Penn National Gaming revealed its second quarter earning report on Thursday and the news was not good. The company showed $26.8 million in second-quarter earnings.
That was down 34.18% from the $78.4 million that the company earned during the second quarter of 2023. Stock prices slipped 18 cents per share during the reporting period, as opposed to a 48-cent per share increase in Q2 of 2023.
The poor earnings report is only serving to add fuel to the fire of recent speculation that some of Penn National’s rivals in the online gambling industry may be positioning themselves for a takeover of the company.
Both Boyd Gaming and Flutter Entertainment, owners of FanDuel, have been linked to reports of a merger or acquisition of Penn National Gaming. Jay Snowden, Penn National Gaming CEO, sought to downplay such talk during a Thursday call with investors.
“Don’t believe everything you read,” Snowden said on the call. At the same time, he seemed to be leaving the door open to the possibility of a merger or acquisition by a competitor.
“As a company and as a board we always have and always will evaluate opportunities to enhance value and continue to take action in the best interests of our company and our shareholders,” Snowden said.
ESPN Bet Not Growing As Anticipated
It’s been almost a year since Penn National Gaming got out of its deal with Barstool Sports as their sportsbook partner, making the switch to ESPN Bet. They optimistically talked of gaining as much as 20% of the US online sportsbook market, but the numbers so far aren’t anywhere that total.
Averaged across the 18 US markets in which the ESPN Bet app is currently operating, the sportsbook is pulling about a 6% share. They sit fourth in the US online gambling market behind FanDuel, DraftKings and BetMGM.
Penn National Gaming is hopeful that a fall launch in New York state, just in time for college and NFL football seasons, will bring a positive outcome for the brand. Pointing to an increase in interactive revenue from $207 million in the first quarter to $232 million in the second quarter, the company feels they are making progress on this front.
Citing 2023 as a year of acquisitions for the company, Snowden is of the opinion that they are beginning to turn the corner in terms of their partnership with ESPN Bet. They are hopeful that planned changes in how ESPN markets and delivers ESPN Bet to their audience will also foster growth in the brand.
ESPN is planning a deeper integration of ESPNBet across all of the company’s platforms. Later this month, ESPN will be pairing ESPN and ESPN Fantasy on the same app. ESPN Fantasy currently has 12 million users.
By Q4, the plan is for both ESPN and Fantasy accounts to link directly to ESPN Bet, offering seamless integration across the same app. That’s the same setup Penn National Gaming offers to Ontario bettors in Canada via theScore Bet, their Canadian online sports betting partner.
ESPN Bet in the USA
ESPN Bet is available in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia. Users can place wagers in these states while logging in, depositing, withdrawing, and checking transaction history from anywhere in the U.S.
ESPNBet Online Casino
ESPN Bet does offer an online casino feature to gamblers in New Jersey. This is integrated with the Hollywood Casino platform, allowing users to access a variety of online casino games through the ESPN Bet app. Explore NJ online casinos and bonuses for US players.
