Company Reports

We estimate Penn held a high-single-digit percentage revenue share of the $79 billion domestic commercial casino gaming market in 2025. We think a handful of development projects across its regional portfolio during 2025-27 stand to improve the company's competitive standing. The first of these projects was the opening of a relocated land property from a riverboat location in Joliet, Illinois, in August 2025. This was followed by two other projects scheduled to open in the first half of 2026.

Penn's second-quarter revenue increased 5%. Adjusted EBITDA margins expanded to 16.8% from 13.4%, driven by improved profitability at its physical and online assets.

We estimate Penn held a high-single-digit percentage revenue share of the $79 billion domestic commercial casino gaming market in 2025. Penn Entertainment and ESPN terminated their partnership after three years on Dec. 1, 2025, and Penn transitioned all its interactive efforts to its theScore brand with a focus on Canada and states that offer both online sports and igaming, while leveraging a leading omnichannel presence, which includes 42 physical casino and racing assets and a loyalty membership base of 34 million.

Penn's first-quarter sales increased 6%, with retail locations up 3% (the strongest since 2022) and adjusted interactive up 7%. Adjusted EBITDAR margins were 14.9%, up from 10.4% last year, driven by improvements at both physical and online assets. Shares rose 15% during trading on April 23.

We estimate Penn held around a high-single-digit percentage revenue share of the $79 billion domestic commercial casino gaming market in 2025. Penn Entertainment and ESPN terminated their partnership after three years on Dec. 1, 2025, and Penn transitioned all its interactive efforts to its theScore brand, while leveraging a leading omnichannel presence, which includes 43 physical casino and racing assets and a loyalty membership base of more than 30 million.

We estimate Penn held around a high-single-digit percentage revenue share of the $79 billion domestic commercial casino gaming market in 2025. Penn Entertainment and ESPN terminated their partnership after three years on Dec. 1, 2025, and Penn transitioned all its interactive efforts to its theScore brand, while leveraging a leading omnichannel presence, which includes 43 physical casino and racing assets and a loyalty membership base of over 30 million.

Penn's fourth-quarter revenue increased 8%, driven by 45% growth in the interactive business. Consolidated EBITDA margins increased 260 basis points to 12.5%, as interactive improved to a $40 million loss from a $110 million loss a year ago, on sales lift and a 20% decrease in marketing expense.

Debt levels have remained elevated for several casino operators. Caesars' and Penn's 2024 debt/adjusted EBITDA ratios were 6.7 times and 8.7 times, respectively, and interest coverage has been limited. Caesars and Penn reported EBIT/interest coverage ratios of 0.9 and 0.2, respectively, in 2024.

We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024. Penn Entertainment and ESPN terminated their partnership after three years on Dec. 1, 2025. Penn will transition all its interactive efforts to its theScore brand, while leveraging a leading omnichannel presence, which includes 43 physical casino and racing assets and a loyalty membership base of over 30 million.

We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024. Penn Entertainment and ESPN terminated their partnership after three years on Dec. 1, 2025. Penn will transition all its interactive efforts to its theScore brand, while leveraging a leading omnichannel presence, which includes 43 physical casino and racing assets and a loyalty membership base of over 30 million.

We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024. Penn Entertainment and ESPN will terminate their partnership after three years on Dec. 1, 2025. Penn will transition all its interactive efforts to its theScore brand, while leveraging a leading omnichannel presence, which includes 43 physical casino and racing assets, and a loyalty membership base of over 30 million.

Penn's third-quarter revenue increased 5%, with retail casinos up 1.5% and interactive growing 22%. EBITDA margins in the core retail business decreased 90 basis points to 27.2% on one-time labor costs and ongoing competition. Penn and ESPN mutually decided to terminate their digital partnership.

We have reduced our 2025, 2026, and 2027 retail EBITDAR margin outlook for Penn Entertainment to 33.3%, 33.6%, and 34.8%, respectively, from 33.7%, 34.4%, and 35.2%. The revision is driven by lasting competition in the company's South region and temporary costs from property launches in the Midwest.

Penn Entertainment has a leading omnichannel presence, including 43 physical casino and racing assets, a digital portfolio encompassing an upgraded sports betting partnership with ESPN that launched in November 2023, iGaming, media, and a loyalty membership base of over 30 million. We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024.

Penn Entertainment has a leading omnichannel presence, which includes 43 physical casino and racing assets, a digital portfolio encompassing an upgraded sports betting partnership with ESPN that launched in November 2023, iGaming, media, and a loyalty membership base of over 30 million. We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024.

On Aug. 12, Penn management hosted a meeting with investment analysts at its newly opened casino in Joliet, Illinois. Future development opportunities were also showcased in Aurora, Illinois (slated to open in the first half of 2026). Both should produce a midteens percentage return on investment.

Penn's total revenue grew 6%, and EBITDAR margins expanded to 22.2% from 22.1%. Interactive sales were up 52% and the segment's EBITDA losses improved to $62 million from $103 million last year. Retail sales and margins were up 1.3% and down 93 basis points, respectively.

Penn Entertainment has a leading omnichannel presence, which includes 43 physical casino and racing assets, a digital portfolio encompassing an upgraded sports betting partnership with ESPN that launched in November 2023, iGaming, media, and a loyalty membership base of over 30 million. We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024.

Penn's total revenue grew 4%, and EBITDAR margins expanded to 19.7% from 15.9%. Interactive sales were up 40%, and EBITDA losses improved to $89 million from $196 million last year. Retail sales and margins were down 1.5% and 100 basis points, respectively, affected by weather and competition.

Penn Entertainment has a leading omnichannel presence, which includes 43 physical casino and racing assets, a digital portfolio encompassing an upgraded sports betting partnership with ESPN that launched in November 2023, iGaming, media, and a loyalty membership base of over 30 million. We estimate Penn held around a high-single-digit percentage revenue share of the $72 billion domestic commercial casino gaming market in 2024.