{"id":2155511,"date":"2025-11-14T02:22:17","date_gmt":"2025-11-14T02:22:17","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=2155511"},"modified":"2025-11-14T02:22:17","modified_gmt":"2025-11-14T02:22:17","slug":"penn-entertainment-is-breaking-up-with-espn-in-sports-betting-deal-should-you-sell-penn-stock-here","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/penn-entertainment-is-breaking-up-with-espn-in-sports-betting-deal-should-you-sell-penn-stock-here\/","title":{"rendered":"Penn Entertainment Is Breaking up With ESPN in Sports Betting Deal. Should You Sell PENN Stock Here?"},"content":{"rendered":"<p><\/p>\n<div data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->In a surprising turn of events sending shockwaves through the betting world, Penn Entertainment (PENN) recently announced the\u00a0end of its marquee partnership with ESPN, bringing its long-standing sportsbook deal to a close earlier than expected.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Penn and ESPN have mutually agreed to end their exclusive U.S. online sports betting partnership early,\u00a0effective Dec. 1, 2025. The 10-year deal, launched in August 2023, gave the firm rights to the ESPN BET brand in exchange for $150 million annually and stock warrants. Despite user growth and product improvements, Penn Entertainemnt CEO Jay Snowden said both sides agreed to \u201cwind down\u201d amicably after missing market share goals.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Penn Entertainment will rebrand its U.S. sportsbook as theScore Bet, expanding from its successful Ontario operations and leveraging its 4-million-user media app. ESPN, which brought nearly 3 million users to Penn Entertainment\u2019s platform, will now seek other betting partnerships while helping with the transition.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->As Penn finally admits that the math doesn\u2019t add up, is it time to hit the exit?<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Penn Entertainment is a gaming and entertainment company headquartered in Wyomissing, Pennsylvania. The company operates a portfolio of land-based casino and racetrack properties across multiple states, alongside significant digital gaming and sports-betting platforms. Penn\u2019s market capitalization is around $2 billion.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Over the past 52 weeks, PENN stock&#8217;s share price has\u00a0declined by 29%, reflecting heightened investor caution amid shifts in the gaming and sports-betting space. PENN stock is currently trading down by 34% from its\u00a052-week high of $23.08.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->On a year-to-date (YTD) basis, the stock is down roughly 23%, with a 6.5% decline in just the past five days, marked by pressure as strategic moves such as the early termination of its ESPN sports-betting deal weigh on sentiment.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 629px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 940 \/ 629; --img-max-width: 940px;\"><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->www.barchart.com<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->With that said, PENN stock is trading at a discount to its industry peers at 0.32 times forward sales.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p><button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-7w7t7o\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Penn Entertainment released its\u00a0third-quarter 2025 earnings on Nov. 6, revealing a mixed performance that underscores both the strength of its land-based casino operations and the headwinds facing its digital segment.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Total revenue came in\u00a0at about $1.7 billion, a 4.8% increase year-over-year (YOY) but just shy of analyst expectations. While the retail casino business maintained favorable metrics with revenues of $1.4 billion and segment adjusted EBITDAR of $465.8 million with a margin of 32.8%, the interactive (online betting and iCasino) unit reported revenues of $297.7 million but an adjusted EBITDA loss of $76.6 million.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Notably, the company recognized an adjusted EPS loss of $0.22 per share, compared to a loss of $0.25 the same time last year, substantially missing estimates and reflecting an impairment charge within the interactive segment. Additionally, management emphasized a strategic refocus with the early termination of its marketing agreement with ESPN and a planned rebrand of its U.S. online sportsbook offering to theScore Bet.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Penn further updated its 2025 capital expenditure forecast to $685 million, down from prior guidance of $730 million. The firm also projects net cash interest expense of about $160 million for the year.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Management reiterated its expectation that the interactive segment will break even or better in 2026, signaling a clear strategic pivot to cost discipline and monetization rather than purely volume growth.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Analysts expect loss per share to improve 80% YOY to a loss of $0.32 in fiscal 2025, before further improving by 375% to EPS of $0.88 in fiscal 2026.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Earlier this month, Needham downgraded PENN stock to \u201cHold\u201d from \u201cBuy\u201d following the company\u2019s decision to end its partnership with ESPN and pivot toward a new interactive strategy centered on iGaming and omnichannel integration in the United States.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->On the other hand, however, Stifel recently upgraded PENN stock from \u201cHold\u201d to \u201cBuy,\u201d and raised the price target to $21 from $19. The firm cited optimism following the company\u2019s ESPN Bet exit and its shift toward an iCasino-focused digital strategy. Analysts believe this pivot supports its \u201cvalue-unlock\u201d thesis, as Penn Entertainment\u2019s brick-and-mortar fundamentals remain stable and continue to show resilience amid sector softness.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->PENN stock has a consensus rating of \u201cModerate Buy&#8221; overall. Of the 19 analysts covering the stock, 10 advise a \u201cStrong Buy,\u201d while nine suggest a \u201cHold.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->While PENN\u2019s average analyst price target of $22.07 indicates a 44% potential upside ahead, the Street-high target of $30 signals that shares could rise as much as 96% from current levels.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-8xybrv\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 826px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 940 \/ 826; --img-max-width: 940px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"www.barchart.com\" loading=\"lazy\" height=\"826\" width=\"940\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->www.barchart.com<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><i> On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally\u00a0published on <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.barchart.com\/story\/news\/36099997\/penn-entertainment-is-breaking-up-with-espn-in-sports-betting-deal-should-you-sell-penn-stock-here?utm_source=yahoo&amp;utm_medium=syndication&amp;utm_content=footer_link\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Barchart.com;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Barchart.com<\/a> <\/i><!-- HTML_TAG_END --><\/p>\n<\/p><\/div><\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source finance.yahoo.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a surprising turn of events sending shockwaves through the betting world, Penn Entertainment (PENN) recently announced the\u00a0end of its marquee partnership with ESPN, bringing its long-standing sportsbook deal to a close earlier than expected. Penn and ESPN have mutually agreed to end their exclusive U.S. online sports betting partnership early,\u00a0effective Dec. 1, 2025. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2155512,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[412720,22444,402628,176147,412721],"class_list":["post-2155511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-betting-world","tag-espn","tag-online-sports-betting","tag-penn-entertainment","tag-stock-warrants"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2025\/11\/Penn-Entertainment-Is-Breaking-up-With-ESPN-in-Sports-Betting.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2155511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2155511"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2155511\/revisions"}],"predecessor-version":[{"id":2155513,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2155511\/revisions\/2155513"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2155512"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2155511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2155511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2155511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}