A week after sending a letter to shareholders, the hedge fund created a website and published a 116-page presentation arguing for strategic changes. 

The vocal shareholder asserts that Penn stock has declined 90% since its peak in 2021, destroying nearly $19 billion in shareholder value.

The hedge fund has once again urged shareholders to vote for the three independent board candidates it has nominated using the Gold proxy card, not Penn’s white card.

HG Vora Proxy Claims Penn’s Digital Pivot “Misguided”

In its “Genuine Change Is Needed At PENN” presentation, HG Vora highlights that before 2020, Penn Entertainment focused on brick-and-mortar casinos.

Since then, the company has shifted its priority to its Interactive division, particularly online sports betting (OSB), and has committed over $4 billion in shareholder capital. Yet, the digital segment only accounts for 15% of the company’s revenue.

While the retail casino sector has been successful and proven to return shareholder investment, the move towards the digital segment has diminished value. 

According to the presentation, from 2000 to 2020, shareholder return was 4,926%, compared to the 416% growth of the S&P 600 index. However, since 2020, that return has plummeted to -37%, compared to 19% growth for the S&P 600.

The strategy shift toward the Interactive division has generated an EBITDA loss of about $1 billion and write-downs of approximately $850 million.

Late OSB Entry and Failed Partnerships

HG Vora suggests that Penn got into the OSB business too late. 

In January 2020, FanDuel and DraftKings accounted for over 60% of the market. Still, the company pursued a deal with Barstool Sports that never materialized. Penn initially paid $163 million for a 36% share in Barstool in 2020. In 2023, it spent another $388 million for the remaining share. However, at that time, Barstool’s market share had dropped to 1.6% from the all-time high of 5% in 2021.

Less than six months later, Penn sold the brand back to its founder, Dave Portnoy, for $1. It then announced a partnership with Disney to form ESPN Bet, a move which has cost the company $500 million. 

The ESPN Bet deal has not paid off either. In January 2025, the brand held only 1.9% of the US market. When it launched in November 2023, it created a buzz and captured 8.2% market share. 

The platform lost 27% of its active users from November 2023 to January 2025. For context, the company had set goals for ESPN Bet to capture between 10% and 20% market share.

HG Vora also points out that the OSB focus was detrimental to the company’s online casino, Hollywood Casino. In 2020, the app had a 15.8% market share in Pennsylvania; by 2025, that had dropped to 1.9%. 

Meanwhile, rival Rush Street Interactive’s focus on the vertical allowed it to capture 11.9% market share in March 2025.

Criticism of Leadership and Executive Pay

HG Vora claims the Penn Board of Directors lacks the experience and skills to align with its strategy focused on the Interactive division, even after the recent restructuring. 

Out of the eight directors, only two had previous experience with Mergers and Acquisitions, while only one had experience with Technology Product Development and Operations. Meanwhile, none had worked with Online Gaming or Strategic Transformation.

HG Vora also believes Penn’s directors are not aligned with shareholders, because they own little stock. According to the presentation, CEO Jay Snowden owns eight times less stock than HG Vora. Meanwhile, the independent directors’ aggregate ownership is 35 times less. Instead of buying, the leadership sells stock, distancing itself from the company’s decline.

While shareholders have lost money recently and the company trails peers, executive pay has not reflected the decline. According to HG Vora, Snowden has been the second-worst-performing CEO among his peers. Meanwhile, his $25 million total compensation in 2024 was the second highest (the highest among all gambling operators).

The hedge fund also suggests that Snowden and CFO Felicia Hendrix “appear to be using Penn’s corporate aircraft as their personal Uber service.” According to the data, two of the top three most frequent flights since 2022 were to airports close to the executives’ residences.

Nominees Bring The Necessary Experience

As the current Penn board lacks experience with areas like OSB, Mergers & Acquisitions, and Strategic Management, HG Vora believes it will benefit from the addition of the three independent candidates it has nominated:

• William Clifford: Former Penn CFO
• Johnny Hartnett: Former CEO of Superbet Group, Chief Development Officer at Flutter
• Carlos Ruisanchez: Former CFO of Pinnacle Entertainment

According to the hedge fund, all three bring experience in Mergers & Acquisitions and Strategic Transformation. Two have experience with Online Gaming, and one with Technology Product Development & Operations.

