PENN Entertainment’s decision to buy Canadian media and betting brand theScore has been swept up in a war of words between the omnichannel gaming operator and an activist investor.

The week’s public developments between PENN and HG Vora come as PENN Interactive’s progress both north and south of the border continue to be scrutinized.

HG Vora labels PENN deals ‘among worst in industry’s history’

In an open letter to PENN shareholders on May 13, the founder of investor HG Vora accused PENN CEO Jay Snowden and other company leaders of “value-destructive deal-making, reckless capital allocation and poor execution.” Parag Vora added that while the company is well-placed to thrive as an online casino brand, its focus on sports betting endeavours such as theScore Bet in Ontario and ESPN Bet in the U.S. has caused a “misguided transformation.”

Vora wrote that since the start of 2020, PENN has committed nearly double the company’s entire present-day equity market value towards online sports betting-focused “value-destructive acquisitions and partnerships.”

“PENN has executed a string of transactions that, in our view, stand among the worst in the industry’s history,” he added.

One specific call-out was PENN’s decision to pay more than $2.1 million USD in 2021 for Score Media and Gaming, which Vora called “a small Canadian company that was generating less than $25 million [USD] in annual revenue.” Vora also looked unfavourably upon PENN’s acquisition of Barstool Sports, which it later sold back for $1 USD, and the multi-billion-dollar ESPN Bet joint venture.

He also refuted the company’s suggestion of a substantial increase in shareholder value over the last decade, stressing that PENN’s stock price has declined in that time. “Surprisingly, it seems that the board thinks PENN’s performance has been laudable,” wrote Vora. He ended by calling for shareholders to vote “to send a message to PENN that genuine change is needed.”

PENN touts Interactive successes, calls out Vora’s conduct

In a public response two days later, PENN criticized Vora’s rhetoric and pointed to what it believes are evident successes in its Interactive business as the digital gambling space continues to be “the core driver of meaningful industry growth.”

In particular, PENN noted that sports betting is the primary driver of its customer acquisition and said the positive results are starting to be felt from the Interactive segment’s strong momentum. PENN Interactive generated $162 million USD of adjusted revenue in Q1 2025, up 78% year-over-year. PENN added that it has markedly grown its PENN Play loyalty member base, lowered the average age of its customers and broadened and geographically diversified its asset portfolio.

PENN also took issue with the way HR Vora has handled itself in a debacle that was sparked by the investor taking issue with PENN only accepting two of HG Vora’s three recommended new candidates for a seat on the board. PENN only opened two seats despite HG Vora expecting there to be three; the investor has taken the company to court as a result, claiming PENN is violating law by removing one of the three seats without notifying shareholders in advance of the annual meeting, which is scheduled for June 17.

Not the first time theScore deal has been questioned

HG Vora is not the only investor group to shine a harsh spotlight on PENN’s acquisition of theScore.

Last year, the Donerail Group’s managing partner Will Wyatt asserted that the acquisition has not paid dividends and questioned the motivations behind the move, alleging it has not brought the earnings that were promised.

Snowden and fellow executives often speak of how theScore in Ontario is one of their Interactive jewels. Snowden said in February that Ontario is the business’ number-one market in North America in terms of revenues, gross profit and contribution margin.

theScore Bet offers both sports betting and online casino across Ontario, and the company recently launched a dedicated theScore Casino app which is specific to the online casino vertical.

While the brand is closely associated with sports, PENN leaders last year touted a 60% cross-sell rate from online sports betting to online casino among theScore Bet users. theScore Bet’s monthly active users grew 43% for online casino from Q4 2023 to Q4 2024, far above the 16% for online sports betting.