Despite a tepid August, Atlantic City casinos have officially recorded their best summer since 2012. As a whole, the nine casinos in the city generated more than $856 million in revenue.
However, that performance came with a mixed bag, with two primary factors in consideration. First and foremost, Atlantic City is seasonal and typically enters a slower period during the colder, slower tourism months. Secondly, the threat of the Sheraton’s closure may directly affect a large portion of tourist traffic, given Atlantic City’s important convention business.
Atlantic City Casinos Record Mixed Summer Results
As a whole, the summer seems like a success. However, that comes with a caveat that August, traditionally one of the best months in the city, was down 5.5% year-over-year from August 2025.
In reality, the decline may partly reflect calendar effects rather than a broader downturn, but it may also raise some concern as Atlantic City transitions into its slower months. Total New Jersey gaming revenue in August, including internet gaming and sports wagering, was down 4.1% year over year.
“In addition to the late start of the fall sports calendar, which likely had a marked impact on sports wagering handle for the month, the Labor Day holiday fell later in 2026 (Sept. 7 rather than Sept. 1), and the month had one less Friday than August 2025 despite having the same number of Saturdays,” said Tyrrell. “In addition to the specific challenges of August 2026, Atlantic City-based sportsbooks may be showing some impact from predictions markets trading in sports contracts.”
Brian Tyrrell, faculty director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, pointed to several calendar factors.
Sheraton Closure Threat Adds Pressure to Atlantic City Tourism”
Beyond the August decline, which affected every casino except Borgata Hotel Casino & Spa, there is the Sheraton. While not a casino itself, the Sheraton Hotel is an important part of the city’s tourism, as it is directly connected to the Atlantic City Convention Center.
According to NJ.com, it could shut down by Dec. 15 unless the state approves tax credits for a $100 million renovation that includes a partial conversion of the building into senior apartments.
The plan includes various improvements, but most notably calls for 130 age-restricted residential units, while 252 hotel rooms would remain and undergo renovations. Plans also include additional upgrades to the property. The rooms that remain at the hotel would be modernized, and further improvements would include a restaurant, cafe, bar, and an updated lobby.
Convention Business Remains Important to Atlantic City
All in all, the Sheraton’s woes may not seem like an important puzzle piece to the full story. However, Atlantic City has long relied on the convention business to support visitor traffic, particularly outside the peak summer season.
According to Visit Atlantic City, in 2025 alone, the city hosted 205 meetings, conventions, and trade shows. These generated 328,067 room nights and brought in 533,242 attendees. Visit Atlantic City also projected that this generated $362,253,473 in economic impact. The numbers underline the role conventions continue to play in supporting hotel demand and visitor spending outside Atlantic City’s peak summer season.
