Atlantic City Casinos Adopt Shorter Labor Deals But Gain Wage Increase

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Atlantic City’s casino operators are already behaving as if the next few years could be tougher than the last.

Atlantic City
Key Takeaways:
  • Casino labor agreements now favor one-year extensions over multi-year deals
  • A 2.5% wage increase is part of the deal
  • City faces policy uncertainties leading to increased near-term flexibility for operators

Unite Here Local 54 has settled with five of the city’s nine casinos on one-year extensions rather than the longer contracts that have typically brought labor peace, per local reporting. 

The deals include a 2.5% wage increase, but the shorter term reflects a shared view that locking in multi-year terms now would be risky.

The city is facing similar uncertainty on the public side. In a May 6 budget release, Mayor Marty Small said that the city’s 2026 spending plan now reflects a one-year approach because of unresolved Payment in Lieu of Taxes (PILOT) legislation.

Competition From Across the State Line

It is no secret that the NYC casino expansion has sparked regional competition with the Atlantic City sites. “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,” said Jane Bokunewicz, head of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism.

Three full-scale casinos in Queens and Bronx were approved at the end of last year with Resorts World NYC opening a live-table games earlier this year. 

Despite this, Atlantic City’s casinos held a positive revenue number for April. The casinos combined generated $235.6 million, a 11.7% increase on the $211 million from April 2025. 

As was seen in the 2025 numbers however, digital gaming was stronger with $263.1 million in revenue, a 11.9% increase from April 2025.