This week, UNITE HERE Local 54, Atlantic City’s main union, finalized a new labor agreement with Bally’s Atlantic City, marking the completion of negotiations with all nine casino properties in the city. Each of these contracts, including Bally's, has a term of just one year.
The brief duration of the contracts reflects the uncertainty surrounding the market, exacerbated by increasing competition from New York City’s expanding casino scene and New Jersey’s robust online gaming sector. Historically, casino labor contracts tend to last three years or more, with the last round of negotiations occurring in 2022.
Local 54 President Donna DeCaprio expressed pride in the union's negotiating committee, members, and staff for their efforts in securing and enhancing pay, benefits, and job standards that uphold quality union jobs.
The one-year pause in negotiations may also offer a clearer view of the competitive landscape ahead. Currently, Resorts World NYC stands as the only active casino in the NYC market, averaging around $30 million in gross gaming revenue weekly, which could translate to approximately $1.5 billion annually from this single property. In contrast, Atlantic City’s nine casinos reported $2.8 billion in gross gaming revenue in 2025 and $1.5 billion during the first half of this year.
Concerns about NYC's competition are heightened, particularly regarding two other planned casino developments, Metropolitan Park and Bally’s Bronx. Both are expected to open in single phases by 2030, but Metropolitan Park has been delayed, and Bally’s is facing financing challenges for its $4 billion project. Development timelines could be reassessed next year.
This week’s short labor agreements coincided with the release of a concerning economic report about the region. The Greater Atlantic City Casino-Hotel Employment Exposure Assessment, issued by the Atlantic County Economic Alliance, warns that over 8,000 jobs might be at risk due to competition from NYC by 2035, representing more than one-third of Atlantic City’s current casino workforce of approximately 21,100.
The report also suggests other potential outcomes, with a central scenario predicting around 5,100 job losses and a best-case scenario indicating around 1,500 at risk. Current employment levels are reported to be the lowest in nearly ten years, even dipping below figures observed in the wake of the Covid pandemic.
The analysis considered several factors but primarily modeled four:
1. Competition from the three New York casinos;
2. A possible recession in the US economy;
3. Potential in-state expansion from new casinos at the Meadowlands and Monmouth Park, though these efforts have faced rejection and will not be presented to voters in 2026;
4. Ongoing competition from in-state online gambling.
Dr. Max Slusher, who compiled the report, emphasized that this was an exposure assessment rather than a prediction. He clarified that it aims to answer how much of Atlantic City’s 2025 casino revenue could be exposed to various pressures simultaneously.
The growth of New Jersey's iGaming sector amplifies the external threat posed by NYC competition. While casino revenues in Atlantic City have been stable, the consistent double-digit growth in online gaming revenue has led to discussions about potential revenue cannibalization. Online gaming in New Jersey generated $2.9 billion in 2025, marking the first year that iGaming revenues surpassed those from retail casinos. As of July, online revenue reached $1.8 billion, reflecting a 14.5% increase compared to last year.
Proponents argue that iGaming serves as a growth engine for the broader industry since overall gaming revenue is hitting record highs. However, Atlantic City casinos face difficulties too, with operating profits falling 15% in the first half of 2026 compared to the same period in 2025, despite rising revenue. James Plousis, chair of the New Jersey Casino Control Commission, noted that casino hotels experienced their highest costs in nine years during the second quarter, significantly affecting reported gross operating profits.
