Top state officials continued to pound the New York Racing Association, a day after regulators suggested its exclusive franchise to operate the state's major Thoroughbred tracks could be in jeopardy.

"It doesn't have the public trust and it hasn't earned the public trust either,'' said Gov. Andrew Cuomo.

"We know there will be major changes [at NYRA]. What they are at this point are still being discussed,'' added Senate Majority Leader Dean Skelos, a Long Island Republican.

NYRA's troubles since revelations officials there may have covered up a higher-than-permitted takeout level on exotic bets – costing bettors more than $8.5 million -- have only worsened the past week.

On May 15, in a scathing letter that has become the talk of the state Capitol, a top fiscal advisor to Cuomo and his state racing board chairman threatened the possible end of NYRA because of the takeout scandal and the subsequent handling of the matter.

Regulators are upset the NYRA board moved quickly to replace its ousted president, Charles Hayward, with chief operating officer Ellen McClain. They noted the moves were made before investigations have been completed by both the racing and wagering board and the state Inspector General's office into which NYRA executives or board members may have known the takeout levels were illegally boosted for 15 months after the expiration of a state law governing the rates.

NYRA has not yet specifically commented on the May 15 letter from racing board chairman John Sabini and franchise oversight board chairman Robert Megna, who is also Cuomo's chief budget advisor.

In Syracuse Wednesday, Cuomo noted, "There's no doubt that NYRA has been a long-troubled agency.'' He said decades of problems stretch at least back to when his father, Mario Cuomo, was governor.

He said NYRA's lack of "public trust'' is "what we have to change,'' and that its business "could'' be an important economic engine for the state.

"But NYRA has had significant issues for many, many years,'' Cuomo said.

The possible changes are many, including a move by the state to change the composition of the NYRA board to put state-selected individuals in charge of the racing group. Also discussed is possibly ending NYRA's exclusive franchise to operate Aqueduct Racetrack, Belmont Park, and Saratoga Race Course.

State sources say such a dramatic move stripping NYRA of its franchise could throw the whole matter into the courts if NYRA, as many expect, challenged any such attempt. Also in question, lawmakers say, is the status of the land at the three racetracks. NYRA a couple years ago gave up its claim on the racetrack lands in return for the franchise that expires in 2030.

It is still uncertain whether whatever remedies the state may have in mind gets done before conclusion of the 2012 legislative session, which is now scheduled for the end of June.

The state May 15 had also stopped revenue sharing payments to NYRA from Genting New York's Aqueduct casino; officials said the halted payments will not affect purse or breeding fund deposits by Genting.