Stockton Gaming Expert: Atlantic City Should Be Concerned About New Competition — But Not Panic

Tyrrell says New York casinos and online gambling pose real threats, while Polistina and Marino also warn of mounting pressure on the resort's casino economy

ATLANTIC CITY — The warnings about Atlantic City's casino industry are getting louder.

New York is preparing to introduce three full-scale casinos to the metropolitan market. Online gambling continues to change the way people place bets. Casino operating profits have fallen despite relatively stable revenues. And a recent economic study warned that thousands of Atlantic County jobs could be exposed if multiple competitive threats converge.

Dr. Brian J. Tyrrell, the new faculty director of Stockton University's Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, believes Atlantic City should take those threats seriously.

But he isn't predicting disaster.

"I don't want to be Chicken Little here, but I do think we need to be worried about that," Tyrrell said Thursday during an appearance on Off The Press with Scott Cronick on WOND.

His assessment adds another voice to a growing debate over Atlantic City's future — one that has recently included warnings from State Sen. Vince Polistina and longtime casino analyst Anthony Marino.

A warning — not a prediction

Tyrrell was responding in part to a recent Atlantic County Economic Alliance report examining the potential effects of New York casinos, continued growth in online gambling, possible North Jersey casinos and other pressures on Atlantic City's brick-and-mortar casino industry.

The report's most severe modeled scenario found that as many as 8,005 jobs and approximately $1.8 billion in regional economic output could be at risk by 2035.

Those figures are modeled exposure scenarios, not predictions that 8,005 jobs will disappear.

Tyrrell disclosed that he and other Stockton researchers reviewed the report before its release. Two representatives of the Atlantic County Economic Alliance also serve on LIGHT's board.

He called the report "extremely well written" and said there is value in examining the potential consequences before the competition fully arrives.

"If we're concerned about negative impact of New York City casinos, which I do think we should ... let's draw a spotlight on it now," Tyrrell said.

But Tyrrell also cautioned against interpreting the study's more severe scenarios as inevitable.

"It did kind of seem like, you know, if the sky falls, all these things are gonna happen," Tyrrell said.

Some of the scenarios contemplate several threats materializing together, including New York casinos and potential casino expansion in North Jersey.

Polistina: 'I really am fearful for some of the properties'

Tyrrell's measured warning comes as other people closely involved with Atlantic City's economy have expressed greater urgency.

Polistina, R-Atlantic, told WOND earlier this week that rising expenses and outside competition are creating increasingly difficult conditions for some casinos.

"Obviously, the competition in New York is going to have an impact," Polistina said. "Numbers are down. Profitability is down because of inflation, because of labor costs. Some challenging times there. I really am fearful for some of the properties."

Polistina also pointed to the rapidly changing gambling marketplace, where customers no longer need to enter a casino — or even open a traditional sportsbook app — to wager.

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

His assessment of the industry's current position was stark.

"It is a scary time for some of the properties over there," Polistina said.

The financial numbers help explain the concern.

New Jersey Division of Gaming Enforcement figures show Atlantic City's casino industry reported $1.57 billion in net revenue during the first six months of 2026, an increase of just 0.2% from the same period last year.

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

Gross operating profit reflects earnings before interest, taxes, depreciation, amortization and certain other expenses and is widely used by the state as an indicator of the industry's underlying operating performance.

The battle between the casino and the couch

Marino, a longtime casino industry analyst who has tracked Atlantic City tourism and casino finances for decades, has repeatedly raised another concern: What happens to the rest of Atlantic City's economy when gambling moves away from the physical casino?

Online gambling can generate gaming revenue without bringing a customer to Atlantic City.

A brick-and-mortar visitor, by contrast, may also book a hotel room, eat at a restaurant, attend a show, shop or spend money elsewhere in the resort.

That's why the distinction between online and in-person gambling matters beyond the casino floor.

Marino has noted that online gambling has increasingly outpaced the growth of in-person casino gambling and warned that headline revenue figures don't necessarily tell the entire story.

"Why do the gross revenues keep going up and the gross operating profits keep going down?" Marino said during a recent WOND appearance.

