FARGO (AP) - Most of the state taxes owed to North Dakota by a failed horse race wagering company will never be paid, Racing Services Inc.'s bankruptcy trustee and former owner says.

The state of North Dakota, which is claiming $6.7 million in unpaid taxes, will likely get only a fraction of the money, said Kip Kaler, the bankruptcy trustee representing Racing Services' estate.

"I don't have $6 million," said Kaler, who estimated that $400,000 remains in the estate after paying several priority claims and some administrative fees. "I never will."

To collect funds, North Dakota must convince a judge that its claim is a priority compared to the claim of Peter Wagner, a Nevada high roller who bet millions of dollars through RSI. RSI was ordered to liquidate its assets after Susan Bala filed for RSI's bankruptcy in February 2004.

Bala, who owned RSI and controlled the state's sole simulcast license from 1990 to 2003, said the company is responsible for the money. She doesn't feel personally obligated to pay the state on RSI's behalf.

"The company was immobilized so it couldn't pay," Bala said. "They (state officials) took the company away from me and ruined it."

A federal appeals court overturned Bala's conviction this month in what authorities said was the largest illegal gambling case in North Dakota history.

Bala had been sentenced to 27 months in prison and originally was scheduled for release in September.

Bala, 52, was convicted by a jury in 2005 of 12 felonies involving charges of running an illegal gambling business. Bala and RSI were ordered to forfeit more than $99 million, an order that was overturned by the appeals court.

The state "ruined" RSI by scaring off bettors and forcing the company to default on fees, Bala said.

"All of our bank records were open and traceable," said Bala, who insists the company paid all of its federal taxes and state corporate taxes. "Everything balanced."

Bala said she doesn't harbor animosity or anger toward prosecutors, although she blames the state for destroying her company. She believes the court system ultimately vindicated her.

Attorney General Wayne Stenehjem's office repeatedly has denied comment on plans since the federal appeals panel reversed convictions against Bala and RSI. Federal prosecutors are considering asking for a full review by the 8th U.S. Circuit Court of Appeals.

"They (prosecutors) have a story, and we have the law and the facts," Bala said. "And their story makes no sense."