PENN Entertainment, Inc. (PENN)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
PENN Entertainment, Inc. (PENN) trades at $13.67 with AI Score 54/100 (Hold). PENN Entertainment, Inc. delivers integrated entertainment, sports content, and casino gaming experiences across North America. Market cap: $1.83B, Sector: Consumer cyclical.
Last analyzed: Feb 9, 2026PENN Entertainment, Inc. (PENN) Consumer Business Overview
PENN Entertainment: A diversified gaming and entertainment leader in North America, boasting a wide geographic footprint, established brands, and a growing interactive segment, positioning it to capitalize on the expanding online gaming and sports betting markets despite current profitability challenges.
Investment Thesis
PENN Entertainment presents a notable research candidate driven by its established presence in the gaming and entertainment industry and its strategic expansion into the high-growth online sports betting and iCasino markets. While the company currently faces profitability challenges with a negative profit margin of -13.2%, the potential for significant revenue growth in the Interactive segment, coupled with operational efficiencies across its land-based casinos, could drive future profitability. Key value drivers include the continued legalization and adoption of online gaming in new states, the successful integration of theScore Bet platform, and the leveraging of its existing customer base to cross-promote online and offline offerings. Investors should monitor the company's ability to achieve profitability in its Interactive segment and its success in gaining market share in key states. The current market capitalization of $1.96B may undervalue the company's long-term growth potential.
Based on FMP financials and quantitative analysis
Key Highlights
- Operates 44 properties in 20 states, providing a diversified geographic footprint.
- Offers online sports betting in 13 jurisdictions, capitalizing on the growing digital gaming market.
- Provides iCasino in five jurisdictions, expanding its online gaming offerings.
- Gross Margin of 32.0% indicates potential for improved profitability through operational efficiencies.
- Brands include Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet, providing a diverse portfolio of entertainment options.
Competitors & Peers
Strengths
- Diversified geographic footprint across 20 states.
- Established brands in the casino and online gaming industries.
- Proprietary online gaming technology through theScore Bet platform.
- Loyalty programs that drive customer retention.
Weaknesses
- Negative profit margin of -13.2%.
- High debt levels.
- Dependence on regulatory approvals for online gaming expansion.
- Intense competition in the online gaming market.
Catalysts
- Upcoming: Potential legalization of online sports betting and iCasino in new states.
- Ongoing: Integration of theScore Bet platform and realization of synergies.
- Ongoing: Continued growth in the online gaming market.
- Ongoing: Successful cross-promotion of online and offline offerings.
- Ongoing: Strategic partnerships to expand brand awareness and market reach.
Risks
- Potential: Increased competition from established casino operators and emerging online platforms.
- Potential: Evolving regulatory landscape and potential for increased taxes and fees.
- Potential: Economic downturns that could reduce consumer spending on gaming and entertainment.
- Potential: Technological disruptions that could render existing platforms obsolete.
- Ongoing: High debt levels.
Growth Opportunities
- Expansion of Online Sports Betting: The ongoing legalization of online sports betting across the United States presents a significant growth opportunity for PENN. As more states legalize online sports betting, PENN can leverage its existing Barstool Sportsbook and theScore Bet platforms to enter new markets and capture market share. The US sports betting market is projected to reach $155 billion in revenue by 2024, providing a substantial addressable market for PENN.
- Growth in iCasino Market: The iCasino market is another high-growth area for PENN. As more states legalize online casino gaming, PENN can expand its iCasino offerings and attract new customers. The iCasino market is projected to reach $9.29 billion in 2028, offering a lucrative opportunity for PENN to diversify its revenue streams.
- Leveraging theScore Bet Platform: PENN's acquisition of theScore Bet provides a technologically advanced platform for online sports betting and iCasino. PENN can leverage theScore Bet's technology and user experience to enhance its online gaming offerings and attract a younger demographic of customers. The integration of theScore Bet platform is expected to drive significant revenue growth in the Interactive segment.
