WYOMISSING, Pa. – PENN Entertainment, the Wyomissing-based operator of casinos, sports betting and entertainment, reported third quarter results Thursday.
But that’s not the news.
PENN went through a bad break-up Wednesday. Just three years into a ten-year online sports betting agreement with ESPN known as ESPN Bet, PENN was dumped.
And guess what? ESPN was playing around on the side. After parting ways with PENN, ESPN announced that on December 1, 2025 it will have a new online sports betting partnership with Draft Kings.
Like many jilted lovers PENN put on a brave face. In the joint release issued Thursday morning by PENN and ESPN, Jay Snowden, PENN’s Chief Executive Officer and President, said: “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.”
Wall Street must have found it a bad match for PENN because initially the company’s stock soared 9.2% according to Stock Story.
PENN also announced that it had realigned its digital focus to emphasize its omnichannel benefits.
Terms of separation
According to PENN, pursuant to the agreed termination, the company’s OSB (Online Sports Betting) marketing exclusivity with ESPN will end on December 1, 2025. Other key terms of the Termination Agreement are as follows, PENN noted: Cash payments to ESPN terminate at the end of the fourth quarter in 2025; ESPN will retain vested warrants to purchase 7,957,210 shares with a weighted strike price of $28.951 ; All unvested warrants and performance warrants will be forfeited by ESPN; and PENN will rebrand OSB offerings in the U.S. to theScore Bet, with a target date of December 1, 2025, subject to regulatory approvals.
Snowden added in a statement, “PENN’s unique omnichannel strategy is anchored in a diverse portfolio of market-leading regional casinos and a complementary digital business. We are realigning our digital focus to leverage the strength of our U.S. iCasino and Canadian operations, while continuing to use OSB to drive both the acquisition of customers with significant lifetime value and unique cross-sell opportunities across PENN’s retail and digital assets.”
Snowden further explained how PENN will realign its digital focus: Leverage strength in U.S. iCasino and Canadian operations with the emphasis on omnichannel benefits. He said, “PENN’s iCasino forward approach has clear long-term alignment to our core business, which will focus on cross-sell opportunities across our ecosystem and enhanced connectivity to our 33 million member PENN Play loyalty program.”
TheScore Bet, Snowden claimed, which is delivering strong results in Ontario, will be the company’s unified OSB brand across the U.S. and Canada, and will be deeply integrated into PENN’s digital sports media app, theScore; it has approximately 4 million monthly active users (MAUs) across North America; and PENN retains a database of 2.9 million digital users acquired during the ESPN relationship, including 300,000 acquired this football season.
The company’s OSB offerings, Snowden noted, will continue to provide top of funnel acquisition and cross-sell opportunities for its Hollywood-branded iCasino, which will remain integrated into its OSB product in states where legal, in addition to serving as a standalone iCasino app.
PENN will operate with a more efficient cost structure, Snowden believes, including replacing fixed media spending with performance based and regionally targeted marketing that complement the company’s casino footprint. In addition, the realignment will free up resources to strategically invest in the North American markets with strong return potential which PENN expects will drive enhanced unit economics and profitability.
Third quarter retail property level highlights
On the business operations front, PENN reported revenues of $1.4 billion. Segment Adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent) was $465.8 million and Segment Adjusted EBITDAR margins were 32.8%.
Snowden continued: “Demand was generally stable in our core business across gaming and non-gaming amenities during the quarter, particularly at our properties not impacted by new supply or increased competitor promotional activity. Our third-quarter performance was driven by strong results at our properties in our West segment, as well as in Ohio, St. Louis, and Illinois.”
According to Snowden, the fourth quarter is off to a solid start and PENN is encouraged by early trends at its new Hollywood Casino in Joliet, which is driving both gaming and non-gaming volumes and database growth through its best-in-market offering.
As previously disclosed, he noted, the second hotel tower at M Resort Spa Casino Las Vegas is scheduled to open on December 1, subject to regulatory approvals, and the company is pleased to announce the upcoming openings of the new Hollywood Casino in Aurora and new hotel tower at Hollywood Columbus late in the second quarter of 2026.
Third quarter interactive segment highlights
PENN reported revenues of $297.7 million (including tax gross up of $139.5 million), and Adjusted EBITDA loss of $76.6 million.
Snowden confessed, “Gaming revenues and adjusted EBITDA in the quarter came in below expectations due to customer-friendly hold across our digital operations and lower than anticipated OSB volumes. Meanwhile, our North America iCasino business achieved its highest quarterly gaming revenue to date, an improvement of nearly 40% year-over-year, driven by record cross-sell from OSB of 62% and growth from our standalone Hollywood and theScore Bet iCasino apps. The momentum in our iCasino business continues to benefit from growing average MAUs, which experienced the third consecutive quarter of year-over-year and quarter-over-quarter increases.”
Liquidity and financial position
Total liquidity as of September 30, 2025 was $1.1 billion inclusive of $660.1 million in cash and cash equivalents, PENN reported. Traditional net debt as of the end of the quarter was $2.2 billion. In addition, on November 3, 2025, PENN received $150 million in funding from Gaming and Leisure Properties, Inc. at a 7.79% capitalization rate in connection with the second hotel tower construction at the M Resort Las Vegas.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, is one of North America’s leading providers of integrated entertainment, sports content, and casino gaming experiences. PENN operates 43 properties in 20 states, online sports betting in 19 jurisdictions and iCasino in five jurisdictions, under a portfolio of brands including Hollywood Casino, L’Auberge, and theScore BET Sportsbook and Casino.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.wfmz.com ’
