WASHINGTON - PENN Entertainment, Inc. (NASDAQ:PENN) has established a long-term partnership with Monumental Sports & Entertainment (MSE), securing online market access for its ESPN BET platform in Washington D.C. The agreement, pending regulatory approvals, also designates ESPN BET as a sports betting partner for MSE's professional sports teams, including the NHL's Washington Capitals, NBA's Washington Wizards, and WNBA's Washington Mystics.
The collaboration aims to enhance fan experiences by integrating ESPN BET into various aspects of the game environment. This includes in-arena and TV-visible signage, out-of-home advertising, and commercial segments on the Monumental Sports Network. Additionally, the partnership provides MSE with intellectual property rights for ESPN BET and Hollywood Casino (EPA:CASP) at Charles Town Races.
Jim Van Stone, President of Business Operations and Chief Commercial Officer at MSE, expressed excitement about the partnership, highlighting the innovative platform of ESPN BET as a means to offer fans unique experiences both in and outside the arenas. Aaron LaBerge, Chief Technology Officer of PENN Entertainment, echoed this sentiment, noting the alignment with D.C.'s passionate sports community.
Both organizations are committed to responsible gaming and support the American Gaming Association's "Have A Game Plan. Bet Responsibly." campaign. MSE has dedicated resources to promote responsible gaming, including media coverage and social media outreach. ESPN BET provides users with responsible gaming tools such as limits on time, deposits, and wagering amounts.
ESPN BET, operated by PENN Entertainment, combines the sports media reach of ESPN with PENN's in-house technology and sportsbook expertise. It is currently available in 19 states, offering a range of betting options for sports enthusiasts.
This partnership is based on a press release statement and marks a strategic move for PENN Entertainment to expand its presence and connect with sports fans in the Washington D.C. area. The deal's completion is subject to customary regulatory approvals. With a debt-to-equity ratio of 3.69 and negative free cash flow, InvestingPro subscribers can access detailed financial health metrics and 6 additional ProTips to better understand PENN's investment potential. The comprehensive Pro Research Report available on InvestingPro provides deep-dive analysis of PENN's financial position and growth prospects among 1,400+ top US stocks.
In other recent news, PENN Entertainment has seen a flurry of noteworthy developments. The company reported steady financial performance in its Q3 earnings call, with retail revenue touching $1.4 billion and adjusted EBITDA at $472 million, exceeding preliminary estimates. However, the Interactive segment reported adjusted revenue of $141 million with an EBITDA loss of $91 million. The company also launched its Hollywood Casino mobile application in Pennsylvania, featuring over 700 iCasino games and is planning to expand it to more jurisdictions in early 2025.
JPMorgan upgraded PENN Entertainment from Neutral to Overweight, setting a new price target at $27.00, based on anticipated growth from $850 million invested in four retail projects and expected improvements in the company's regional land-based casino cash flow. Additionally, the company secured favorable loan terms, reducing interest rates on its existing term loans, which could help in decreasing its debt and interest expenses.
BofA Securities initiated coverage on PENN Entertainment with a Neutral rating, predicting core regional EBITDA to be 3% lower than their previous predictions by 2025 due to increased supply and margin pressures. They also forecast an online segment loss of $146 million for the company. Lastly, PENN Entertainment has four growth projects in progress, including the Hollywood Joliet, scheduled to open in the second half of 2025. These recent developments reflect the company's ongoing efforts to innovate and expand its offerings.
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