Penn CEO Jay Snowden Not A Fan Of Maine’s New Online Casino Law

Penn Entertainment CEO Jay Snowden got pretty frosty Thursday morning when an analyst asked him what he thought about Maine’s new online-casino law, which gives exclusive rights to the state’s Wabanaki Nations tribes.

During the company’s Q4 earnings call, Snowden was asked by Macquarie analyst Chad Benyon if Penn would potentially partner with the tribes, given Penn has a deep database in the state. Penn owns and operates Hollywood Casino Bangor, one of two brick-and-mortar casinos in the state.

Snowden said he couldn’t answer the question, because the company is still discussing the matter. But then he answered a question that wasn’t asked and did not hold back.

“What happened in Maine is mind-blowing,” Snowden said. “We’ve been operating as a casino entity there for two decades. We’ve invested hundreds of millions of dollars. We employ hundreds of Mainers. We’re as involved in the community as you’re going to find any business leader, and the governor in Maine decides to hand a monopoly to a third party that’s never invested a dollar in the industry.”

The Wabanaki Nations — Penobscot Nation, Passamaquoddy Tribe, Aroostook Band of Micmacs, and Houlton Band of Maliseet Indians — may each partner with a single licensed online casino platform, as laid in out in LD 1164, which Gov. Janet Mills allowed to become law earlier this year, making Maine the eighth state offering legalized online casino.

‘Shouldn’t happen’

“I don’t understand that, it doesn’t make sense to me, it shouldn’t happen,” Snowden continued. “That said, it’s being challenged legally, as it should be, and we’ll see where it goes. If it ends up standing, then we’re going to do our best to figure out a way to compete in that market. But the way that this was done was not popular publicly. That’s very evident, and I’m not sure how the governor concluded that was the best course. But it is what it is. We’ll figure out a way to compete if it does end up standing legally.”

The lawsuit Snowden referenced has been brought by Oxford Casino Hotel, which is owned by Churchill Downs.

The lawsuit is seeking to stop the law on the basis of Mills and the Maine legislature granting a “race-based monopoly” to the tribes.

“Promoting iGaming through race-based preferences deals a gut-wrenching blow to Maine businesses like Oxford Casino that have heavily invested in the state and its people,” the lawsuit states.