I've noticed with some interest an increasing intersection of Atheism and magic. A number of magicians I know have mentioned they are atheists. I see some of this rise in Atheism as a result of the psychologizing of magic, wherein magical practices and results are explained from a psychological perspective. When such a perspective is applied to spirits, entities, and gods, they are explained as psychological constructs, and as such no longer possess an objective existence. Instead they are subjectivities of the human experience or representations of deep constructs given a form and mannerism that's easy to interact with. I can see the appeal of such a model, and also why it's lead to an atheistic perspective. I can also understand the appeal of atheism in terms of the rationalistic perspective it offers, but I also find it an interesting shift and I will admit that while I understand it, I don't necessarily agree with it. My own perspective is not one of religion (which I don't agree with either) but rather of perceiving spirits as objective beings that happen to have a different reality than my own. I don't think they need my worship, but I do have respect for them.
I don't think atheism and magic are incompatible. I find it to be an interesting mix and I'll be curious to see what the results are, although I've already seen some of those results in how people approach magic, and the culture that is emerging over the last couple of years.