HG Vora Proxy Outlines Paths to Value Creation

As a solution to the issue, HG Vora has suggested three paths to turn the company’s fortunes around:

• Enhance board composition: Refresh the board by adding the three independent HG Vora nominees
• Align pay with performance: Correct executive compensation through peer benchmarking analysis and set more challenging performance goals. Hold leadership accountable.
• Review the company’s leadership and strategy: Conduct a fresh examination of the company’s capital allocation. Examine the Interactive division and develop a plan for each component. Directors should be tasked with responsibilities that match their skill set and experience.

The post HG Vora Steps Up Pressure on Penn Entertainment with 116-Page Proxy Presentation appeared first on CasinoBeats.

6

BetGames.TV has launched 6+ Poker, a game featuring a reduced 36-card deck, that continues its ‘unique’ approach to delivering a fresh take on existing casino games.

Both “subtly and radically” different from a traditional poker hand, the concept of 6+ Poker is based on a variation of the popular standard ‘Hold Em’ version. 

The standard rules of the game, said the company’s COO Aiste Garneviciene, have been tweaked for “absolute user interaction, encapsulating an individual look, feel and gameplay”.

Each draw consists of a 36-deck card with the lowest card number being a six. Big hands are in play much more often because of the increased mathematical probability of winning with, for example, a straight, full house or three of a kind.

BetGames.TV CCO Richard Hogg is thrilled at the prospect of the new game taking the market by storm and explained that in the industry of iGaming, a company must always look to create “new win-opportunities” for stakeholders.

“The game is based on creating a feeling of winning big especially with 36 cards in the deck and non-stop action,” he added. “There are also highly competitive odds and win-chances.”

163

Penn National Gaming has acquired a 36 per cent stake in Barstool Sports following the completion of an approximate $163m multi-faceted deal.

Unveiling the igaming and sports betting partnership, the casino and racetrack operator becomes Barstool’s exclusive gaming partner for up to 40 years and gains the sole right to utilise the brand for all online and retail sports betting and online casino products.

Jay Snowden, president and chief executive officer of Penn National, said of the announcement: “This exciting new partnership with Barstool Sports reflects our strategy to continue evolving from the nation’s largest regional gaming operator, with 41 properties in 19 states, to a best-in-class omni-channel provider of retail and online gaming and sports betting entertainment.”

After a three year period, Penn will increase its ownership to approximately 50 per cent with an incremental investment of approximately $62m, consistent with the implied valuation at the time of the initial purchase.

Dave Portnoy, founder of Barstool Sports, commented: “This opportunity is a dream of mine and why I started Barstool Sports in the first place. Barstool Sports has a deep sports and gaming history and from the moment we met Jay and the Penn National team we knew this could be an exciting and game changing partnership and we can’t wait to get started. I think with our shared vision and goals, we are uniquely positioned to be a leader in this business.”

1

Calling on others to join the initiative, BettingUSA.com, the US online gambling affiliate, has pledged to donate one per cent of all earnings to the National Council on Problem Gambling (NCPG).

The move has been made in order to help minimise the harms that it says ‘will likely occur’ as a result of the expansion of gambling and sports betting in the country.

“NCPG advocates for states to earmark one per cent of gambling revenues to responsible gaming and problem gambling programs, and since most states fall well short of that target, we believe that it is in the best interests of the industry to contribute,” stated Steve Ruddock, analyst and content director at BettingUSA.com’s.

Keith Whyte, NCPG executive director, explained: “The rapid expansion of sports betting and mobile gambling has led to numerous challenges and significant opportunities for everyone involved, including affiliates.

“These gambling affiliates play an important role in the online gambling ecosystem, and they have the unique opportunity to take a leadership role in responsible gambling efforts in the emerging US market.”

27001

Play’n Go, the gaming content developer, has been granted the ISO 27001 certification, an international standard in information security.

Having been awarded this certification, Play’n Go can now guarantee customers they are compliant with national and international regulations (such as GDPR), which in turn minimises the risk of costly penalties and fines. 

