over there."

A Nine-Figure Vote of Confidence

Borgata's announcement provides a notable counterpoint to those concerns.

A $107 million renovation does not eliminate the broader financial pressures facing Atlantic City's casino industry. But it does represent a significant new capital commitment by MGM Resorts International to its physical Atlantic City property as the market prepares for increased regional competition.

Borgata has remained one of the city's dominant casino resorts since opening in July 2003, helping shift a portion of Atlantic City's casino business away from the Boardwalk and toward the Marina District.

Now, more than two decades later, MGM is going back to the tower that helped establish the property.

Rytterstrom said the objective is to modernize the experience without abandoning the character that has defined Borgata.

The redesign, he said, will remain true to "the sophistication and energy of the property" while adding a more elevated level of comfort.

For Atlantic City, the timing may be as significant as the renovation itself.

While the casino industry confronts shrinking profits and prepares for new competitors across the Hudson River, its largest resort is preparing to spend $107 million refreshing the hotel tower with which Borgata began.

The work starts Sept. 13.

The first renovated rooms are expected to become available in October.