Atlantic City Governance and New Jersey Control: Shaping the Future of Casino Gaming

Atlantic City governance plays a crucial role in shaping the future of casino gaming in New Jersey. Atlantic City’s governance is set to remain under the stewardship of the State of New Jersey for another year, a move strategically designed to stabilize the regions economic landscape. This decision reflects ongoing measures aimed at improving the financial health of the city, ensuring that the local economy continues to thrive through the continued expansion and refinement of the casino gaming industry.

Recently, the New Jersey Local Finance Board, a branch of the Department of Community Affairs (DCA), voted to continue the Local Government Supervision Act until November 2026. This act affords the Local Finance Board the authority to oversee financial operations of Atlantic City, including decisions made by the City Council and the Mayor’s office.

This extension was anticipated as New Jersey Governor Phil Murphy had previously confirmed the state would maintain its oversight of Atlantic City in June 2021. The Supervision Act originated from the Municipal Stabilization and Recovery Act, enacted in May 2016 to address escalating expenses and high taxes following the closure of four casinos in 2014, which severely impacted the local economy.

Takeover Background

New Jersey’s intervention was prompted by escalating financial difficulties that resulted in an increased tax burden for remaining businesses and residents. The state’s strategic action included implementing a Payment in Lieu of Taxes (PILOT) for the remaining nine casinos based on less volatile gaming revenue. In a recent development, Atlantic County managed to secure $15 million from the state after proving the PILOT adjustments violated a prior consent order from 2016.

• Atlantic City’s governance will remain under state control for another year
• New Jersey’s takeover of the casino town began in 2016

Dennis Levinson, the Atlantic County Executive, highlighted that a significant feature for regaining full governance could lie in appropriately taxing the casinos rather than relying solely on the PILOT, stating, “Every entity engaged in casino gaming globally has a way to assess property taxes — why can’t Atlantic City?” He pointed out the inconsistency of needing a PILOT in Atlantic City while others have figured out effective taxation methodologies.

“The casinos can’t afford it — casinos will close — is what we’ve been continually told. Yet, Hard Rock gave a $10 million bonus to their employees,” Levinson remarks, referring to Hard Rock’s recent employee bonuses.

Atlantic City Casino Profits

According to the New Jersey Division of Gaming Enforcement, eight out of the nine casinos reported profitability in the first half of 2025, with Bally’s being the only exception. Collectively, the casinos reported a gross operating profit of $320.67 million, noting a slight decline of 3.9% compared to the previous year.

• Casino profits over the years:
• 2022: $731.27 million
• 2023: $780.66 million
• 2024: $709.14 million

This renewed commitment from the state showcases a focused approach towards ensuring economic stability and growth in Atlantic City, benefiting both residents and businesses in the long term.

In summary, the New Jersey state government’s continued supervision of Atlantic City’s governance seeks to ensure financial stability and effectively manage the challenges arising from the local casino economy. As measures unfold, both the state and local entities aim to maintain a balanced approach to financial recovery and community wellbeing.