The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, August 4, 1996                TAG: 9608040098
SECTION: LOCAL                   PAGE: B4   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                          LENGTH:   70 lines

CASINOS MAY FIND THEIR NICHE IN HORSE RACING, GAMBLING FOES SAY COLONIAL DOWNS' OWNERS, ALREADY ON A BUDGET, WON'T RULE OUT THAT POSSIBILITY.

Gambling foes predict that casinos, dealt a setback with riverboat gambling, will try to gain a foothold in Virginia at the proposed Colonial Downs horse track in New Kent County.

``The likelihood of seeking slot machines in Virginia is more likely now than with the direct assault with riverboat casinos,'' said William Kincaid, a lobbyist for Virginians Deserve Better, an anti-gambling group.

The Ohio-based owners of Colonial Downs say they have no plans for slot machines at the track, but they won't rule out the idea.

``The only thing you can count on in life is change, so I'll never say `never,' '' said Brett Stansley, on-site manager for the track, which is scheduled to open next summer.

Faced with competition from new, fast-paced forms of gambling, the horse-racing industry is moving toward transforming race tracks into mini-casinos.

Delaware added slots at two tracks last December, a move that tripled the prizes for winning horses at Delaware Downs. Maryland Gov. Parris N. Glendening announced this week that he will drop his opposition to slots if the machines are necessary to keep Maryland tracks competitive.

Gambling foes predict that it is just a matter of time before Colonial Downs, already faced with a tight financial outlook, makes a similar appeal to the Virginia General Assembly.

``I think we'll see it next year,'' Kincaid said.

Casino-type games would be a tough sell in Richmond, given the state's conservative heritage. Riverboat gambling legislation failed miserably in the General Assembly earlier this year, sending casino operators packing to other states.

Slots would have to be approved by the Virginia Racing Commission and the Virginia General Assembly and signed into law by the governor.

Gov. Gov. George F. Allen would be ``deeply concerned'' about further efforts to expand gambling beyond the state-run lottery, according to a spokesperson.

Both of the likely candidates in next year's governor's race say their opposition to casino-style gambling is unequivocal.

``I'm very much against it,'' said Lt. Gov. Donald P. Beyer Jr., a Democrat. ``I continue to believe the movement toward gambling in Virginia is bad for us as a culture.''

Attorney General James S. Gilmore III, a Republican, said, ``If you put slots in a track, you no longer have a horse track with slot machines. You have a casino with horses running around it.'' Beyer and Gilmore both said they would be inclined to veto slots legislation, even if it included a referendum for voter approval.

Glendening, the Maryland governor, had been no less adamant in his opposition to gambling - until earlier this week.

Kincaid said he feared slot machines could gain momentum in Virginia if horsemen and casinos - once sworn enemies - forge an alliance.

``What you might see is something like (a request for) slots at the track, on a riverboat in Hampton Roads and at a couple of off-track betting parlors,'' Kincaid said.

He noted that Jeffrey P. Jacobs, who recently bought a 50 percent share in Colonial Downs, is an investor in a casino in Colorado.

``Jacobs is a partner because he sees (the horse track) as an opportunity to further expand his gaming interests,'' Kincaid said.

Jacobs, a commercial real estate developer from Cleveland, sidestepped questions about slots at Colonial Downs.

``I haven't even thought of that yet,'' Jacobs said. ``I'm more concerned right now with getting steel in the ground.''

Some Virginia Racing Commission members warn that slot machines would diminish the importance of live horse racing.

``Though slot machines have the appearance of a short-term salvation of horse tracks, they are in fact a long-term death knell for racing,'' said Robin Traywick Williams, a commission member from Crozier. by CNB