A hedge-fund founder who has had contentious dealings with the management of PENN Entertainment has been granted a three-year license by Nevada gaming regulators.
The Nevada Gaming Commission backed the recommendation of the Gaming Control Board to license Parag Vora, founder and manager of New York-based HG Vora Capital Management. The Commission’s unanimous vote to license Vora was unlike the Control Board’s 2-1 vote following an antagonistic meeting earlier this month.
Thursday’s hearing to determine the suitability for licensing of HG Vora lasted about 75 minutes.
The case before the Gaming Control Board centered on HG Vora’s proxy fight against PENN in 2025, as it tried to elect three of its director candidates to the Board of Directors. In February, PENN signed an agreement with HG Vora and appointed three new independent directors to its board, ending the months-long conflict.
Commissioner Brian Krolicki said one right a shareholder has is determining who sits on governing boards. He called Vora’s position “aggressive, but it’s what large shareholders do,” especially when a stock price diminishes over time.
“I’ve been in those conversations. Oftentimes they’re uncomfortable and sometimes they’re welcome. It’s investor maintenance. There’s a difference between an activist shareholder and an investor who is passionate and protecting a business. I believe you were ruthlessly attempting to protect your clients and business in these activities, but that’s not different from just about any other investment management firm. I don’t begrudge you that. I think you pushed it hard.”
Commissioner Abbi Silver said it’s significant that HG Vora has not been denied a license or found unsuitable by other states and that the Gaming Control Board “has found no areas of concern.” She also referred to the settlement agreement between PENN and HG Vora as another consideration.
“Both parties agreed to the terms of the settlement,” Silver said. “Our (Nevada) attorney general also gave us some legal advice concerning whether or not HG Vora had engaged in prescribed activities. The opinion was that HG Vora’s conduct did not rise to the level of prescribed activities under our laws. Based on everything I just stated on the record, I agree with the Board’s recommendation.”
Commission member Richard Schonfeld applauded Board staff for their thorough investigation. “It helped a lot in terms of your application, because it cleared up a lot of questions that were raised in a manner that was favorable to the applicant,” Schonfeld said.
Board Chair Jennifer Togliatti, meanwhile, urged HG Vora to better communicate with Nevada regulators in the future to avoid any conflict.
“I would encourage you to understand that we’re mindful of the importance of confidential information, but we also encourage healthy relationships and an open pathway of information. We want people here. We want to license people. We want you to be successful. That’s the default setting.”
Near the end of the hearing, Vora told the Commission that he’s been an investor in and advisor to the gaming sector for more than 25 years, and that PENN is one investment. It “didn’t go quite as planned. My hope is that by going through this process, HG Vora will become a familiar entity to Nevada and maybe be welcome in the future as we explore other things over the next several decades. I’m very excited to invest capital in this state.”
