Updated from 9:17 a.m. EDTMGM Mirage ( MGM) announced plans for a $5 billion casino development in Atlantic City, signaling long-term faith in a market that is struggling with increased competition from nearby states. The project will be located on 72 acres of land owned by MGM next to its popular Borgata casino, which the casino operator owns with Boyd Gaming ( BYD). The budget will be $4.5 billion to $5 billion, not including the value of the land and associated costs, MGM said. The new resort increases the Las Vegas-based company's exposure to a market where overall gambling revenues have declined this year because of increased competition from Pennsylvania and New York. Both neighboring states introduced slot parlors in the past year. For the first eight months of this year, gambling revenues in Atlantic City totaled $3.4 billion, down 4% from a year earlier, according to the New Jersey Casino Control Commission. The upscale Borgata, which is MGM's sole property in the market, fared better, with a 2.7% revenue gain so far this year. MGM said the development will offer the same amenities of an MGM Grand resort, which the company already operates in Las Vegas and Detroit. The project will consist of three hotel towers and the largest casino floor in Atlantic City, with 5,000 slot machines, 200 table games and a large poker room. The site will also host restaurants and nightclubs, and a 500,000 square-foot retail destination and convention center.