HARRISBURG — A proposal to expand casino gambling in Pennsylvania cleared a crucial first hurdle in the state House of Representatives on Monday, despite searing criticism that it is full of favors for casino owners and lawmakers' pet causes.

Proponents say the measure will help state government raise additional revenue to shore up its recession-ravaged tax collections and provide jobs at a time when many people are out of work.

The vote was 97-95 to amend the measure into an underlying bill. Most Democrats were in favor of it and most Republicans opposed it.

The bill, which also includes numerous reforms to the state's regulation of the casino industry, still requires a final vote in the House and approval from the Senate before it can become law.

Those votes could happen this week, as legislators rush to finalize a key piece of October's state budget agreement and free up more than $700 million for universities that is being held up by Gov. Ed Rendell until it passes.

The measure, unveiled by House Democratic leaders in recent days, would raise the state's number of casino licenses from 14 to 15 and legalize table games such as poker, blackjack and craps at the state's slot-machine casinos.

It is supposed to raise $320 million for the state over the first two fiscal years by setting a tax rate on gambling revenue from table games at 14 percent and requiring the casinos to pay millions of dollars in license fees.

Casinos also would have to pay an additional 2 percent tax to local governments, while the state's tax rate would fall to 12 percent after July 1, 2011.

The bill, however, likely faces changes in the Senate.