UNITE HERE Urges Shareholders to Support PENN Entertainment Board Declassification Proposal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
UNITE HERE urges shareholders to vote FOR the proposal to declassify the Board of Directors at PENN Entertainment and transition to annual elections for all directors at the AGM on June 16, 2026. The firm said, "PENN shareholders already supported declassification in 2010, yet the Board has not implemented that outcome. In the years since, governance standards have moved in greater favor of annual elections as investor expectations have become clearer. In 2025, declassification proposals were reported to have seen average shareholder support of 77.9%, resulting in a passage rate of 86% across 14 proposals. Today, maintaining a classified structure places PENN increasingly out of step with shareholder preference. Annual elections would: Support long-term value creation by reinforcing confidence in Board oversight Enhance accountability and responsiveness during a period of disruption in the traditional gaming industry created by prediction markets, the growth of internet gaming, and grey market activities such as skill-based games and sweepstakes gambling Reduce entrenchment risk and align PENN with governance norms embraced by leading industry peers Importantly, the proposal is precatory. The Board retains full discretion to determine whether to declassify, and if it does so, to proceed in a manner that is consistent with the law and all applicable gaming regulatory requirements...The proposal to declassify the Board is simple, beneficial for shareholders, and consistent with the practices of gaming industry peers that maintain annual elections and operate in the highly regulated gaming industry. After more than a decade since shareholders first supported declassification, it is time to align PENN's governance with modern standards of accountability."
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Analyst Views on PENN
Wall Street analysts forecast PENN stock price to fall
15 Analyst Rating
9 Buy
5 Hold
1 Sell
Moderate Buy
Current: 21.085
Low
14.15
Averages
19.38
High
26.00
Current: 21.085
Low
14.15
Averages
19.38
High
26.00
About PENN
PENN Entertainment, Inc., together with its subsidiaries, operates in 28 jurisdictions throughout North America, with a portfolio of casinos, racetracks, and online sports betting (OSB) and iCasino offerings. Its focus is on organic cross-selling opportunities, reinforced by its retail casinos, sports media assets and technology, including a proprietary fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. Its Northeast segment includes Ameristar East Chicago, Hollywood Casino at Greektown, and Hollywood Casino Bangor. Its South segment includes 1st Jackpot Casino, Ameristar Vicksburg, Boomtown New Orleans, and L’Auberge Baton Rouge. Its West Segment includes Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort Spa Casino and Zia Park Casino. Its Midwest Segment includes Ameristar Council Bluffs, Hollywood Casino Aurora, and River City Casino. Its Interactive segment includes OSB, online casino/iCasino, and social gaming operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PENN Entertainment Opens Hollywood Casino and Hotel Aurora
- Grand Opening: PENN Entertainment has invested $360 million to open the Hollywood Casino and Hotel Aurora in Illinois, replacing a riverboat property that operated since 1993, marking a significant expansion in the region.
- Facility Highlights: The new casino features over 1,000 of the latest slot machines and more than 50 table games, including a baccarat room and a retail sportsbook, promising an exceptional guest experience that is expected to attract a large number of visitors.
- Community Engagement: The opening ceremony will include Illinois Gaming Board officials, local dignitaries, and state legislators, reflecting the company's strong ties to the local community and enhancing its brand image.
- Customer Rewards Program: Hollywood Casino Aurora is part of the PENN Play customer rewards program alongside nearby Hollywood Casino Joliet and Ameristar East Chicago, aimed at boosting customer loyalty and market competitiveness.
See More
Goldman Sachs Optimistic About Penn Entertainment's Growth Potential
- Positive Market Outlook: Goldman Sachs highlighted that Penn Entertainment offers the most compelling risk/reward in the gaming sector, particularly as its regional business is at an inflection point, which is expected to drive positive earnings revisions.
- Price Target Increase: Truist raised Penn's price target from $20 to $25 while maintaining a 'Buy' rating, believing that the newly opened Hollywood Aurora project will yield a 15% return on investment.
- Strong Revenue Expectations: Citizens affirmed its 'Market Outperform' rating on Penn after touring the company's new Illinois casinos, noting that Hollywood Casino Joliet has generated $115 million in gaming revenue since opening, with Aurora expected to deliver similar results over the next 24 months.
- Significant Investment: Penn has invested approximately $850 million in various retail projects, with expectations that these will generate about $120 million in EBITDAR once fully operational, demonstrating the company's strong commitment to business expansion.
See More
Goldman Sachs Initiates Buy Ratings on PENN and RRR
- Coverage Initiation: Goldman Sachs has initiated Buy ratings on PENN Entertainment and Red Rock Resorts, with analyst Lizzie Dove highlighting PENN's compelling risk/reward profile in the gaming sector, particularly as its regional business is at an inflection point driven by new projects and improvements in its Interactive segment.
