INDIANAPOLIS -- Acknowledging that illegal video gambling is widespread in Indiana bars, Gov. Mitch Daniels told reporters Friday that he'd consider any proposal that would legalize but limit the activity.

Daniels generally opposes expansion of gambling, and says he has no interest in backing video gambling in bars just for the purposes of allowing state and local governments to collect more money.

But in his weekly press conference at the Statehouse Friday, Daniels said the state's ban on video gambling in bars is widely ignored -- enforced only after complaints or for flagrant violations -- and that it might be good if the state would legalize it to control it.

"It is a reality that this gambling is going on now in a Wild West, unregulated, and very widespread fashion," Daniels said. "If somebody proposes a way to limit it, maybe reduce it, and regulate it, I'd give it a look."

Brad Klopfenstein, a lobbyist for tavern owners, said legalizing video gambling in bars would be an excellent idea. He said the move would be a boost to thousands of small business owners.