The news was broken by Canadian Business Gaming (CGB), with the workers told on Thursday last week that they were no longer required. 

“These changes reflect the ongoing evolution of our digital business,” a company spokesperson told CGB on Friday. “Under the leadership of key recent product and technology hires, we are structured to advance our online strategy and efficiently grow our business.”

PENN’s Focusing Away From Media, Towards Gambling Industry

PENN’s online strategy is to focus more on the sports betting and iGaming side of theScore as opposed to the media section.

The company recently launched theScore Casino in Ontario, and plans to expand its reach in Canada by launching in Alberta when the province opens up to regulated betting companies. 

Alberta will become Canada’s second province to have a regulated online gambling market. It follows Ontario, and is expected to launch next year. 

PENN decided to withdraw theScore Bet from the US market after acquiring the company.

Previously the platform had launched in four US states. First was New Jersey, followed by launches in Colorado, Indiana, and Iowa. Operations were officially closed in July 2022. 

Gambles Not Paying Off for PENN, Say Investors

PENN’s original $2 billion acquisition of theScore and subsequent decision to withdraw the platform from the US market has been heavily criticized by investors, along with other ventures into the gambling industry. 

Last year, William Wyatt, managing director of the investor Donerail Group, called the company’s strategy “misguided”.

This year, shareholder group HG Vora has also been outspoken in their disapproval of the company. It accused leaders of “value-destructive deal-making, reckless capital allocation and poor execution”. 

The group created a 116-page document outlining strategic failures, which have led to a 90% decline in the value of the company from 2021.

Among the failures is the $550 million acquisition of Barstool Sports. It was subsequently sold back to owner Dave Portnoy for $1. 

PENN decided to focus its US presence on Barstool rather than theScore. However, the platform struggled to obtain sports betting licenses in the US due to the Barstool’s image.

At the same time PENN announced the sale of the company back to Portnoy, it also reported a $2 billion investment in ESPN Bet. 

PENN launched its interactive division in 2023, encompassing theScore, ESPN Bet, and Hollywood Casino.

The division generated revenue of $960 million in 2024, up from $719 million in 2023. Despite revenue growth, annual losses increased from $403 million in 2023 to nearly $500 million in 2024.

HG Vora successfully installed two directors at last week’s annual shareholder meeting, but the market reaction remains muted. Time will tell whether the latest move to reduce staff at theScore pays dividends. 

The post PENN Entertainment Lays Off Over 75 Employees At theScore appeared first on CasinoBeats.

The results were in line with expectations as both the company and HG Vora backed both Johnny Hartnett and Carlos Ruisanchez.

For context, HG Vora took a 4.8% stake in Penn, which makes it the third-largest investor behind BlackRock and Vanguard. 

The fund has been critical of Penn’s management, including for what it called “misguided transformation into a sports, media and technology conglomerate.”

HG Vora Laments Poor Executive Management

In its presentation, HG Vora said that Penn’s online sports betting pivot has “failed” despite spending $4 billion on the venture over five years. 

It particularly listed the Barstool Sports acquisition, where Penn eventually sold back the venture to Dave Portnoy for a mere $1 after having paid over $550 million initially. 

The fund also lashed out at Penn’s executive compensation, especially in light of its sagging stock price.

HG Vora was looking to add a third nominee, Penn’s former CFO William Clifford, to the board, but Penn reduced the number of directorial candidates from three to two. 

While Penn will officially file the results in the coming days, HG Vora claims Clifford’s candidature also received the support from the majority of shareholders.

Importantly, what appears to be a setback to Penn’s management, HG Vora’s release claims that 60% of shareholders rejected its “Say-on-Pay” proposal.

While two directors won’t exactly give HG Vora veto powers, the fund is expected to pursue changes related to Penn’s online betting business, its partnership with ESPN Bet, and push for deleveraging. 

Meanwhile, Penn shares are trading slightly lower in pre-market today as the results of the shareholder meeting were expected. 

