Penn Entertainment reaches agreement with HG Vora, adds new board directors
On 23 February 2026, Penn Entertainment signed a cooperation agreement with activist investor HG Vora Capital Management and appointed three new independent directors to its board. The operator said Heather Ace, Jeffrey Fox and Fabio Schiavolin were added to the board as part of the agreement. The deal brings to an end a months‑long fight over activist representation on the board.
HG Vora had been contesting board seats with the operator for months after increasing its stake and announcing plans to nominate its own candidates. The fund even filed a lawsuit against Penn in May 2025, alleging the company had violated Pennsylvania’s Business Corporation Law. According to data compiled by LSEG, the company founded by Parag Vora (pictured) now owns a 4.7% stake in Penn.
Restructuring and two executive departures
The company announced a corporate restructuring within its Interactive division, which is responsible for online sports betting and casino operations. The changes affect operations in the US and Canada. Penn has also eliminated two executive positions and confirmed plans to appoint a new Chief Operating Officer for its digital business. According to Penn, this restructuring aims to simplify the management model and strengthen operational control as the digital segment evolves.
The company said it will continue to review its organisational structure and provide further updates in February. The appointments of HG Vora’s representatives align with Penn’s stated plans.
The role of Chief Information Officer (CIO) was affected by the reorganisation. Rich Primus, who had held the position, left the company after more than ten years. During his tenure, he played a key role in developing Penn’s technology and digital infrastructure.
The position of Vice President of Operations was also eliminated. Todd George, who held that role, departed the company after a decade in various senior positions. George served as Senior Vice President of Regional Operations for the Midwest, as well as Executive Vice President. He was actively involved in the development and opening of Hollywood Casino Joliet in Illinois. The $185 million entertainment complex opened in August 2025, becoming an important addition to Penn’s land-based operations.
Penn CEO Jay Snowden thanked both executives for their contributions, noting that over the past decade, they helped lay a solid foundation for the company’s growth.
Termination of the Disney agreement
In November 2025, the company ended its multibillion-dollar agreement with ESPN for online sports betting. Walt Disney Co. and Penn Entertainment announced the end of their ten-year, $2 billion deal to launch ESPN Bet. After two years, the partners had failed to capture a meaningful share of the sports betting market, prompting the termination of the collaboration.
For Disney, the project was an attempt to monetise the ESPN brand amid rapid growth in online betting, and for Penn, it was an opportunity to expand beyond the traditional casino business. However, expectations were not met: Penn recorded an impairment loss of $825 million in its Interactive division in the third quarter.
As part of winding down the deal, Penn made a final payment of $38 million to ESPN. ESPN still holds nearly 8 million warrants to purchase Penn shares at $28.95. Following the news, Penn’s shares fell by 5.5%, while Disney’s stock remained largely unchanged, Bloomberg reports.
Commenting on the end of the partnership, Penn’s management said the company will now focus on more targeted marketing, especially in US states where it owns land‑based casinos, moving away from the large national campaigns run for ESPN Bet. “We had ambitions, we had goals to be a leader, but it didn’t work,” Snowden concluded. “We are stepping back from that. And so are they.”
This article was first published in Russian on 24 February 2026.
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