Economist Warns Atlantic City Casino Job Losses Could Accelerate Without Action

Dr. Max Slusher and Assemblyman Don Guardian discuss the potential loss of thousands of South Jersey jobs as online gambling grows and New York casino competition approaches.

ATLANTIC CITY, N.J. — Atlantic City's casino industry may be generating more overall gaming revenue than ever before, but economist Dr. Max Slusher says those figures are masking a troubling reality: The resort's traditional casino economy is facing increasing pressure, and thousands of South Jersey jobs could be at risk.

During an October 20 appearance on Off The Press with Scott Cronick on News Talk 1400 & 92.3 WOND, Slusher joined Assemblyman Don Guardian for an extended discussion about the future of Atlantic City's gaming industry and the potential economic consequences of expanded casino competition in New York.

Guardian, who was filling in for host Scott Cronick, had attended a presentation earlier that afternoon examining the potential effects of new casinos on Atlantic City and the surrounding region.

Slusher, who is affiliated with the Atlantic County Economic Alliance, discussed findings from an economic analysis projecting approximately 5,100 jobs at risk in Atlantic County by 2035 under a scenario involving continued online gambling competition and new New York City casinos.

The projected losses extend beyond casino employees.

"You're probably looking at the loss of 5,100 jobs," Slusher said. "Now, that's casino and non-casino. So that's all the people that service the casinos."

He broke the estimate into approximately 3,500 direct casino jobs and another 1,600 jobs supported by casino-related spending.

"And the other 1,600 jobs are jobs that are supported by the expenditures of the industry," he explained.

The figures are projections based on economic modeling, not announced layoffs. The actual impact will depend on future casino development, consumer behavior, business investment and broader economic conditions.

Growing Revenue, Shrinking Economic Benefits?

Slusher said one of the challenges facing Atlantic City is the growing difference between the revenue generated by internet gambling and the economic activity associated with visitors physically coming to the resort.

New Jersey's online gambling industry continues to expand rapidly, while the nine Atlantic City casinos face pressure on their traditional gaming operations.

Slusher pointed to the state's September gaming figures, which showed that casino-floor revenue was up approximately 1.4% through the first nine months of 2026.

But he cautioned that nominal revenue growth can be misleading when inflation is taken into account.

"The thing that concerns me is everybody said, 'Oh, well, at least it's positive, it's not negative,'" Slusher said.

He argued that inflation-adjusted results suggest the industry's purchasing-power-adjusted revenue has declined.

"This little nibbling at the gross gaming revenue in Atlantic City now has been going on for years," he said.

"And though we think it doesn't look bad, it is bad because the industry is slowly contracting."

Slusher also expressed concern about casino profitability, which he considers a more immediate indicator of whether operators can sustain their current employment levels.

"Along with gross gaming revenue, net profitability is contracting also," he said. "And that is an issue that we need to be very concerned about."

Why Internet Gambling Doesn't Replace Casino Jobs

Guardian acknowledged that online gambling has become an important source of revenue for casino operators.

"I don't think brick-and-mortar, the nine properties that we have, would be here today if it wasn't for internet and sports gaming," Guardian said.

Slusher agreed that online gaming has provided financial support for the industry.

But he emphasized that the economic effects of internet gambling are different from those generated by a physical casino hotel.

Casino visitors support restaurants, hotel operations, entertainment venues, suppliers and other businesses. Those activities require employees throughout the local economy.

Internet gambling can generate substantial revenue without requiring the same level of on-site staffing.

"As more money moves to the online gaming area, we are seeing the result being attrition in the bricks-and-mortar gaming area, and that's starting to have an impact on employment," Slusher said.

Guardian also pointed out that technological improvements have reduced staffing needs in certain casino operations.

"When I worked there 30 years ago, you had a ton of people just maintaining the slot machines," Guardian said.

He noted that modern slot machines no longer require many of the coin-handling and maintenance functions that once supported casino employment.

