Shrinking state revenues and dwindling thoroughbred racetrack handles have Kentucky lawmakers looking again at allowing casino-style gambling at the tracks.

        Legislators say the issue is almost certain to emerge during the General Assembly session that begins in January, with the horse racing industry pushing hard for video slots and other gaming devices at thoroughbred tracks.

        One bill that could clear the way for expanded gambling has already been drafted by a Louisville lawmaker, Republican Bob Heleringer.

        And after watching Gov. Paul Patton slice $700 million from the state's two-year budget because of the sagging economy, the estimated $200 million to $300 million that gambling could bring in may be too tempting a prospect for legislators to resist.

        “I don't think people are necessarily supporting gambling, but they have to look at the potential for new revenue,” said House Majority Caucus Chairman Jim Callahan, D-Wilder.

        “I haven't made a decision. I'm still open-minded. But if we look at earmarking gambling money for education, for health services and to help the race tracks, then we at least have to look at it,” said Mr. Callahan, a House budget committee member.

        But state Rep. Tom Kerr, D-Taylor Mill, opposes gambling and does not believe the measure would ever pass the General Assembly.

        “This is still a Bible belt state,” Mr. Kerr said. “I know we have the lottery. I know we have betting on horse racing. But a lot of people like me find casinos repugnant, with the negative impact on the community outweighing any financial benefit.”

        Support for at least a strong debate on the subject does appear to be growing as lawmakers prepare for the 2002 legislative session.

        But many legislators said they are paying more attention to the issue now than in 1999, when Mr. Patton began talking about video gaming devices at racetracks.

        Responding to calls mainly from Churchill Downs in Louisville and Florence's Turfway Park, Mr. Patton sought to open the debate on expanded gaming as riverboat casinos began operating along the Ohio River in Indiana. The boats were seen as a financial threat to the racetracks.

        Opposition from conservative lawmakers, church groups and even some elements of the horse-racing industry quickly killed the topic.

        But the racetracks' diminishing handles have shown that riverboat casinos have had a huge impact on the thoroughbred industry.

        Turfway has seen the amount of money bet at the track drop by 43 percent since 1996, when the first of three riverboat casinos opened on the Ohio River in southeastern Indiana.

        Other tracks, including Churchill Downs in Louisville, also have seen wagering and attendance fall since the casinos opened, most notably Caesars' riverboat, just west of Louisville, and the Belterra Riverboat Casino and Resort across the river from Warsaw, Ky.

        The racing industry now appears unified in pushing for expanded gambling, not only because of riverboats in Indiana and Illinois but also to deal with competition from West Virginia, where gambling is allowed at horse tracks.

        “West Virginia, Indiana and Illinois have all changed the landscape substantially,” said Keeneland President Nick Nicholson. “We are working with the rest of the industry on trying to deal with that.”

        Last week the legislature's top two budget writers — Rep. Harry Moberly, D-Richmond, and Sen. Richie Sanders, R-Franklin — said the General Assembly should consider allowing casino gambling at race tracks.

        “I don't know if I'll support it or not but I we need to look at the issue when we get to Frankfort,” said state Rep. Jon Draud, R-Crestview Hills.

        “The horse industry needs it, and that's our signature industry in Kentucky,” he said. “And with the revenue shortfall we're looking at, we need to study anything that can generate new money with the budget cuts we've had.

        “Whether the savior is casino gambling and slots at racetracks, I don't know,” Mr. Draud said. “But we need to take a look at it.”

        Also last week, legislative leaders approved updating a 1999 study on the economic impact casinos have had on Kentucky. The study will be ready when lawmakers head to Frankfort in January.

        “I'll look at the study when it's completed, but right now my position remains the same,” said Sen. Katie Stine, R-Fort Thomas. “The social costs associated with gambling are frankly too high. There are a lot of hidden costs that an economic impact statement might not consider.”

       The Louisville Courier-Journal contributed.

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