The muted price action could also be because HG Vora does not have any previous track record as an activist investor, and it is the firm’s first foray into activism. 

Markets might wait and see how its nominees help change Penn’s business before reacting to the new directors.

Penn Entertainment’s Underperformance Made It Ripe for Activist Investors

Penn always looked fertile for intervention from an activist investor given its disappointing price action. 

The stock has lost around half of its market capitalization over the last five years and is down a whopping 89% from the record highs it reached in 2021. 

For context, Las Vegas Sands and Playtika Holdings have lost 12% and 84 % over the last five years. Wynn Resorts is flat, while MGM Resorts has gained almost 74% for the period.

While competitors’ performance has been mixed, Penn has underperformed compared to the majority of its peers over the last five years. HG Vora attributes this to the board’s failure to hold management to account for astute execution. 

Why Has Penn Stock Been Falling?

Penn’s dismal price action since the 2021 peak is not surprising, given that its financial performance has underwhelmed, frequently missing earnings estimates (including in Q1 2025).  

The company’s revenues rose 65% in 2021, the year it hit its record highs. However, growth fell to 8.4% in 2022, and in 2023, its revenues declined by 0.6%. Revenue growth did recover to 3.4% last year, and analysts expect topline growth in the ballpark of 5% in 2025 and 2026.

The bottom-line performance has deteriorated badly, and its adjusted net income fell from $428.3 million in 2021 to $401.8 million in 2022 and $60.8 million in 2023. Last year, the company reported an adjusted net loss of nearly $252 million, while its free cash flow was -$123.4 million. 

What’s the Forecast for Penn Entertainment Stock?

There has been no major analyst action following the AGM, as the results were in line with estimates. 

In its release welcoming the two new directors, Penn said, it is “intently focused on driving profitability in our Interactive segment and growth across the business.” It also talked about the need to deleverage its balance sheet and return capital to shareholders.

The company repurchased $35 million worth of its shares in Q1 and intends to scale up repurchases in the second half of the year, as it views its stock price as “severely dislocated” from its fundamentals.

Penn’s valuations have plummeted amid perennial underperformance, and it trades at just 0.34x its projected sales over the next 12 months, which is not only the lowest among its major listed peers but is also a discount to its long-term average multiples.

While HG Vora and the analyst community agree with Penn’s management on its valuations, given the over 41% discount to the median target price of $23.23, the company might need to change its strategy to drive shareholder returns.

That said, the record of activist investors in driving turnarounds is mixed at best. While there are success stories, such as Dan Loeb pushing Yahoo to divest its Alibaba stake, there have been many failures, including Bill Ackman’s ill-fated efforts to transform J.C. Penney.

The post Penn Entertainment Stock Outlook Uncertain as Activist Fund HG Vora Gains Influence appeared first on CasinoBeats.

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.

Escalante wants to buy the remaining 30% share he doesn’t own in a transaction that would value the company at A$3.2 billion ($2.08 billion). The proposed acquisition reflects a strategic maneuver in response to increasing regulatory security and evolving market conditions in the US.

Lance East Office Proposes Acquisition in Major Buyout

For the acquisition, Lance East Office (LEO), Escalante’s family office, has established Ocean BidCo Limited, a special purpose vehicle registered in the Bailiwick of Guernsey.

Under the proposed Scheme Implementation Deed of purchase terms, VGW would become a subsidiary of Ocean BidCo Limited.
Under the scheme terms, VGW shareholders can receive a A$5.05 ($3.29) per share cash payment, shares in Ocean BidCo, or a combination of the two.

LEO initially approached the VGW board about an acquisition in November 2024. The board then created an Independent Board Committee (IBC). IBC, comprising financial and legal advisors, was tasked with evaluating the potential sale.

