How Does Penn Entertainment Make its Money?
Penn Entertainment is one of the largest regional casino operators in North America, operating approximately 43 gaming properties in 20 states under brands including Hollywood Casino, Ameristar, and L’Auberge. The company made a massive bet on online sports betting through a $2 billion partnership with ESPN, launching ESPN BET in November 2023 to replace its former Barstool Sportsbook. The ESPN brand gives Penn access to the most powerful name in American sports media, though the online sportsbook has faced intense competition from DraftKings and FanDuel (owned by Flutter). Penn’s business is a tale of two halves: a stable, cash-generating regional casino portfolio and a money-losing online sports betting operation that requires significant investment to compete.
Penn Entertainment (PENN) Business Model
Penn Entertainment operates in the gambling sector. Below is a summary of Penn Entertainment’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Penn Entertainment’s 2024 fiscal year filings with the SEC.
Penn Entertainment Competitors
Penn Entertainment’s key competitors and comparable public companies in the gambling sector include DraftKings, MGM Resorts (MGM) Financial Breakdown, Disney, and Caesars. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Penn Entertainment stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Gaming (Slot Machines & Table Games) | $4,800 | $4,700 | +2.1% |
| Food, Beverage & Hotel | $1,000 | $950 | +5.3% |
| Interactive (ESPN BET & iCasino) | $500 | $300 | +66.7% |
| Other (Racing, Entertainment) | $200 | $200 | +0.0% |
| Total Revenue | $6,700 | $6,400 | +4.7% |
Gaming (Slot Machines & Table Games) — 72% of Revenue
Food, Beverage & Hotel — 15% of Revenue
Interactive (ESPN BET & iCasino) — 7% of Revenue
Other (Racing, Entertainment) — 3% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $6,700 | $6,400 |
| Cost of Revenue | $4,100 | $3,900 |
| Gross Profit | $2,600 | $2,500 |
| Operating Expenses | $2,200 | $2,200 |
| Operating Income | $400 | $300 |
| Net Income | $-100 | $-700 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 38.8%
- Operating Margin: 6.0%
- Revenue Growth: 4.7%
Is Penn Entertainment Profitable?
Penn Entertainment (PENN) profitability depends on the reporting period and business cycle. Review the income statement above for the latest figures.
What to Watch
- ESPN BET market share and customer acquisition cost trajectory
- iCasino expansion as states legalize online casino gaming
- Regional casino property performance and same-store revenue trends
- Return on the $2B ESPN licensing investment — break-even timeline
Penn Entertainment (PENN) Financial Summary
Penn Entertainment (PENN) is a gambling company that generated $6,700 in total revenue in fiscal year 2024. Revenue grew 4.7% year-over-year. For a deeper look at Penn Entertainment’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.