For years, the casino industry treated Las Vegas as untouchable, the kind of market that could survive any economic cycle, any cultural trend, any shift in consumer taste. But look closely at the numbers today and you’ll spot something unusual happening beneath the surface. The Strip is still bright, but the glow isn’t as strong as it once was. And while Vegas grapples with rising costs, thinning margins, and stubborn drops in visitor volume, Atlantic City the perennial underdog is piecing together a comeback that doesn’t look like a fluke. It looks like a real challenge. What’s unfolding now isn’t just a tale of two cities; it’s a quiet reshaping of an entire industry, driven by demographics, data, and a generation that doesn’t gamble the way their parents did.
While Vegas remains a global icon, its growth model is showing early signs of strain. At the same time, Atlantic City is gaining traction across key performance indicators including gaming revenue, meetings and conventions, cultural expansion, and hospitality diversification—creating a competitive narrative worth serious attention.
Vegas vs. Atlantic City: The Numbers Tell a New Story
Las Vegas still operates at a massive scale, but recent data reveals meaningful vulnerabilities.
In 2024, Nevada celebrated a record $31.5 billion in total gaming revenue, yet the Las Vegas Strip saw a year-over-year decline of roughly 1%, a rarity for the nation’s entertainment capital. Even more concerning: profitability is shrinking. Strip properties saw net income drop more than 40%, a sign that rising costs, overreliance on premium events, and changing visitor habits are creating pressure behind the scenes.
Meanwhile, Atlantic City operating at a fraction of Vegas’ size is outperforming its own historical benchmarks.
In November alone, AC’s nine casinos generated $236.8 million in land-based revenue, a 5.7% increase over the previous year. Table games surged 19.1%, and major players like Borgata and Ocean Casino Resort saw double-digit revenue gains aligned with profitability, not masked by expenses. Hard Rock Casino also continues to grow steadily which it has been doing for the last 5 years.
Beyond the casino floors, Atlantic City is also expanding its non-gaming economy. In 2024, the city hosted 206 conventions and events, generating over 590,000 attendees, 290,000 room nights, and more than $353 million in economic impact—the strongest convention year in its modern history.
Vegas continues to draw tens of millions of visitors, but recent reports show year-over-year declines in key months, even as prices rise sharply. This widening gap between cost and value is giving Atlantic City an unexpected advantage.
A Generational Shift: Why Gen Z’s Gambling Habits Change Everything
The emerging rivalry between AC and Vegas cannot be understood without examining the behavior of Generation Z, the first cohort to grow up entirely online.
Unlike Boomers and Gen X—who drove Vegas’ golden eras—Gen Z is:
- Gambling more online than in person
- Spending less on traditional casino games and more on sports betting apps, fantasy sports, and hybrid digital experiences
- Prioritizing destinations with authentic culture, outdoor space, affordability, and social-media appeal
- Less brand-loyal and more likely to travel based on value, not legacy reputation
This demographic shift does not favor Las Vegas’ expensive, highly packaged in-person experience. Instead, it benefits destinations that offer variety, accessibility, and authenticity. Atlantic City—unexpectedly—fits this mold better than Vegas right now.
Younger travelers are increasingly choosing drive-to destinations that offer multiple trip types in one place: beaches, restaurants, murals, nightlife, and gaming if they want it. Vegas requires a costly flight and significant time commitment. AC offers flexibility, spontaneity, and variety—all qualities Gen Z seeks.
The Food Scene That’s Redefining Atlantic City’s Appeal
One of the most significant drivers of Atlantic City’s resurgence is its evolving culinary identity. What was once considered a casino-driven dining environment has transformed into a legitimate coastal food destination.
Historic institutions like Dock’s Oyster House continue to anchor the city with heritage seafood and raw bar traditions, while long-beloved spots such as Gilchrist Restaurant maintain a sense of authenticity rooted in the Jersey Shore’s character. These classics now coexist with a wave of innovative, globally inspired eateries: Afghan-French fusion at Setaara, contemporary Japanese and wagyu-forward cuisine at Kuro, and the booming energy of Tennessee Avenue Beer Hall, a craft-driven social hub that helped revive an entire corridor.
Even more telling, James Beard Award-winning restaurateur Stephen Starr who is known for shaping Philadelphia’s food identity has returned to Atlantic City with new concepts inside Ocean Casino Resort. His re-entry represents a vote of confidence from one of America’s most influential culinary operators.
This diversified food culture strengthens Atlantic City’s year-round appeal, giving visitors, especially younger ones a reason to return even when they’re not gambling which will pay dividends for decades.
The Beach Advantage Las Vegas Cannot Buy
No matter how much Las Vegas invests in artificial lagoons, immersive attractions, or indoor “daylife,” it cannot replicate Atlantic City’s defining asset: the ocean.
Miles of free beaches, salt air, real waves, and the iconic Boardwalk offer visitors something Vegas cannot match—genuine outdoor leisure. In a post-pandemic world where wellness, open space, and natural beauty influence travel decisions, Atlantic City’s coastline has become a competitive differentiator.
It’s not just about relaxation. It’s about Instagrammable scenery, sensory authenticity, and a sense of place that resonates with modern travelers.
A Convention Machine on the Rise
Las Vegas remains a heavyweight in the convention world, yet even here, Atlantic City is carving out meaningful space.
The city’s LEED Gold-certified convention center, along with Boardwalk Hall, has enabled AC to attract national trade shows, sports tournaments, and corporate gatherings at a scale that continues to grow each year. Importantly, AC offers what’s becoming rare in major convention hubs: affordability. Lower travel costs, drive-market accessibility, and competitive hotel rates are increasingly appealing to planners facing tightening budgets.
As Vegas relies more heavily on mega-events like Formula 1 to drive short-term spikes, AC is building stable, reproducible year-round business.
My Thoughts
Is Atlantic City Becoming the Better Bet?
Las Vegas will always be extraordinary. But extraordinary does not always mean sustainable.
As costs rise, profitability tightens, and Gen Z reshapes what travel and gambling look like, Las Vegas finds itself at a crossroads—burdened by its own scale. Atlantic City, on the other hand, is benefiting from being smaller, more flexible, and more aligned with emerging preferences. I’m a Gen Xer and frankly gambling is a small part of my life in terms of entertainment, for Millennial and Gen Z, it’s much less about the brick and mortar casinos. That is where Atlantic City has the upper hand; it has way more to do in terms of natural resources. A plastic dinosaur at the restaurant doesn’t mean its Jurassic Park theme is going to justify the $45 hamburger on the Vegas strip.
Look beyond the stereotypes, and the story becomes clear:
- Atlantic City’s revenue is rising in the right places.
- Vegas is showing signs of structural softening.
Gen Z prefers AC’s accessibility and authenticity. - AC’s culinary and cultural evolution is rewriting its identity.
- The beach—AC’s irreplaceable asset—gives it a natural advantage.
The question is no longer whether Atlantic City can return to its former glory. The question is whether it is becoming the next-generation rival Las Vegas never saw coming.
Tom is a lifelong New Jersey resident, Rutgers and FDU alumni and the publisher of The Digest.