- Cross-Promotion of Online and Offline Offerings: PENN can leverage its existing customer base from its land-based casinos to cross-promote its online sports betting and iCasino offerings. By offering incentives and promotions to casino customers to try its online platforms, PENN can acquire new online customers at a lower cost. This cross-promotion strategy can drive significant revenue growth and improve customer loyalty.
- Strategic Partnerships: PENN can form strategic partnerships with sports leagues, media companies, and other entertainment providers to enhance its brand awareness and attract new customers. These partnerships can provide PENN with access to exclusive content, marketing opportunities, and customer acquisition channels. Strategic partnerships can be a valuable tool for PENN to differentiate itself from its competitors and accelerate its growth.
Opportunities
- Expansion of online sports betting and iCasino into new states.
- Leveraging theScore Bet platform to enhance online gaming offerings.
- Cross-promotion of online and offline offerings to acquire new customers.
- Strategic partnerships to expand brand awareness and market reach.
Threats
- Increased competition from established casino operators and emerging online platforms.
- Evolving regulatory landscape and potential for increased taxes and fees.
- Economic downturns that could reduce consumer spending on gaming and entertainment.
- Technological disruptions that could render existing platforms obsolete.
Competitive Advantages
- Established brand recognition with brands like Hollywood Casino and L'Auberge.
- Diversified geographic footprint across 20 states.
- Proprietary online gaming technology through theScore Bet platform.
- Loyalty programs that reward frequent customers.
- Strong relationships with regulators in various jurisdictions.
About PENN
Founded in 1972 and headquartered in Wyomissing, Pennsylvania, PENN Entertainment, Inc. has evolved from a regional horse racing company into a diversified, multi-state gaming and entertainment powerhouse. Originally known as Penn National Gaming, the company rebranded in August 2022 to PENN Entertainment, reflecting its broader focus beyond traditional casino operations. Today, PENN operates 44 properties across 20 states, offering a range of casino gaming, racing, and entertainment experiences. The company's portfolio of brands includes Hollywood Casino and L'Auberge. Recognizing the shift towards digital entertainment, PENN has strategically invested in its Interactive segment, which provides online sports betting in 13 jurisdictions and iCasino in five. Key brands in this segment include Barstool Sportsbook and theScore Bet. PENN's geographic reach spans the Northeast, South, West, and Midwest regions of the United States, allowing it to capture diverse customer segments and mitigate regional economic risks. The company faces competition from established casino operators and emerging online gaming platforms, requiring continuous innovation and strategic partnerships to maintain its market position.
What They Do
- Operates land-based casinos across the United States.
- Provides online sports betting platforms.
- Offers iCasino gaming experiences.
- Manages horse racing tracks.
- Provides entertainment and dining options at its properties.
- Offers loyalty programs to reward frequent customers.
- Develops and operates online gaming technology.
Business Model
- Generates revenue from casino gaming, including slot machines, table games, and poker.
- Earns revenue from online sports betting and iCasino gaming.
- Receives revenue from food and beverage sales at its properties.
- Generates revenue from hotel room rentals.
- Earns revenue from horse racing operations.
Industry Context
PENN Entertainment operates within the dynamic and competitive gambling, resorts, and casinos industry. The industry is experiencing a significant shift towards online gaming and sports betting, driven by technological advancements and changing consumer preferences. The market is highly competitive, with established casino operators like FUN and emerging online platforms vying for market share. The legalization of online gaming in new states presents a significant growth opportunity for companies like PENN. The industry is also subject to regulatory scrutiny and evolving consumer protection standards. PENN's diversified geographic presence and established brands position it to compete effectively in this evolving landscape.
Key Customers
- Casino patrons who enjoy slot machines, table games, and poker.
- Sports fans who engage in online sports betting.
- Individuals who enjoy online casino games.
- Hotel guests who stay at PENN's properties.
