PENN Entertainment to intensify Texas lobbying after midterm upset

PENN Entertainment intends to step up its lobbying in Texas after the state's governor and lieutenant governor, both Republicans opposed to gambling expansion, lost their seats in Tuesday's midterm elections, the operator's chief executive said on an earnings call reported by SBC Americas.

Democrat Gina Hinojosa unseated Governor Greg Abbott, while Rep. Vikki Goodwin defeated Lieutenant Governor Dan Patrick, a longstanding opponent of expanding gambling in the state. PENN chief executive Jay Snowden told analysts on Thursday's third-quarter earnings call that the company would "play offense" as a result.

Texas gambling currently extends only to retail lottery games, parimutuel wagering on racing, tribal casinos and charity bingo or raffles. PENN operates two of the state's three Class I thoroughbred racetracks, Sam Houston in Houston and Retama Park near San Antonio. The third, in the Dallas-Fort Worth market, is owned by the Chickasaw Nation, with whom Snowden said PENN has "a great relationship".

"We do not talk about it every call because it just hasn't been a topic of conversation — not even hot, it hasn't even really been warm for a variety of reasons — but we've been making investments in the state of Texas for decades," Snowden said. He added that the company holds two strong assets in the state and is positioned to push harder now.

He added that PENN holds "great relationships with the movers and shakers in Texas" and "one of the best" lobbying teams the company fields nationally, and said resources devoted to the state would increase.

SBC Americas reported that Josh Kirschner, a gaming attorney and partner at Holland & Knight who serves as deputy leader of the firm's gaming practice, expects "a whole new breed of lobbyists" to enter the Texas gambling debate following the result.

Expanding gambling in Texas still requires a constitutional amendment, a supermajority in the state's Republican-controlled Senate, and a statewide vote. The House flipped in Tuesday's elections but the Senate did not, leaving the path uncertain. Snowden acknowledged as much, saying "we are not sure what comes out", but nonetheless described the results as "a good day and a good night for the sector in a lot of ways, and certainly a really good day and night for PENN specifically."

Snowden also pointed to Georgia, where Bottoms, a Democrat, took the governor's race and her party captured the state House for the first time since 2004, as a market where retail gaming expansion "could happen".

Retail operations generated roughly $1.5bn of PENN Entertainment's $1.84bn in third-quarter 2026 revenue, underpinning much of Snowden's focus on brick-and-mortar expansion opportunities arising from the midterms.

But with PENN Interactive, the company's online arm, posting strong third-quarter gains, Snowden said he would also push for iGaming legislation in states where the political landscape has shifted. He singled out Ohio, pointing to the governor's race won by Democrat Amy Acton on the back of her campaign support for legalising online casino play.

"Governor Acton, who is now going to be in office at the start of the year, was definitely more open to iGaming expansion," Snowden said, while noting that Ohio's Senate and House remain Republican-controlled. He said PENN looks forward to discussing "the benefits, if done right, of iGaming legislation" with Acton's incoming administration.