When New Jersey legalized online casinos in 2013, the decision was met with support and opposition in equal measure. Many were concerned that this legendary gambling destination would be unable to compete with a new iGaming market, whilst others felt that the area’s existing brick-and-mortar casinos needed to be given a new lease of life. Over a decade later, it’s time to tackle the big question: Did this historic move lead to negative consequences for the existing industry in Atlantic City? In this article, we’ve taken a look at the big picture.
What were the reasons for the legalization of online casinos in New Jersey?
Back in 2013, New Jersey made the landmark decision to become one of the first states in the US to legalize online casino gambling. The move was controversial at the time, and public opinion was split over whether the change would be beneficial or detrimental for the state’s struggling land-based casino industry. Supporters argued that the move could offer a much-needed boost for Atlantic City’s gaming scene in response to years of declining revenue in this iconic gaming destination. At the time, several iconic casino venues had already closed their doors due to a decline in footfall and dwindling profits, and overall casino revenue had dropped significantly due to increased competition from gambling venues in nearby states like Pennsylvania. The proposed goal of the new iGaming legislation was to complement the already existing brick-and-mortar entertainment venues with a new online offering for gamblers in the state, which would arguably boost the local industry.
Importantly, each online gambling license had to be linked to an existing brick-and-mortar Atlantic City casino, in the hopes of creating an intrinsic link between the new online industry and its existing roots. In many ways, this approach to legislation has worked wonders for the gambling scene in New Jersey. Since its legalization, online casino revenue has continued to grow at an impressive rate in the state, and New Jersey’s iGaming market recently generated an incredible $243.1 million USD in revenue in September 2025 (the fourth-highest monthly total in state history). Interestingly, the city’s brick-and-mortar casinos have also been doing well in recent months, having enjoyed a particularly successful summer this year. In August 2025, land-based casinos in Atlantic City saw their highest earnings in 13 years, showing that the summer months can still be a fruitful period in the area despite the ongoing changes to gambling habits.
How have gambling habits changed since the decision?
Evidently, consumer habits have changed since the early days of gambling in Atlantic City, and those in favor of iGaming regulation felt that the industry needed to move with the times. The increasing demand for web-based gaming reflects the digitization of modern life, with everything from personal banking to clothes shopping now taking place online. Those who opposed the legalization of online casinos in New Jersey argued that it would reduce the frequency of in-person visits to the existing entertainment venues in the state. However, others feel that allowing access to some of the best NJ online casinos here today was simply an appropriate response to the wider social demand for more online entertainment. Through welcoming online casino platforms, it has been argued that the legalization of iGaming in New Jersey has allowed a whole new demographic of players to become familiar with the activity, making them more likely to visit in-person gambling venues. Whilst there are a variety of factors at play, online casinos are clearly becoming more popular, and the entertainment landscape in Atlantic City certainly needs to adapt to these changing modern habits.
What has been the impact on local businesses in Atlantic City?
With an increasing number of gamblers in New Jersey now choosing to play their favorite table games online from the comfort of their own homes, there have understandably been concerns about the sustainability and overall future success of local businesses in Atlantic City. Many local establishments, including hotels, restaurants, entertainment venues and small retailers, have previously depended heavily on the consistent influx of brick-and-mortar casino tourism, and these small and medium-sized local businesses have undoubtedly felt the impact of reduced footfall, which may have been caused by the legalization of online gambling in New Jersey. However, in recent years, these changing trends in player behavior have also led to increased diversification amongst local businesses in Atlantic City, demonstrating their impressive ability to adapt in the face of new consumer trends.
There has since been an increased focus on other types of entertainment in the area – for example, Atlantic City is now home to a greater number of live music concerts, major conferences and other attractions that are unrelated to gambling activity. These targeted efforts to boost tourism and economic stimulation have been pretty successful – and interestingly, many of them have been directly funded by revenue and investment from the iGaming sector, which demonstrates how the legalization of online gambling has still provided an economic boost for the area in new and unexpected ways. There are other clear links between these two facets of Atlantic City’s gambling industry – for example, some major operators offer reward systems including brick-and-mortar prizes, such as hotel stays and restaurant discounts. This linked-up approach arguably allows iGaming platforms to support their local physical casino counterparts, rather than competing with them.
In conclusion, Atlantic City’s gambling scene has undoubtedly changed dramatically since the legalization of online casinos in New Jersey, but it’s clear that player preferences were already shifting even before this landmark moment took place. It is likely that the brick-and-mortar casinos in the area would have experienced a downturn in footfall regardless, as the rise of the internet has changed the very fabric of the gambling world. By remaining intrinsically connected to their Atlantic City roots, these new iGaming platforms have helped give the local gambling industry a much-needed boost, whilst bringing the sector in line with the times. Things have certainly changed, but this iconic gambling destination is doing well to keep up!
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.