Competition Spurs Innovation – New York Casino Expansion

By Jane Bokunewicz, Ph D,  Director, Lloyd D. Levenson Institute of Gaming Hospitality & Tourism

On December 15, 2026 the competition among bidders seeking to be awarded a gaming license in Downstate New York concluded with the granting of three licenses: Hard Rock, Bally’s and Resorts World.   So now the real competition will commence as casino operators in the northeast vie for customers. With most expansion and construction work in New York expected to extend into 2030, Atlantic City operators have some time to cultivate their response strategy. 

While the addition of three integrated resort-style properties in the region will, at least in the short term, increase competitive pressure on Atlantic City operators, there is reason to hope that Atlantic City will be able to distinguish itself in the long term. While New York’s properties will soon boast many of the same dining and entertainment amenities that have long been available in Atlantic City, they will never have the beach and historic Boardwalk. 

Additionally, the clustering of nine casinos within Atlantic City’s total 17.2 square miles creates a critical mass of activity for the region. This and the addition of varied other amenities set the city apart as a resort destination. There are few destinations in the country that can claim such a wide array of choices in addition to casino gaming. As part of a resort destination, Atlantic City’s casinos have a distinct advantage over stand-alone properties as visitors are more likely to spend overnight and multi-night stays than at a stand-alone casino. This no doubt is why Atlantic City has long remained second only to Las Vegas as the largest commercial gaming market as measured by Gross Gaming Revenue (American Gaming Association – Top 20 US Commercial Gaming Markets). 

Atlantic City operators have already been working to prepare for the expansion of casino gaming in New York City by reinvesting in their properties to upgrade additional facilities and add new attractions.  In 2024, the casinos spent more than $200 million in capital improvements that included hotel renovations, new restaurants and lounges, spa upgrades and more.  Atlantic City has also seen a wave of investment in developments outside of the casinos with the opening of the Island Water Park, the new roller coaster at Steel Pier, the re-opening of the aquarium, improvements in the Orange Loop, new housing developments and boardwalk and road improvements.  An increased focus on attracting meetings and conventions has also been successful with future bookings showing positive growth. For the first time in years there is a renewed interest in development in Atlantic City.  

With two of the approved New York casinos, Hard Rock and Bally’s, also operating properties in Atlantic City some unique marketing opportunities are unlocked that could benefit both locations in the long term, even if Atlantic City feels the strain in the short term.

Hard Rock and Bally’s, through their properties in Atlantic City, have access to substantial databases of regional customers. They are likely to draw on these databases, and franchise loyalty programs, to build a following for the new properties as they open and find their footing in the market. In the short term, this will likely hurt Atlantic City as promotional incentives and "the novelty factor" draw patrons away from resort. We can expect to see impacts on city visitation and brick-and-mortar gross gaming revenues as a result. 

In the long term, once the new properties are established, the same databases and loyalty programs that drew customers away from, could actually draw them to Atlantic City. The New York casinos are likely to attract an upstate New York and international audience that might not ordinarily consider Atlantic City given regional travel logistics. Casino operators with casinos in both states would then have the opportunity to cross promote Atlantic City – incentivizing these customers to give Atlantic City casinos a try. Access to this expanded audience, which Atlantic City might not otherwise be able to reach, could have positive impacts on long-term revenues and general prospects for the casino properties and the resort as a whole.  

Competition is the corner stone of the American economy.  While increased competition may generate some feelings of uncertainty and maybe even fear in the short run it drives innovation, efficiency, and productivity.  Atlantic City is uniquely positioned to effectively compete with New York as a destination and local casino operators have shown resilience in responding to previous competitive threats.  While investment and renovation of existing properties have already begun, we can expect to see even more innovation by casino operators in the coming years.