Casino Wins Big in Ohio Vote

COLUMBUS, Ohio (TheStreet) -- Ohio approved a referendum legalizing four new casinos in the state on Monday.

The vote marks a significant win for casino operators like Penn National Gaming(PENN Quote), as well as gambling suppliers like Bally Technologies (BYI Quote), International Game Technology(IGT Quote) and WMS Industries(WMS Quote).

The referendum will allow Ohio to amend its constitution to allow casinos in its four largest cities: Cincinnati, Cleveland, Columbus and Toledo. The casino operators will pay a $50 million license fee upfront to the state and make an investment of $250 million in each casino facility. A permanent 33% tax on gross casino revenues will also be imposed.

J.P. Morgan analyst Joseph Greff said that, assuming 10,000 slots and shares of 45% for International Game Technology and 20% each for Bally and WMS, this would add 6 cents, 16 cents and 15 cents of earnings per share in late 2011, respectively.

Shares of Penn are soaring by 8.1% to $28.32, as it will run two of the four casinos. Bally is up 4.1% to $43.40, International Game is growing 4.4% to $19.34 and WMS is rising by 3% to $41.67.

-- Reported by Jeanine Poggi in New York

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