By Patrick Crowley
The Cincinnati Enquirer

COVINGTON - As Tuesday's opening of the Kentucky General Assembly draws closer, so does the possibility that a Vegas-style casino may spring up just 1,736 feet across the Ohio River from Paul Brown Stadium.

Kentucky's budget has a $500 million hole in it, the pro-gambling billboards are going up in Frankfort, the horse industry is on board and even though gambling isn't yet legal, one major city council in the state has already approved a $200 million casino plan.

The Northern Kentucky lawmaker who sponsored last year's bid to legalize video slot gambling at horse tracks says he won't file a new bill unless he can be certain it has a chance.

A local state Senate leader says it has a chance. But state Sen. Katie Stine, R-Fort Thomas, said while she is undecided on legalizing casino gambling, she does believe there is support for such a bill in the Senate.

"If the bill can get out of the House, I think there are (Senate) members who will support it," Mrs. Stine said Friday.

"At this point, there may be more members for it than against it. The questions are what the bill will include, will the House support it and will the (Senate) leadership support it."

House Majority Caucus Chairman Jim Callahan, D-Wilder, said Friday that before he files the bill he must be assured that the Republican-controlled state Senate will be "open-minded" about passage when lawmakers begin considering legislation in early February.

"Why go through all the gyrations if the Senate will not even consider it," said Mr. Callahan, a member of House Democratic leadership and the sponsor of a 2002 gambling bill that died without being called for a vote.

For at least six years, Kentucky's thoroughbred racing industry has been lobbying lawmakers to permit casino-style gambling - mainly through computerized games including slots, poker and black jack - at the state's racetracks.

The effort intensified in the 2002 legislative session with Mr. Callahan's bill, which would have allowed the tracks, including Turfway Park in Florence, to build mini-casinos.

The tracks, part of the $3.4 billion-a-year Kentucky thoroughbred industry, say they need gambling to compete with riverboat gambling in Indiana and Illinois and with racetracks like those that allow gambling in neighboring West Virginia.

To persuade the public last year, the pro-gambling forces launched a multi-market media campaign featuring television spots. The ads portrayed Hoosiers thanking Kentuckians for all the nice schools, roads, hospitals and parks their gambling money spent in Indiana had provided.

Public opinion has moved toward acceptance as residents of Louisville, Northern Kentucky and Eastern Kentucky have seen gambling come to neighboring states.

A Bluegrass Poll conducted by The Courier-Journal showed that a majority of those polled in all sections of Kentucky except southeastern Kentucky, said they favor casino style gambling.

This poll found that the percentage support for casino gambling in Northern Kentucky was the highest in the state.

Still, there will be opposition from a well-organized church coalition and from others who oppose what they say are social ills, like gambling addiction and prostitution that can accompany gambling.

The hurdle of getting the horse industry on board with expanded gambling other than pari-mutuel betting on races has been cleared.

But other entrepreneurs and established casino gaming companies also want to be dealt in.

In Northern Kentucky, developers Jerry Carroll and Bill Butler have started pushing for full-blown casinos to be legalized.

Both have talked about the possibility of building a casino in Covington on the Ohio River next to the Brent Spence Bridge. The casino would be located on the last remaining 10 acres of undeveloped Covington riverfront.

And in the Ohio River city of Owensboro in western Kentucky, developer John Bays has plans for a $200 million casino and entertainment complex pending legislative approval of expanding gambling.

Mr. Callahan said Friday that he is undecided on the language of the gaming bill, which could include gaming at racetracks, at casinos or both.

Lawmakers may also have to decide whether casino gambling should be made legal through a vote of the Legislature or whether the question should be placed on the ballot to let the voters decide.

Either way, gambling could be legal by November - or earlier - in Kentucky.

And unlike in Ohio, where Gov. Bob Taft has repeatedly said he would veto any gambling measure, Kentucky's governor supports expanded casino gambling.

And, when faced with cutting education or raising the cigarette tax in a tobacco state, legislators may make the move to support gambling.

The governor may address the topic in his Thursday night "State of the Commonwealth" address. He has the power to call a special session on gambling.

Mr. Callahan will use January to assess the Legislature's feelings on the issue.

Lawmakers will meet for four days next week - Tuesday through Friday - to elect legislative leaders and make committee assignments. They will return Feb. 4 and meet for most of the month to deal with legislation.

"I'm going to talk to legislators about the budget in January and see if there is support for any type of gambling bill," Mr. Callahan said.

E-mail pcrowley@enquirer.com