- Diners who eat at PENN's restaurants.
Financials
Chart & Info
PENN Entertainment, Inc. (PENN) stock price: $13.67 (+0.00, +0.00%)
Latest News
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Q4 Consumer Discretionary - Casino Operator Earnings: PENN Entertainment (NASDAQ:PENN) Earns Top Marks
Yahoo! Finance: PENN News · Mar 27, 2026
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Senate Betting Bill Hits DraftKings Hard: DKNG Falls 6% While Penn Entertainment Holds Its Ground
Yahoo! Finance: PENN News · Mar 25, 2026
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Prediction Market Bills Won't Pass, But 2028 Could Change Everything, TD Cowen Says
benzinga · Mar 24, 2026
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DraftKings and Flutter Rally on Bill to Ban Sports Betting Through Prediction Markets
Yahoo! Finance: PENN News · Mar 23, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PENN.
Price Targets
Consensus target: $18.29
MoonshotScore
What does this score mean?
The MoonshotScore rates PENN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Q4 Consumer Discretionary - Casino Operator Earnings: PENN Entertainment (NASDAQ:PENN) Earns Top Marks
Senate Betting Bill Hits DraftKings Hard: DKNG Falls 6% While Penn Entertainment Holds Its Ground
Prediction Market Bills Won't Pass, But 2028 Could Change Everything, TD Cowen Says
DraftKings and Flutter Rally on Bill to Ban Sports Betting Through Prediction Markets
PENN Entertainment, Inc. Stock: Key Questions Answered
What does PENN Entertainment, Inc. do?
PENN Entertainment, Inc. is a leading provider of integrated entertainment, sports content, and casino gaming experiences in North America. The company operates 44 properties in 20 states, offering a range of casino gaming, racing, and entertainment options. In addition to its land-based casinos, PENN operates online sports betting in 13 jurisdictions and iCasino in five, providing customers with access to online gaming and sports wagering. The company's portfolio of brands includes Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet.
Is PENN stock worth researching?
PENN Entertainment presents a mixed investment picture. While the company has a strong presence in the gaming and entertainment industry and is strategically expanding into the high-growth online sports betting and iCasino markets, it currently faces profitability challenges with a negative profit margin. The potential for significant revenue growth in the Interactive segment, coupled with operational efficiencies across its land-based casinos, could drive future profitability. Investors should carefully consider the company's ability to achieve profitability in its Interactive segment and its success in gaining market share in key states before making an investment decision.
What are the main risks for PENN?
PENN Entertainment faces several risks, including increased competition from established casino operators and emerging online platforms, an evolving regulatory landscape and potential for increased taxes and fees, economic downturns that could reduce consumer spending on gaming and entertainment, and technological disruptions that could render existing platforms obsolete. Additionally, the company's high debt levels pose a financial risk. Investors should carefully consider these risks before investing in PENN.
What are the key factors to evaluate for PENN?
PENN Entertainment, Inc. (PENN) currently holds an AI score of 54/100, indicating moderate score. The stock trades at a P/E of 14.1x, below the S&P 500 average (~20-25x), potentially signaling value. Analysts target $18.29 (+34% from $13.67). Key strength: Diversified geographic footprint across 20 states.. Primary risk to monitor: Potential: Increased competition from established casino operators and emerging online platforms.. This is not financial advice.
How frequently does PENN data refresh on this page?
PENN prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven PENN's recent stock price performance?
Recent price movement in PENN Entertainment, Inc. (PENN) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $18.29 implies 34% upside from here. Notable catalyst: Diversified geographic footprint across 20 states.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider PENN overvalued or undervalued right now?
Determining whether PENN Entertainment, Inc. (PENN) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 14.1. Analysts target $18.29 (+34% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying PENN?
Before investing in PENN Entertainment, Inc. (PENN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Stock data pending update.
- Financial data based on the most recent available information.