Mid-Term Election Results Strengthen Penn Entertainment's Position Across Key States
Penn CEO Jay Snowden called the mid-term elections positive for the company and gaming sector. Outcomes support expansion in Texas and Georgia while reducing skill-based gaming advocacy in Pennsylvania and Missouri. Penn posted Q3 2026 revenue of $1.5 billion and adjusted EBITDAR of $501.8 million.
SCCG Take — Election results remove barriers to Penn's Texas offensive and sustain revenue momentum in regulated casino states. Operators with established lobbying networks can now pursue targeted jurisdictional growth.
Penn Entertainment CEO Jay Snowden described the mid-term elections as positive for the operator and the gaming industry. Speaking on the company's earnings call, Snowden said "Tuesday night was 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."
Incoming Democratic legislators may prove more open to long-standing industry gaming proposals. In Texas, Penn Entertainment owns two racetracks, Retama Park near San Antonio and Sam Houston. The company has two great assets there and is ready to play offense. It is not a defensive play, as the operator is positioned well with great relationships with the movers and shakers in Texas and has a great lobbying team, one of the best across the country.
State Opportunities and Skill-Based Game Setbacks
Snowden highlighted potential retail gaming expansion in Georgia and the chance to overcome opposition elsewhere. The elections defeated many proponents of skill-based games at the state lawmaker level. This outcome benefits Penn Entertainment in Pennsylvania, where it operates two properties, and Missouri, where it runs three casinos.
In Missouri, where Catherine Hanaway is attorney general, the state has been producing very strong revenue numbers on a year-over-year basis in 2026. Snowden called her "a rock star" and said the performance is not a coincidence. In Pennsylvania, where the state’s Supreme Court declared that all skill games must be shuttered by October 14 of this year, the month proved to be “the strongest year-over-year gaming revenue growth that we’ve seen in Pennsylvania in all of 2026.”
Q3 Financials and Analyst Views
Penn Entertainment recorded $1.5 billion in revenue for the third quarter of 2026. Adjusted EBITDAR reached $501.8 million with segment margins of 33.7%. Jefferies analyst David Katz pointed to better-than-consensus results across most segments. J.P. Morgan analyst Daniel Politzer noted 5% year-over-year land-based revenue growth and an 80 basis point margin increase.
As reported by CDC Gaming, Snowden expressed uncertainty about how long the trends will last or what will happen legislatively but affirmed the elections delivered a very good day for the industry and Penn Entertainment.
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