The state Casino Control Commission on Wednesday is expected to approve a process so companies can apply for a license to build two new smaller casinos. One could have as few as 200 rooms, while the other would eventually have to expand to 500 rooms within five years.
The city's most successful casinos have 2,000 or more rooms each.
The Seminole Indians, through their Hard Rock franchise, have expressed interest in building one of the new smaller casinos in Atlantic City.
The guidelines also lay out how state regulators would choose applicants if more than two compete to build the new gambling halls.
