PENN Entertainment reports record growth in retail and digital betting segments
PENN Entertainment has reported strong performance across its retail and interactive finance operations. The company achieved record gaming volumes at its flagship venues while also seeing growth in its digital betting and casino segments. Management now anticipates further financial improvements as key projects come online.
The company's retail division delivered solid results despite weather challenges and increased competition. Two major expansions—the Hollywood Casino Joliet and the M Resort Las Vegas hotel tower—have recently opened and are performing well. Two more projects, the Hollywood Columbus hotel tower and the landside relocation of Hollywood Casino Aurora, are set to launch by mid-2026.
Interactive operations, including U.S. sports betting, iCasino, and Canada, have shown progress. A successful rebranding of the U.S. sportsbook contributed to positive adjusted EBITDA in December. Full-year guidance projects a $268 million annual EBITDA improvement for this segment, with all areas expected to reach positive contribution margins.
Management has secured additional funding for these projects through GLPI and municipal sources. Capital spending has been optimised, with lower maintenance costs due to recent property upgrades. The company also maintains a disciplined fanduel approach, balancing development investments, share buybacks, and debt reduction.
PENN Entertainment forecasts over $3 per share in free cash flow for 2026. Retail EBITDA growth is expected to accelerate as all four development projects become fully operational in the second half of the year. The company's strategy focuses on expanding its footprint while strengthening financial flexibility.
