Penn National Gaming is one of the biggest and most successful gaming companies in the United States. It currently owns more than 40 properties across the US and Canada. This week, Penn National Gaming’s revenue figures were released to the public.
Many are impressed to see where things stand. Today, we’re going to talk about how much money Penn National made in 2020’s third quarter. We’ll also discuss what parts of this company have been the most successful this year.
Let’s get into it!
Penn National Gaming Breaks into the US Sports Betting Industry
The expansion of Penn National Gaming has been taking place for decades. Back in 1996, the company expanded from its lone race track to acquire new venues around the country. Over the past 24 years, officials within the company have worked hard to buy new gaming properties around the US and Canada.
Many were shocked when in early 2020, Penn National Gaming announced that it had purchased a 36% stake in Barstool Sports. It was clear that this was an attempt to break into the quickly-growing US sports betting industry. Barstool Sports is now one of the largest sports media companies in the country.
Penn National Gaming already controls many land-based sportsbooks. The company now wants to make a splash in the online sports betting market. Barstool is now working hard to expand its internet sportsbook to more states.
This move seems to make sense. The United States’ sports betting industry is growing every single year. Several states such as New Jersey and Colorado are now continuing to see record-earnings from their sports betting operations.
Most believe that the sports betting industry will continue to grow. Several states are set to legalize and regulate this form of gambling before the end of the year. Online sports betting is now helping to bring Penn National Gaming a huge amount of additional revenue every year.
Let’s take a look at the revenue reports that have just been released.
New Reports on Penn National Gaming’s Revenue Are Out
Many of the country’s gambling companies have released their third-quarter revenue reports this week. It’s clear that the land-based casino industry is still struggling immensely this year. Nearly all casinos have seen massive dips in revenue.
The online sports betting industry, however, is surging right now. Regulated internet sportsbooks are seeing increases in revenue and handle almost every month. This is great news for Penn National Gaming, which is benefiting massively from its partnership with Barstool Sportsbooks.
In 2020’s third quarter, Penn National generated $1,129.7 million in revenue with an adjusted EBITDAR of $452.6M. It’s a positive sign and represents an increase from the year’s second quarter. Most credit the launching of the Barstool Sportsbook app for the company’s most recent success.
President and CEO Jay Snowden spoke about Penn National Gaming’s revenue figures to the media this week.
“I am pleased to report that our property, interactive, and corporate management teams generated strong third quarter revenues, as well as all time quarterly record Adjusted EBITDAR and Adjusted EBITDAR margins, despite the continuation of social distancing and capacity constraints at all of our reopened properties,” he said. In addition to the record results of our brick and mortar operations, one of the highlights of the quarter was the launch of our much-anticipated Barstool Sportsbook app in Pennsylvania, which has been well received.”
That may be a bit of an understatement. According to new reports, this new online sportsbooks generated more than $78 million just 37 days after launching in Pennsylvania. This betting platform is expected to expand to several new states throughout 2021.
Unfortunately, not all gaming companies are seeing an increase in revenue right now.
Las Vegas Casino Companies See Drops in Revenue
The city of Las Vegas has been hit extremely hard throughout 2020. For months, all of the casinos in this city were closed to the public. These venues reopened in June, yet they continue to see significantly lower revenue earnings than in 2019.
Nevada, and Las Vegas specifically, is home to some of the largest casino companies in the world. All of these companies are now looking at new ways to cut down on costs while keeping their venues functional. Some are taking more extreme approaches than others.
Las Vegas Sands recently announced it is considering selling several of its major casino-resorts in Las Vegas. It’s a huge announcement. LVS currently controls some of the biggest gaming properties in the city including The Venetian.
Wynn Resorts has also been seeing drops in revenue throughout 2020. Not long ago, company officials announced that the Encore Las Vegas would be closing for three days a week moving forward. This is due to a drop in hotel visitors.
The casino industry remains in a tough spot. Based on Penn National Gaming’s revenue reports, it seems that the country’s online sports betting industry is still hugely profitable. We’ll continue offering more revenue reports over the next few weeks.
Are you surprised to see Penn National’s earnings in this year’s third quarter? When do you expect Las Vegas to recover? Let us know in the comments section below!