Under that agreement, which was reached yesterday with theoperators of the state's racetracks, up to 15 such facilities,ranging in size from 12,000 to 35,000 sf, could be established. Theinitial facilities are likely to be built in South Jersey.

The plan calls for the Pennsylvania-based Pennwood, apartnership of Greenwood Racing and Penn National Gaming that ownsFreehold Raceway in Freehold, to set up four OTB locations in aregion encompassing Ocean, Middlesex, Camden, Mercer and Gloucestercounties. Separately, Greenwood, as the owner of Atlantic City RaceCourse would be able to establish two more locations in SouthJersey.

The remaining sites would be owned and operated in the northernand central portions of the state by the New Jersey Sports &Exposition Authority, which runs Monmouth Park and the MeadowlandsRace Track. The NJSEA is currently exploring the possibility ofleasing its two tracks on a long-term basis to a private operator,who would become part of the agreement under the prospective leaseterms. The agreement still needs the approval of state attorneygeneral Peter C. Harvey, which is expected shortly.