Following the midterm elections on November 3, PENN Entertainment is poised to increase its lobbying in Texas after significant political shifts. Democratic candidate Gina Hinojosa defeated incumbent Republican Governor Greg Abbott, and Representative Vikki Goodwin unseated Lieutenant Governor Dan Patrick, who was a prominent adversary of gambling expansion in the state.
These changes could reshape the landscape of Texas gambling in the coming years, which currently has limited legal gambling options, including retail lottery games, parimutuel wagering on racing, Indian gaming casinos, and charity bingo and raffles. PENN operates two Class 1 thoroughbred racetracks in Texas: Sam Houston Race Park in Houston and Retama Park near San Antonio.
During a third-quarter earnings call, CEO Jay Snowden announced the company's intent to actively promote gambling expansion in Texas, often considered a challenging market for commercial gaming. "We have been making investments in Texas for decades," he stated. "We have been operating in the gaming space through horse racing in Texas for a long time. We have got two great assets there and we are ready to play offense."
Snowden acknowledged that the third Class 1 thoroughbred track in Texas belongs to the Chickasaw Nation, located in the Dallas-Fort Worth area, and emphasized the company's strong relationship with the tribe. He expressed confidence about their positioning in the Texas political landscape, noting, "We don’t need to get into names and entities, but we have very strong aligned relationships there. We have a great lobbying team, one of the best we have across the country."
In echoing this sentiment, gaming attorney Josh Kirschner anticipated that many new lobbyists would enter the Texas gambling debate following the election.
Any expansion of gambling in Texas would require a constitutional amendment, support from a supermajority in the Republican-controlled Senate, and approval from voters. However, as various experts highlighted, the recent elections have lowered some of the barriers that previously hindered such developments. Snowden described November 3 as a favorable outcome for the gaming sector, particularly for PENN Entertainment.
Looking beyond Texas, Snowden discussed the potential for iGaming expansion, particularly drawing attention to Ohio. With Democrat Amy Acton winning the gubernatorial race, her campaign included support for legalizing online casino gambling. "Governor Acton, who is now going to be in office at the start of the year, was definitely more open to iGaming expansion," he noted. He anticipates that as states in the Midwest like Ohio begin to embrace iGaming, others will follow suit.
PENN Entertainment recently reported stronger financial results for the third quarter of 2026, with total revenue rising to $1.84 billion, a 7% increase from the previous year. Consolidated adjusted EBITDA jumped 46%, reflecting the company's health as it turned a profit of $32.6 million, compared to an $865.1 million net loss a year earlier. The PENN Interactive segment also performed well, generating $348.4 million, thanks in part to the success of the Hollywood Casino online operations in the U.S. and growth in Canada. Despite operating at a loss, the digital sector significantly reduced its deficit from $76.6 million to $18.3 million in the last year.
