PENN Entertainment Inc
SWB:PN1
PENN Entertainment Inc
PENN Entertainment Inc., formerly known as Penn National Gaming, has carved a distinctive path through the evolving landscape of the gaming and entertainment industry. Founded in 1972, the company began its journey in the racing world, offering betting on thoroughbred and harness racing tracks. Over the decades, PENN expanded its horizons, dynamically adapting to the shifting sands of the gambling market. This evolution saw the company burgeon from its initial racing focus to becoming a formidable force in the casino business, boasting an extensive portfolio that includes both traditional brick-and-mortar casinos and, more recently, a significant stake in the burgeoning online gaming and sports betting sectors. With properties spread across the United States and Canada, PENN Entertainment has diversified its offerings, ensuring a wide range of gaming experiences from slot machines and table games to racetrack casinos and hotel accommodations.
The company's revenue springs from a multifaceted business model designed to maximize entertainment and hospitality offerings. At the heart of PENN's operations is its casino business, contributing a substantial portion of its income through gaming operations. PENN captures diverse gambling audiences by leveraging loyalty programs and strategic partnerships, like the collaboration with Barstool Sports. This partnership has been pivotal in capturing the digital gaming demographic, driving the company's expansion into sports betting and online gambling through platforms like Barstool Sportsbook. Additionally, PENN's engagement in hospitality services—ranging from fine dining experiences to entertainment events—enhances its appeal and boosts ancillary income streams. Through these multi-tiered strategies, PENN Entertainment strategically maneuvers its assets to capitalize on both traditional and digital gaming trends, robustly positioning itself in a competitive industry landscape.
PENN Entertainment Inc., formerly known as Penn National Gaming, has carved a distinctive path through the evolving landscape of the gaming and entertainment industry. Founded in 1972, the company began its journey in the racing world, offering betting on thoroughbred and harness racing tracks. Over the decades, PENN expanded its horizons, dynamically adapting to the shifting sands of the gambling market. This evolution saw the company burgeon from its initial racing focus to becoming a formidable force in the casino business, boasting an extensive portfolio that includes both traditional brick-and-mortar casinos and, more recently, a significant stake in the burgeoning online gaming and sports betting sectors. With properties spread across the United States and Canada, PENN Entertainment has diversified its offerings, ensuring a wide range of gaming experiences from slot machines and table games to racetrack casinos and hotel accommodations.
The company's revenue springs from a multifaceted business model designed to maximize entertainment and hospitality offerings. At the heart of PENN's operations is its casino business, contributing a substantial portion of its income through gaming operations. PENN captures diverse gambling audiences by leveraging loyalty programs and strategic partnerships, like the collaboration with Barstool Sports. This partnership has been pivotal in capturing the digital gaming demographic, driving the company's expansion into sports betting and online gambling through platforms like Barstool Sportsbook. Additionally, PENN's engagement in hospitality services—ranging from fine dining experiences to entertainment events—enhances its appeal and boosts ancillary income streams. Through these multi-tiered strategies, PENN Entertainment strategically maneuvers its assets to capitalize on both traditional and digital gaming trends, robustly positioning itself in a competitive industry landscape.
ESPN BET Exit: PENN and ESPN have mutually agreed to end their exclusive online sports betting partnership early, with the transition to theScore Bet as PENN's new brand in North America starting December 1.
Digital Realignment: PENN will shift digital focus to Canada and its Hollywood iCasino product, aiming for improved profitability and enhanced cross-sell with its 33 million+ customer database.
iCasino Momentum: North America iCasino business hit record quarterly gaming revenue, up nearly 40% year-over-year, with a 79% spike in iCasino MAUs and all-time records set again in October.
Retail Stability: Core regional casino business saw stable demand, with particularly strong performance in Ohio, St. Louis, and Illinois; new Joliet casino led to a 42% database increase.
Reduced Marketing Costs: Marketing payments to ESPN will end after Q4 2025, freeing up significant capital for targeted, higher-return digital investments starting 2026.
Share Buybacks: PENN repurchased $354 million of shares year-to-date, reaching its $350 million goal, and authorized a new 3-year, $750 million buyback program beginning in 2026.
Profitability Focus: Management reaffirmed digital breakeven or better goal for 2026, with more operational control post-ESPN and a shift in marketing to performance-based spend.
CapEx & Leverage: 2025 CapEx guidance was lowered to $685 million. PENN aims to keep lease-adjusted leverage below 5x over the next several years.
