Atlantic City's non-casino business is increasing, according to a new report.

Cash sales at the struggling New Jersey city's non-gambling outlets within casinos represent 28.5% of revenue, a 6.2% jump from two years ago, according to the study conducted by the consulting firm Tourism Economics that was commissioned by the Atlantic City Alliance. The report also found that Atlantic City bars have increased wages and salaries by 39% since 2010.

Atlantic City has seen its casino business suffer in recent years due to increased regional competition from Pennsylvania, Maryland and New York. The city suffered four casino closures last year and is now under emergency manager control facing a $101 million budget gap.

Moody's issued a January report detailing Atlantic City's need to diversify its offerings beyond gaming. The report noted that casinos make up roughly 75% of the city's tax base with revenues from this industry declining 46% from 2005 to 2014. Total Atlantic City visitors also dropped from 31 million in 2009 to 25 million in 2013, according to Moody's.


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