SPRINGFIELD - A new gambling expansion proposal floated Monday would allow Fairmount Park to host up to 500 slot machines at the Collinsville horse racing track, while letting the casinos at East St. Louis and Alton significantly increase their capacities.

Much of the new profit would be snapped up by the state to fund education and infrastructure work. Also, tracks and casinos would pay fees of $50,000 for each new slot machine or gaming position they accept.

"The fee is something we'd be willing to pay" to get slot machines, said Fairmount President Brian Zander. Illinois tracks have been clamoring for years for slots to help revitalize their struggling industry and have been lukewarm toward a competing idea of subsidies from the hyper-profitable casinos.

"We want to be part of the solution" to the state's budgetary shortfalls, Zander added.

State leaders have been haggling for months over how to address crumbling state roads, underfunded schools and other issues. The latest plan, offered by Illinois House Democrats in Chicago on Monday, would raise about $1 billion annually in gaming taxes and fees, while enriching the owners of those facilities.

The plan would allow the establishment of a land-based Chicago casino and two additional casinos elsewhere, to add to the state's current fleet of nine. It also includes an overhaul of the state's gaming oversight system.

Similar proposals have been floated in Springfield in one form or another all year, but this one is significant because it is backed by House Speaker Michael Madigan, D-Chicago, who has been the state's most prominent holdout against expanded gambling. The House could take it up in the next few weeks.

Anti-gambling critics have said gaming expansion could lead to increases in gambling-related social problems. Activists are especially concerned about the possibility of Internet betting on horse racing, which is something the new plan could ultimately usher in with language that would allow "advance deposit wagering" accounts at the tracks.

Under the plan, as presented Monday, 2 percent of the new revenue from the Fairmount Park slot machines would go for local municipality needs, with another 1.5 percent each to Madison and St. Clair counties for criminal justice and health care costs.

State Rep. John Bradley, D-Marion, acknowledged the state needs the money. But he is among those opposed to an expansion of gambling.

"It's a bad economic policy for the state. We're going to turn the state of Illinois into New Jersey," Bradley said.

Kurt Erickson of the Lee Capitol Bureau contributed to this report.

Kevin McDermott is a reporter for the St. Louis Post-Dispatch.