HG Vora Demands Penn Entertainment Board Seats as Shares Disappoint

HG Vora, a hedge fund with a track record of investing in casino equities, has built an 18.5% stake in Penn Entertainment (NASDAQ: PENN) and is requesting that the gaming company grant it board seats.

PENN Play
An image for Penn Entertainment. Hedge fund HG Vora announced an 18.5% in the stock. (Image: Penn Entertainment)

In a new 13D filing with the Securities and Exchange Commission (SEC), the money manager revealed the position in the region casino operator, which includes common stock and derivatives. Though it didn’t reveal how many directors slots it wants, HG Vora did chide Penn for its lagging stock price. The hedge fund previously held shares of Penn in 2018.

Given the persistent underperformance of the Common Stock and the Issuer’s capital allocation track record, amongst other areas of concern, the Reporting Persons have requested that the Issuer afford them the right to designate highly qualified directors who would be committed to working with the Issuer’s management and fellow Board members to help the Issuer realize its full potential,” said the money manager in the filing.

Shares of Penn jumped 7.48% in early trading on the news, adding to a gain of nearly 16% over the past 90 days — a move fueled largely by the strong debut of the ESPN Bet sports wagering mobile application. Still, the stock is down 10% year-to-date, while rivals such as Caesars Entertainment (NASDAQ: CZR) and DraftKings (NASDAQ: DKNG) have posted impressive gains.

HG Vora Could Push for Change at Penn

HG Vora has the look of an activist investor in Penn. The timing of the hedge fund revealing its stake in the gaming company comes as the window for the operator to nominate directors for 2024 starts on Jan. 8, running through Feb. 7.

Activist investors push for change in a variety of forms. It’s possible that HG Vora could initiate a proxy battle if Penn doesn’t play ball in terms of granting it board seats.

The money manager could take actions ranging from “without limitation, proposing changes in the Issuer’s operations, proposing changes to the Board and the Issuer’s management team, proposing changes to the Issuer’s charter, bylaws or governance structure, capitalization or dividend policy, proposing extraordinary corporate transactions, asset sales, soliciting proxies from other stockholders of the Issuer in connection with meetings of stockholder.”

The hedge fund directly owns 14.5 million shares of Penn equity, or 9.6% of the shares outstanding based on the gaming company’s shares outstanding tally as of Oct. 26. The remainder of the stake comes by way of “a cash-settled swap agreement representing economic exposure to an additional 13,500,000 shares of the Issuer’s Common Stock” and other cash-settle options.

Penn Joins List Seeing Activist Action

To close 2023, activist investors are increasing exposure to gaming equities. Prior to HG Vora revealing its interest in Penn, several hedge funds piled into Entain (OTC: GMVHF), potentially leading to the departure of former CEO Jette Nygaard-Andersen while helping Eminence Capital founder Ricky Sandler land a board seat at the Coral owner.

As for HG Vora, its history of gaming investments, which was highlighted in regulatory filing, is lengthy and mostly successful.

The money manager has previously held positions in Boyd Gaming (NYSE: BYD), Caesars, Gamesys, and the predecessor company of Bally’s (NYSE: BALY).

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NetBet Italy Signed a Deal with Inspired Entertainment Incorporated in Italy

netbet-italy-partners-with-inspired-gaming-The most popular online gambling platform in the whole of Italy, NetBet Italy (NetBet), partners

up with Inspired Entertainment Incorporated (Inspired), one of the world’s leading suppliers of content, technology, hardware, and services for the gambling industry in a range of regulated markets.

Conquering Italy

The partnership with Inspired allows NetBet Italy to stay on track and make a significant step towards becoming the number-one platform for all online gaming departments in the country. When it comes to Inspired, this partnership is greatly beneficial since it allows the company to conquer the key Italian market.

NetBet’s casino offering will be enriched with a range of thrilling games created by Inspired. The company’s ever-growing portfolio is popular among fans, especially its premium content, which will be available to NetBet players as well.

The games rapidly became popular because of their captivating gameplay and modern and unique features that add to the excitement. Among the games included in the offering are popular releases such as Big Fishing Fortune, Gold Cash Free Spins, and Reel LinKing.

Games produced by Inspired Entertainment Incorporated are innovative and modern, with detailed game development and carefully crafted graphics. The whole iGaming experience is even more improved by adding features that can lead the players to fantastic prizes.

Great news for everyone

This addition to the already wide range of NetBet’s games is one of the best things that could happen to Italian players – and everyone is happy about it. The whole gaming experience will be customized and tailored to meet the expectations of the market while maintaining the games to the highest quality.