IBC rejected LEO’s initial offer of A$3.50 ($2.28) to A$4.00 ($2.58) per share. After further negotiations, IBC deemed that the latest A$5.05 offer accurately reflects the company’s value.

The acquisition is subject to approval from VGW shareholders. If conditions are met, the deal is scheduled to finalize by September 15.

Behind VGW Going Private: Navigating Regulatory and Market Pressures

Escalante’s decision to take the company private follows challenges in the US, one of VGW’s core markets.

Sweepstakes casinos, like VGW’s brands, have faced increased regulatory scrutiny in the US, with several states already moving towards a legislative ban on these platforms.

Last month, Montana officially banned sweepstakes casinos, becoming the first state to do so. Meanwhile, Louisiana, Nevada, and Connecticut are just a governor’s signature away from following Montana.

Additional states, such as New York, New Jersey, and Ohio, are also considering legislative bans. In response, VGW has already announced it will stop sweepstakes play in the Empire State, effectively removing it from its list of eligible jurisdictions.

Due to these challenges, industry sources expect a decline in VGW’s revenue for the remainder of the financial year.

Going private and relocating the company’s domicile to Guernsey from Australia will also benefit VGW. It provides it with tax advantages and a more favorable regulatory environment, which could help VGW in achieving greater operational agility and cost efficiency.

Ending VGW Shareholder Disputes By Going Private

Going private will also help Escalante with his ongoing disputes with shareholders over issues such as valuation, company direction, and regulatory challenges.

As CEO and majority shareholder, Escalante has maintained control of the company; however, these disputes have caused friction, including his recent profanity-laced tirade at investors, in which he told them to sell their shares if they did not trust the leadership.

One of the arguments of minority shareholders is that they believe the company is undervalued. They have pushed for higher valuations and liquidity options. Investors have also questioned VGW’s response to US regulatory pressures, calling for more aggressive expansion and diversification.

Escalante’s move to take VGW private is an attempt to resolve these tensions. By offering a higher price per share than the initial valuation, the CEO is answering those calls for undervaluation.

At the same time, going private gives VGW greater strategic flexibility and Escalante greater autonomy, as the company will no longer be beholden to shareholder expectations.

Being private also allows VGW to keep sensitive business information out of the public eye, which is critical in regulated and competitive businesses like online gambling.

VGW’s Position Compared to Publicly Traded Gaming Giants

Escalante’s ongoing disputes spark comparisons with other high-profile shareholder disputes involving publicly traded gambling giants, such as Penn Entertainment, Bally’s Corporation, and DraftKings.

Ahead of its annual meeting, Penn Entertainment is facing severe pressure from shareholder HG Vora Capital Management. HG Vora claims that the company’s misguided pivot to the digital sector, away from traditional retail casinos, has led to a dramatic decline in shareholder returns.

HG Vora also points the finger at CEO Jay Snowden and the leadership team for a lack of skills aligned with the strategy shift.

Bally’s has faced echoing concerns from shareholders about its focus on its Interactive division. Last year, the company agreed to a merger with its largest shareholder, Standard General, led by Chairman Soo Kim. However, another investor, K&F Growth Capital, opposed the merger.

In an open letter to shareholders, K&F questioned Bally’s shift to digital, which it called “an unmitigated disaster.” It also questioned the mass retail expansion plans for casinos in Chicago, Las Vegas, and New York. The latter faces serious questions as it recently hit a roadblock with the New York City Council.

DraftKings is a digital gaming giant that has grown to become the number two sportsbook in the US. Last year was one of its most successful years in terms of financial results, as it reported its first-ever positive Adjusted EBITDA and 30% yearly revenue growth.

However, between 2021 and 2023, the company faced shareholder concerns over its capital allocation strategy. The shareholders raised questions regarding aggressive marketing spending and acquisitions, with concerns about sustainability and the path to profitability.

Investors even brought in a class-action lawsuit regarding the disclosure of information surrounding DraftKings’ merger with its technology provider, SBTech. That suit was eventually dismissed.

