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PENN Entertainment, Inc. Reports Third Quarter Results and Announces Realignment of Digital Focus Following Termination of ESPN Alliance
WYOMISSING, Pa.--(BUSINESS WIRE)-- PENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq: PENN) today reported financial results for the three and nine
About this update from Penn Entertainment, Inc.
[{"type":"text","content":" WYOMISSING, Pa.--(BUSINESS WIRE)--\nPENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq: PENN) today reported financial results for the three and nine months ended September 30, 2025, and announced a realignment of its digital focus following the mutual decision for an early termination (the “Termination Agreement”) of its U.S. online sports betting (“OSB”) agreement with ESPN, Inc. (“ESPN”).\n\nPursuant to the agreed termination, the Company’s OSB marketing exclusivity with ESPN will end on December 1, 2025. Other key terms of the Termination Agreement are as follows:\n\n\nCash payments to ESPN terminate at the end of the fourth quarter in 2025;\n\n\nESPN will retain vested warrants to purchase 7,957,210 shares with a weighted strike price of $28.951;\n\n\nAll unvested warrants and performance warrants will be forfeited by ESPN; and\n\n\nPENN to rebrand OSB offering in the U.S. to theScore Bet, with a target date of December 1, 2025, subject to regulatory approvals.\n\n\nAs stated in the joint release issued this morning by PENN and ESPN, Jay Snowden, Chief Executive Officer and President, said: “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.\n\nSnowden added, “PENN’s unique omnichannel strategy is anchored in a diverse portfolio of market-leading regional casinos and a complementary digital business. We are realigning our digital focus to leverage the strength of our U.S. iCasino and Canadian operations, while continuing to use OSB to drive both the acquisition of customers with significant lifetime value and unique cross-sell opportunities across PENN’s retail and digital assets.\n\nRealignment of Digital Focus: Leverage Strength in U.S. iCasino and Canadian Operations with Emphasis on Omnichannel Benefits\n\n“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 Holly...