Polistina Warns of ‘Scary Time’ for Atlantic City Casinos as Profits Tumble

ATLANTIC CITY — State Sen. Vince Polistina is sounding an unusually stark warning about the financial health of Atlantic City's casino industry, saying declining profitability, rising costs, online gambling, prediction markets and looming competition from New York are creating a "scary time" for some properties.

Polistina, R-Atlantic, made the comments during an appearance on "Off The Press with Scott Cronick" on WOND (M-F 4-6pm), saying the industry's headline revenue numbers don't tell the entire story.

"Profitability is down because of inflation, because of labor costs," Polistina said. "Some challenging times there. I really am fearful for some of the properties."

The latest financial reports from the New Jersey Division of Gaming Enforcement provide significant support for Polistina's concerns.

Atlantic City's nine casino hotels generated approximately $836.5 million in net revenue during the second quarter of 2026, an increase of 1.3% from the same period last year.

But gross operating profit fell 9.3% to approximately $162.4 million.

The trend is even more pronounced over the first six months of 2026.

Net revenue for the casino hotels increased about 0.5%, while gross operating profit fell 14.9%. When Caesars Interactive Entertainment New Jersey is included, industrywide gross operating profit fell 15.5%, from approximately $319.2 million during the first half of 2025 to $269.6 million this year.

The numbers illustrate an increasingly important distinction in evaluating Atlantic City's casino industry: Gambling revenue can rise without producing corresponding increases in the money casinos actually keep after operating expenses.

And the declines are not evenly distributed.

Resorts Casino Hotel reported one of the most dramatic drops. Its second-quarter gross operating profit fell 95.2%, from approximately $9.9 million last year to $473,000 this year.

Through the first six months of 2026, Resorts reported approximately $1.35 million in gross operating profit, down 90% from about $13.5 million during the same period last year.

Golden Nugget also reported a sharp decline. Its first-half gross operating profit fell 85.8%, from approximately $7.9 million to $1.1 million.

Bally's remained profitable, reporting approximately $1.26 million in gross operating profit for the first six months, an improvement from a loss during the same period last year but still a relatively thin margin compared with the city's larger properties.

Other casinos also reported significant first-half profit declines, including Tropicana, down 24.4%; Hard Rock, down 16.9%; Harrah's, down 10.4%; and Borgata, down 10.2%.

Caesars was a notable exception, reporting an 11.1% increase in gross operating profit during the first half.

The financial filings do not establish that any Atlantic City casino is in danger of closing. But they do show why industry observers are increasingly focused on profitability rather than simply total gaming revenue.

Polistina said his concern comes in part from conversations with people directly involved in Atlantic City's casino and tourism industries.

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

He later added, "It is a scary time for some of the properties over there."

New York Competition Gets Closer

Another major concern is the arrival of full-scale casino competition in downstate New York, a market that has historically supplied Atlantic City with significant numbers of customers.

New York has advanced three projects for commercial casino licensure consideration: Bally's Bronx, Hard Rock Metropolitan Park in Queens and Resorts World New York City.

Consultants for New York's Gaming Facility Location Board have projected that the three-casino downstate market could eventually generate approximately $5.5 billion annually in gross gaming revenue once the market reaches stabilization.

For Atlantic City, that means the long-discussed threat of full-scale casinos in and around New York City is becoming increasingly tangible.

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

Exactly how much business the New York casinos could pull from Atlantic City remains uncertain, and projections vary. But the new competition will arrive at a time when several Atlantic City casinos are already experiencing significant pressure on operating profits.

Polistina pointed to a warning made years ago by Tilman Fertitta, whose company previously owned Golden Nugget Atlantic City.

"Even like Tilman Fertitta back in 2019, before he went into COVID, said that it was a seven-casino market," Polistina said.

Atlantic City currently has nine casinos.

Prediction Markets Create Another Challenge

Polistina also singled out the rapidly growing prediction-market industry, including platforms such as Kalshi and Polymarket.

