Why is Atlantic City so run down in 2024?
The core reason is that Atlantic City based its entire economy around casinos and tourism without a backup plan. When neighboring states began allowing gambling, Atlantic City could not compete with these shiny new destinations. Left with a weakened economy and tax base, the city fell into decline.
As a passionate gamer and gaming industry analyst, I‘ve seen this cycle play out before…but Atlantic City‘s fall from being the nation‘s casino epicenter to dwindling dollars and boarded up hotels still fascinates me.
Let‘s dive deeper into the rise, crash and struggle to survive of this once-legendary boardwalk empire.
Atlantic City‘s Rapid Rise (And Even Quicker Fall)
Picture this – it‘s the glitzy 1980s and Atlantic City is the hottest gaming destination on the East Coast. Its monopoly on this side of the Mississippi means tourists flock here to try their luck. The city is flush with casino cash and buzzing with nightlife.
But behind the neon signs, trouble is brewing. Atlantic City relies too heavily on gaming tourism without any backup industries or investments outside the boardwalk. It‘s a casino town through and through.
Gaming Industry Expert Perspective: "Rapid gaming growth can disguise vulnerable economics. Atlantic City got drunk on casino money but the hangover was inevitable without economic diversity."
When neighboring states like Pennsylvania, Delaware and Maryland lift their gambling bans in the 1990s and 2000s, Atlantic City loses its captive audience. These states build flashy new casinos closer to major cities, with many other amenities besides gaming.
Atlantic City‘s tourism and casino revenues go off a cliff. The city is too reliant on this lone industry to survive the hit.
By the Numbers: Atlantic City‘s Decline
Between 2006 and 2014, Atlantic City suffered:
- 55% drop in gaming revenues
- 50% decrease in casino workforce
- 65% decline in tax receipts
This crippled the city‘s ability to pay for basic public services, maintain infrastructure investments, retain other industries and counteract rising poverty.
Why Didn‘t Atlantic City Diversify Like Las Vegas?
Watching Atlantic City crumble, I couldn‘t help but compare it to that other American gaming mecca – Las Vegas. Sin City has certainly had its economic swoons, but managed several reinventions by diversifying beyond casinos.
Today in Vegas you can just as easily spend money on luxury shopping, Michelin-star dining, nightclubs, concerts, attractions and high-end pool parties as you can playing poker or slots. When casino revenues dropped during recessions, Vegas leaned on these other industries to stay reasonably resilient.
Atlantic City never developed this portfolio of non-gaming tourism opportunities. It remained almost stubbornly a one-trick pony economy dependent wholly on casino visitors.
Gaming Industry Expert Perspective: "Las Vegas intelligently avoided getting overly reliant on casinos, while Atlantic City tragedy fell into the mono-economy trap. No wonder one rebounded better than the other."
Atlantic City‘s Life Support System: Tourism Subsidies
In some ways, Atlantic City is now on governmental life support. Its survival depends heavily on state tourism marketing subsidies and infrastructure assistance aimed at reviving enough casino, retail and hospitality activity to get tax revenues flowing again.
But the subsidies have strings attached. Atlantic City is under strict state oversight of its budgets and debt to avoid taxpayers shouldering more emergency bailouts. It‘s given Atlantic City temporary breathing room, but hasn‘t restored long term independent stability.
Gaming Industry Expert Perspective: "Throwing subsidies at tourism and infrastructure can bandage immediate problems, but doesn‘t treat the underlying illness of overdependence."
Signs of Life or False Hope?
So could Atlantic City stage a comeback in the 2020s? Well, it‘s complicated…
On one hand, casino profits and tourism numbers have edged up the last few years. New hotels and non-gaming attractions have popped up around the boardwalk. Real estate investors see enough resurgence potential to start acquiring properties.
But behind the poster child projects, systemic problems persist. Unemployment remains higher and average incomes lower in Atlantic City than statewide. Poverty and violent crime rates are some of the worst in New Jersey. Tourists might return briefly, but will they stay?
The Hard Truth in Statistics:
- Atlantic City poverty rate: 35%
- New Jersey poverty rate: 9%
- Atlantic City violent crime rate: 8 per 1,000 residents
- New Jersey violent crime rate: 3 per 1,000 residents
So is revival real or hype? As a gaming friend of mine likes to joke…“Atlantic City’s comeback talk feels a bit like fixing a facelift versus a heart attack.” Sure, the boardwalk looks better, but can you treat the underlying issues?
I fear the subsidies and surface-level improvements have just barely stabilized intensive care patients like poverty, unemployment and addiction issues. If you peel back the PR sheen, the odds still feel stacked against a full Atlantic City turnaround.
But I’ve watched the gaming industry long enough to know that some speculative investors and dreamers will keep doubling down on potential rather than peering too hard at the data. Maybe this is finally Atlantic City’s lucky hand?
As a gambling woman myself, I wouldn’t completely count Atlantic City out just yet. But I wouldn’t bet my life savings on the full comeback either. The boardwalk empire stands equally poised between revitalization or ruin once more. Its future likely depends on facing the music that casinos alone won‘t sustain it anymore.
There endeth my mixed prognosis for New Jersey’s grand ole gaming dame. May the slots keep spinning and the hotel lights stay on bright enough to give Atlantic City another toss of the dice. But will it finally diversify and think beyond the craps table? I’ll be watching and waiting with bated breath!
