Penn National Gaming’s Revenue Figures Have Been Released

Penn National Gaming

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!

Barstool Sportsbook App Makes A Splash in Pennsylvania Launch

Icon Displaying Variety of Sports, Hand Holding Cash
Penn National Gaming’s Barstool Sportsbook app shattered download marks by DraftKings and FanDuel over the weekend. The much-publicized sports betting app created by Penn National and Barstool Sports had a three-day soft launch in Pennsylvania last week before going live during the weekend. Preliminary data on Pennsylvania sports betting were very impressive.

Better Opening Numbers Than FanDuel and DraftKings

According to market intelligence firm Sensor Tower, the Barstool Sportsbook app was downloaded 63,000 times during the weekend or an average of 21,000 downloads per day. The numbers are significantly higher than the 4,000 downloads that DraftKings got during its first weekend in 2018 and its single-day high of 15,000 downloads during the opening of the NFL earlier this month.

Similarly, the Barstool Sportsbook app’s weekend numbers topped FanDuel’s inaugural weekend total of 9,000 downloads during the opening weekend of the 2018 NFL season. FanDuel established a single-day high of 19,000 downloads last September 13 as the NFL’s 2020 season opened but Barstool’s 21K downloads per day last weekend was still better.

Expanding The Industry

Per Morgan Stanley analyst Thomas Allen, the app’s downloads started out “extremely strong” yet the download numbers for its competitors didn’t seem to slow “meaningfully”. That bodes well for Pennsylvania sports betting as Allen notes that the Barstool Sportsbook app isn’t “cannibalizing” the industry but merely expanding it.

Allen downgraded Penn National and DraftKings last month from overweight to “equal-weight”. The Morgan Stanley analyst cited valuation as the reason for the downgrade with both stocks going sky-high this year. DaftKings went public last April and as of Monday’s closing, the stock had risen 194% since then. Meanwhile, Penn Gaming had a gain of 416% during the same period.

Too Early To Tell

Obviously, it’s too early too tell whether Penn Gaming’s new app will become a national force. Sure, Pennsylvania sports betting is a major wagering market but it is only one state. Penn Gaming plans to launch in several states in the first quarter of 2021. DraftKings and FanDuel are etched in the other states as well with other major competitors like BetMGM, William Hill, FoxBet, and PointsBet contending for market shares as well.

Barstool’s launch was well-timed and it debuted in a mature betting market. On the other hand, DraftKings and FanDuel launched without the same fanfare and before the U.S. Supreme Court thrashed the Professional and Amateur Sports Protection Act of 1992. Despite these apples to oranges comparison, there is no question that the Barstool Sportsbook app made a splash during its opening weekend.

Penn National Gaming Still Looking to Sell LV Tropicana

Penn National Gaming is one of the country’s biggest and most successful casino operators. The company has made headlines recently for some of its major deals and acquisitions. This week, officials within Penn Gaming announced they’re still looking to sell LV Tropicana.Tropicana Las Vegas Casino Logo

The sale of this casino-resort has been discussed for years. It’s a popular venue off the Strip and is likely to fetch a high price. Today, we’re going to look at some of the Tropicana’s recent deals and talk about when the company is looking to sell this property in Las Vegas.

Penn Gaming Purchases 36% Stake in Barstool Sports

There’s a good chance you’ve seen Penn National Gaming’s name in the headlines recently. Recently, this company paid $136 million for a 36% stake in sports blog Barstool Sports. With this investment, Barstool is now valued at an incredible $450 million.

The decision to work with this company makes sense for Penn National Gaming. Barstool Sports has one of the largest social media followings in the country. Most feel that the deal will help to bring significantly more people to Penn Gaming’s casinos.

Ron Baron, a billionaire investor in New York, believes this deal will prove extremely valuable for the casino company.

“Not only are they going to make a lot of money on this investment for this $150 million and buy the rest of it out from the founder, but also it’s going to increase the traffic in their casinos,” Baron said. “It’s going to be worth a ton.”

It’s clear that Penn National Gaming is looking to expand. Interestingly, the company wants to start generating more revenue from property sales. As a result, officials are now looking to sell the LV Tropicana. Based on several reports, this sale will take place sometime in 2020.

The Push to Sell the LV Tropicana Continues

The Tropicana Hotel-Casino in Las Vegas is one of the city’s most popular venues not located off the Strip. It opened to the public all the way back in 1962. Since that time, it’s changed ownership hands several times.

Several major renovations have also been made to this property. In 1986, the owners built a new 21-story Island Tower here. In 2007, a massive $2 billion expansion project was planned. Due to the financial crisis, these plans were eventually scrapped.

In 2015, Penn National Gaming purchased this property for $360 million. The company has worked hard to make this a more popular with locals and tourists. Unfortunately, it appears the revenue generated from this hotel-casino is not as high as initially projected.

As a result, Penn National Gaming is looking to sell LV Tropicana. Jay Snowden, CEO of Penn Gaming, told the media that several offers for this venue have already been presented.

“On the Tropicana side, there’s been so much unsolicited interest that it’s just very active,” he said. “We got another call two days ago with interest in potentially acquiring some or all of the land holdings there. It’s very active.”

Snowden claims this sale is a real priority for the company. Competition in the US casino industry continues to grow. Let’s take a look at how Penn Gaming performed last year.

Penn National Gaming’s 2019 Revenue Figures Are Released

The US casino industry is in an interesting place. More states have recently begun to expand their laws to allow more casino gambling options. As a result, many companies are beginning to earn significantly more revenue.

On the other hand, competition is growing in this industry, too. Some of the biggest companies are controlling much of the market. Penn Gaming’s investment into Barstool Sports was expected to help with this issue.

Unfortunately, the company recently reported revenue losses in 2019’s fourth quarter. The company posted revenue of $1.34 billion last quarter. This is significantly less than analysts initially projected.

This isn’t something to be concerned about, though. Most feel that this company’s share prices will continue to rise throughout 2020. Once the company is able to sell LV Tropicana, these shares will increase significantly.

It’s an exciting time for Penn Gaming and the US casino industry as a whole. Stay tuned for more casino news over the next few months!