Some other state government-related functions would remain open even if they might not seem essential. Liquor stores would not close and lottery drawings would continue because those functions have their own funding source and are not directly part of the state's operating budget.

Senate Republicans are pushing a stopgap measure that would provide temporary funding to pay Revenue Department workers and avert a casino shutdown.

Meanwhile, House and Senate leaders met yesterday with negotiators for Rendell in what Republicans described as a productive session and were scheduled to meet again last night.

But Rendell, who has held firm on his demand that the legislature act on increased transportation funding and his health-care initiatives and energy plan, said he and the Senate Republicans were "nowhere near agreement" on a budget.

Senate GOP leaders countered that they wanted to get the budget done first and talk about other initiatives later.

The state-government shutdown in New Jersey that closed Atlantic City's 12 casinos for three days last July cost the industry about $51 million in gambling revenue.

Casino operators in Pennsylvania hope it doesn't happen here. It could be disastrous for their business models, they say.

Both sides in the budget impasse "are using our fledgling industry as a pawn, and we think, quite frankly, that's pretty unfair," said William Paulos, president of the Meadows Racetrack & Casino near Pittsburgh, which opened its slots parlor less than a month ago.

Casino owners also fear a shutdown would damage all their efforts to attract customers from nearby states.

"Slot customers are very capricious. They will go to another facility," said Ted Arneault, president and chief executive officer of MTR Gaming Group Inc., which owns Presque Isle Downs near Erie.

If the casinos close, reopening them will take at least three days, experts said yesterday.

"It's not like flipping a light switch back on," said Joseph Lashinger, a minority owner of Harrah's Chester Casino & Racetrack.

Lashinger, a former House Republican representing parts of Montgomery County, said 1,150 Harrah's workers would suffer the most from a forced closure.

The casino, once reopened, would continue to make money, he said, "but our workers can't get back the money they lost."

Working, Not Working

A look at how an extended budget impasse would affect some state services.

Functioning

Inspections for food and animal safety.

Processing of birth and death certificates.