PENN Entertainment Plans Bigger Texas Push After Midterms As Q3 Revenue Growth
PENN Entertainment plans to spend more time and effort in Texas after the midterm elections, chief executive Jay Snowden said on the company's third-quarter earnings call on November 5, 2026, as reported by CNBC.
Snowden called Election Day a very good day for the industry and for PENN in particular.
Texas has no legal casinos or sports betting, and changing that would need a constitutional amendment. PENN nonetheless sees an opening and says it is well placed if lawmakers move toward legalization.
Why Texas, And Why Now
CNBC reported that Democrat Vikki Goodwin defeated longtime Lt. Gov. Dan Patrick, who has been a persistent obstacle to gambling expansion in the state. Democrats also flipped the Texas House, while Republicans kept the Senate, and Democrat Gina Hinojosa won the governorship.
The result removed a major political obstacle but did not produce a deal. Legalizing casino gambling or sports betting would still require a constitutional amendment approved by two-thirds of both chambers and then by voters.
PENN operates two of the state's three Class 1 thoroughbred racetracks, Retama Park near San Antonio and Sam Houston Race Park in Houston. Snowden said the company has built relationships with local leaders over several years and expects to be positioned as well as anyone in the sector, if not better, should legalization advance.
Las Vegas Sands, which has long backed Texas expansion, told CNBC it is too early to speculate. Our earlier coverage looked at how Las Vegas Sands funded campaigns hoping for Texas gaming expansion.
Record Retail Revenue In The Quarter
The comments came alongside PENN's third-quarter results, released on November 5, 2026. Total revenue was $1,840.0 million, up from $1,717.3 million a year earlier.
The company reported net income of $32.6 million, compared with a net loss of $865.1 million in the same quarter of 2025, which included an $825.0 million impairment charge in its Interactive segment.
The Retail segment produced revenue of $1.5 billion and Segment Adjusted EBITDAR of $501.8 million, a margin of 33.7%. Interactive revenue was $348.4 million, including a tax gross-up of $191.4 million, and its Segment Adjusted EBITDAR loss narrowed to $18.3 million from $76.6 million a year earlier.
Snowden said the Retail segment achieved record third-quarter revenue and that Interactive is making continued progress toward profitability, helped by the standalone Hollywood iCasino in the US, Ontario, and early results in Alberta.
Other Election Effects Snowden Flagged
According to CNBC, Snowden also said PENN could benefit if lawmakers tighten rules on skill-based gaming machines, which compete with casinos and licensed video gaming terminals.
He said candidates who backed those machines lost seats or influence in several states. He linked recent revenue growth to the shutdown of skill games in Pennsylvania in mid-October, while cautioning it was too early to say whether the gains will last.
In Indiana, voters in three counties rejected a proposed casino license, which PENN sees as limiting new competition for existing casinos in Indiana and neighboring Illinois and Ohio.
Texas players who want regulated play today can compare online casinos available in Texas.
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