Despite grim prospects for several Nov. 2 ballot initiatives aimed at legalizing or expanding gambling, manufacturers and industry insiders at the Global Gaming Expo's opening sessions were betting slot machines sales will enjoy a big surge in the next two years.

Their arguments, however, have shifted. Rather than state fiscal crises driving expansion, the "domino effect" -- don't let neighboring states tax your residents -- will keep overcoming local opposition to new gaming, they said.

Specifically, because Pennsylvania enacted a law in July to allow slots at tracks, neighboring states -- especially Maryland, Ohio, Kentucky and New York -- are expected to hustle to keep their residents from driving across state lines to gamble, Orrin Ediden, executive vice president of WMS Gaming, told a packed meeting room of G2E attendees at the Las Vegas Convention Center.

There's at least a 50-50 chance Florida will move to legalize slots at tracks, despite vocal opposition from Gov. Jeb Bush, to head off competition from new resorts likely to be created around expanded racetrack operations with casinos in the Northeast.

There's also likely to some growth in table games, with West Virginia already moving to expand casino operations in anticipation of the rush to add slot machines around the Mid-Atlantic region, said Tim O'Leary, business development manager of Scottsdale, Ariz.-based Atronic Americas, a slot machine manufacturer with operations in Las Vegas.

Slot makers and industry insiders also agreed that while two ballot initiatives in California are likely to fail, the push behind new compacts to expand tribal casinos will only grow, adding to the push for the expansion of manufacturing operations.