Public vs. Private Gaming Companies: Governance, Regulation, and Strategic Flexibility

The key difference between VGW’s potential privatization and the situations at Penn, Bally’s, and DraftKings lies in their governance and regulatory environments.

Unlike VGW, all three are publicly traded companies operating under strict US gaming regulations. They have disclosure requirements to ensure transparency and accountability. This enables shareholders to actively influence corporate decisions, often leading to public disputes when disagreements arise.

In contrast, VGW does not hold US gaming licenses. The company’s plan to go private and relocate to Guernsey further reduces regulatory oversight and disclosure obligations.

That move gives VGW management greater freedom to pursue long-term strategies without the pressure of investor concerns or public market pressures.

VGW’s privatization enables Escalante to consolidate control and lead the company through evolving market challenges with greater agility. That’s something US-regulated, publicly traded companies cannot do.

The post VGW Going Private: A Strategic Move Against US Regulatory Headwinds and Shareholder Disputes appeared first on CasinoBeats.

The listed company claims the report is “full of false claims and mischaracterizations” about the company’s governance and leadership.

The response comes as the latest chapter in the proxy battle between the two parties ahead of Penn’s 2025 Annual Meeting.

Penn Says in Response It Tried to Reach an Agreement

In a letter to shareholders, Penn stated that it will not continue to solicit votes for its proxy card over HG Vora’s. That’s because both parties support the same two board nominees, Johnny Hartnett and Carlos Ruisanchez.

The company claims that despite its attempting to settle with HG Vora “in good faith”, the shareholder rejected the proposals. Instead, it wanted to impose its own conditions, which would have violated directives from a gaming regulator.

Still, Penn claims that HG Vora successfully achieved changes to the company’s board. The two nominees will eventually represent 25% of the board after the annual meeting.

However, Penn criticized the activist investor. The company described HG Vora as consistently disregarding the gaming regulatory regime in its quest for more control and influence in Penn, without all the necessary licenses.

“Rather than operate within the well-established gaming regulatory framework, HG Vora has chosen to test boundaries and blame-shift, even concluding that we “[r]epeatedly sought to weaponize the Company’s regulators.”

Penn also rejected HG Vora’s allegations and claims over executive compensation, insider trading, and personal use of corporate assets. The company says that while the claims are attention-grabbing headlines, they’re not based on public disclosures.

HG Vora’s Claims of Strategic Failures and Mismanagement

HG Vora launched its proxy battle with Penn in February, when it blamed the company for strategic failures and mismanagement. It also nominated three candidates for the board. In addition to Hartnett and Ruisanchez, the list included William J. Clifford, a former Chief Financial Officer of Penn.

On May 13, the firm sent an open letter to Penn shareholders. It stated that it had filed its definitive proxy statement with the Securities and Exchange Commission. In the letter, HG Vora urged shareholders to vote with its Gold Proxy Card, not Penn’s white card.

The letter went on to call Penn’s act of reducing the number of candidates from three to two (after it claimed the two parties agreed on three) “illegal and undemocratic.”

Shortly after, HG Vora stepped up its pressure on Penn. It published a website and a 116-page presentation arguing for strategic changes.

In the presentation, the investor claimed the company’s pivot to the digital segment was misguided and has failed. It also criticized the leadership and executive pay.

The post Penn Entertainment Issues Response to the Latest Criticisms by HG Vora appeared first on CasinoBeats.

The filing was in connection with the nomination of candidates for election to PENN’s Board of Directors.

HG Vora previously recommended three candidates to strengthen the Board. The company believes that the existing members are responsible for its poor performance since 2021.

PENN Entertainment responded to HG Vora’s initiative by attempting to block the nominations and reducing the number of available board seats from 3 to 2, effectively accepting Johnny Hartnett and Carlos Ruisanchez. 

