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!

Penn National Gaming Completes Sale of the Las Vegas Tropicana

Despite Carolyn Goodman’s best efforts, Las Vegas remains shut down. Interestingly, property sales are still taking place in this city. News is now coming out the Penn National Gaming has officially completed the sale of the Las Vegas Tropicana.

Tropicana Las Vegas

It’s big news for the Pennsylvania-based gaming company. Today, we’re going to look at the details of this major casino sale. We’ll also check out some of the other venues in Las Vegas that are scheduled to open soon.

Let’s get into it!

Las Vegas Casino Officials Call for Restrictions to be Lifted

Things are still very tough in Las Vegas. Back in March, Governor Steve Sisolak began ordering all non-essential businesses in the state to close their doors. This includes casinos. As a result of these regulations, Las Vegas is at a standstill.

None of the casinos in this city are able to operate right now. Many of them are losing millions of dollars every single day. The closing of these casinos has also caused the tourism industry in Las Vegas to completely shut down.

It was unclear how much of an issue this would become. Some analysts predicted these regulations would only be in place for a few weeks. It’s been more than a month since casinos in the state were closed down, however, and Governor Sisolak seems unwilling to make any changes.

Some major casino officials are now voicing their opinions. Last week, Wynn Resorts CEO Matt Maddox gave some ideas for how casinos in Las Vegas can reopen. This includes implementing social distancing measures in casinos and requiring table dealers to wear masks.

No one really knows how long the regulations in Nevada will last. It’s clear that many companies are suffering, yet state officials are trying to avoid a major loss of life. Even with the regulations set in place, some companies are still managing to acquire new properties in Las Vegas.

Penn National Gaming Has Sold Las Vegas Tropicana

Penn National Gaming purchased the Las Vegas Tropicana Hotel & Casino back in 2015. As the coronavirus began affecting Las Vegas, company officials began discussing plans to sell this venue. In late March, Penn Gaming announced it had reached a new agreement with Gaming & Leisure Properties, the landlord of this property.

Under the agreement, Penn National Gaming will sell this venue for $337.5 million worth of rent credits. The company is looking for ways to cut down on costs while the current regulations are in place.

This week, this property sale was finalized. Gaming & Leisure Properties now owns the land this historic hotel-casino sits on. Penn National Gaming CEO Jay Snowden commented on the company’s plans to the media this week.

“We believe that these collective steps will allow us to successfully weather the state-mandated closures related to the COVID-19 crisis,” Snowden said.

It’s not much of a surprise. Penn National Gaming is looking for ways to save money after investing hundreds of millions into Barstool Sports. Hopefully, this new strategy is able to help the company through this crisis.

Construction Continues on Las Vegas Casino-Resorts

It’s been more than a month since all of the casinos in Nevada were forced to close down. As we’ve already mentioned, this is costing many companies millions of dollars. Unless things change quickly, some of the casinos in this state may be forced to permanently close their doors.

To the surprise of many, construction has been allowed to continue on several major casino-resorts. This includes work on Resorts World Las Vegas. This is the most expensive casino-resort ever built and many expect it to be the most impressive venue ever built in Las Vegas.

Some of these construction projects are facing difficulties, though. A recent report claims that a builder at Circa Las Vegas recently tested positive for the new coronavirus. As a result, owners of this venue are setting new guidelines for construction workers.

It’s unclear if any new work will be done on the Las Vegas Tropicana. Most feel it’s unlikely under the current regulatory situation.

Some experts claim that more major property sales are likely to take place over the next few months.

Are you surprised to see Penn National Gaming sell the Las Vegas Tropicana? Let us know in the comments section below.

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!

Penn National Gaming, Owner of Tropicana, Buys Stake in Barstool Sports

Cartoon Hands ShakingPenn National Gaming, a regional gambling operator which owns the Tropicana Casino in Las Vegas, announced on Wednesday that it has bought a minority stake in Barstool Sports, the digital sports, entertainment and media platform.

With the $163 million deal, Penn National Gaming hopes it will put them in a prime position to compete in the growing sports-betting market in the US. Barstool, known for its roots as a Boston sports blog founded in 2003, is valued at a whopping $450 million.

When considering the deal, Barstool Sports will become a private gaming partner for Penn National. This deal could be active for up to 40 years and will give them the exclusive right to use the Barstool brand, whether that’s for online betting or retail products.

Penn National expects to close the deal in the first quarter of 2020, according to a company press release.

“With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National,” Jay Snowden, president and CEO of Penn National, said in a statement.

Increased Company Value Over Time

Initially, the deal will grant Penn National a 36% stake in Barstool Sports, however, that number will increase to around 50% in three years, with an additional investment of $62 million. Initially, Penn National will also receive two seats on Barstool Sports’ board of directors. Penn will receive other forms of executive control as well.

“Penn National Gaming has one of the biggest infrastructures in the country for gambling. They have sports tracks, they have casinos, they’re all over the country. They have the infrastructure, we have this rabid audience, this fan base craving it. Together, we’re going to create an omnipresent approach to gambling,” David Portnoy, president and founder of Barstool Sports, said in statement on Twitter.

