Blog

Penn Entertainment Lifts Guidance for Interactive Unit
07 October

Penn Entertainment Lifts Guidance for Interactive Unit

Penn Entertainment (NASDAQ: PENN) informed investors on Monday that its interactive division, encompassing ESPN Bet, will report a third-quarter loss that is less than anticipated. 

In a Form 8-K submission to the Securities and Exchange Commission (SEC), the regional casino operator announced that its digital gaming segment is expected to incur a loss of $90 million to $100 million for the September quarter, an improvement from the previously anticipated loss of $115 million to $135 million.

"Better than expected hold driven by a higher parlay mix from our improving product and lower promotional expenses accounted for the upside,” according to the regulator document.

Penn’s remarks regarding hold and parlay mix could provide additional support for the momentum behind ESPN Bet, which several analysts have noted recently. However, discussions have also suggested that the online sports betting app must enhance its parlay offerings to more effectively compete with DraftKings and FanDuel. 

The encouraging news regarding Penn Interactive’s finances came roughly three months after the operator announced plans to reduce an unspecified number of positions in the digital sector. 

 

Penn Offers Strong Regional Casino Forecast 

To the disappointment of certain investors, ESPN Bet and Penn’s previous online sports betting initiatives have generally eclipsed the company's regional casino activities, which are the main drivers of its profits and income. 

Although Penn mentioned that its financial process for the quarter hasn’t officially concluded, it provided a strong EBITDAR forecast for its retail gaming operations, excluding interest, taxes, depreciation, amortization, and restructuring or rent expenses. This may please certain investors given remarks that some patrons of regional casinos have recently reduced their spending. 

“The Company expects third quarter 2024 Retail Operations Adjusted EBITDAR to be in the range of $465 million to $475 million,” added Penn in the SEC filing. “Estimated third quarter 2024 Retail Operations Adjusted EBITDAR was negatively impacted by approximately $10 million due to unfavorable hold rates within our Northeast segment and volume declines in our South segment associated with severe weather disruptions and hotel remodeling.  As disclosed in our Form 10-Q for the quarter ended September 30, 2023, third quarter 2023 Retail Operations Adjusted EBITDAR was positively impacted by $14 million in business interruption proceeds related to Hurricane Laura, which was recorded in the South segment.”

Penn is set to announce third-quarter results before US markets open on Thursday, November 7. 

 

ESPN Bet's September Figures Stand Out 

Progress in challenging the DraftKings/FanDuel sports betting duopoly may be slow for ESPN Bet — or any rival, for that matter — but growth must begin at some point, and it seems that Penn's sports wagering app is advancing. 

During a Monday investor gathering at its M Resort & Casino in Henderson, Nev., Penn informed analysts and shareholders that in September, ESPN Bet’s monthly unique users jumped 161% compared to the previous year, while parlay users increased by 211%. 

ESPN Bet’s parlay mix soared by 608 basis points compared to the previous year, and its hold rate grew by 430 basis points as gross gaming revenue climbed by 151%. 

Other News

Image
AGCO Hits BetMGM with $110K in Penalties
In Ontario, iGaming operators are not allowed to provide gambling incentives, bonuses, or credits to..
Read more
Image
Despite Growing Concerns, Las Vegas Continues to Satisfy Travelers, LVCVA Claims
This week, the Las Vegas Convention and Visitors Authority (LVCVA) published its 2024 Visitor Profil..
Read more
Image
New Jersey Online Casinos, Mobile Sportsbooks Push Back on Tax Increases
Online casinos and mobile sportsbook operators in New Jersey are resisting Gov. Phil Murphy’s (D) ..
Read more

Promoted Casinos

 

A fantastic way for players to increase their bankroll is through an online casino promotion. In contrast to physical casinos, an online casino will never ask you to make a deposit in order to receive your bonus. You will therefore always have the choice to play for free. Some online casinos even link their promotion to a specific slot machine, allowing you to play on that machine and potentially win big.
It is best to carefully read the terms and conditions before you begin playing to determine whether the promotion is worthwhile taking a chance on.

1
Luck Land
4.6
  • Secured with SSL encryption
  • Unbiased audits that determine what is fair
  • Live dialogue
Luck Land
Your Online Gaming Hub With Up To £1000 and 200 Spins!

18+. New Players only. Play responsibly.

2
Mr Spin
4.8
  • 50 free spins on top of a 100% first-deposit bonus.
  • There is telephone support available 24/7.
  • Mobile casino is incredibly user-friendly.
Mr Spin
Up To 50 FREE SPINS!

18+. New Players only. Up to £3 bonus credit. Win paid as bonus credit. 40x wagering requirement. Up to 100% deposit match of first deposit awarded as bonus credit via Lobby Game. Max bonus £100. Min deposit £3. £50 Max withdrawal from bonus win. 7 day expiry. T&Cs apply.