A gambling bill that flopped in the last Kentucky legislative session just might have some legs to stand on the next time around.

        Thoroughbred racetrack owners in Kentucky are worried that an industry already faltering may not be able to compete with Indiana's 10 riverboat casinos, including five on the Ohio River, that have decided to dock to allow customers to come and go.

        Racetrack owners plan to step up their lobbying efforts in the next session to push through legislation that would allow video gambling at the tracks so they can compete with riverboat casinos in Indiana and Illinois and horse tracks offering slots in West Virginia.

        The Indiana competition, which is expected to see increased revenue of 15 to 20 percent when the boats dock, also comes as Kentucky faces hard financial times. More than $700 million has been cut from the state budget and without new revenue, deficits are predicted for the next several years.

        “I don't think it takes a lot of understanding to say we have a severe revenue problem,” state Rep. Jim Callahan, D-Wilder, said.

        Mr. Callahan sponsored the last bill, which would have allowed the operation of electronic gambling machines known as Video Lottery Terminals and Electronic Gaming Devices.

        Despite strong support by Northern Kentuckians, a major lobbying effort by conservative anti-gambling groups and opposition by key lawmakers squashed the bill.

        As Kentucky's gambling bill died, a bill in Indiana allowing riverboat casinos to permanently dock turned into law.

        Mr. Callahan is hoping that other legislators will decide to tap an industry that generated $61.4 billion in revenue for the operators and paid $3.5 billion in taxes nationwide in 2000.

        “You must do something,” he said. “If the alternative is this or raising taxes, with few exceptions I think it would be video slots.”

        A state-sponsored study released in January found that Kentucky residents are spending more than $1 billion a year on out-of-state gambling.

        It also predicts that video gambling at Kentucky's thoroughbred racetracks would bring in as much as $919 million a year — a healthy source of revenue for Turfway Park in Boone County.

        Turfway Park President Bob Elliston says he plans to continue pushing for legislation to allow him to build a $125 million gambling hall and hotel just 12 miles from downtown Cincinnati.

        “We're going to keep fighting, scratching and clawing for every nickel we can make,” he said.

        Mr. Elliston won't be alone in his efforts to further legalize gambling in Kentucky 2003.

        Northern Kentucky developers Bill Butler and Jerry Carroll are tossing around the idea of building a casino complete with hotel rooms, live entertainment, shopping, housing and parking for 5,000 cars on the Covington riverfront.

        Mr. Butler's spokeswoman Laura Cook said they are still working on a feasibility and market study for River West, a 15-acre tract of mostly vacant land along the Ohio River between the Clay Wade Bailey and John. A. Roebling Suspension bridges.

        The odds of such an idea may not be not be as long as some originally thought.

        Mr. Callahan said he would not be averse to looking at taking the gambling bill further than just horse track casinos. He is, however, cautious about creating further competition for the horse tracks.

        “Particularly Turfway, (horse tracks) are in bad shape,” he said.

        Thoroughbred racetrack owners fear they are about to lose millions of dollars once Indiana's 10 riverboat casinos dock in September.

        Northern Kentucky Racetrack officials, owners and gambling proponents and developers plan to step up their lobbying efforts in 2003 to pass a gambling bill that flopped in the last legislative session.

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