Penn Entertainment’s pivot towards online casinos seems to be paying off. Stifel has raised its price target on the company, commending Penn’s digital strategy. Analyst Jeffrey Stantial bumped the target price to $25 from $23 while keeping a buy rating after meetings with Penn’s leadership. The stock closed at $21.21 on Thursday, marking a more than 28% increase over the year. “We’re upbeat about the second half of 2026,” wrote Stantial, citing promising retail trends and Penn’s budding online casino strategy.
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Penn Moves Away from Sports Betting
About six months ago, Penn ended its collaboration with Disney on ESPN Bet, shifting focus to online casinos. Stantial noted that Penn’s digital arm remains on plan following the termination of the ESPN partnership. With this pivot, Penn’s sportsbook market share has slipped as promotional spending is reduced. Stifel noted that this was anticipated. Balanced performance from Penn’s Hollywood Casino app and effective customer acquisition are softening the blow. The analyst pointed out areas for cost reduction, including marketing, administration, payment processing, and geolocation.
Early Signs of Online Casino Success
Penn’s new direction is already showing results. In the first quarter, the company reported a staggering 362% growth in online casino revenue. It also slashed its digital adjusted EBITDA losses by $70 million compared to the previous year. And these results come after Penn’s costly efforts to capture the online sports betting market. After spending roughly $550 million to acquire Barstool Sports, the company sold it back to Dave Portnoy for just $1 in 2023. Barstool Sportsbook couldn’t capture major market share, hovering around 2% of the U.S. sports betting handle.
Looking Beyond Borders
Despite pulling back domestically, Penn isn’t out of the sports betting game. They’re continuing operations via theScore Bet in over 20 states and Canada, holding strong in Ontario. But penn is also set to launch in Alberta on July 13 when the province’s online casinos and sportsbooks go live. Industry watchers are keeping an eye on how these moves will play out for Penn. The anticipation now turns to mid-July for Alberta’s sportsbook and online casino launch. Penn’s entry into another Canadian province will likely mark the next chapter in its evolving strategy.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