Existing Deal Has Supreme Court Ruling to Thank

This deal never would have come to fruition if it weren’t for a key Supreme Court decision that occurred in May of 2018. On a federal level, the court ruling legalized sports gambling in the US. Now, individual states have the ability fo decide if they want to approve the legalization of sports betting and the terms that come along with it.

Since then, there’s been a rush by both media companies and the gambling industry to capitalize on what they both assume will be a boom in online betting. At the time of writing, the primary leaders of this movement are DraftKings and FanDuel. While they were operating as “daily fantasy” sports games, the two organizations spent a lot of money on marketing the activity and are now at the forefront of online and mobile sports betting within the United States.

The daily fantasy bubble quickly deflated, but the investment those companies made exposing themselves to a young audience seems to have paid off. The two companies are now surpassing the older, more established gambling institutions where online sports betting is legal.

Future Plans

Penn National, which runs or owns dozens of low-profile casinos and hotels around the US (Tropicana in Las Vegas being its most well-known property), believes that Barstool will be critical in attracting consumers to its casinos. The brand is also planning to launch an online betting app and bring in more traffic through these accessible means.

The head of Penn Interactive, Jon Kaplowitz, has high hopes for the Bartool Sportsbook brand. On behalf of his company, Kaplowitz states they’re looking forward to introducing 20 million customers to the new brand, through their retail sportsbooks and interactive products. In a statement, he said:

“Our growing team of product and engineering talent at Penn Interactive is focused on what we anticipate will be a best-in-class sports betting app, which is expected to launch in the third quarter of 2020.”

A person briefed on Barstool’s business estimates the company generated between $90 million and $100 million in revenue last year, with the majority coming from podcasts, merchandise sales, and gambling deals. Under the new agreement, Penn National Gaming’s revenue is projected to grow rapidly.

Rumors of a Las Vegas Tropicana Sale Are Circulating

Over the past year, several of the biggest and most popular hotel-casinos in Las Vegas have been sold. Many companies are now focused on selling properties and reinvesting the money earned into new properties domestically and abroad. This week, rumors of a Las Vegas Tropicana sale began to circulate.

Tropicana Las Vegas

As of now, these are still just rumors. Penn National Gaming, which owns the hotel-casino, has not officially confirmed this sale. Today, we’re going to talk about the history of this popular venue, and why it could soon be sold.

Let’s get into it!

History of the Tropicana Las Vegas Hotel & Casino

For decades, the Tropicana in Las Vegas has been a popular venue for tourists looking to save a little money. Its prices are fantastic, yet the hotel still offers a fantastic casino floor and some solid amenities. It’s impressive, considering it’s been around since 1957.

Back in 1955, Ben Jaffe came up with plans to open a new venue on the Las Vegas Strip. Before long, construction began on this venue and in 1957, it officially opened up. Over the first few years of opening, this property changed hands several times. Las Vegas city officials raised concerns that the owners had ties to organized crime.

By the 1970s, the Tropicana Las Vegas was struggling financially. Major hotel-casinos such as Caesars Palace were attracting the majority of visitors. By 1978, mob activities once again took over Tropicana.

Columbia Sussex acquired Aztar, which owned Tropicana Las Vegas, in 2007. The company then announced a massive $2 billion renovation which was scheduled to be completed in 2010. The financial crisis eventually put a hold on these plans.

In August of 2015, Penn National Gaming purchased this hotel-casino for $360 million. Hope was that this company could finally turn things around. It now appears another sale is on the horizon. Rumors of a Las Vegas Tropicana sale have been circulating for the past few days.

Is the Las Vegas Tropicana Sale Taking Place in 2020?

This isn’t the first time people have speculated about a Las Vegas Tropicana sale. This hotel-casino continues to struggle against some of the other, larger venues in the city. Rumors of this sale first appeared back in October.

This week, Vital Vegas announced that the sale was nearing completion. Officials within Penn National Gaming refused to comment on the rumors. Nevertheless, many are claiming that this sale will be completed sometime in 2020.

If this sale is completed, it will be the first Las Vegas Strip venue sale of 2020. As we already mentioned, Penn National acquired the property in 2015 for $360 million. Analysts claim that the company could earn $700 million from a Las Vegas Tropicana sale.

It’s still unclear which company will purchase this venue. Several major companies have expressed interest in acquiring a Las Vegas Strip property.

Penn National Gaming is still dealing with billions of dollars in liabilities. Selling the Tropicana could help to put a serious dent in this debt. We’ll need to wait and see whether or not the company decides to officially put this venue on the market.

More Las Vegas Strip Properties Are Coming in 2020

The Las Vegas Tropicana sale seems highly likely for 2020. This is probably not going to be the only Las Vegas Strip sale taking place this year. Based on the way things have been going, there will be several more of these sales that take place in 2020.

MGM Resorts International is still considering more property sales. Last year, this company sold both Circus Circus and The Bellagio. The latter earned the company $4.2 billion, making it the largest hotel-casino sale in Las Vegas history.

Officials within MGM Resorts claim they are interested in putting more of their major venues up for sale soon. This company is focused hard on breaking into Japan. In order to do this, the company needs capital and property sales are the best way to acquire the money.

The Las Vegas Strip is changing fast. Over the next few years, several brand new hotel-casinos will open here. It’s an exciting time for locals and tourists in the city.

Stay tuned for more Las Vegas casino news over the next few months!