HG Vora Blames Penn for ESPN Bet Failure
The letter sent by HG Vora contained many different accusations, but they mostly centered around the company's failed foray into American sports betting. The Penn-operated Barstool Sportsbook failed over three years ago, and now it appears ESPN Bet is heading down a similar path.
While Penn CEO Jay Snowden said he expects the struggling sportsbook to turn a profit early in 2026, the capital management company wasn’t buying it. They pointed to past promises of profit that never came to fruition.
Penn Warns Shareholders About HG Vora
The letter sent out by HG Vora contained some serious and heavy accusations, but Penn is arguing that the company has alternative motives.
Penn’s letter claims that the capital management giant is pressuring leadership to sign off on bad deals. They say that HG Vora has come forward with several plans to help leverage their position, but at the expense of other shareholders. These deals would have limited growth and increased debt, putting the company and its investors in trouble.
Who Will Investors Support?
It seems likely that the winner of this battle will be determined at Penn’s shareholder meeting next month. Even if a vote isn’t conducted, both sides will be looking to sway investors to their side. Whichever side gains more support could decide on the future of ESPN Bet, if not Penn leadership.
The lack of profits from ESPN Bet will put Penn at a disadvantage, as that is one issue that isn’t up for debate. While Snowden has promoted the investments recently made into the sportsbook during his optimistic earnings call, the results are far from guaranteed.
