PENN Entertainment Responds to HG Vora's 'False Claims'

PENN Entertainment and HG Vora appear to be at odds once more—or perhaps their original dispute remains unresolved. Last week, HG Vora, an activist investor, launched a renewed attack on the company's credibility, presenting a 116-page document that accused the current management of multiple failures and attributed the company's underperformance directly to them. In response, PENN Entertainment released a statement criticizing the shareholder's actions.

PENN Entertainment announced that it had tried to reach a settlement with the investor in good faith, highlighting that 25% of its current Board of Directors includes individuals nominated by HG Vora. The company admitted, however, that it was unable to satisfy all the demands of the investors. A major point of disagreement was HG Vora's attempt to nominate several individuals to the Board, of which two were appointed, while a third nominee was not accepted. Despite this, PENN Entertainment believed the issue was mostly resolved until HG Vora recently criticized the company’s management and the persistent underperformance of the ESPN Bet brand, which replaced Barstool Sports in a decision viewed as one of the industry's most unusual. In 2020, PENN Entertainment agreed to purchase Barstool Sports for $551 million, but ultimately sold it back to its original owner, David Portnoy, for just $1, paving the way for ESPN Bet's introduction.

HG Vora criticized PENN Entertainment's stock performance, pointing out that company executives were awarding themselves generous compensation packages and using private jets, even though the financial results did not justify such expenses. In response, PENN Entertainment dismissed these accusations as unfounded, issuing a statement to address the claims made by HG Vora: Last week, HG Vora released a 116-page investor presentation filled with false claims and mischaracterizations about the Company. Today we released an addendum to our May 15, 2025 Fact Sheet to clarify these inaccuracies. The company also accused HG Vora of ignoring gaming regulations while trying to exert control and influence over the company. PENN Entertainment stated that while allegations of management unfairly enriching themselves or using corporate jets for personal matters made for good headlines, they did not reflect the truth. The company further asserted that HG Vora's claims were not grounded in fact.