PENN Prepares for Texas Opportunities After the Midterm Elections

PENN Entertainment welcomed the results of the midterm elections held on November 3. CEO Jay Snowden said these results could strengthen the prospects for gambling expansion in several states. Texas is one of the leading markets in this regard.

A change in political leadership in Texas could bring broad gambling legislation back onto the agenda. Democrat Gina Hinojosa defeated Republican Governor Greg Abbott. In the race for lieutenant governor, Vikki Goodwin defeated Dan Patrick, one of the leading opponents of gambling expansion.

Currently, Texas permits only limited forms of gambling, such as parimutuel wagering on racing and tribal casinos. A broader expansion would require a constitutional amendment, legislative approval, and a statewide vote.

PENN operates in Texas through horse racing, at Sam Houston Race Park and Retama Park near San Antonio. Snowden said the company has invested in Texas for decades and therefore enters future discussions with a strong infrastructure. The company also announced plans to spend more time in Texas.

The company's third-quarter revenue rose to $1.84 billion, compared with $1.72 billion in the same period last year. Net income was $32.6 million, while the company had recorded a loss of $865.1 million in the third quarter of last year. That loss was attributed to an $825 million impairment charge related to Interactive. Adjusted EBITDA rose from $194.9 million to $284 million.