HARRISBURG, Pa. -- A Democratic state lawmaker from Beaver County said Thursday that he will soon introduce legislation to expand legalized gambling in Pennsylvania.

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Rep. Mike Veon wants to create eight licenses for casino-equipped boats that would sail major rivers, including the Allegheny, Monogahela and Ohio. He also wants to legalize slot machines and Keno in the state.

Boat licenses would cost $250,000 apiece, and operators would pay a 15 percent tax on gross receipts. Veon said the tax would raise $350 million a year, which would be evenly split to fund prescription drug assistance programs and the reduction of property taxes.

A gaming commission with seven members -- three chosen by Gov. Ed Rendell and four appointed by legislative leaders in the House and Senate -- would be created to oversee the new gaming activities, Veon said.

Currently, Pennsylvania only allows gambling in the form of bingo, harness and thoroughbred racing, and the state-run lottery.

Bordering states like New York, New Jersey, Delaware and West Virginia offer gaming in casinos. Pennsylvania residents often travel there, and Veon said he would rather have them spend their money at home.

Gov. Ed Rendell has not said whether he is in favor of Veon's plan. In the past, Rendell has talked about the possibility of supporting legalized slots as a way to generate revenue and reduce the state's estimated 2003-04 budget shortfall of $2 billion.