PENN Entertainment will step up lobbying in Texas after midterms

PENN Entertainment announced it will step up its lobbying efforts in Texas after the political changes from the November 3, 2026 midterm elections. The company, operator of two of the state’s three Class I racetracks, said it is "ready to play offense" and will dedicate more time and resources to the state.

PENN’s position in Texas

PENN Entertainment operates the Sam Houston racetrack in Houston and Retama Park near San Antonio; the third Class I racetrack in Texas is owned by the Chickasaw Nation in the Dallas–Fort Worth market. The company said it maintains "a great relationship" with the tribal nation and has invested in Texas for decades. Chief executive Jay Snowden said on the third-quarter earnings call that the company has "very aligned relationships" with key state players and "one of the best lobbying teams" in the country.

"We have two great assets there and we’re ready to play offense," Jay Snowden said.

The leadership change resulting from the November 3 vote could alter the political calculus in Austin. Democrat Gina Hinojosa displaced Republican Greg Abbott in the governor’s race, and Representative Vikki Goodwin defeated lieutenant governor and noted opponent of gaming expansion, Dan Patrick. Snowden described election night as "a good day and a good night for the industry in many respects, and certainly a very good day and night for PENN specifically."

Legal hurdles and the constitutional route

Texas requires a constitutional amendment to expand the commercial gaming market: that implies a supermajority in the Republican-controlled Senate and a statewide vote. Snowden and legal advisers said that, while the House changed hands and the Senate did not, the removal of certain political barriers in the election reduces immediate obstacles to the effort. [constitutional amendment process](/regulation)

Gaming lawyer Josh Kirschner, a partner at Holland & Knight and co-leader of its gaming practice, told SBC Americas he expects "a new crop of lobbyists" to enter the debate on gaming in Texas.

Scope of the strategy: relationships and presence

Snowden said PENN will increase its physical and political presence in Texas and that it already has a solid lobbying team. The company did not name specific contractors or quantify the additional expected spend. Snowden added that PENN will work its relationships with the "movers and shakers" of the state to be prepared for any initiative that emerges in Austin and pursue a targeted [lobby strategy](/b2b).

Implications beyond Texas: iGaming and other states

Snowden tied his post‑election optimism to opportunities in other states. He said the expansion of land‑based gaming could accelerate in states like Georgia after the victory of Democrat Keisha Lance Bottoms, and he pointed to Ohio as a key example for potential iGaming legalization.

Snowden noted that Democrat Amy Acton, who won Ohio’s governorship, was more open to iGaming expansion during the campaign. At the same time he reminded listeners that Republicans still control both the Ohio Senate and House, which complicates the legislative path. "We expect to spend time with the new governor and her team and talk about the benefits, if done right, of iGaming legislation in a state like Ohio," Snowden said.

He also warned that, in his view, once one of the Midwestern cluster states — Iowa, Indiana, Illinois, Ohio — adopts iGaming, others could accelerate their calendars.

Financial results that underpin the strategy

PENN reported third‑quarter 2026 results that the company says justify the push. Total revenues rose 7% from $1.72bn in Q3 2025 to $1.84bn in Q3 2026. Consolidated adjusted EBITDA increased 46%, from $194.9m to $284.0m. The company moved from a net loss of $865.1m in the same period of 2025 to net income of $32.6m in Q3 2026.

The PENN Interactive segment generated $348.4m in quarterly revenue, which Snowden attributed to the performance of Hollywood Casino’s online operations in the United States and continued growth in Canada. PENN Entertainment launched Hollywood Casino and theScore Bet in the province of Alberta in July 2026.

The digital business still shows negative adjusted EBITDA, but the loss narrowed from $76.6m in Q3 2025 to $18.3m in Q3 2026.

What could happen in Texas and across the state map

Current legal forms of gaming in Texas remain limited: in‑person lottery, pari‑mutuel wagering on racing, casinos on tribal lands and charitable bingos/fundraisers. PENN is one of the commercial operators with the strongest local presence because of its two Class I racetracks. [race tracks and casinos](/casino)

Snowden reiterated uncertainty about the ultimate outcome in Texas: "It’s always hard to predict what’s going to happen. Obviously, you have a new governor and a new party there. The House changed, the Senate didn’t. What does that mean when you mix it? We’re not sure what will come of it."

PENN said it will spend more time in the state and believes that, if a regulatory opportunity emerges, it is "positioned as well as, if not better than, practically anyone in the industry."