Published on: April 30, 2026, 10:54h.

Updated on: April 30, 2026, 10:54h.

• The hospitality labor union is urging the regional casino operator to eliminate classified board elections
• It is also pressing Penn to adopt annual board elections
• Penn’s annual meeting is scheduled for June

Unite Here, a prominent hospitality labor union representing casino employees, is advocating that Penn Entertainment (NASDAQ: PENN) abolish its classified board elections and transition to annual elections for all board members.

The union emphasized that investors at Penn previously backed a similar initiative back in 2010, but the regional casino giant has yet to act on it. In the time since, many companies have embraced greater transparency in their director elections, positioning Penn as an exception.

“In 2025, declassification proposals reportedly received an average support of 77.9% from shareholders, resulting in an 86% passage rate across 14 proposals,” highlights Unite Here. “Today, keeping a classified structure increasingly puts PENN at odds with shareholder preferences.”

The labor union has successfully spearheaded changes in casino board election processes. For instance, in 2019, Unite Here introduced five non-binding proposals, including majority voting, for the Caesars Entertainment (NASDAQ: CZR) board, which later adopted a majority vote standard for uncontested elections in 2022.

Past Critiques Faced by Penn’s Board

HG Vora, the activist investor and hedge fund that previously engaged in a proxy battle, criticized the firm for allegedly unlawfully downsizing its board. While it is true that certain Penn directors are elected in alternating years, Vora did not explicitly call for annual elections.

Furthermore, Unite Here notes that Penn cites its extensive geographical reach as a reason for not holding annual elections, claiming that some states where the company operates require board members to be licensed before voting on board matters. The union disputes this logic, highlighting that Caesars, which has a comparable regional presence, successfully implements annual elections.

Penn operates land-based gaming facilities across 19 states, just one more than Caesars, and offers sports betting in 28 North American jurisdictions, compared to 34 for Caesars.

“PENN fails to clarify why its regional operations would hinder its ability to conduct annual elections more than Caesars’ would,” asserts Unite Here.

Additional Criticisms from Unite Here

Last year, two out of three candidates recommended by Vora secured positions on Penn’s board. Additionally, in February, the casino company welcomed three new directors, indicating that a notable portion of its board has not been in place for a full year. Nevertheless, Unite Here insists that merely refreshing the board and engaging shareholders cannot replace the fundamental right to vote.

“While shareholder engagement is valuable and board refreshment can be beneficial, these are not alternatives to voting rights. Allowing shareholders to vote annually on board members is a critical aspect of shareholder ownership and ensures that board refreshment aligns with shareholders’ priorities,” states the labor organization.

Moreover, the union believes Penn’s position that a classified board structure fosters “long-term strategic decision-making and stability” is misguided, arguing that it’s entirely feasible to identify dedicated and competent directors who can be elected annually, and that such practices “improve long-term value by keeping directors accountable for their performance.”