NEW YORK (
) -- Illinois passed a bill on Monday that would add five new casinos in the state.
The bill, which received a vote of 65-50, would allow one casino in Chicago, as well as slots at racetracks and in the Midway and O'Hare airports. It would also allow existing casinos to expand the number of positions.
While the bill still needs to clear to final hurdles, if successful, there could be several stocks that stand to benefit.
Slot-machine makers like
International Game Technology
have the most to benefit from the bill's passage, providing a much-needed market supply to the pipeline, J.P. Morgan analyst Joseph Greff notes.
"It is unclear how big of an opportunity it is, but we estimate the bill could add more than 10,000 additional positions to the state," Greff wrote in a note.
The passage of the bill, however, could well be a negative for
Penn National Gaming
, which currently owns three casinos in Illinois. Those locations account for about 2012 of the casino operator's 2011 estimated EBITDA, according to Greff.
Penn could offset some of the potential revenue loss, as there is expected to be a gradual lower tax rate if the bill is passed.
--Written by Jeanine Poggi in New York
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