Both are industry veterans and experienced executives, but HG Vora’s third candidate, PENN’s former CFO and M&A expert William Clifford, was rejected despite having a proven track record.

HG Vora called this act “illegal” and “undemocratic,” which led it to address PENN’s shareholders, blaming the leadership of President and CEO, Jay Snowden, and Board Chair, David Handler. It stressed that PENN pursued a misguided transformation from a best-in-class regional casino operator to a sports, media, and technology conglomerate under their leadership.

HG Vora points to several data points, including an 80% share price decline in the past four years, suggesting that the decision to transform the company in this way was a failed strategy that has caused PENN to lose $11 billion in value since 2021.

PENN Responds to HG Vora With Shareholder Letter

PENN responded to the HG Vora letter by addressing the shareholders in its own letter.

The company suggested that the industry is undergoing a fundamental transformation. The Board of Directors and management team have transformed the business, building a digital presence and allowing it to engage with younger audiences outside of its traditional channels and demographics. 

It also noted that it has taken, and continues to take, actions to drive growth and enhance profitability. It acknowledged the addition of two of HG Vora’s nominees for the June election after two incumbent directors stepped down, while another one, Ron Naples, has recently decided to retire.

PENN further emphasised its commitment to an omnichannel growth strategy, integrating digital platforms with its retail casino operations.

It highlighted a 10% YoY increase in PENN Play loyalty members, reaching over 32 million. It also noted that the average customer age has gone from 53 to 44 between 2019 and 2025. 

Further, the company saw a 34% increase in digital customers within 50 miles of a PENN property, suggesting successful cross-channel engagement.

As for its engagement with HG Vora, PENN said that there have been over 25 meetings or calls since 2023. However, it also noted that it declined to nominate HG Vora’s third candidate due to concerns regarding his suitability and past opposition to key initiatives during his previous time with the company.

The post HG Vora and PENN Entertainment Clash Over Board of Directors appeared first on CasinoBeats.

Turchin will oversee PENN’s online gaming brands, which include Hollywood Casino and theScore in addition to ESPN Bet.

Turchin announced the move on LinkedIn last week, saying he was “thrilled to be part of shaping what comes next and grateful for the opportunity to be a disrupter in this rapidly evolving industry.”

At FanDuel, Turchin oversaw customer acquisition and player account management, anti-money laundering and fraud prevention, regulatory compliance, and more during three-and-a-half years as Senior Vice President of Product.

“Along with cutting-edge digital products, PENN Entertainment features the largest and most diverse gaming footprint in North America,” Turchin wrote, “operating 43+ casino and racetrack properties under well-known brands including Hollywood, Ameristar, L’Auberge, M, and more.

“The expansive online and physical footprint allows PENN to deliver unparalleled omnichannel entertainment experiences.” 

Hiring Turchin Follows Series of Big Moves for PENN

Turchin’s hiring is the third significant addition by PENN in the last six months as the company seeks to bolster its digital footprint. Gadi Rouache, formerly of Disney and ESPN, was brought on last fall as its SVP and head of design. Joining him was Mike Andrews, also formerly of Disney, as Head of Engineering. Like Turchin, both report to Chief Technology Officer Aaron LaBerge, who was hired by PENN last summer following stints with Disney and ESPN.

Turchin comes aboard at a critical time for PENN, which looks to regain market share following its split with Barstool Sports. Underwhelming results by ESPN Bet have fueled speculation that PENN could seek to opt out of the 10-year licensing deal valued at roughly $2 billion when it was signed in 2023.

According to company estimates, ESPN Bet controls only 2.35% of the U.S. sports betting market, and it struggles to compete with DraftKings and FanDuel. That pales compared to PENN’s original goal of 20% of market share by 2027.

PENN Building Its Portfolio

PENN added to its portfolio earlier this month, inking a partnership with MLB Players Inc. (MLBPI), the business affiliate of the Major League Baseball Players Association (MLBPA).

