The state's search for a way to fund education without raising taxes is about to cross paths with an in-depth study of state-controlled gambling.

The question for legislators: Could some form of legalized gambling generate the millions of dollars needed to fund education?

"I need to find money to run the state," said Rep. Mary Griffin, D-Windham. "I'm not for gambling or against gambling, but it seems like a lot of people are interested."

A seven-member panel of the House Ways and Means Committee is spending the rest of the summer and fall studying whether some type of state-regulated gambling is feasible in New Hampshire. The committee already has taken testimony from state and local officials from Delaware, Illinois and Pennsylvania, where gambling exists.

The committee is scheduled to issue a report by November that will say whether members back expanded gambling. If the report favors more gaming, potential legislation would come on the heels of another report due in February that will give an estimate of how much revenue the state needs to pay for education.

As an added twist, talk about gaming legislation, which has repeatedly failed, now includes the prospect of Massachusetts trumping the Granite State by adding slots to its racetracks or even a casino in Middleborough.

"If you're going to do it, we should be doing it sooner rather than later," said Rep. William Butynski, D-Hinsdale.

A recently commissioned study of placing 3,000 slot machines at Rockingham Park estimated the park would reap $403 million in revenue in its first year. If Massachusetts moved ahead with placing 1,800 slot machines at its racetracks and American Indian facilities on Cape Cod, those first-year revenues are expected to drop to $336 million.

Each of the machines would take in about $368 a day without gaming in Massachusetts. That number would drop to $306 a day if the Bay State had slot machines. The study was commissioned by Cannery Casino Resorts, whose parent company has an option to buy Rockingham Park.

Butynski, a member of the House Ways and Means Committee, said officials in towns with racetracks, including his own, appear to be in favor of expanded gambling. He said he is leaning toward at least adding slot machines at racetracks if the host community favored such an expansion.

"I've certainly made no decision. There's a lot of issues that still need to be addressed," he said. "I tend to lean toward having some video slots in New Hampshire so long as its well regulated and we allow the communities themselves to vote."

One piece of data Butynski would like to collect in the weeks ahead is the amount of money New Hampshire residents spend at Connecticut's two casinos.

"My guess is New Hampshire folks are spending a fair amount of money there," he said. "It'd be nice to have them spend the money here instead and be able to attract people from out of state."

Griffin said education funding woes aside, one aspect of the gambling proposal that gets her attention is the potential rehabilitation of Rockingham Park.

"I'm not a gambler," she said. "If I could build up Rockingham Park and make it a focal point, I think a new hotel and entertainment center, I would be interested in that."

Rep. Roger Wells, D-Hampstead, said the group willing to buy Rockingham Park would spend roughly $450 million for a new state-of-the-art racing facility that could attract customers from in and out of state.

Wells sees expanded gaming as something that could bring in steady revenue, create jobs and attract more people to spend money for entertainment in New Hampshire. It also could help with both education funding and property tax relief, he said.

"I see this as a perfect storm brewing," he said. "I've been working with one group on education funding for the last three years. My opinion is that property tax is the most destructive thing we have in the state. It's ruining lives and getting worse every day."

Griffin said she will keep an open mind as the committee continues to study the issue in the months ahead. Griffin said she doesn't believe the Bay State's consideration of gambling will change minds in New Hampshire.

Dr. Marvin Steinberg, executive director of the Connecticut Council on Problem Gambling, said he believes New Hampshire needs to deal with the thousands of addicted gamblers the state already has and doesn't serve. New Hampshire has no gambling help line and no trained clinicians to deal specifically with gambling, he said.

Steinberg, who recently testified before the Ways and Means Committee, said he's neither a proponent nor opponent of gambling.

"Whether or not the bill passes, the Legislature needs to do something with the problem gambling that already exists," he said. "As far as I know, you're doing nothing with the thousands of problem gamblers who already exist."