Is Atlantic City a Threat to Las Vegas?

What happens in Vegas may stay in Vegas, but what happens elsewhere stays elsewhere. And that includes the revenues that Las Vegas misses out on when its former business flees to new centers of gambling entertainment. Native American tribal casinos' continued upgrade into Vegas-quality destinations shouldn't be the city's only worry. It appears Atlantic City is gearing up to shake its gritty gambling image and, as part of a takeover by the state of New Jersey, transform itself into a top-end global destination. Which brand would we gamble on?

It remains unclear whether or not the New Jersey governor's plans for Atlantic City will come to fruition. The plan has many supporters, who claim that "on paper, Atlantic City should already be the Las Vegas of the East. Heck, it should be beating Las Vegas… Atlantic City has something Las Vegas never will — the Atlantic Ocean and beautiful, white sand beaches."

After a drop in gambling revenue of 25% over the last four years, Atlantic City has ambitious plans to revitalize and take on Vegas. Details are still unclear on exactly how it might do this, but the city certainly boasts many advantages, including its proximity to major U.S. populations, and Europe.

One thing that may help put a little pop back in Atlantic City iconic status is the much anticipated debut of Boardwalk Empire next month. The HBO miniseries, produced by Martin Scorsese, promises to highlight the birth and underbelly of the notorious city. The slickly promoted, dramatic story arc might be just the kind of highly-stylized myth-making Atlantic City needs to bring it more attention. It's the kind of fantastical history from which Vegas, from Bugsy to the Rat Pack to hip-hop high-rollers, still benefits greatly.

The Las Vegas Convention and Visitors Authority is sticking with the wildly popular "What happens in Vegas" motto, supporting the brand with marketing such as its current "Camp Vegas for Grownups" push (above). Camp Vegas aims to lure summer travelers to Sin City with the message, "Why should kids have all the fun this summer?"

Vegas tourism has been dinged during the recession, although the city still attracts more than 35 million visitors a year.  Still, there's reason to be optimistic. Forbes just named Vegas America's "coolest city," tied with none other than New York.

We'd like to hear from you: how can Las Vegas continue to differentiate itself and convince travelers and gamblers alike that, despite the options elsewhere, they should still make the trek to the Nevada desert? And does Atlantic City stand a chance of coming back amid this economic gloom and tight consumer spending?