I've been to Atlantic City, and whilst I liked it as an international visitor, it's a poor cousin to Vegas imho. They've had a run of bad luck lately, with tsunamis and cutoff from their original feeder markets of New York and Philadelphia etc... I do feel for the locals who live there. My gut feel tells me that even more casinos in Atlantic City will close before long. Would you visit Vegas if it had say just 10 casinos? Probably not. Casino destinations are destinations because they have LOTS to do. So the more that close down, the less visitors that destination will get.
IF they provide really good deals and specials for players, some might survive - otherwise it's a slippery slope I think.