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Penn Entertainment Q3 revenue rises to $1.7bn, net loss hits $865.1m

The operator seems confident it can bounce back despite losing one of its most widely marketed brands, which has now partnered with DraftKings. How long until HG Vora has something to say on the matter?

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penn entertainment q3
Key Points
Revenue rose 4.8% to $1.7bn
$1.4bn of the revenue came from retail properties
ESPN Bet is set to rebrand as the contract has been terminated early

Penn Entertainment has released its Q3 figures for the period ending September 30 2025.

Total revenue rose 4.8% year-on-year to $1.7bn, which was comprised of $1.4m from retail properties and $297.7m from Penn's interactive segment.

Net loss increased by 2,207% to $865.1m, with $864.6m of this attributable to Penn Entertainment.

Operating loss was $776.4m this quarter, compared to a $67.5m income from the same period last year.

Consolidated Adjusted EBITDA grew 0.7% to $194.9m, with the Adjusted EBITDAR for the interactive segment totalling -$76.6m.

Speaking of which, perhaps the biggest development to come from this report was the news that Penn Entertainment and ESPN have terminated their US online sports betting (OSB) agreement early. With ESPN Bet biting the dust, ESPN has now partnered with DraftKings.

The deal is expected to formally end on 1 December, 2025.

However, Penn is not giving up on its interactive segment.

Penn will now focus its OSB efforts on theScore Bet, which has around four million monthly users across North America.

Jay Snowden, Penn CEO and President, said: "Penn's iCasino forward approach has clear long-term alignment to our core business, which will focus on cross-sell opportunities across our ecosystem and enhanced connectivity to our 33 million-member Penn Play™ loyalty program.

"Our OSB offerings will continue to provide top of funnel acquisition and cross-sell opportunities for our Hollywood-branded iCasino, which will remain integrated into our OSB product in states where legal, in addition to serving as a standalone iCasino app.

"We will operate with a more efficient cost structure, including replacing fixed media spending with performance-based and regionally targeted marketing that complement our casino footprint."

Penn also highlighted in the Q3 report that its average customer is now seven years younger than they were in 2019, with the average customer now aged 46.

Snowden continued: "Meanwhile, our North America iCasino business achieved its highest quarterly gaming revenue to date, an improvement of nearly 40% year-over-year, driven by record cross-sell from OSB of 62% and growth from our standalone Hollywood and theScore Bet iCasino apps.

"The momentum in our iCasino business continues to benefit from growing average MAUs, which experienced the third consecutive quarter of year-over-year and quarter-over-quarter increases."

Penn also opened its new Hollywood Casino Joliet property on 11 August, which has seen 15% database growth from new customers.

Interestingly, this has not cannibalized from Aurora, with this property also seeing a 5% growth in gaming visits since Joliet has opened.

Good to know

Penn Entertainment signed the $1.5bn ESPN Bet deal in 2023

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