The agreement allows both ESPN Bet and Canadian-based theScoreBet permission to use MLB player names, images, and likenesses (NIL) on their betting platforms for retail and marketing purposes.

PENN owns 32 retail sportsbooks, including 19 under the ESPN Bet brand.

“Partnering with MLB Players Inc. strengthens our connection to the league and its star players and creates additional opportunities to engage fans throughout the season,” PENN VP of Operations Jason Birney said in a news release. 

The post Former FanDuel Executive Turchin Joins PENN, Will Oversee ESPN Bet appeared first on CasinoBeats.

The agreement, secured through OneTeam Partners, allows both ESPN Bet (U.S.) and theScoreBet (Canada) permission to incorporate MLB player names, images, and likenesses into their sports betting platforms for marketing and retail campaigns.

“By integrating MLB player rights into PENN Entertainment’s platforms, this partnership brings fans closer to the game while unlocking new business opportunities in sports betting,” Frank Arthofer,  President of OneTeam Partners, said in a release. 

He continued: “It highlights the growing influence of players in shaping premium, fan-focused betting experiences while enhancing player NIL rights and widening distribution.”

PENN operates 32 retail sportsbooks, including 19 under the ESPN Bet brand. In 2021, it acquired theScore, which is now the Toronto Blue Jays’ official gaming partner.

Strengthening Connections

ESPN Bet has performed far below prior market expectations and has struggled to compete with the likes of DraftKings and FanDuel. Upon launch, Penn aspired to secure 20% of the sports betting market share across the United States by 2027. Updating investors after its fourth-quarter earnings call, this has been revised to 5% by the end of 2025. 

Underwhelming performance has continued to fuel speculation that Penn may look to opt out of the 10-year deal valued at $2 billion that was signed in 2023. 

PENN’s VP of Operations, Jason Birney, hopes the MLBA partnership will help PENN deliver an enhanced product for fans. “Partnering with MLB Players Inc. strengthens our connection to the league and its star players and creates additional opportunities to engage fans throughout the season,” he said. 

The defending World Series champion Los Angeles Dodgers opened the MLB season against the Chicago Cubs in Tokyo on 18-19 March. Action on American shores got underway the week after. 

Navigating Legal Hurdles

MLB Players Inc. agreed to a similar deal with Fanatics Sportsbook in October 2024. A month prior, in September 2024, the MLBPI brought lawsuits against bet365, DraftKings, FanDuel, and Underdog Fantasy for alleged unauthorized use of player names and likenesses. 

FanDuel and the MLBPA agreed on a settlement after both parties agreed to a licensing agreement. 

Last month, a federal judge denied DraftKings and bet365’s attempts to dismiss the lawsuit. Judge Marston of the U.S. District Court for the Eastern District of Pennsylvania found that the MLBPI had “sufficiently pleaded violations of Pennsylvania’s right of publicity statute” and “common law misappropriation of likeness.” 

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Matt Bastock

HG Vora Capital Management has initiated a proxy battle, nominating three independent directors to Penn Entertainment’s board.

The investment firm has expressed concerns over the company’s strategic decisions and lackluster financial performance compared to competitors. 

Penn’s share price has declined by over 80% since its peak in early 2021, underperforming the S&P 500 and comparables such as Boyd Gaming. Boyd Gaming is considered its closest peer and has returned +73% over the same period. 

Accusations of Strategic Failures and Mismanagement

HG Vora believes Penn’s stock is significantly undervalued. A statement states that the board ‘has numerous deficiencies which have translated into abysmal returns for shareholders. 

HG Vora has pinpointed Penn’s regional casino portfolio and collection of interactive assets as areas with significant unrealized potential. 

Penn’s current board is accused of “reckless spending” approximately $4 billion on predominantly failed mergers, acquisitions, and media partnerships. The acquisition and subsequent divestiture of Barstool Sports have been highlighted as a particular failing. 