- Cash Flow Expectations: Goldman Sachs anticipates that PENN will deliver free cash flow exceeding $4 per share by 2028, a projection that not only reflects the company's strong financial performance but also indicates its significant position in the recovering regional gaming market, likely attracting more investor interest.
- Industry Recovery Signals: Goldman Sachs believes the regional gaming sector is experiencing a resurgence, with M&A activity providing a valuation floor and earnings revisions offering investors the potential for share price appreciation, a trend that is crucial for the future performance of both PENN and RRR.
- Red Rock Resorts Outlook: The bullish outlook on Red Rock Resorts from Goldman Sachs is based on its compelling earnings story for 2027, as the company is at an inflection point, overcoming disruption headwinds from 2026 and reaping the benefits from growth investments in its five latest projects.
See More
Goldman Sachs Bullish on Penn Entertainment Stock Outlook
- New Projects Drive Growth: Penn Entertainment is launching new projects amid a revival in the regional gaming sector, attracting investor interest, with Goldman Sachs initiating coverage with a buy rating and a $26 price target, implying a 23% upside from Thursday's close.
- Optimistic Cash Flow Outlook: Analyst Lizzie Dove noted that Penn is on track to achieve recurring free cash flow of over $4 per share by 2028, showcasing the company's strong potential amid new projects and a turnaround in its interactive business, enhancing its investment appeal.
- Strong Market Performance: Penn's stock has risen 43% year-to-date, reflecting increased capital inflow into the regional gaming market, while commercial gaming revenue grew 7.2% in Q3 last year, outpacing the U.S. GDP growth of 3.9%, indicating robust industry recovery.
- Analyst Consensus Support: Among the 21 analysts covering Penn, 12 have assigned buy or strong buy ratings, indicating widespread market optimism for the stock, further validating Goldman Sachs' bullish outlook.
See More
Major Wall Street Rating Changes on Friday
- Diageo Upgrade: TD Cowen upgraded Diageo from hold to buy, citing valuation dislocation as an attractive entry point, with CEO-led cost cuts and reinvestment expected to restore growth and enhance commercial execution.
- James Hardie Initiation: Stephens initiated coverage of James Hardie with an overweight rating and a $31 price target, highlighting its status as a high-quality company and its position as the second-largest composite decking manufacturer following its merger with AZEK.
- Nike Downgrade: KeyBanc downgraded Nike from overweight to sector weight, indicating that the turnaround is taking longer than anticipated, with slight reductions in FY27 estimates reflecting higher-than-expected headwinds in China and EMEA.
- American Tower Upgrade: RBC upgraded American Tower from sector perform to outperform, noting superior organic revenue growth compared to peers, despite rising interest rate pressures, indicating strong market potential.
See More
UNITE HERE Calls on PENN Board for Action on Annual Elections
- Shareholder Support for Declassification: At the June 16 Annual Meeting, shareholders of PENN Entertainment, Inc. voted in favor of the advisory proposal to declassify the Board, marking the second time since 2010 that a majority has supported this initiative, indicating a strong desire for annual elections.
- Importance of Governance Structure: Annual director elections are widely recognized as a cornerstone of effective corporate governance, providing shareholders with a regular mechanism to evaluate board performance and hold directors accountable, thereby enhancing responsiveness to investor concerns.
- Investor Expectations for Action: Michael Hachey from UNITE HERE emphasized that shareholders expect the Board to take necessary steps towards declassification rather than performative actions or silence, reflecting a heightened focus on corporate governance from investors.
- Strengthening Shareholder Alignment: Hachey noted that adopting annual elections would strengthen alignment between directors and shareholders, bringing PENN's governance practices more in line with investor expectations, thereby enhancing transparency and accountability in corporate governance.
See More
PENN Entertainment Opens Hollywood Casino and Hotel Aurora
- Grand Opening: PENN Entertainment has invested $360 million to open the Hollywood Casino and Hotel Aurora in Illinois, replacing a riverboat property that operated since 1993, marking a significant expansion in the region.
- Facility Highlights: The new casino features over 1,000 of the latest slot machines and more than 50 table games, including a baccarat room and a retail sportsbook, promising an exceptional guest experience that is expected to attract a large number of visitors.
- Community Engagement: The opening ceremony will include Illinois Gaming Board officials, local dignitaries, and state legislators, reflecting the company's strong ties to the local community and enhancing its brand image.
- Customer Rewards Program: Hollywood Casino Aurora is part of the PENN Play customer rewards program alongside nearby Hollywood Casino Joliet and Ameristar East Chicago, aimed at boosting customer loyalty and market competitiveness.
See More
Goldman Sachs Optimistic About Penn Entertainment's Growth Potential
- Positive Market Outlook: Goldman Sachs highlighted that Penn Entertainment offers the most compelling risk/reward in the gaming sector, particularly as its regional business is at an inflection point, which is expected to drive positive earnings revisions.
