$/€ Atlantic City: The Rise and Fall of a Gambling Empire
Xenia Luch
30 August 2023
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How do you turn a dying seaside town into a gambling mecca? That’s the story of Atlantic City, a resort city that became the East Coast’s answer to LA in the 1970s.
What Is Atlantic City
Atlantic City is a resort city on the New Jersey shore, known for its beaches, boardwalks, and casinos.
Monopoly City, as it is sometimes called, is the second-biggest gambling market in the US, after Las Vegas. You can play slots, poker, blackjack, and more at any of the 9 casinos that are open 24/7.
How Atlantic City Became a Casino Town
Atlantic City’s gambling history dates back to 1976, when a referendum passed in New Jersey to allow casino gaming in the struggling resort town. Voters hoped to turn around the city’s fortunes and attract more tourists. A year later, the state passed the Casino Control Act, which laid out the rules and institutions for the casino industry. It also set up 2 agencies:
- Casino Control Commission: responsible for licensing, auditing, and enforcing casino operations.
- Casino Reinvestment Development Authority: responsible for investing casino revenues in community development projects.
Atlantic City’s Golden Age
Atlantic City’s first casino, Resorts International, opened its doors on May 26, 1978 with a bang. It was a spectacle of lights, sounds, and stars.
Steve Lawrence and Eydie Gorme were among the celebrities who performed on opening night.
But Resorts International was just the beginning. Atlantic City soon attracted more casino operators and investors. By 1984, the city had 11 casinos. Some of them were:
- Caesars Atlantic City
- Bally’s Atlantic City
- Trump Plaza
Atlantic City became a hot spot for gamblers, especially from New York and Philadelphia. It also became a hub for entertainment and nightlife.
Did you know? Atlantic City was the original home of the Miss America pageant from 1921 to 2005. In 2014 the contest made a return to Boardwalk Hall in Atlantic City.
More Casinos and Competition
In 2006, Atlantic City’s casinos reached their peak, generating $5.2 billion in revenue. But their glory days were numbered, as other states jumped on the gambling bandwagon. Gamblers had more options than ever, thanks to the new casinos in Pennsylvania, Delaware, Maryland, and New York. These newcomers had a leg up on the old-timers: they enjoyed lower taxes, dazzled with newer facilities, and catered to the customers’ convenience.
| Year | Events |
| 2007 | The Great Recession hit the US economy and reduced consumer spending on gambling |
| 2011 | Hurricane Sandy damaged many casinos and infrastructure in Atlantic City |
| 2014 | Four casinos closed: Atlantic Club, Showboat, Revel, and Trump Plaza |
| 2016 | Another casino closed: Trump Taj Mahal |
| 2018 | Two casinos reopened: Hard Rock and Ocean |
Downfall and Revival
In 2014, Atlantic City’s casinos faced a disaster, as they saw their revenue and 4 of their facilities vanish. The city also struggled with a financial crisis and nearly went bankrupt. The state came to the rescue and took control of the city’s finances in 2016.
But Atlantic City also proved its resilience and recovery. In 2018, two of the closed casinos reopened with new names and owners: Hard Rock and Ocean. They injected new energy and investment into the city, boosting the city’s revenue by 15% in 2019.
Caesars Still Rules the Roost
Caesars Entertainment still owns 3 of the 9 casinos in Atlantic City: Caesars, Harrah’s, and Tropicana. They also have a loyal fan base of over 65 million gamblers through their Caesars Rewards program. Will Caesars be able to keep them hooked?
Fun Facts
- Atlantic City is the inspiration for the board game Monopoly. The streets on the game board are named after real streets in Atlantic City.
- Atlantic City has the longest boardwalk in the world, stretching for 5.5 miles (8.8 km) along the beach.
- Atlantic City is home to the world’s largest pipe organ, located at Boardwalk Hall.
