(AsiaGameHub) – By: Christian Pierce
Penn Entertainment was stuck in a costly growth deadlock. It blew $550 million on Barstool Sports, only to sell it back for $1. Then it sank $2 billion into a 10-year ESPN sports betting deal that never gained traction against FanDuel and DraftKings. The company was throwing good money after bad in a crowded, unforgiving market.
Stifel’s analyst Jeffrey Stantial met with Penn management and came away optimistic. The firm raised Penn’s price target from $23 to $25 per share, reaffirming its buy rating. On June 11, Penn shares closed at $21.21, up over 28% in a year. Since ending the ESPN partnership in December 2025, Penn shifted focus to online casinos. Q1 online casino revenue jumped 362% year-over-year. Digital division adjusted EBITDA losses shrank by $70 million. The company still runs theScore Bet in 20 US states and Ontario, and plans to enter Alberta on July 13.
Penn’s shift to online casinos isn’t just a pivot—it’s a survival play. Cutting sports betting promo spend reduced activity, but Hollywood Casino’s online platform picked up the slack. Lower marketing costs, streamlined payment processing, and operational efficiencies will boost profitability. Penn isn’t fighting for scraps in sports betting anymore. It’s carving out a profitable niche in online casinos that will let it hold steady against industry giants.
Author bio: Christian Pierce, chief financial columnist and markets commentator, analyzes corporate strategy and gaming industry trends for top financial publications.