Ohio Casino Vote Too Close To Call: Penn National Gaming Hoping For 7's

The possibility of four casinos in Ohio seems to still be too close to call. Issue 3 would allow for one casino each in Cincinnati, Cleveland, Columbus and Toledo.

UPDATE: Benzinga is hearing that the vote is favoring the casino initiative.

This is the fifth time in 20 years that gambling has been up for a vote in Ohio. Citizens voted against the issue each time. However, this time casino opponents are going up against Cleveland Cavalier owner Dan Gilbert, not the psychologist, and Penn National Gaming (Nasdaq: PENN).

Penn National Gaming and Dan Gilbert promise 34,000 new jobs will be created if Ohio gets casinos in its four biggest cities. Additionally, the casinos would generate $11 billion in five years and would stop Ohio gamblers from going out-of-state to play.

Opponents do not believe it will create the amount of jobs casino promoters are saying and opponents also think Gilbert and Penn National should pay higher than a 33% tax rate. Further, casino operators will pay no tax on profits from players playing slots with cash.

If the issue does pass, many suppliers to Penn National Gaming stand to benefit. Companies that could benefit include: International Game Technology (NYSE: IGT), WMS Industries (NYSE: WMS), Multimedia Games (Nasdaq: MGAM), TransAct Technologies (Nasdaq: TACT), Shuffle Master (Nasdaq: SHFL), Bally Technologies (NYSE: BYI), and Konami (NYSE: KNM).