PENN holds “strategic optionality and control” over future, says CEO

PENN Entertainment CEO Jay Snowden has said the operator has “strategic optionality and control” over its future heading into 2026, when a break clause over ESPN Bet could be enacted.

Speaking on an analyst call following the firm’s Q1 2025 earnings release, Snowdon said that while ESPN parent company Disney remained committed to the venture, the option was still there.

PENN and Disney entered a 10-year, $1.5bn licensing deal in the summer of 2023 to push out ESPN Bet, which went live in November 2023.

However, since launch, the brand has failed to snare significant market share and is expecting to post adjusted EBITDAR losses until Q4 2025.

On the Q4 earnings call earlier this year, Snowden said there were “levers” PENN could pull, and that both sides would have to do “what’s in their best interest” with the three-year break clause looming in 2026.

Speaking today, 8 May, the CEO noted: “As mentioned in our last earnings call and in our shareholder letter in this year’s proxy, we have fully committed partners in ESPN [that] are continuing to work with us to deepen the integration of ESPN Bet into ESPN’s overall ecosystem.

“We have continued momentum in our icasino business. And importantly, we maintain strategic optionality and control over our future as we head into 2026.”

PENN’s interactive losses shrank year on year from $196m to $89m, while revenue reached record levels.

On ESPN Bet, which bosses said had benefited from a range of product deployments in recent months, the aim remains to integrate it deeper with ESPN’s media empire.

Account linking was cited as a top addition, while the Mint Club rewards scheme was also hailed by management.

PENN chief technology officer Aaron LaBerge said: “A very high percentage of our monthly average users are Mint Club users. They’re logging in 2.7x more to our product.

“They’re placing 60% more weekly bets. They’re generating more handle; they’re holding better. These are really our best customers, not just for ESPN Bet, but for ESPN as well.”

Snowden added: “The streaming direct-to-consumer launch for ESPN this late summer/early [autumn], that’s going to be a big opportunity for us to drive top of funnel as well as strong retention.

“We’re finally getting to a point, after being live with ESPN Bet for a year and a half, where the real deep integrations that we all were excited about when we did the deal and shook hands, those are all starting to happen now.”

Online casino, powered by new standalone apps, was championed as standout for the business, with strong hopes for the future of the vertical.

As per the investor presentation, 70% of revenue from the standalone Hollywood Casino and theScore Bet Casino is incremental, while users and GGR has risen on those platforms compared to previous integrated iterations.

On next steps, given US rivals are also ploughing more time and investment into igaming, LaBerge noted: “Personalisation is one of the things we’re really focused on in icasino, just reducing the friction, elevating, and putting the games you care about in front of you.

“As Jay said, we’ve got a nice product mix.  Our UI is world class. Our games are world class. So just getting you into what you want as quickly as possible, I think is going to make a difference, and we’re working hard on that.”

The post PENN holds “strategic optionality and control” over future, says CEO first appeared on EGR Intel.

 Jay Snowden’s comments come ahead of potential ESPN Bet break clause in 2026, while product developments for sports betting and standalone casino apps are praised by bosses
The post PENN holds “strategic optionality and control” over future, says CEO first appeared on EGR Intel.