While legalizing slot machines at the state's four racetracks is still a priority for Ed Rendell, the governor-elect also has warmed to the possibility of legalizing riverboat gambling in the state.

MGM Mirage, which operates three high-profile casinos in Las Vegas as well as many other gaming operations throughout the United States and Australia, said in October that it has delayed a $1.5-billion project in Atlantic City to conserve cash for expansion into new gaming markets, including Pennsylvania.

Other gaming operators with ties to the racing industry, such as Harrah's Entertainment Inc. and Boyd Gaming Corp., are also showing an interest in Pennsylvania. Harrah's recently completed a purchase of Louisiana Downs in Louisiana and owns one-third of Turfway Park in Kentucky. Boyd Gaming owns Delta Downs in Louisiana.

State Representative Mike Veon, a co-chairman of Rendell's gubernatorial campaign, proposed legislation that would allow 15 riverboats statewide, including three in Allegheny County near Pittsburgh.

Rendell supported riverboat gaming during his tenure as mayor of Philadelphia, and he has not said anything against it since winning the governor's seat. Analysts say that Pennsylvanians make 25% to 30% of the Atlantic City market and spend $3.2-billion a year on out-of-state gambling trips.