PENN Says Pennsylvania skill-games ban is already boosting casino traffic

PENN Entertainment says Pennsylvania’s Supreme Court ruling that declared unlicensed skill gaming terminals illegal is already delivering measurable benefits to its brick-and-mortar casinos. CEO Jay Snowden told investors on the company’s third-quarter earnings call on Nov. 5 that October 2026 produced the strongest year‑over‑year gaming revenue growth PENN has seen in Pennsylvania this year, much of it driven by activity in the back half of the month after enforcement began.

Court ruling and enforcement timeline

The Pennsylvania Supreme Court ruled on June 15, 2026, that skill gaming terminals offered without a license from the state gaming regulator are equivalent to illegal slot machines. The decision included a 120‑day safe‑harbor that expired on Oct. 13, 2026. State police began enforcement action on Oct. 14, 2026, to shut down remaining skill gaming machines.

At the time of the ruling, Pennsylvania Attorney General Dave Sunday’s office estimated there were approximately 70,000 skill gaming machines operating in the state.

PENN’s commercial response and observed impact

Snowden said PENN has observed a clear uptick in visitors to its gaming floors since the machines began to disappear. PENN operates four Hollywood casinos in Pennsylvania: Meadows, Morgantown, Penn National Race Course and York. The company also runs nearby facilities outside Pennsylvania, including Hollywood Gaming at Mahoning Valley Race Course in Youngstown, Ohio, and Hollywood Casino Perryville in Maryland.

"I don't think it's a coincidence that October represents the strongest year‑over‑year gaming revenue growth that we've seen in Pennsylvania in all of 2026, and it was largely fueled by the back half of the month," Snowden said on the Nov. 5 call.

Snowden described customers who had been engaging with gray‑market skill games as now visiting regulated, taxed casinos. He said some of those customers were previously in PENN’s database, some were not, and some may not have understood the difference between skill‑based illegal devices and regulated slot machines. PENN plans to increase marketing and outreach to capture these customers, using social media, other marketing channels and advertising.

"There is definitely an opportunity during this period of time when skill games have been shut down and customers do like to engage in slot machine‑like devices," Snowden added.

Snowden also said enforcement has been tangible. "That enforcement since Oct. 14 has been real," he said, noting that Pennsylvania law enforcement action has resulted in machines being shut down.

Analysts and market commentary

Citizens analysts Jordan Bender and Isabelle Slavin published a note on Nov. 6 citing the skill gaming prohibition as a factor underpinning a confident outlook for PENN. They wrote that the shutdown of gray‑market machines is "already demonstrating immediate benefits for the company and the broader market" and that they believe PENN is the largest beneficiary of the removal of gray‑market machines.

In an earlier note after the court ruling, Bender and Slavin suggested that operators including Boyd Gaming and Churchill Downs could see uplift from the removal of skill gaming devices, and that online casino operators might receive a tailwind as well.

Enforcement figures from Pennsylvania State Police

On Nov. 10, 2026, Pennsylvania State Police reported that since Oct. 14 officers had visited 12,202 establishments. Police stated that 12,134 of those locations "no longer offered skill gaming machines," which the agency equated to a 99.4% compliance rate. The statement did not specify whether all 12,202 establishments had offered skill gaming machines prior to visits. As of Nov. 10, police had seized 14 machines during the enforcement period and said investigations continue at locations that have not voluntarily removed terminals.

Snowden referenced those enforcement figures on the Nov. 5 call and suggested the state’s October tax receipts may reflect the shift of play back to regulated venues.

Legislative effort and political context

After the Supreme Court ruling, Pennsylvania Representative Russ Diamond (R) introduced bills in September 2026 that aimed to create a regulatory and taxation framework for skill games. The Chair of the House Gaming Oversight Committee had expressed a desire to modernize Pennsylvania’s gaming law before the enforcement deadline, but the legislation did not pass in time.

House leaders in the Democratic‑controlled chamber said Senate Republicans failed to gather the votes required to pass the measure before the end of the legislative session. House Appropriations Committee chair Jordan Harris (D) told the Pennsylvania Capital‑Star that "The Senate Republicans have created a problem and have killed the solution."

In the midterm elections this month, the Democratic Party increased its majority in both the Pennsylvania Senate and House. Snowden said the election results were "a great day overall" for the casino industry and for PENN, arguing that many pro‑skill‑based gaming advocates at the state lawmaker level lost influence or seats.

Snowden also flagged other states where political change could create opportunities for PENN. He said PENN intends to "play offense" in Texas, where the company runs two Class 1 thoroughbred racetracks, after anti‑gambling Republican Lieutenant Governor Dan Patrick lost his re‑election bid to Democratic Representative Vikki Goodwin. Goodwin has expressed openness to allowing Texas voters to decide on whether to legalize commercial casinos and sports betting.

What PENN plans to do next

PENN intends to increase marketing and targeted outreach to capture customers displaced by the shutdown of skill games. Snowden described plans to use social media and other channels to speak to customers who previously engaged with skill gaming terminals. Analysts and PENN both expect continued upside in regulated casino revenues now that unlicensed devices have been removed from the Pennsylvania market.