Penn Entertainment Reports Q3 Loss but Eyes Promising Developments Ahead
Penn Entertainment posted a third-quarter loss, but ongoing projects and technological advancements, including the ESPN Bet platform integration and the upcoming Hollywood Casino digital platform, suggest a bright outlook for the company.
Penn Entertainment CEO Jay Snowden announced the company’s Q3 results on Thursday, 7 November, highlighting challenges such as “unfavourable hold” in the northeast and reduced casino visits in the south, attributed to adverse weather and construction. Despite these hurdles, retail customer demand remained stable. Snowden noted that the “low hold” issue was an industry-wide trend and not unique to Penn, aligning with the seasonally slow wagering months in the US.
The company reported $1.4 billion in retail revenue, generating $471.7 million in EBITDAR with adjusted margins of 33.8%. On the digital front, revenue reached $244.6 million, offset by an adjusted EBITDA loss of $90.9 million. Penn retains $1.8 billion in cash and equivalents, positioning itself to continue strategic investments.
ESPN Bet Integration Drives Growth
Penn recently upgraded the ESPN Bet platform, enabling users to link ESPN and ESPN Bet accounts. This feature launched on 14 November 2023 and has already seen tens of thousands of users integrate their accounts. According to Chief Technology Officer Aaron LaBerge, this advancement has increased betting activity and engagement with ESPN content.
“This is a foundational experience that allows us to personalise not just betting but also media offerings, enhancing the customer experience significantly,” said LaBerge.
The platform targets casual bettors, with improvements such as enhanced same-game parlays and branded feature bets set to launch soon. Integration with fantasy sports has already shown a 20% growth in engagement, which Penn aims to expand further.
New York Market and Retail Rebranding
Penn also rolled out ESPN Bet in New York late in Q3. While the state poses challenges, including a 51% tax rate, the company has focused on customer retention rather than aggressive promotions. This approach has attracted high-quality customers and increased per-player activity. The rebranding of seven retail sportsbooks to ESPN Bet, including locations in Louisiana and Ohio, underscores the company’s commitment to aligning its retail and digital strategies.
Hollywood Casino Digital Platform Launch
Looking ahead, Penn plans to launch the Hollywood Casino digital platform in Q1 2025, starting in Pennsylvania and expanding to other states such as Michigan and New Jersey. Currently, the company directs its casino customers to ESPN Bet for digital gaming, a process Snowden described as “messy.” The new platform is expected to streamline the customer experience.
Additionally, Penn is progressing with four retail casino projects, including relocations in Illinois and hotel expansions in Ohio and Nevada.
While Penn Entertainment faced challenges in Q3, its ongoing efforts in digital integration, product expansion, and customer retention signal a promising future. The company’s focus on innovation and strategic growth positions it well for upcoming quarters.
