Penn Entertainment stock rises 6% as major stakeholder HG Vora seek Board seats

December 29, 2023
By
Leer en Español

Hedge fund HG Vora Capital Management holds an 18.5% interest in Penn Entertainment and is now in negotiations to secure board seats.

According to a regulatory filing to the  Securities and Exchange Commission (SEC) on December 28, HG Vora Capital Management is seeking seats on Penn Entertainment’s Board of Directors.

A major shareholder in the company, the investment firm is founded by Parag Vora, a former VP at Goldman Sachs.

HG Vora has requested rights to appoint directors to the Board ahead of the opportunity to nominate new board members ahead of the 2024 meetings from Jan 8 through Feb 7. It is unclear how many seats the hedge fund is seeking.

In the 13D filing to the SEC, HG Vora expressed concern over Penn Entertainment’s capital allocation and undervalued stock: "Given the persistent underperformance of the Common Stock and the Issuer’s capital allocation track record, amongst other areas of concern, the Reporting Persons have requested that the Issuer afford them the right to designate highly qualified directors who would be committed to working with the Issuer’s management and fellow Board members to help the Issuer realize its full potential.”

The situation is similar to that of Entain, which recently saw stocks rise after involvement from activist investors – as well as after the departure of its CEO Jette Nygaard-Andersen.

Penn Entertainment's stock saw a decline of approximately 16% throughout 2023. Yet this potential move has caused a 6.3% soar since the announcement.

In August this year, Penn partnered with ESPN to launch ESPN Bet in a 10-year agreement. The media giant’s venture into online sports betting via Penn started its rollout in recent months, and will continue its launch across North American states next year.

State-by-State

Company Spotlight

Bragg Gaming

Bragg Gaming Group is a global content-driven iGaming technology provider, serving online and land-based gaming operators with its proprietary and exclusive content and cutting-edge technology.
Virtual Showroom

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Land-Based

Industry Awards

Supplier

GA Newsletter

Exclusive news, analysis, insights, and interviews delivered straight to your inbox

Kiko Augusto - From fantasy sports to sports betting in Brazil

Rei do Pitaco CEO Kiko Augusto joins the (on-this-occasion-injured) Gaming America Editor, Tim Poole, for a Huddle to talk all things Brazil!

Rickard Vikström: How 2025 is shaping up for US iGaming

Internet Vikings CEO & Founder Rickard Vikström joins Gaming America to discuss the US online landscape in 2025.


Another year approaches its end, as 2024 slowly becomes our past, 2025 the present and a wave of opportunity defines gaming's future. There is an air of change as the regulated gaming world looks to welcome a new entra...

8-10-From-the-top
From the top: Reflecting on the past and looking to the future of land-based casinos
Gaming America reviews the closures of the Mirage Hotel and Casino, as well as the Tropicana, but also keeps an eye on the future with Durango Casino and Resort GM David Horn.
36-41-Oliver-Lovat
Cover Feature: Exploring what might be next for land-based casinos
Nothing is new. Everything is new. Oliver Lovat, regular Gaming America columnist and resident Las Vegas expert, discusses what the next generation of casinos need to succeed, while also reflecting on Vegas' generational shift away from the Tropicana and Mirage.
42-43-Lefosse---Brazilian-Sports-Betting
Steadying the ship in LatAm's largest market
After regulatory limbo, sports betting in Brazil is moving towards legal certainty – by Eduardo Carvalhaes, partner in Public Law and Regulation at Lefosse, and Karen Coutinho, counsel in Public Law and Regulation at Lefosse.
44-45-Lazarus-Legal
Brazilian opportunity: The future of LatAm
Edwin Monzon, Managing Partner of Lazarus Legal, speaks to Gaming America about Brazil's upcoming iGaming and online sports betting regulation, assessing both the prospects and challenges involved.

Sweepstakes were the talk of G2E 2024 and are generating plenty of headlines as we enter 2025. It is a fascinating vertical – and indeed whether it should even be seen as a legal vertical at all is in question. The Am...

8-10-From-the-Top
Countdown to launch: Just in time
In this edition of From The Top, Caesars New Orleans SVP and GM Samir Mowad speaks with Kirk Geller to detail what the future holds after the property finally completed its $435m transformation.
14-15-GGA-Americas
The industry's best getting their deserved recognition
The 11th annual Global Gaming Awards Americas once again honored and rewarded the gaming industry's strongest performers throughout the prior 12 months during G2E in Las Vegas.
16-18-G2E-Review
G2E 2024: Discussing the future of US iGaming
A deep dive into the lively debate: Gaming America's Laura Mack examines the objections to US iGaming expansion and the mythbusters offered as a rebuttal at G2E. Surely, it is inevitable in the long run?
20-21-year-review
G2E 2024: A year in review
Gaming America sits down with Pro League Network's (PLN) Mike Salvaris at The Venetian during G2E, to sum up the year and give us the inside scoop of what sports betting has in store for 2025.