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Casino expansion throughout the northeastern U.S. has been blamed for much of Atlantic City's casino struggles, and New Jersey's first attempt to cash in on those same expansion benefits seems destined to fail.

But that failure could mean a win, at least temporarily, for Atlantic City. Many casino and south Jersey business leaders fear the resort town could lose up to three of its surviving casinos if in-state competition is authorized in a statewide referendum next month.

Atlantic City casino and business leaders are holding a rally Thursday against the expansion proposal, which is trailing badly in polls.

Shari Schugar, a cocktail server at the Tropicana, says most of her customers come from northern New Jersey, where the proposed new casinos would go.

Supporters of the proposal say northern New Jersey casinos are needed to recapture gambling dollars currently being lost to neighboring states.