Cedric Mallia, security and GDPR manager, discussed the latest certification: “ISO 27001 is a testament to our commitment to our client’s security and well being in the industry. ISO 27001 it is not a mandatory standard, but we are willing to go above and beyond to ensure that we are giving our customers more. 

“It shows we are continuing to build a solid security foundation based upon international standards and best practice, and taking appropriate control measures to protect confidential and privileged information. Clients know they are in the best hands with us.”

The ISO 27001, which is described as ‘a lifestyle that empowers a business to improve its overall information security posture, is awarded to companies that adopt an information security management system that takes into consideration people, processes and systems.

The post A ‘unique’ approach, information security and NCPG: The week in numbers appeared first on CasinoBeats.

Originally expected to be operational in December, 2021, the launch will establish a new online gaming platform that is said to “help protect consumers and provide more choice”. 

From April 4, private gaming operators that have registered with the Alcohol and Gaming Commission of Ontario and have executed an operating agreement with iGO, a subsidiary of the AGCO, can begin to offer its games to players within the region. 

Martha Otton, iGO executive director, stated: “Consumers can be assured that companies who successfully enter the new Ontario market will have met rigorous standards of game and operator integrity, fairness, player protections and social responsibility, allowing all players to play with confidence.

“Prevention of underage access, ensuring compliance with applicable laws including anti-money laundering rules and regulations, and measures to enable more responsible gambling are just a few of the assurances consumers can expect in the new market as of April 4.

“Today, most internet gaming by Ontarians takes place on websites not conducted and managed by the province. Our new internet gaming market will give consumers enhanced entertainment choice, support the growth of a new, legal market and generate revenue that can help fund programmes and services that benefit all of us.”

Following the announcement of the new market dates, Penn National Gaming’s president and CEO Jay Snowden, congratulated the Ontario government for its “dedication” in creating a “modern open and regulated” sports betting and igaming market. 

He stated: “Our team at theScore has been hard at work preparing for the Ontario market opening, which presents a significant business opportunity.

“As Canada’s preeminent digital sports media brand, theScore is uniquely positioned to capitalise on the introduction of the open and regulated internet gaming market in Ontario, its home territory. 

“Launching theScore Bet in Ontario will mark an exciting expansion of our online gaming business into a major new market where we already have an established mobile sports media product in theScore app and a wide base of loyal users. 

“Today’s news is very exciting, and I would like to recognise and congratulate the government of Ontario, and the AGCO and iGaming Ontario for their dedication to creating a modern open and regulated sports betting and igaming market.”

Echoing the thoughts of Snowden, theScore’s CEO, John Levy, also commended the Ontario government’s “tireless efforts” throughout the progress. 

“The AGCO and iGaming Ontario have been thoughtful and collaborative in their approach to creating and managing this new industry, and the result is a soon-to-be-launched framework that will bring widespread benefits to Ontarians and establish Ontario as one of the biggest and most important regulated gaming markets in North America,” praised Levy. 

“We will be ready to launch theScore Bet in Ontario on April 4, and could not be more excited to finally offer our best-in-class mobile sports betting and iGaming experience to customers in our home province.”

Prior to offering sports betting and igaming services in Ontario, theScore Bet must satisfy all regulatory requirements imposed by the AGCO, and enter into a commercial agreement with iGaming Ontario. 

theScore Bet previously announced that it received Gaming Labs International certification for Ontario, evidencing gaming platform compliance with the Registrar’s Standards for Internet Gaming which satisfied a key pre-launch requirement.

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Subject to approval by theScore’s shareholders at a special meeting, the receipt of a final order from the Supreme Court of British Columbia, and satisfaction or waiver of the other conditions to closing contained in the arrangement agreement with Penn National, the arrangement is expected to close on October 19, 2021. 

The special meeting is scheduled for October 12, which will be conducted via live audio webcast online. During this, shareholders will be able to hear the meeting live, and registered shareholders and appointed proxy holders will be able to submit questions on procedural matters and cast a vote. 

In August of this year, Penn National Gaming entered into a definitive agreement to purchase Score Media and Gaming for approximately $2bn in cash and stock. 

