Online earnings at University of Pennsylvania reach new high in Q2 2025, yet EBITDA registers a significant loss of $62 million
Penn Entertainment, the gaming and entertainment company, has reported significant developments in its online casino and sports betting platforms, focusing on expanding digital engagement, integrating retail operations, and geographic growth.
ESPN Bet Enhancements
The ESPN Bet platform has seen a surge in user activity, with the introduction of new features such as the Player Insights tool. This feature allows users to compare player statistics with prop bet markets, aiming to provide a more engaging and personalized sports betting experience. The standalone Hollywood iCasino app has also attracted strong user activity, with over 70% of gaming revenue coming from new, retail-native, or reactivated users [2][3].
Strong Online Revenue Growth but Ongoing Challenges
In Q2 2025, Penn reported record online casino and sports betting revenues of $316.1 million. Despite this revenue growth, the interactive segment remains unprofitable with a $62 million adjusted EBITDA loss, reflecting ongoing challenges in the highly competitive digital market [2][3].
Retail and Digital Integration
Penn is emphasizing stronger integration between its online platforms and retail casino operations, contributing to improved digital revenue performance. This hybrid approach supports customer engagement across channels and underpins interactive segment growth [2][3].
Expansion into New Markets
Penn is preparing to launch retail sportsbooks at its Missouri casinos (Hollywood Casino St. Louis and River City Casino) ahead of Missouri’s sports betting launch scheduled for December 1, 2025. This retail expansion is paired with plans to offer mobile sportsbooks statewide via ESPN Bet, leveraging Penn’s owned properties to operate without needing local partnerships. This positions Penn well in a competitive market that includes FanDuel and DraftKings as dominant players [4][5].
New Casino Launches and Market Presence
While Penn’s flagship retail growth continues (including the upcoming Hollywood Casino in Joliet, Illinois, opening ahead of schedule on August 11, 2025), the company continues to invest heavily in digital platforms alongside retail to diversify and strengthen market presence [2].
Financial Highlights
- The interactive business generated $316.1m in revenue during the three months ended 30 June.
- The adjusted EBITDAR for the quarter was $489.6m.
- The segment posted an adjusted EBITDA loss of $62m.
- As of 30 June, total liquidity stood at $1.2bn.
- Over 70% of Penn Entertainment's gaming revenue life-to-date (through June 30) was generated by users that are newly acquired, retail native, or reactivated.
- Penn repurchased $115.3m of shares in the first half of the year.
- The company remains committed to its $350m full-year buyback target.
- Penn Entertainment recorded $1.4bn in retail revenue in the quarter.
- The loss was partly due to $2.9m in severance costs.
- Theoretical revenue from the group increased by 28%.
Jay Snowden, Penn president and CEO, attributed the online performance to the benefits of the company’s ecosystem and product development efforts. Further enhancements are planned for the football season for ESPN Bet.
Sources: [1] Penn Entertainment Q2 2025 Earnings Release [2] Penn Entertainment Investor Day Presentation [3] Penn Entertainment Q2 2025 Earnings Call Transcript [4] Missouri Gaming Commission [5] ESPN Bet Press Release
The gaming industry developments at Penn Entertainment include focusing on expanding digital engagement, integrating retail operations, and geographic growth, particularly with the introduction of new features on the ESPN Bet platform for a more personalized sports betting experience [1]. Despite strong online revenue growth, the interactive segment remains unprofitable, reflecting ongoing challenges in the highly competitive digital market [2]. Penn is emphasizing stronger integration between its online platforms and retail casino operations to support customer engagement across channels and underpin interactive segment growth [3]. Expansion into new markets is underway, such as preparing to launch retail sportsbooks at its Missouri casinos and offering mobile sportsbooks statewide via ESPN Bet [4]. Penn continues to invest heavily in digital platforms alongside retail to diversify and strengthen market presence [5].
