MANKATO — Bills to allow state-sponsored slot machines at horse tracks were introduced at the Minnesota Legislature Thursday, and former senator and current racino lobbyist Dick Day was in New Ulm and Mankato rallying support for the legislation.

Day, an Owatonna Republican, has pushed the idea for years as a source of revenue for everything from building sports stadiums to erasing budget deficits. With the state facing a $6.8 billion in red ink over the next three years, he thinks the odds are improving.

“We’re still probably 50-50,” he said, citing the power of Indian casino lobbyists and political contributions. “But we’re moving the ball ahead as far as legislators starting to agree with us. The state’s looking for money. Here it is.”

Day, based on a study by the Minnesota Lottery, is projecting $125 million a year in revenue for the state from putting more than a thousand slot machines at Shakopee’s Canterbury Park and Running Aces Harness Park, which is just off of Interstate 35 near Forest Lake.

There’s a new twist, though, one that grew out of Day’s surprise that Minnesota voters in 2008 easily approved a constitutional amendment to expand the state’s sales tax to fund environmental projects, hunting and fishing habitat, parks and trails, and arts and culture programs.

Day thought the amendment — with its smorgasbord of benefits to meet almost any taste — would fail. Instead, it received 56 percent support from voters.

Although Day isn’t trying to put the racino idea on a statewide ballot, he decided it might be smart to try to duplicate that broad list of recipients when selling the legislation to lawmakers.

“Instead of saying we’re going to put it over in the general fund, let’s talk about where it would go,” he said.

The legislation creates a Jobs, Family and Economic Development Fund where the gambling revenue would be deposited. Under revenue projections, about $25 million a year would be available for each of five areas:

— Agriculture and rural development, including livestock and biofuel development grants and business/job development.

— early childhood and family education.

— bioscience and medical technology research and development of related businesses.

— general fund expenditures.

— athletic, recreational and extracurricular facilities.

The latter category could include projects such as the proposed improvements at Mankato’s civic center and All Seasons Arena, Day said during a Mankato stop on his continuing tour to promote the racino. Or it could be used to pay off bonds used to finance the state’s share of a new Vikings stadium.

Day still hasn’t persuaded Gov. Tim Pawlenty to announce he would sign racino legislation if it reaches his desk. And legislative opposition remains from lawmakers philosophically opposed to gambling or supportive of maintaining the monopoly on slot machines now held by Native American communities.

He argues that it isn’t a particularly dramatic expansion of gambling to allow slot machines at two racetracks where gambling on horse races and cards is already permitted — particularly since there are already 18 Indian casinos in the state that can freely expand at any time.

As for taking revenue now going to the Indian casinos, Day expects only Mystic Lake — which he said has the largest number of slot machines of any casino in America — will potentially feel a significant impact due to its proximity to Canterbury.

“A little competition would do them good,” Day said.

The Minnesota Indian Gaming Association didn’t return a call from The Free Press seeking comment.