LEXINGTON — Keeneland officials say they will support expanding gambling, as long as the racetracks have control.

        Keeneland will lobby the General Assembly, which begins Tuesday, for virtually unlimited track-based slots or even full-fledged casinos, track president Nick Nicholson said Friday.

        “To say we don't want it is no longer a responsible position to take,” especially in light of the state's $532 million budget shortfall, Mr. Nicholson said.

        Efforts to muster support for expanded gambling in the past decade have foundered because of divisions within the horse industry. Keeneland historically has opposed it.

        Legislators have made it clear that the industry will only get a hearing if it comes with one voice.

        “If the Commonwealth of Kentucky wants to do this, as part of balancing the budget, then Keeneland and the other tracks are working on a program,” Mr. Nicholson said. They're close to consensus, he said.

        “We're offering to manage the facilities, share the revenue and grow the industry.”

        A 1999 study predicted slot revenues could reach $820 million by 2010, including $242 million a year in taxes. That study is being updated for the session.

        Mr. Nicholson didn't say how the millions in slot revenue would be split up among state and local governments, the tracks and the rest of the horse industry.

        The equine industry has been lobbying for relief, saying riverboats on the Ohio and “racinos” in West Virginia have siphoned gamblers and horses away from Kentucky.

        “Saving the horse industry is not a good enough reason to pass this,” Mr. Nicholson said.

        “But if you want to do substantial damage, the best way is to have land-based casinos where the horse industry is not involved. The industry will be irreparably damaged,” he said.

        Mr. Nicholson proposes a scenario in which only existing racetracks would have slot machines or other casino-type games. They would develop casinos and any accompanying amenities.

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