The Rise and Fall of Atlantic City
city-journal.org
city-journal.org
It didn't fail exactly in the way this sentence seems to want to imply. It did work (and it significantly built up the surrounding areas). What killed Atlantic City post gambling 1976, was other states legalizing gambling and cannibalizing the market that they had to themselves and Las Vegas. Also gaming on Indian reservations. And a decision early on not to move poor people out of Atlantic City [1] (similar to what Las Vegas did) making it less attractive as a vacation spot. There is blight all over and close to the equivalent of "the strip" for lack of a better way to put it.
[1] http://articles.philly.com/2010-07-29/news/24970511_1_casino...