PENN Entertainment has welcomed the results of the November 3rd midterm elections. CEO Jay Snowden stated that the outcomes are likely to improve the company’s prospects for expanding its gaming operations across several states.
Texas is one of the markets currently drawing significant attention; with shifts in the state’s political leadership, discussions regarding broader gaming legislation could potentially be reignited. For PENN, a policy shift would allow the company to leverage its existing operational foundation to expand, rather than having to enter the market from scratch.
The company currently operates Sam Houston Race Park and Retama Park near San Antonio. Should Texas lawmakers revisit broader gaming proposals, these horse racing properties would provide PENN with an established foothold in the state.
During an earnings call on Thursday, Snowden remarked: “In many respects, the election results from Tuesday night are good news for the industry as a whole. For PENN, they are certainly a positive development.”
These comments came alongside the release of PENN’s third-quarter financial results. The company reported revenue of $1.84 billion, up from $1.72 billion in the same period last year. Net income reached $32.6 million, a turnaround from a loss of $865.1 million in the prior-year period—a figure that had included an $825 million impairment charge related to the company’s Interactive segment.
Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) rose from $194.9 million to $284 million. Texas Becomes a Focus for PENN
In Texas, Democrat Gina Hinojosa defeated Republican Governor Greg Abbott, while Vikki Goodwin prevailed over Lieutenant Governor Dan Patrick—a figure who has long been a staunch opponent of gambling expansion.
Currently, Texas permits only limited forms of gambling, including pari-mutuel horse racing and casinos operated by Native American tribes. Any further expansion of gambling would require a constitutional amendment, legislative approval, and a statewide referendum.
Snowden noted that PENN’s existing investments in the state provide a solid foundation for the company to participate in future discussions on the matter.
“We don’t bring this up on every earnings call because, frankly, it hasn’t been a topic of discussion—for various reasons, it hasn’t even been a ‘hot topic’; there’s been no momentum at all. But the reality is, we have been investing in Texas for decades,” Snowden said. “We have long been involved in the gaming industry through our horse racing operations in the state.”
“We hold two high-quality assets there, and we are now well-positioned to take a proactive approach.”
He added that PENN intends to dedicate more focus to Texas, highlighting the strong relationships the company has cultivated within the state.
“We are in a favorable position, maintaining good relationships with key individuals and major institutions across Texas,” Snowden added. “While I won’t list specific names or organizations, our partnerships are very solid and well-aligned. We also have an exceptional lobbying team—truly top-tier on a national level.”
“Moving forward, we will be investing significantly more time in Texas than we have in the past.” “Regardless of what policies the state may introduce, we are fully prepared to respond. We are confident that should new opportunities arise, our competitive position will be at least as strong as—if not stronger than—that of any other company in the industry.”
Snowden also noted that PENN maintains a close partnership with the Chickasaw Nation, which owns the state’s third Class I Thoroughbred racetrack in the Dallas-Fort Worth area of Texas.
Impact of Election Results on Other Gaming Markets
Snowden further pointed out that policy shifts could occur in other regions following the midterm elections.
He suggested that with the growing political influence of the Democratic Party in Georgia, there is a “possibility” that the state could expand its land-based gaming operations. In Ohio, incoming Governor Amy Acton signaled a more open stance toward iGaming legislation during her campaign.
“Governor-elect Acton, who will take office early next year, has shown a significantly more open attitude toward the expansion of iGaming,” Snowden said. “However, as both the state Senate and House remain under Republican control, it is difficult to predict how the situation will ultimately unfold. We look forward to engaging with the new governor and her team to discuss the potential benefits that well-structured iGaming legislation could bring to a state like Ohio.” ”
Furthermore, Snowden welcomed the election defeats of lawmakers who had supported “skill-based gaming”—notably in Pennsylvania and Missouri, both states where PENN operates casinos. The Pennsylvania Supreme Court ordered various “skill games” to cease operations by October 14. Snowden noted that, following this, PENN’s gaming revenue in the state saw its strongest year-over-year growth ever, with the bulk of this increase occurring in the second half of October.
According to CDC Gaming, Snowden remarked: “I’m not sure if this momentum will carry into the coming months, or how long it might last. We will be keeping a close eye on future legislative developments, but it’s safe to say that [Election Day] was a very positive day for the industry as a whole, and for PENN in particular.”
He also pointed out that voters in three counties in northeastern Indiana rejected casino referendums—a favorable outcome for PENN, which is already an established operator in the region.
Q3 2026 Results: Improvements Across Both Land-Based and Interactive Segments
PENN’s land-based segment generated approximately $1.5 billion in revenue during the third quarter. The segment’s adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) reached $501.8 million, representing a margin of 33.7%.
The company’s Interactive division reported revenue of $348.4 million, a figure that includes a $191.4 million tax gross-up. The division’s adjusted EBITDA loss narrowed to $18.3 million, compared to a loss of $76.6 million in the same period last year.
Management attributed this to…
Comments