Atlantic City’s story traces a journey from Indigenous seasonal summer settlements and the solitary homes of the first settlers to glittering casinos and multibillion-dollar investments. The area experienced the heyday of its resort era, a postwar decline, a reboot through the legalization of gambling, and a new wave of projects aimed at ensuring the city is no longer associated solely with roulette and blackjack.
From Absegami to Atlantic City
Long before the first colonists arrived, the island, densely forested and fringed with sandy dunes, was a summer home for the Lenni Lenape. This Algonquian-speaking people returned here year after year, drawing on the coast’s abundant resources.
The Lenni Lenape called the island Absegami, which translates as “small water.” The name referred to a bay so narrow that the opposite shore remained within sight. Over time, the toponym underwent a phonetic shift and became established in English as Absecon Island.
Why colonists avoided the island for so long
Early settlers of South Jersey took little interest in this patch of land: it was reachable only by water. The exact date when the first permanent dwelling appeared has never been established, but it is generally believed that the pioneer was Jeremiah Leeds, who built and moved into a year-round home in 1783.
The Doctor Who Conceived the Resort
Around 1850, the potential of cool ocean breezes and beaches was finally noticed. The driving force behind the project was local doctor Jonathan Pitney, the first to publicly champion the idea of turning the island into a seaside resort.
Realizing that without reliable transportation the plan would remain on paper, Pitney, together with a group of entrepreneurs, secured a railroad charter in 1852. Two years later, the Camden–Atlantic line was completed, costing just over $1.2 million. A Philadelphia engineer, Richard B. Osborne, drew up the layout for the future city and proposed the name Atlantic City.
In March 1854, the city was officially incorporated. Eighteen voters elected the first mayor, Chalky S. Leeds. And on July 1, 1854, the first public train left Camden and arrived at the coast about 2.5 hours later, marking the beginning of its resort era.
The Pull of the Ocean—and an Affordable Ticket
Proximity to major East Coast cities and inexpensive rail service allowed thousands of city residents to escape the summer heat by the ocean. Atlantic City grew rapidly, offering lodging, food, entertainment, and attractions for every age, taste, and budget.
Major draws for tourists and celebrities were the resort’s signature icons:
- the legendary wooden Boardwalk,
- amusement piers,
- stage shows,
- beauty pageants.
Golden Decades and a Wartime Lull
From the 1880s to the 1940s, Atlantic City was considered one of America’s leading resorts. In the 1920s, the city served as a leading venue for “tryouts” of stage productions before opening on Broadway. Beginning in the 1930s and for three decades, Kentucky Avenue was famous for its nightlife: Club Harlem and other venues drew the best jazz musicians and top-tier stars.
During World War II, the city served a very different role: military recruits were trained here, and centers for the recovery and rehabilitation of wounded soldiers were housed here.
Decline, Casinos, and a Reboot
In the 1950s, the rise of air travel to Florida and Caribbean resorts diverted some of Atlantic City’s tourist flow. By the 1960s, the economic and social difficulties typical of many urban centers of the era brought the tourism-dependent city to a historic low.
1976 proved a turning point: New Jersey voters approved the legalization of gambling in Atlantic City—and nowhere else in the state. Critics doubted it; supporters anticipated the resources needed for revival. In 1978, the first casino, Resorts International, opened, and few could have predicted the scale of what followed. By 1988, a dozen casinos were operating, and the visitor flow grew from 700,000 to more than 33 million a year. By 2000, the tax base soared from $316 million to more than $6.7 billion. For residents, this meant renewed neighborhoods, new housing, public services and facilities, and economic, social, and cultural programs.
A Second Wave—and Life Beyond the Casino Floor
In 2003, Borgata opened, the first new casino since 1990, marking the start of a long-awaited second wave of development. The projects were driven by growing competition in the gaming market and the success of the Atlantic City Convention Center. Existing casinos launched major expansions of hotel and retail space, and a public–private partnership created The Walk, a $60 million retail-and-entertainment complex. In recent years, investments of more than $1.8 billion were planned or implemented, and a significant share was aimed at attracting visitors beyond gambling.
This is largely due to the fact that land-based casinos around the world are facing headwinds because of the rapid development of the iGaming sector. The number of online casinos is constantly growing, and major platforms with international licenses are available anywhere in the world where there is internet access. A gambling enthusiast from Australia or Mexico doesn’t necessarily need to fly to Atlantic City to play roulette or slot machines. It is enough to go online and gain access to thousands of games. You simply won’t find that kind of variety in land-based casinos. Moreover, no deposit bonuses at casinos have now become popular as well, and they also cannot be obtained in the traditional offline gambling format.
The development of mobile technologies has led to another surge in popularity for online casinos, now in the form of apps. This intensified competition and forced America’s second gambling capital to invest in other tourism directions.
A successful future is tied to a wider range of experiences. This kind of formula has already proved its worth when the city held the title “Queen of Resorts.” Today, it’s captured in the concise tourism slogan “Do AC.”