Pennsylvania is in a desperate financial situation. While politicians figure out how to dig themselves out of this hole, a handful of companies will prosper. Here’s your chance to get in on the action.

There is only one state in the country that has yet to finalize its annual budget. The political situation in Pennsylvania is getting desperate. Without a spending plan in place, dozens of organizations are not getting the funding they need to survive. Across the state, angry citizens are sharpening their proverbial pitchforks.

While the desperation in Harrisburg will slow the state’s economy, the fiasco is creating a profit opportunity for a handful of companies, most notably natural gas drillers and gambling operators.

The power of a strong lobby

Buried beneath Pennsylvania’s rolling hills and ancient mountains is a massive stockpile of hard-to-reach natural gas. The Marcellus Shale formation has been a focus of the nation’s gas industry for the last decade.

Pennsylvania’s budget woes are a boon for drillers as revenue-desperate legislators lease even more of the state’s forests in an attempt to drive closed a billion-dollar shortfall. With natural gas prices near multi-year lows, the companies signing those leases are likely getting a large bargain.

Companies like Atlas Energy Resources (NYSE:ATN), Rex Energy (NASDAQ:REXX) and Anadarko (NYSE:APC) should be near the top of your watch list.

Another company worth watching, especially after this morning’s news, is Penn National Gaming (NYSE:PENN). While the company has nothing to do with pulling natural gas out of the ground, Pennsylvania’s budget desperation is going to add to the company’s top line.

When up against the wall, politicians will do just about anything to get themselves out of a nasty situation. Pennsylvania’s lawmakers allowed slot machines into the state just a few years ago in an effort to reduce property taxes.

Even though the program was a verifiable bust, the latest budget proposal expands gambling even further. Now the state will be open to various table games.

Move over Sin City

That is great news for Penn National, one of the state’s largest gaming operators. High-margin games of poker are never bad for profits – at least if you are the house.

Penn National is in the news today as word spreads of its desire to purchase Las Vegas’ Fontainebleu resort and casino. The $3 billion facility is only 70% complete as work was halted last spring after funding was eliminated.

Negotiations are still in progress, but there is a chance Penn National could get itself a bargain with the deal. If it happens, shareholders could get a double-whammy of new, high-margin revenue streams.

Put this one at the top of your watch list and watch the action closely.

No matter what happens with Pennsylvania’s budget, somebody is about to profit. Isn’t that how the government works?

Source: Put These Four Stocks on Your Watch List