Claudia Georgevici, a Public Relations Manager for NetBet Italy, said: “We are thrilled to join forces with Inspired Entertainment Incorporated and expand our online casino portfolio with its exceptional games. Our partnership with Inspired Entertainment Incorporated aligns perfectly with our commitment to offering our players an exceptional gaming experience that is both immersive and rewarding. We are confident that the addition of these popular games will further enrich our players’ online casino journey.”

Claire Osborne, the Interactive Vice-President for Inspired Entertainment Incorporated, added: “Italy is a growing market with a breadth of opportunities for Inspired Entertainment Incorporated, and this partnership marks a great move into further penetrating our presence in Italy. We are committed to providing a thriving portfolio of high-quality and graphic-rich content to NetBet Italy’s players and look forward to building a successful partnership with it over the coming months and years ahead.”

When combined, the experience and creativity of the two companies for sure make them ideal partners for conquering the Italian market.

Source: “NetBet Italy Partners with Inspired Entertainment Incorporated”. European Gaming. August 7, 2023.

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Living Las Vegas: Best of Vegas’ Arts & Entertainment

Looking for the best of Vegas’ arts and entertainment this season? From Stevie Nicks to Liberace, check out some of my recent experiences for some memorable experiences.

A mural by Recycled Propaganda. Check out their art gallery next time you’re in Vegas. (Image: Facebook)

In a two-week period, at this strikingly designed arena with impressively crystalline sound, I saw packed-out concerts by Stevie Nicks and Depeche Mode (both former PR clients of mine).

Stevie Nicks is at the edge of 75—and was as impossibly vibrant and playful as ever. She noted from the stage that she never felt freer by performing without her trademark platform shoes due to a recent broken toe.

Nicks brought the hits, deep cuts and a refreshing political/social consciousness. “Ukraine’s fighting for us,” she said before launching into an especially moving version of her older song, “Soldier’s Angel,” written after visiting soldiers at the Walter Reed Hospital in 2005. Stevie also put a psychedelic spin on Buffalo Springfield’s 1966 hit “For What It’s Worth,” explaining that Stephen Stills penned it about the 1966 Sunset Boulevard riots that protested an early curfew set by authorities.

Nicks said that she would have had a problem herself with that curfew: “I don’t even go to bed until 8:00 AM.” Bless Stevie Nicks’ wild heart—and long may she run.

Depeche Mode @ the Arena 

Depeche Mode are still the world’s biggest avant-garde rock band. Onstage, their elegantly dark songs with foreboding synths and intermittent spare guitar lines were shot through with non-stop charisma—and they raised the roof with their TV evangelist-bashing classic “Personal Jesus.”

Dave Gahan on stage at the T-Mobile Arena in March. (Image: Las Vegas Journal-Review)

Now a duo, Dave Gahan and Martin Gore honored the recent death of bandmate Andrew Fletcher by displaying his image on multiple screens during their classic “World In My Eyes”; the song’s key lyrics (“That’s all there is/Nothing more than you can feel now”) took on a haunting new resonance. From their new album, Memento Mori (which means “remember that you must die” in Latin), the band rolled out the death-centric single “Ghosts Again” (“We know that we’ll be ghosts again”).

Guessing Bruno Mars won’t be covering this instant goth-rock anthem anytime soon at his residency at Dolby Live at Park MGM. Depeche Mode returns on December 1 to the arena.

KAOS at the Palms, Yachtley Crew

The soft-rock and R&B/jazz-tinged pop hits of the ‘70s and ‘80s, later branded as “yacht rock,” continue to have their day in the sun, thanks to the popularity of a dedicated Sirius channel to this music. Artists like Captain & Tennille, Christopher Cross, Toto, and many more were never allowed entry into the cool-kids club in their heyday, but their AM radio hits are now saluted in setlists by yacht rock bands like Yachtley Crew.

Billing themselves as the “Titans of Soft Rock,” they have a residency at KAOS at the Palms with new dates announced for June, October, November and December.

Their show is a feel-good, tongue-in-cheek celebration. The audience couldn’t care less what the rock critic intelligentsia had to say about a lot of this music when it was first released—they danced and loudly sang along to the smooth, easy-going sounds which suggest seemingly simpler times.

At the show, the nautical wear-attired band announced they’d scored a label deal with Jimmy Buffet’s indie label Mailboat Records.

They will release an album containing some original songs alongside their yacht rock covers. Personally, I never thought the music of unhip bands like Ambrosia and the Little River Band would rise again. It all goes to prove that you can’t hold back good melodies.