Slusher agreed that technology has made casino operations more efficient, but said competition and declining profitability remain important concerns.

New York Casinos Add Another Challenge

The potential development of three full-scale casinos in the New York City area presents an additional threat to Atlantic City's traditional customer base.

Guardian said the region needs to prepare for that competition rather than assume the industry will remain unchanged.

"We need to not have our heads in the sand," Guardian said. "We need to be talking about what could potentially happen and what we can do to lessen that impact negatively on us."

Slusher explained that the economic model examined several potential pressures, including online gambling, New York City casinos, possible additional casinos in North Jersey and a future recession.

He said the projected impact could extend well beyond Atlantic County.

"If you push out to southern New Jersey, you get up to about 8,000 jobs," Slusher said.

That broader regional estimate reflects the economic relationships between Atlantic City's casinos and businesses throughout South Jersey.

It is not an additional 8,000 jobs on top of the Atlantic County projection.

Slusher stressed that the region should begin preparing now.

"This is what's going to happen if we continue with the way we're going," he said. "And if we don't try to react to do things to radically change our environment."

Could Atlantic City Face Another Wave of Casino Layoffs?

Slusher compared the industry's current financial pressures with conditions preceding Atlantic City's casino closures during the previous decade.

He acknowledged that casino operators have made substantial investments in their properties since that period.

Guardian agreed that Atlantic City's leading casinos are now more competitive and better maintained than they were before the earlier closures.

"The product that we have today ... and the amount of money that they put back in the last decade has been in the billions," Guardian said.

But Slusher said improved facilities alone cannot eliminate the economic pressures facing the industry.

"The similarity between right now and back in 2013-2014 was the profitability issue," he said.

He recalled that operators previously tried to retain employees despite worsening financial conditions before ultimately making major cuts.

"They kept on holding on to people, kept on holding on to people, and then they just hit the cliff and over they went," Slusher said.

He warned that another significant contraction is possible if profitability continues to deteriorate.

"If we don't find that profitability area, you might see another hump come up like that where massive layoff in some capacity or another," he said.

That warning reflects Slusher's assessment of industry risk, not an announcement that any Atlantic City casino plans to close or conduct mass layoffs.

The Need to Diversify South Jersey's Economy

Slusher said the Atlantic County Economic Alliance is focused on economic diversification, expanding the tax base and creating jobs that pay sustainable wages.

"Our goal is economic diversification, creating ratables throughout the Atlantic County, greater Atlantic County economy, and creating living wage jobs," he said.

He emphasized that the region must preserve its existing tourism and casino economy while developing additional sources of employment.

Guardian agreed.

"Everyone's talked about we need to do something more than just tourism, and we have to be aware that at some point we're going to have to do something more than just gaming," Guardian said.

Slusher identified meetings and conventions as one potential source of replacement employment, noting that hospitality workers may possess skills that transfer to the convention industry.

The two also discussed potential opportunities involving emerging technology, prediction markets and workforce training.

But Slusher emphasized that the region cannot afford to wait until jobs disappear before developing alternatives.

"We need to do something," he said.

A Warning, Not an Inevitable Outcome

Atlantic City's casino industry has survived major economic disruptions before, including competition from neighboring states, casino closures and the rapid expansion of internet gambling.

Slusher's analysis suggests that the next decade could bring another difficult adjustment.

However, the projected job losses are not inevitable. They depend on assumptions about future competition, economic conditions and how the industry responds.

For Guardian, the immediate question is what casino operators, local government, Atlantic County and the state can do to prepare.

"What does the city of Atlantic City need to do?" Guardian asked. "And then what do we need to do as a county and state to be supportive in trying to address the loss of jobs and loss of income?"

Slusher's answer was that the region needs to act before the full impact of increased competition arrives.

The economic warning is not simply about the future of casino gambling. It is about the thousands of South Jersey families and businesses whose livelihoods remain tied to Atlantic City's abilit