Atlantic City’s casino industry is facing another difficult stretch, and this time the warning signs are getting harder to ignore. While casino floors still attract crowds and weekend tourism remains alive along the Jersey Shore, the numbers behind the scenes tell a different story.
According to figures released by New Jersey regulators, Atlantic City casinos posted a collective gross operating profit decline of more than 22% during the first three months of 2026. Rising labor costs, higher operating expenses, and stronger competition from digital gambling platforms all contributed to the downturn. Only one casino managed to improve profits compared to the same period last year.
The decline comes at a time when New Jersey’s online gambling market continues breaking records. Internet casino revenue has consistently outpaced retail casino earnings this year, adding more pressure to Atlantic City’s land-based operators.
In April alone, New Jersey online casinos generated more than $263 million, well ahead of the revenue produced by physical casino floors.
Are Bettors Playing Offshore?
The rapid growth of online gambling has also renewed discussions around legal online betting, particularly offshore sites serving American players. While New Jersey residents can legally access regulated platforms connected to Atlantic City casinos, many gamblers in legalized states still turn to offshore operators for access to slots, poker, blackjack, and sports betting.
Offshore casino sites continue attracting U.S. players because they accept customers from states where there are no state-licensed online gambling sites. Online, US players often find larger bonuses, fewer verification requirements, and faster sign-up processes compared to regulated American operators. Most players also prefer the broader selection of games and cryptocurrency payment options that reputable brands commonly offer.
In New Jersey, Several Atlantic City brands already understand how important digital gambling has become. Resorts Digital, for example, has generated significantly stronger online revenue than its physical casino operation in recent years.
According to the New Jersey Office of Attorney General website, there are 30 licensed online casino sites operating in the state.
Online Casinos in NJ
New Jersey remains one of the most successful online casino markets in the United States, and the numbers continue climbing. The state’s iGaming industry has evolved from a side business into a major revenue driver, helping offset slowing growth inside physical casinos.
21+ players in New Jersey can easily access licensed online casino platforms affiliated with major Atlantic City operators such as Borgata, Caesars, Hard Rock, and Resorts. These sites offer mobile apps, live dealer games, progressive jackpots, and sports betting under strict state regulation.
However, while offshore sites are not illegal under federal gambling laws, the state has sent cease-and-desist letters to many of the big players. Most of the sites we review and recommend have opted out of the market, but are still accessible in neighboring states. For now, the state is trying to protect its gaming revenue, and until numbers tick up, you can expect more offshore sites to be blocked or remove themselves from the Garden State.
Note: See our list of top online casino sites for 2026 here: https://www.legalbettingonline.com/casino/