Atlantic City gaming revenue has dropped from second to third, now bested by Pennsylvania.  Atlantic City has long been the number-two gaming destination behind Las Vegas, but new casinos in the Keystone State are cutting into the city's profits outdoing Atlantic City's by $36 million.

The hope moving forward is that Atlantic City continues to prove itself as a resort town, offering more to tourists than slot machines and game tables.  Officials are positive the beaches, top tier entertainment, world class dining and the attraction of the new Revel Resort will help AC back to it's #2 ranking.  New Jersey Senator Jim Whelan tells NBC 40:

"Obviously it's not good news. We don't like being passed, but I think it tells us we need to redouble our efforts. Some of our properties are frankly in need of renovations and in need of reinvestment. I think if we get that we will be right back where we belong."