He has also pointed to inflation as a major factor.

"Gross gaming revenue is just not going up fast enough or large enough to outpace the inflation," Marino said.

For Atlantic City, the larger question is whether digital gambling ultimately reduces the number of people who make the trip to the resort — something Marino has said remains critical because a visitor produces economic activity beyond the wager itself.

Tyrrell: Atlantic City is selling something a phone can't

That is where Tyrrell sees one of Atlantic City's biggest advantages.

He described online sports betting and internet casino games largely as forms of "convenience gambling."

Atlantic City, he said, is selling something different.

"We're a destination market down here in Atlantic City," Tyrrell said.

The city offers hotels, restaurants, entertainment, nightlife, beaches and the Boardwalk in addition to casino gambling.

"You can go out [to] some of the best restaurants in the country in Atlantic City," Tyrrell said.

"And you can't do that sitting on your couch."

That distinction could become increasingly important as consumers gain more opportunities to gamble without traveling.

Tyrrell said Atlantic City's relatively favorable casino tax structure also gives operators an advantage over some competitors.

"We have a slight competitive advantage down here, and it's a reasonable gaming tax rate," Tyrrell said.

The lower rate, he said, gives Atlantic City casinos greater flexibility to create promotional packages that entice customers to make the trip while still generating an attractive return per visitor.

But Tyrrell also acknowledged that Atlantic City's traditional casino business needs stronger growth.

"We've had flat revenues," he said. "And we've had flat revenues for too long."

'We cannot compete with ourselves'

Polistina has made a similar argument about the threat of additional casinos within New Jersey.

"We, of course, are dealing with the competition you see now with the online gaming and people on their phones," Polistina said during an earlier WOND interview. "We cannot compete with ourselves."

He has strongly opposed proposals for casino expansion into North Jersey, warning that additional in-state casinos would cannibalize Atlantic City's existing industry rather than simply create new gambling revenue.

"Atlantic City cannot deal with additional competition from our own state," Polistina said.

His warning is that North Jersey casinos could cost Atlantic City properties and jobs at the same time the resort is preparing for new competition from across the Hudson River.

Convention business could be part of the answer

For Tyrrell, defending Atlantic City's position means strengthening the reasons people have to physically come to the resort.

One area he singled out is the Atlantic City Convention Center.

"I think there's some significant investment that needs to occur in that convention center," Tyrrell said.

Meetings and conventions bring visitors into Atlantic City for reasons other than gambling and can produce hotel stays, restaurant business and other spending throughout the resort.

That becomes particularly important if a major convention facility is eventually developed in North Jersey.

Tyrrell also said some casino-related reinvestment dollars have recently been redirected toward paying down Atlantic City's debt.

"I think we need to kind of get back to reinvesting in it," he said.

Could Atlantic City lose casinos?

The most uncomfortable question is whether all nine Atlantic City casinos will survive the next round of competition.

Cronick asked Tyrrell directly whether Atlantic City could have one, two or even three fewer casinos five or 10 years from now.

Tyrrell didn't dismiss the possibility, noting the painful contraction Atlantic City experienced after neighboring states expanded casino gambling.

But he wouldn't predict another closing.

"Do I want to predict a closure? No," Tyrrell said.

Atlantic City lost four casinos in 2014 amid the previous wave of regional competition, with another closing in 2016. Two properties later reopened in 2018.

Tyrrell believes the industry is changing again, but he also sees reasons for optimism beyond the casino floors.

"I think Atlantic City is as tough as they come," he said.

He pointed to new housing and other development occurring around the city and argued that Atlantic City's future isn't dependent upon finding a single project capable of solving all of its problems.

That may ultimately be the biggest difference between Tyrrell's assessment and the more dire predictions surrounding Atlantic City.

He agrees the threats are real.

He just doesn't believe the answer — or the problem — comes down to one thing.

"I don't think it's one grand thing that's gonna change Atlantic City," Tyrrell said. "I think it's a thousand little things."

South Jersey NewsBeat has been following the mounting debate over Atlantic City's casino economy, including concerns about declining profitability, online gambling, prediction markets and the arrival of new casino competition in New York.