"My guess is that the great resort city was superseded and rendered obsolete by the introduction of affordable air travel. No doubt New Jersey's notorious family enterprises managed to get gambling legalized so they could take advantage of cheap property values and a central location, between NYC and Philly, to create an East Coast Las Vegas. Apparently it worked for a time, until gambling spread everywhere and once again rendered Atlantic City obsolete. Maybe it will be revived again with legal prostitution or marijuana. Maybe they'll just have to settle for the Chris Christie Archives and Museum. Or a New Jersey Politicians Hall of Fame named for Hugh Addonizio."
It was a good idea, but they just put it in a very bad place. The city of AC was, and still is, as disaster. You have the hotels and the boardwalk, but that's it. Its not like Vegas where you can walk around and do stuff besides gambling. People are afraid to walk around in AC.