Management’s digital and interactive strategy has also been under fire, with HG Vora labeling it an “abject failure.” Vora accuses Penn’s board of constantly overpromising and underdelivering. 

Parag Vora, Founder and Portfolio Manager of HG Vora added, “To date, there have been no repercussions for the Board’s persistent bad judgment and disappointing shareholder returns. We believe this is in part due to PENN’s weak corporate governance, which disenfranchises shareholders and entrenches board members while rewarding its CEO with excessive compensation.” 

Vora continued, “It should be clear to all stakeholders that change is urgently needed to address these failings and help PENN achieve its full potential. To that end, this is the first time in our firm’s 15-year history that HG Vora has decided nominating directors is necessary. We believe these three highly qualified, independent director nominees bring proven track records of enhancing shareholder value and the skills and industry expertise to help maximize value for all PENN shareholders.”

Industry Stalwarts Enter the Fray

The three candidates are William J. Clifford, Johnny Hartnett, and Carlos Ruisanchez. All three candidates have significant experience in roles across gambling, with tangible growth results in prior roles. 

Penn has acknowledged receiving the nomination notice. In a statement, it emphasized its “commitment to long-term shareholder value” and said the Nominating and Corporate Governance Committee would review the nominations in accordance with standard procedures. 

The election to the Board would take place at the company’s 2025 Annual Meeting of Shareholders. At the time of writing, a date has not been scheduled, and shareholders are not required to take any action. 

Written By

Matt Bastock

Matt is a casino and sports betting expert with over two decades’ writing and editing experience. He loves getting into the nitty gritty of how casinos and sportsbooks really operate in order to make solid recommendations based on real experiences. His favourite games are blackjack and poker, and he loves watching NFL and soccer in his spare time.

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£2.56bn

Revealing its financial performance for H1 2024, Entain’s net gaming revenue came in at £2.56bn, an increase that caused the firm to update its full-year NGR guidance. 

The company noted that the results “reflect underlying Q2 outperformance and stronger than expected win margins for Euros”. NGR for the period came in at £2.56bn, up 6% year-over-year (H1 2023: £2.4bn), 8% in constant currency and 0% in constant currency on a proforma basis. 

Revenue improved by 6% YoY and 8% in constant currency to £2.52bn (2023: £2.38bn). Excluding US, total group NGR rose by 6% YoY, 8% in constant currency and 0% in constant currency on a proforma basis. 

Online NGR improved by 9% YoY, 11% in constant currency and 1% in constant currency on a proforma basis, while active customers rose by 13% proforma. Retail NGR grew by 1% YoY but fell by 4% in constant currency on a proforma basis.

Entain’s gross profit rose by 5% YoY to £1.53bn (2023: £1.46bn), while its contribution grew by 6% to £1.19bn (2023: £1.13bn) and its operating costs declined by 7% to minus £670.4m (2023: minus £626.8m).

Group underlying EBITDA improved by 5% YoY to £523.8m (2023: £499.4m) while underlying operating profit fell by 6% to £287.9m (2023: £307.4m). Online EBITDA rose by 9% to £445m, while retail EBITDA fell by 11% to £140m.

CEO and Chair Designate Stella David commented: ”Entain’s H1 results are clear evidence that our hard work improving the Group’s operational performance is bearing fruit. 

“Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond.”

Updating its full-year guidance, Entain expects “low single-digit positive proforma growth in Online NGR (from low single-digit negative)” while group EBITDA is expected to be in the range of £1.04bn and £1.09bn.

2,000

Strike actions continued at Evolution’s live casino studio in Tbilisi, Georgia, as 2,000 workers took action after the supplier threatened employees with lay-offs last week. 

As a result of increased strike action, Evolution stated via Facebook that it will be “forced to make operational adjustments” if the situation remains unchanged, suggesting that it could turn to “larger-scale layoffs,” reducing its presence in Georgia.