As part of the acquisition agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, a total purchase consideration of $34 per each based on a five-day volume weighted average trading price as of July 30, 2021. 

At the time of the definitive agreement, Jay Snowden, president and CEO of Penn National, noted: “We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America.

“theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.

“We are now uniquely positioned to seamlessly serve our customers with the most powerful ecosystem of sports, gaming and media in North America, ultimately creating a community that doesn’t currently exist.

“Users will enjoy a unique mobile sports betting and icasino platform with highly customised bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalised sports and entertainment content, and real time scores and stats.”

The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022. 

Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares. 

It was also confirmed that theScore will continue to be operated as a stand-alone business and led by the Levy family “with the same operating philosophy that has driven the company’s success to date”.

The post Penn National gains Canada Act Approval for theScore acquisition appeared first on CasinoBeats.

Entering into a definitive agreement in December last year with Gaming and Leisure Properties, the company agreed a $31.1m cash deal to acquire the operations of the Hollywood Casino Perryville. 

As of today, Penn National Gaming has entered into a lease with GLPI for the real estate assets associated with the facility, with annual rent approximately $7.77m.

“Penn National is excited to re-enter the strong Maryland gaming market and to once again operate Hollywood Casino Perryville, a property we developed in 2010,” said Jay Snowden, president and CEO of Penn National. “Today’s acquisition of the operations of Hollywood Casino Perryville adds a twentieth gaming jurisdiction to our leading nationwide footprint.”

Penn National has named Allie Evangelista as general manager of Hollywood Casino Perryville with Evangelista most recently serving in the same role at Penn National’s Hollywood Gaming at Mahoning Valley Race Course in Ohio. 

Moreover, Matt Heiskell, current general manager of Hollywood Casino Perryville, will now oversee operations at the company’s Hollywood Casino Tunica and 1st Jackpot Casino in Mississippi.

Snowden concluded: “We are thrilled to welcome both new and former team members to the Penn National family, and look forward to hitting the ground running in what promises to be an exciting time following the recent legalisation of sports wagering in Maryland. 

“This acquisition provides yet another opportunity for Penn National to expand our unique omni-channel platform as we expect to introduce a Barstool Sportsbook-branded retail sports book at Hollywood Casino Perryville and mobile app to players across Maryland.”

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Subject to customary regulatory approvals Kaplowitz is to assume leadership of the organisation’s Penn Interactive Ventures operations from Monday 11 February.

Taking over the role from Chris Sheffield, who is leaving Penn National to pursue other opportunities, Kaplowitz is to report to president and chief operating officer Jay Snowden.

Regarding the new appointment, Snowden explained: “In searching for Chris Sheffield’s successor, we looked for someone who could not only build upon the successful platform that Chris and his team established, but someone who could help take PIV to the next level, in terms of developing strategic partnerships with potential igaming and sports betting companies, as well as media and content providers. We are fortunate to have found the perfect fit to lead those efforts in Jon Kaplowitz.

“Jon’s extensive business development background, operational management experience and broad knowledge of sports betting and the online and mobile gaming world, make him an ideal addition to the Penn National management team as we near the launch of our online sports wagering operations in West Virginia, and real money igaming and online sports betting in Pennsylvania.

“I want to thank Chris for his successful efforts in leading the development of PIV from its early days of operations to an established, profitable and growing business for Penn National. We wish him all the best as he leaves to pursue new opportunities.”

Upon taking up his new position Kaplowitz is to oversee the operations of PIV’s suite of innovative social casino products, including Viva Slots Vegas by Rocket Games, Hollywoodcasino.com and Hollywoodraces.com, in addition to overseeing the growing online sports betting and real money igaming opportunities.

Bringing in excess of 20 years experience in financial and strategic analysis, Kaplowitz’s previous positions take in the likes of Comcast, the World Poker Tour and Massify.

Kaplowitz added on his appointment: “I am excited to join Penn National at a time when the company’s igaming and sports betting opportunities continue to expand in new markets.

“PIV’s platform is well positioned for additional growth that will help us better engage with our customers, build loyalty and retention, and serve as a significant channel for new customer acquisition.”

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