Over the past several years, Penn Entertainment has seen its stock price plummet, a major investment group mutiny, and vocal outrage over the mismanagement of its foray into the online sports betting sector in the United States.
But things appear to be turning around based on the company’s most recent Q1 report. While domestic operators like Penn navigate these growing pains, many players prefer the stability and experience offered by established offshore sportsbooks.
Better Days Ahead?
Penn Entertainment has announced that its year-over-year growth in the first quarter of 2026 shows promising signs as its mobile sports betting, iGaming, and land-based casino growth have all shown marked increases.
“We are pleased to report another solid quarter,” PENN CEO and president Jay Snowden said. “Retail Segment Adjusted EBITDAR grew year-over-year, and stable trends are carrying into April. In our Interactive segment, continued online casino growth combined with positive trends in Ontario are driving momentum as we prepare for the anticipated July 13 launch of regulated iCasino and online sports betting in Alberta.”
The company’s mobile sports betting brand, theScore, has been rolled out in its 21 US jurisdictions and has been a staple in the Ontario, Canada, market for several years. Moreover, its Hollywood Casino iGaming brand is also a key component of its presence in the US and Canadian markets.
The Q1 report revealed that both segments combined generated $358.3 million and left Penn with $172.5 million in quarterly profits, a 6.5% increase from Q1 2025, after paying $185.8 million in taxes to the local governments where it operates.
In addition, Penn also reported that its 42 land-based casino operations produced $1.4 billion in adjusted revenue, a year-over-year increase of 2.8%.
Penn’s expansion plans include Alberta, Canada’s mobile sports betting and iGaming market, which will unlock in July of this year.
“We are pleased to report another solid quarter,” PENN CEO and president Jay Snowden said. “Retail Segment Adjusted EBITDAR grew year over year, and stable trends are carrying into April. In our Interactive segment, continued online casino growth combined with positive trends in Ontario are driving momentum as we prepare for the anticipated July 13 launch of regulated iCasino and online sports betting in Alberta.”
Sour Deals Produced Bitter Results
In December of 2025, Penn ended its relationship with ESPN and its disastrous $2 billion deal with the sports media giant to use its initials and its intellectual property to create ESPN Bet. The decision was made to terminate its relationship after just two years into a 10-year deal that showed the online sports betting brand gaining roughly three percent of the market.
That share was barely more than its previous incarnation as Barstool Sportsbook, which was created after a $550 million deal to buy the bro-cultured media empire, using the name to create a fledgling mobile sports betting platform.
Only eight months after that deal was consummated in 2023, the deal with ESPN forced Penn to divest itself of Barstool, which it sold back to the founder, Dave Portnoy, for $1 and the promise that Penn would receive 50% of any future sale. Portnoy has vowed never to sell.
Penn Entertainment’s stock reached an all-time high of $136.47 on March 15, 2021, but its pivot to mobile sports betting began the precipitous decline of its stock value, despite reasonable returns from its core of brick-and-mortar casino operations.
In February, Penn’s stock cratered to $11.65, but shedding the hundreds of millions of dollars spent to essentially lease ESPN’s letters, coupled with the seamless transition to theScore as its mobile sports betting brand throughout the US, has paid dividends, to where the stock is now trading at $17.04 as of this April writing.