- Price Target Increase: Truist raised Penn's price target from $20 to $25 while maintaining a 'Buy' rating, believing that the newly opened Hollywood Aurora project will yield a 15% return on investment.
- Strong Revenue Expectations: Citizens affirmed its 'Market Outperform' rating on Penn after touring the company's new Illinois casinos, noting that Hollywood Casino Joliet has generated $115 million in gaming revenue since opening, with Aurora expected to deliver similar results over the next 24 months.
- Significant Investment: Penn has invested approximately $850 million in various retail projects, with expectations that these will generate about $120 million in EBITDAR once fully operational, demonstrating the company's strong commitment to business expansion.
See More
Goldman Sachs Initiates Buy Ratings on PENN and RRR
- Coverage Initiation: Goldman Sachs has initiated Buy ratings on PENN Entertainment and Red Rock Resorts, with analyst Lizzie Dove highlighting PENN's compelling risk/reward profile in the gaming sector, particularly as its regional business is at an inflection point driven by new projects and improvements in its Interactive segment.
- Cash Flow Expectations: Goldman Sachs anticipates that PENN will deliver free cash flow exceeding $4 per share by 2028, a projection that not only reflects the company's strong financial performance but also indicates its significant position in the recovering regional gaming market, likely attracting more investor interest.
- Industry Recovery Signals: Goldman Sachs believes the regional gaming sector is experiencing a resurgence, with M&A activity providing a valuation floor and earnings revisions offering investors the potential for share price appreciation, a trend that is crucial for the future performance of both PENN and RRR.
- Red Rock Resorts Outlook: The bullish outlook on Red Rock Resorts from Goldman Sachs is based on its compelling earnings story for 2027, as the company is at an inflection point, overcoming disruption headwinds from 2026 and reaping the benefits from growth investments in its five latest projects.
See More
Goldman Sachs Bullish on Penn Entertainment Stock Outlook
- New Projects Drive Growth: Penn Entertainment is launching new projects amid a revival in the regional gaming sector, attracting investor interest, with Goldman Sachs initiating coverage with a buy rating and a $26 price target, implying a 23% upside from Thursday's close.
- Optimistic Cash Flow Outlook: Analyst Lizzie Dove noted that Penn is on track to achieve recurring free cash flow of over $4 per share by 2028, showcasing the company's strong potential amid new projects and a turnaround in its interactive business, enhancing its investment appeal.
- Strong Market Performance: Penn's stock has risen 43% year-to-date, reflecting increased capital inflow into the regional gaming market, while commercial gaming revenue grew 7.2% in Q3 last year, outpacing the U.S. GDP growth of 3.9%, indicating robust industry recovery.
- Analyst Consensus Support: Among the 21 analysts covering Penn, 12 have assigned buy or strong buy ratings, indicating widespread market optimism for the stock, further validating Goldman Sachs' bullish outlook.
See More
Major Wall Street Rating Changes on Friday
- Diageo Upgrade: TD Cowen upgraded Diageo from hold to buy, citing valuation dislocation as an attractive entry point, with CEO-led cost cuts and reinvestment expected to restore growth and enhance commercial execution.
- James Hardie Initiation: Stephens initiated coverage of James Hardie with an overweight rating and a $31 price target, highlighting its status as a high-quality company and its position as the second-largest composite decking manufacturer following its merger with AZEK.
- Nike Downgrade: KeyBanc downgraded Nike from overweight to sector weight, indicating that the turnaround is taking longer than anticipated, with slight reductions in FY27 estimates reflecting higher-than-expected headwinds in China and EMEA.
- American Tower Upgrade: RBC upgraded American Tower from sector perform to outperform, noting superior organic revenue growth compared to peers, despite rising interest rate pressures, indicating strong market potential.
See More
UNITE HERE Calls on PENN Board for Action on Annual Elections
- Shareholder Support for Declassification: At the June 16 Annual Meeting, shareholders of PENN Entertainment, Inc. voted in favor of the advisory proposal to declassify the Board, marking the second time since 2010 that a majority has supported this initiative, indicating a strong desire for annual elections.
- Importance of Governance Structure: Annual director elections are widely recognized as a cornerstone of effective corporate governance, providing shareholders with a regular mechanism to evaluate board performance and hold directors accountable, thereby enhancing responsiveness to investor concerns.
- Investor Expectations for Action: Michael Hachey from UNITE HERE emphasized that shareholders expect the Board to take necessary steps towards declassification rather than performative actions or silence, reflecting a heightened focus on corporate governance from investors.
- Strengthening Shareholder Alignment: Hachey noted that adopting annual elections would strengthen alignment between directors and shareholders, bringing PENN's governance practices more in line with investor expectations, thereby enhancing transparency and accountability in corporate governance.
See More
