PENN Strengthens Interactive Segment Amid Declines in Land-Based Revenue

Casino, sports betting, and entertainment operator, PENN Entertainment (NASDAQ: PENN) is expected to experience accelerated growth in its interactive segment, thanks to recent enhancements to its online sports betting service, ESPN Bet. In February, PENN acquired WynnBet’s mobile sports wagering license for New York. WynnBet is a sportsbook subsidiary of Wynn Resorts (NASDAQ: WYNN). With this new license, ESPN Bet has gained access to the New York market, joining a competitive field of nine online sportsbooks in the state.

Additionally, in May, PENN announced a partnership with the Professional Golfers’ Association (PGA) of America, making ESPN Bet the official sports betting sponsor of the PGA Championship through 2026. PENN has recently also strengthened its customer loyalty program through an expanded partnership with Ticketmaster.

According to Visible Alpha consensus, PENN’s interactive segment is projected to generate $1.1 billion in net revenue in 2024, reflecting a substantial +46% increase in 2024, a significant jump from the +8% growth seen last year. In contrast, PENN’s largest revenue segment, land-based properties, is anticipated to see a slight decline of -0.1% year-over-year, with net revenues expected to reach $5.7 billion. Penn’s land-based properties include a range of casinos and racetracks, offering gaming, accommodations, dining, and entertainment.