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

He argued that sports contracts offered by prediction markets amount to sports wagering without being regulated in the same manner as New Jersey's legal sportsbooks.

"People do this sports betting through the Kalshis and the Polymarkets, which is absolutely sports betting, but not regulated the way it should be at the federal level," Polistina said.

The question has become the subject of a major national legal fight.

New Jersey attempted to regulate Kalshi's sports event contracts as unauthorized sports wagering. But in April, the 3rd U.S. Circuit Court of Appeals ruled that New Jersey could not regulate the platform under its state gambling laws, finding that federal commodities law preempted the state's authority.

Now another federal appeals court has reached the opposite conclusion.

On Aug. 28, the 9th U.S. Circuit Court of Appeals ruled that Nevada can require Kalshi to obtain a state gaming license for its sports prediction contracts.

The conflicting appellate decisions have increased the possibility that the U.S. Supreme Court could eventually decide whether states or the federal Commodity Futures Trading Commission have authority over sports prediction markets.

That battle has significant implications for New Jersey, where regulated casinos and sportsbooks operate under extensive state rules and taxation.

There is not yet sufficient public data to quantify how much revenue, if any, Atlantic City's casinos or New Jersey sportsbooks have lost specifically to prediction markets. Polistina's assessment that they are cutting into the regulated industry should therefore be viewed as his assessment of the market rather than an established financial figure.

‘We Have Our Work Cut Out for Us’

Polistina said Atlantic City's challenges go beyond casino floors.

He told Cronick that he had met a day earlier with people associated with major conventions that come to Atlantic City, including the boat show and pool and spa show.

According to Polistina, those convention organizers raised concerns about the need for additional investment in the Atlantic City Convention Center.

"There are some concerns there and some challenges there that we heard about directly from some of the people that run the boat show, that run the pool and spa show, that run these conventions across these cities nationwide," Polistina said.

Among the issues he identified were "the need for investment back into the convention center, about the need for Wi-Fi at the convention center, about the need to clean up some of the areas outside of the convention center."

"We have our work cut out for us here," Polistina said.

Despite those concerns, Polistina said major conventions and special events remain critical to Atlantic City's future.

"All these conventions are fabulous for Atlantic City," he said.

Looking Beyond Gambling

Polistina said the longer-term solution requires Atlantic City to continue diversifying its economy so the region isn't overwhelmingly dependent on casino gambling.

He pointed to Stockton University, AtlantiCare, plans involving Temple University and medical education, the region's aviation sector and new residential development as pieces of that strategy.

"I think that Temple School of Medicine, the AtlantiCare, the Stockton is really part of the future," Polistina said. "Obviously, some of the residential redevelopment we've seen with some of the groundbreakings over there is incredibly important, and we need them to continue."

He said Atlantic City needs to continue evolving "from just a gaming destination, as we needed for a long time, into more of a college town atmosphere, walkable atmosphere."

Polistina's warning comes at an unusual moment for Atlantic City.

On the surface, the industry's gaming revenue remains strong. Internet gaming continues to grow, major properties such as Hard Rock and Ocean have attracted substantial business, and the city continues to host major concerts, conventions and other events.

But underneath those headline numbers, rising expenses and falling operating profits are putting pressure on the traditional casino hotel business.

At the same time, Atlantic City is preparing for new casino competition from New York and an evolving online gambling landscape in which prediction markets could compete for customers without operating under the same regulatory structure as New Jersey sportsbooks.

Polistina said those challenges make cooperation and investment increasingly urgent.

"The region depends on the city, and we better get our act together quickly," Polistina said.

And despite the strength visible on the Boardwalk during busy weekends, Polistina said what he hears behind the scenes has left him worried.

"It seems like on the face it's OK," Cronick told him.

Polistina's response was unequivocal.

"It is a frightening time right now," he said. "We really need to get together and get some things done."