Annapolis businessman Wayne L. Rogers will not seek a second term as state Democratic Party chairman, and is expected to be replaced by former Montgomery County Councilman Isiah Leggett when local party officials convene tomorrow to pick new leaders.

Rogers' decision comes in the wake of criticism of his recently disclosed involvement with a racing company that wants slot machine gambling at its horse track in Prince George's County.

In October, at a time when Democratic gubernatorial candidate Kathleen Kennedy Townsend was campaigning against slots, Rogers reached agreement with Centaur Inc. to become a financial partner in Rosecroft Raceway in southern Prince George's. Rogers is to assemble a team of investors and help find a lobbyist for the company, whose purchase of Rosecroft has not been made final.

Slots gambling at racetracks is a budget-balancing priority of Republican Gov.-elect Robert L. Ehrlich Jr., but many Democrats, including Townsend and Gov. Parris N. Glendening, are vehemently opposed.

Several leading Democrats said privately that support for Rogers eroded after The Sun disclosed the relationship with Centaur last week, but Rogers denied yesterday that the issue was a factor in his decision.

"It has to do more with returning to business, and to family, and to spending my time on some of the national political issues," Rogers said.

A prominent national fund-raiser, Rogers said he wants to help support a Democratic candidate in the 2004 presidential primary, but would be prevented from doing so as chairman. "Given Bush, I just don't want to sit this one out," he said.

Leading Democrats have been debating the need for a different chairman as they ponder new directions for the party after the loss of the governorship for the first time since 1966. Rogers had flip-flopped several times on whether he would seek re-election.

Officials note that state Democrats picked up two congressional seats and maintained wide margins in the General Assembly, but Republicans emerged energized from the fall election.

Leggett is a Howard University law professor and a seasoned politician who was frequently mentioned as a possible running mate for Townsend.

Reached early yesterday, Leggett was noncommittal about the position. "I'm not going to deal with hypotheticals," Leggett said. "My view is that I am going to support whatever Wayne decides to do."

But Rogers said he would back Leggett, and by yesterday afternoon, Leggett seemed to be the consensus candidate. The rest of the ticket includes Frederick County Del. Sue Hecht as first vice chairwoman; Baltimore City Councilman Keiffer J. Mitchell Jr. as second vice chairman; and Karen Pope, an attorney from Prince George's, as secretary.

All positions are unpaid, and will be formally selected by members of county central committees who will meet in Annapolis tomorrow.

"It's a new spirit in the Democratic Party," said Mitchell, 35. "You've got an African-American as chairman, who is highly qualified and well respected."

Hecht's selection would show the party is looking beyond its failed "Big 3" strategy of relying on votes mainly from Montgomery, Prince George's and Baltimore, Mitchell said, adding that the party also needs to turn to younger leaders such as himself.

Hecht - who lost her race for a state Senate seat last month - said yesterday she was eager to be part of a slate "everybody is on board with."

However, Comptroller William Donald Schaefer said yesterday that he preferred the chairmanship go to Mark K. Shriver, the state delegate who was defeated in the 8th Congressional District primary. "We need a bright, shiny new face," Schaefer said.

Some leaders privately questioned yesterday whether Leggett possessed the right mix of skills needed by a party that suddenly finds itself out of power. Thoughtful and persuasive, Leggett is not known for pithy verbal attacks or fund raising that could help build the party and make gains against Republicans.

Democrats say they are still unsure who their leading state political figure is. Neither of the U.S. senators, Paul S. Sarbanes or Barbara A. Mikulski, played a key role in selecting a new chairman, and the expected jockeying between Baltimore Mayor Martin O'Malley and Montgomery County Executive Douglas M. Duncan over filling the spot never materialized.