The opening of the M Resort’s 375-room tower in December was a big reason for a surge in revenue for regional gaming giant Penn Entertainment Inc., company executives said Thursday in its first-quarter earnings call with investors.
Penn CEO Jay Snowden said the company saw revenue grow by 12.4 percent for the Wyomissing, Pennsylvania-based company’s West division, which bodes well for three more casino expansion projects in the company’s pipeline.
The new tower, which bumped up the M’s capacity to 765 rooms, opened Dec. 1 and resulted in record net revenue for the property in both the quarter and in the month of March. In that time frame, the property had record slot and table game revenue and hosted the five largest pieces of group business in its 17-year history.
The M expansion was the second of five major capital projects for Penn, which also relocated its Hollywood Joliet casino in Illinois in August. The company also is scheduled to open a new hotel tower in its Hollywood Columbus property in Ohio and will relocate its Hollywood Aurora casino in Illinois, both in June, and relocate its Hollywood Council Bluffs property in Iowa in 2028.
Overall, Penn reported a net loss of $2.8 million, 2 cents a share, due to one-time expenses for the launch of iGaming and sports wagering in Alberta, Canada, on revenue of $1.8 billion for the quarter that ended March 31. That compares with net income of $111.8 million, 68 cents a share, on revenue of $1.7 billion for the same quarter a year earlier.
Snowden said the spike in gasoline prices in March hasn’t yet affected casino visitation and he suspects the reason is that many consumers are enjoying higher pay as a result of tax cuts offered in President Donald Trump’s “Big Beautiful Bill.”
“It’s hard for us to know exactly what the drivers are,” Snowden said in response to an investor’s question. “There’s definitely puts and takes. Gas prices are higher. Although, as I’ve said in the past, as you look at regional gaming over the last several decades, really the economic indicator that most closely correlates to behavior on the regional gaming side is going to be employment. And employment actually continues to be a really good story.”
Snowden indicated the company would keep a close watch on how gasoline pricing affects casino visitation.
“Gas prices may be a little bit of noise and a headwind,” he said. “The vast majority of our customers in the regional portfolio come within a 30-minute drive, so you’re probably not making a decision on the price of gas as to whether you’re visiting a casino once every week or two weeks or once a month, because it’s not going to cost you much to get there.
“No doubt, we’re seeing some benefit from tax refunds being higher year over year and that, from what I read, 11, 12 percent, which is helpful,” Snowden said. “And I think we’ll probably continue to see and feel that April is very much through the first three weeks, like a continuation of Q1, which is good. So we’re not seeing any cracks in the armor. We’re actually feeling really good as we look out for the remainder of the year.”
This is a developing story. Check back for updates.
Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on X.
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