This week, UNITE HERE Local 54, Atlantic City’s main union, finalized a new labor agreement with Bally's Atlantic City, marking the end of negotiations with all nine casinos in the area. Each of these agreements is set for just one year.
These short-term contracts reflect a cloud of uncertainty surrounding the market, particularly in light of increasing competition from New York City’s expanding casino scene and New Jersey's robust online gaming sector. Traditionally, casino labor contracts span three years or more; the last set of agreements was in 2022.
Local 54 President Donna DeCaprio expressed pride in the negotiating committee and union members, stating their efforts ensured the preservation and enhancement of pay, benefits, and employment standards that characterize these union jobs.
The one-year contracts may provide a clearer perspective on the competitive landscape as developments unfold in New York. As of now, Resorts World NYC is the only operational casino in the market, averaging about $30 million in gross gaming revenue weekly. This would equate to roughly $1.5 billion in annual revenue from a single property. For context, Atlantic City’s nine casinos collectively generated $2.8 billion in GGR in 2025 and $1.5 billion in the first half of 2026.
While Resorts World poses a challenge for Atlantic City, the timelines for two additional licensed casinos, Metropolitan Park and Bally's Bronx, may be further off than anticipated. Both are aiming for single-phase openings in 2030, but Metropolitan Park has been delayed and Bally’s is currently facing financial difficulties with its $4 billion project. Developments may shift next year.
Accompanying the new labor agreements was a concerning report from the Atlantic County Economic Alliance. The Greater Atlantic City Casino-Hotel Employment Exposure Assessment suggested that by 2035, New York City competition could potentially lead to a loss of over 8,000 jobs in Atlantic City under the most pessimistic scenario. This figure represents more than a third of the casino workforce, currently around 21,100.
Less severe potential outcomes predict around 5,100 job losses, while the best-case scenario anticipates approximately 1,500. Current employment levels are reported at their lowest in nearly a decade, even dipping below figures seen after the Covid pandemic.
The analysis considered five variables, of which four were factored into the model: competition from three New York casinos, a possible recession, the potential for new casinos in New Jersey, and competition from in-state online gambling.
Dr. Max Slusher, who compiled the report, clarified that this assessment is not a prediction but an evaluation of potential exposure, questioning how susceptible Atlantic City's casino revenue might be if multiple pressures were to converge simultaneously.
The threat of competition from New York City is compounded by the rise of iGaming in New Jersey. Despite Atlantic City’s casino revenues keeping pace with online figures, double-digit growth rates in iGaming have led to discussions about potential revenue cannibalization.
In 2025, New Jersey’s online gaming revenue reached $2.9 billion, marking the first time online revenue exceeded that of retail casinos. As of July, online gaming revenue was $1.8 billion, reflecting a 14.5% increase over the previous year, which had already set a record.
Critics of the cannibalization claim maintain that iGaming serves as a growth catalyst for the industry overall, evidenced by skyrocketing total gaming revenue statewide. Nevertheless, casinos in Atlantic City are facing challenges; for instance, operating profits fell 15% in the first half of 2026 compared to the same period in 2025, despite an overall increase in revenue. James Plousis, chair of the New Jersey Casino Control Commission, noted that the casino hotels encountered their highest second-quarter costs and expenses in nine years, significantly affecting gross operating profits.