Recycled Propaganda, the Arts District

Bravo to Recycled Propaganda, the nom de plume for acclaimed artist Izaac Zevalking also serves as the name of his gallery and store in The Arts District.  His compelling artwork and murals—the images used for apparel, patches, pins and stickers—capture the paranoia and outrage of existing in a corporate-controlled society.

T-shirts for sale at Recycled Propaganda (Image: Yelp)

You can fight back against The Man by buying a “Tyranny of the Minority (Lobbying Light)” hoodie that uses Marlboro cigarette pack graphics or a “Start Unions” patch that visually calls out Starbucks. Also available for purchase is his artwork on canvas, wood and cardboard, with such titles as “Global Strike, “Question Everything,” and my favorite, “Genetic Carnage.”

Be sure to drop by this stimulating and purposeful gallery, which opened in 2018. It’s also “utilized as a platform to expose other established and up-and-coming artists.” Very cool to know that Recycled Propaganda is spreading the love around.

Hollywood Car Museum and Liberace Garage

It’s fun getting lost in the Hollywood Cars Museum, a 25,000-square-foot pop culture wonderland filled with vehicles that have appeared in more than 100 films, TV shows and videos (there’s another 5000 square feet in the back that’s rentable for special events). Under the same roof is the Liberace Garage with the pianist/icon’s insanely designed vehicles and other memorabilia reflecting his expensive and infectious bad taste.

A car on display in Liberace’s Garage (Image: liberace.org)

Note: the folks at the museum and garage have graciously extended a special discount ($5.00 off the usual $20 adult admission price) for Casino.org News/”Living Las Vegas” readers who inquire about the offer at the ticket counter.

There’s so much to take in at the museum, like the “Starsky and Hutch” ‘70s Gran Torino stunt car; the supremely ridiculous 12-foot roller skate hot rod creation by fashion designer Marc Jacobs; the Batmobile from the TV show; and the Osprey Hovercraft from the James Bond film Die Another Day with Pierce Brosnan. Let’s not forget the 40-foot pink hot tub convertible limo used on the old TV show “Lifestyles of the Rich and Famous.”

This wonderfully exhaustive experience continues at the Liberace Garage, where you can fixate on his 1976 bicentennial Rolls-Royce, painted in stars and stripes with permission from the Rolls-Royce company. It was first incorporated onstage at his Las Vegas Hilton show, complete with (of course) fireworks exploding. Then there’s Liberace’s rhinestone-encrusted car seen on the cover of Duran Duran’s 2000 album Pop Trash. I also relished standing under the oversized original fiberglass and gold epoxy-coated dressing room door created for his shows at NYC’s Radio City Music Hall.

The man’s legend continues with the renaming this past December of Karen Avenue as Liberace Avenue (adjacent to Commercial Center). Look for Liberace events to take place there in mid-May. He would have been 104 on May 16.

Huntridge Shopping Center

An exterior shot of The Garrison. (Image: Facebook)

Real estate developers Dapper Companies continue to wave their visionary magic wand over this colorful shopping plaza where even the exteriors of the Savers thrift store and Circle K gas station/convenience store have smart modern, throwback design touches.

And I could stare all day long at the center’s retro-inspired pylon sign unveiled in 2017. I’m now psyched for the imminent opening of Winnie & Ethel’s Downtown Diner, the winner of Dapper’s “The Great Las Vegas Coffee Shop Giveaway.” And If my head wasn’t shaved, I would probably frequent the uber-hip barbershop The Garrison.

Dapper plans to renovate the historic World War II-era venue, the Huntridge Theater, across the street. This architectural beauty was Vegas’ first desegregated movie theater before becoming a music venue which shuttered in 2004.  J Dapper told Vegas’ Review-Journal that the theatre, purchased for $4 million, is open to the public for tours with renovations to start in “about 12 months.” On April 7, Dapper relit the theater’s marquee and signed with an official ceremony. Whenever the Huntridge reopens, it won’t be soon enough.

——–

Each month, Mitch Schneider explores some of Vegas’ most unique offerings. Schneider has a decades-long publicity career working with some of the music industry’s biggest stars and was a rock critic for Rolling Stone in the ‘70s. He moved to Vegas from LA with his wife during the pandemic in March 2020. He’s loved the city ever since.

Each month, he explores Vegas’ most popular and best-kept secrets. Look for “Living Las Vegas” on Casino.org. Click here to read previously busted editions. 

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