PLAYERS EXERCISES RACETRACK OPTION

PADUCAH, Ky. Players International Casino Co. has exercised its option to buy financially-troubled Bluegrass Downs thoroughbred horse track just one day before a 90-day, $5.1-million purchase option was due to expire.

Players officials, who operate a riverboat casino in nearby Metropolis, Ill., and will open a second riverboat casino at Lake Charles, La., in December, have said they want to open a casino at the track if Kentucky legalizes casino gambling.

Gov. Brereton Jones has endorsed casino gambling at the state's racetracks as a way to respond to competition from riverboat casino gambling in neighboring states. The prospect of a land-based casino gambling in Kentucky attracted the interest of Players International.

The Kentucky legislature could take up the casino issue as early as 1994.

Jones has appointed a commission to study what effects gambling casinos would have on all economic aspects of Kentucky. The commission, chaired by Dan Ulmer, who is with the TNC Bank of Louisville, is expected to have a report ready for the governor by early 1994, said Mindy Shannon Phelps, the governor's press secretary.

"It could be a long process for Kentucky to approve casino gambling," said Phelps. "The attorney general has ruled that this is a constitutional issue and would require a constitutional amendment."

Kentucky legislators would have to vote on whether to put it up for a public vote, said Phelps. "The legislation opens meetings Jan. 4, but have some other issues to discuss before getting to gambling casinos."

If the legislators do discuss the issue and approve a public vote, the issue could go on the state ballot Nov. 2, 1994.

"The earliest that casino gambling could be approved for the state would be early 1995," said Phelps.

Players officials feel, however, that the chance is worth the gamble on the Bluegrass Downs property.

Players Chairman Edward J. Fishman said in July that he does not want to compete against a future casino operation at Bluegrass Downs if Kentucky does legalize casino gambling. Players Riverboat Casino at Merv Griffin's Landing is six miles from Bluegrass Downs.

Fishman said head-to-head competition would tear the market apart in Western Kentucky and Southern Illinois, but operating a land-based casino in Kentucky would be a perfect addition to the riverboat casino at Metropolis.

Players last week asked for a four-month extension on the $5.1 million Bluegrass Downs deal, but some shareholders had expressed reluctance to grant an extension.

By exercising the option, Players now has 30 days to close the deal. It has already advanced the track about $650,000.

Some shareholders expressed relief that a firm commitment to sell the track, which has twice reorganized under Chapter 11 bankruptcy protection, had been reached.

"We're relieved to get it behind us," Paducah businessman Coy Stacey said.