Atlantic City at Crossroads

Casino construction is booming in Atlantic City, but how these projects pan out will depend on several factors that could have big effects on the companies doing business in the area.

Since 2003, about $2 billion of new casino development and expansion has been completed in Atlantic City, with the largest being the hip Borgata Casino owned by Boyd Gaming(BYD Quote) and MGM Mirage(MGM Quote).

An additional $1 billion to $2 billion is under construction at properties owned by Harrah's(HET Quote) and Trump Entertainment(TRMP Quote), while the Borgata is in the midst of a major expansion.

Another several billion dollars of projects could be coming over the next few years. Morgan Stanley(MS Quote), for one, recently bought a 20-acre vacant parcel of land on the boardwalk, which it plans to turn into a casino site.

All this construction comes as Bader Field, a small municipal airport in the city, is set to close, likely freeing up more development space. The 150-acre site may be razed and re-zoned as a mega-casino project.

As well, developers in the city continue to eye New Jersey legislators, who are currently considering proposals to allow slot machines at racetracks in the northern part of the state to deal with the coming slots boom in neighboring Pennsylvania and New York. If such legislation were approved, it could affect new construction in the city.