HG Vora, Thorn in Penn Entertainment’s Side, Secures Nevada Gaming License

• HG Vora founder Parag Vora has secured a Nevada gaming license following a regulatory review
• The activist hedge fund had been locked in a lengthy proxy battle and legal dispute with Penn Entertainment
• The standoff concluded in February 2026 with a negotiated settlement that granted HG Vora significant board representation

Parag Vora, the founder of activist hedge fund HG Vora Capital Management, has been granted a Nevada gaming license following a recommendation by the state’s Gaming Control Board, capping a period of intense scrutiny tied to his proxy battle with Penn Entertainment (NASDAQ: PENN).

He won the permit by a 2-1 vote five months after his HG Vora Capital Management ended a lengthy rift with Penn — one that involved an extended proxy fight in which the activist investor pushed to have three of its candidates added to the regional casino operator’s board of directors.

Over the time of that proxy battle, which was a multi-year saga, Vora sharply critiqued Penn’s board, accusing directors of indulging CEO Jay Snowden’s ill-fated sports betting industry whims while continuing to lavish significant compensation upon him. The hedge fund also said the composition of Penn’s board violated Pennsylvania law and was an affront to investor democracy.

Those hardline tactics weren’t lost on Nevada Gaming Commission (NGC) members with Commissioner Brian Krolicki noting Vora’s efforts in the Penn fight were “aggressive.” While commissioners seemingly viewed Vora’s moves as heavy-handed, they noted the hedge fund’s behavior wasn’t out of the ordinary regarding how some large activists deal with companies in which they hold stakes.

Questions Abound on Why Vora Needs Nevada License

At one point, HG Vora’s Penn stake grew to 18.5%, but it has since dwindled to 4.32% and as part of the February accord struck between the casino operator and the investor, the hedge fund agreed to not exceed 5% ownership in the gaming company.

“Anyone acquiring beneficial ownership of more than 10% of any class of voting securities generally initiates a requirement to file an application for a full finding of suitability by the Commission,” according to Lewis and Roca Lawyers.

Any shareholder that controls 5% to 10% of a publicly traded gaming company doing business in Nevada is required by law to engage in mandatory reporting with the Nevada Gaming Control Board.

Vora Could Mull Other Casino Investments

HG Vora is well-known in gaming circles. Prior to getting involved with Penn, the hedge fund, over the years, held stakes in Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), among other gaming names.

Currently, Penn is the only casino stock in the hedge fund’s portfolio, according to the most recent regulatory filing, but that doesn’t imply the money manager is ignoring the gaming industry.

Vora told the NGC he’s open to exploring investment opportunities in Nevada, adding he’s “very excited to invest capital in this state.”