Atlantic City was filmed on location in and around Atlantic City and South Jersey, Philadelphia, and New York. Although filmed in the United States, the film was a co-production between companies based in France and Canada. Aside from Burt Lancaster, Susan Sarandon, and local extras, most of the cast originated from Canada or France. The film allowed Canadian actors such as Kate Reid and Al Waxman to successfully transition into American film and television roles.
The production companies alloted Louis Malle the money to make a film with the stipulation that it be made before the year 1979 ended. Malle had a difficult time finding the right script to direct and with time running out his then girlfriend Susan Sarandon suggested using a story written by her friend John Guare, a playwright most notable for his plays House of Blue Leaves and Six Degrees of Separation. Guare suggested that the story take place in Atlantic City, which was still for the most part suffering from the urban deterioration that prompted the legalization of gambling as a solution to save the city. The three met over dinner in early 1979 to work out quirks in the script and began shooting within a few months.
Principal photography commenced on October 31, 1979 and moved swiftly along finishing by December 30, 1979 just in time for the end of the year (a few exterior and location shots were filmed until January 5, 1980). Malle filmed at an opportune time in that he was able to capture old Atlantic City: gambling was still in its early stages there, with only two casino hotels open (Resorts and Caesars; Bally's Park Place would open on December 30, toward the end of the principal photography). Most of the city's old resorts and entertainment piers were still standing, albeit in a severe state of disrepair. Within a couple of years of the filming, most of the these old hotels would fall victim to the wrecking ball as they were replaced with new casinos. To frame the picture, Malle foreshadows the great transition of the famous resort town in the opening credits by featuring footage of the implosion of the once-grand and historic Traymore Hotel on the Atlantic City Boardwalk.
Louis Malle hired composer Michel Legrand to write a score for the film, which he did. In the end, however, Malle decided against using a score for the film, and opted for all the music in the film to be ambient: the only music used is that which exists in the world of the characters (i.e. radios, musical instruments, etc.).
The film won the Golden Lion at the Venice Film Festival in 1980 in a tie with John Cassavetes' Gloria.
Atlantic City was nominated for Academy Awards for Best Actor in a Leading Role (Burt Lancaster), Best Actress in a Leading Role (Susan Sarandon), Best Director, Best Picture and Best Writing, Screenplay Written Directly for the Screen. In 2003, Atlantic City was selected for preservation in the United States National Film Registry by the Library of Congress as being "culturally, historically, or aesthetically significant".
Source : cinemaforever.com