The igaming supplier described the ongoing situation as “highly regrettable” due to having spent six years investing in its Georgian operations and the many working employees that will be impacted by the company’s decisions. 

Amidst a number of live streams depicting the strikes, as well as confrontations with working Evolution staff, Evo-Union also took to Facebook to allege that “disinformation” had been spread by the company. 

The post referred to statements from Evolution claiming that the supplier had offered employees a 30-50% pay increase to settle the strike action, declaring that “the information provided is not true and serves to contradict employees”. 

Around 2,000 workers reportedly did not show up to work as a sign of solidarity following Evolution’s announcement. 

12.4%

Light & Wonder has lauded a Q2 revenue boost of 12.4% to $471m, boosted by “strong momentum” from the firm’s gaming offering. 

Consecutive periods of growth for the firm’s gaming output was secured by a myriad of key releases, including the success of its Squid Games launch. 

It marks the acceleration of an upward trajectory for the group as it celebrates a 13th straight quarter of year-on-year consolidated revenue growth.

Updating investors, Light & Wonder President and CEO Matt Wilson underlined that the success of the firm is evident when it comes to sales of its units across North America as it looks to continue to expand its “robust portfolio”. 

Furthermore, the igaming efforts of the firm were bolstered by the group’s significant success in North America, as it saw a 6% annual increase to $74m.

$1.66bn

Publishing its Q2 results for 2024, PENN declared a slight revenue drop year-over-year to $1.66bn (Q2 2023: $1.67bn). 

The operator also reported a net loss of $27.1m (2023: $78.1m net income), an adjusted EBITDA of $212.1m (2023: $330.4m) and an adjusted EBITDAR of $367m (2023: $476.8m).

Gaming revenue at the end of the quarter stood at $1.33bn (2023: $1.29bn) while food, beverage, hotel and other revenue came in at $330.7m (2023: $382m).

PENN diagnosed its retail business as “healthy” with revenues of $1.4bn and while its Interactive business was described as benefiting from operational improvements, revenue was down YoY to $232.6m (2023: $257.5m).

Retail operations – Northeast, South, West and Midwest – had an adjusted EBITDAR of $496.6m with margins of 34.8%. Meanwhile, Interactive’s record quarterly gaming revenue of $232.6m included tax gross of $82.1m, while adjusted EBITDA came in at a loss of $102.8m (2023: $12.8m loss).

Jay Snowden, CEO and President, stated: “Our retail properties delivered solid results this quarter as our best-in-class team of operators continues to execute across our diverse portfolio of market-leading assets.

“In our Interactive segment, top-of-funnel growth, improved risk and trading execution and refined promotional strategies contributed to better-than-expected revenue and adjusted EBITDA results.”

9%

Super Group declared revenue of €414.7m for Q2 2024, an all-time quarterly record as well as a 9% increase year-over-year (Q2 2023: €380.8m). 

The company stated that the quarter’s performance was “driven by growth from the Africa and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific markets”.

Per region, Africa and Middle East revenue stood at €153.6m for the quarter (2023: €110.3m), followed by North America at €150.1m (2023: €137.1m), Europe at €65.5m (2023: €57.1m), Asia-Pacific at €37m (2023: €69.1m) and South/Latin America at €8.5m (2023: €7.1m).

Per product line, online casino operations revenue stood at €323.2m (2023: €272.4m), sports betting revenue came in at €84.3m (2023: €94.2m), brand licensing revenue was €5.3m (2023: €8.3m) and other revenue was €2m (2023: €5.8m).

Splitting up revenue per brand, Betway operations generated €246.3m (2023: €228.9m) while Spin operations produced €168.5m (2023: €151.9m). Monthly active customers rose by 21% YoY in Q2 to 4.5 million (2023: 3.7 million).

CEO Neal Menashe commented: “The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business. I’m glad we have reached a conclusion in shutting the US sports betting market and we continue more generally to optimise our global footprint both in terms of geography and product.”

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