PENN Entertainment and ESPN announced in the past that they have mutually agreed to end their exclusive U.S. online sports betting partnership, with PENN planning to rebrand its sportsbook to theScore Bet and ESPN forming a new alliance with DraftKings, effective December 1, 2025.
This early termination follows PENN’s challenges in reaching market share targets and ongoing profitability issues, culminating in a very large net loss and a significant operational shift toward its iCasino and Canadian gaming operations.
We’ll examine how PENN’s pivot to theScore Bet and its exit from the ESPN partnership alters the company’s investment narrative.
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To be a shareholder in PENN Entertainment today, you need confidence in its ability to pivot from its dissolved ESPN partnership and rebuild momentum around its in-house brands and iCasino operations. The recent mutually agreed termination with ESPN represents a reset for the company’s digital ambitions, with the short-term focus now shifting to how fast and efficiently PENN can transition users and rebuild market share. At the same time, the biggest near-term risk remains persistent losses in digital gaming, with profitability a significant question mark.
One standout recent announcement is PENN’s plan to rebrand its sportsbook to theScore Bet, leveraging its Canadian presence and integrated media platform. This move is particularly relevant as it marks a renewed commitment to strengthening the company’s own digital ecosystem, which is at the core of its refreshed investor story after this major partnership change. However, whether theScore Bet can quickly deliver scale in the US or offset the loss of ESPN’s reach will be closely watched by investors.
Yet, in contrast to the optimism around the shift, investors should be aware of how ongoing digital losses continue to strain PENN’s financial flexibility and…
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PENN Entertainment’s outlook anticipates $8.0 billion in revenue and $471.4 million in earnings by 2028. This is based on a projected 6.0% annual revenue growth rate and a $547 million increase in earnings from the current level of -$75.6 million.
Uncover how PENN Entertainment’s forecasts yield a $22.00 fair value, a 51% upside to its current price.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
