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Penn Entertainment, the parent company of theScore and Hollywood Casino, reported third-quarter profit, with online casinos and land-based retail projects boosting financial performance.
The company’s interactive division, which includes its online casino and online sports betting operations, narrowed its third-quarter adjusted EBITDA loss by 76.1% to $18.3 million.
“2027 will be profitable for the year,” CEO and President Jay Snowden said in the company’s earnings call. “You can take that to the bank. Q4 this year will be profitable. We were in October and actually a little ahead of where we expected to be, so we’re feeling really good about that.”
Key financial highlights from the third quarter:
- Consolidated net income reached $32.6 million, a reversal of a $865.1 million net loss in the third quarter of 2025.
- Consolidated Adjusted EBITDA rose 45.7% year-over-year to $284 million.
- Total revenue increased 7.1% to $1.84 billion.
- Retail revenue reached a third-quarter record of $1.49 billion, a 5% year-over-year increase, and same-store retail revenue rose approximately 1%.
Interactive division nears profitability
Penn’s online casino revenue increased 6.4% year-over-year to $76.3 million, while online sportsbook revenue was down 12.7% year-over-year to $50.3 million.
“U.S. iCasino revenue growth was driven by the strength of our standalone Hollywood iCasino app, which is supported by efficient user acquisition and targeted reinvestment,” Snowden said.
In the division, average monthly active users decreased 20.3% year-over-year to 407,000. However, the average revenue per monthly active user rose to $104, up 22.8%.
Canada shows growth in iGaming
The company saw year-over-year online casino growth in Ontario and continued month-over-month user and volume gains in Alberta following July’s launch.
“In Ontario, increased users and revenue per user contributed to revenue growth across both iCasino and online sports betting as we continue to reinvest in one of our most attractive jurisdictions,” Snowden said.
He noted that Penn’s Alberta launch is already nearing the low-double-digit online sportsbook market share the company holds in Ontario, while its online casino business is further stabilizing the digital division.
Staying away from prediction markets
During the earnings call, Chief Technology and Product Officer Aaron LaBerge responded to a question about possible effects of prediction markets on customer acquisition and retention.
LaBerge said the company has seen “nothing material” regarding impact because its domestic spending is concentrated on the online casino market.
“If you look at our investment strategy, we’re really focusing on iCasino in the U.S. because it is challenging on the acquisition side for sports and noisy,” LaBerge said. “But we’re seeing a lot of growth on the casino side and in Canada, so that’s where most of our investment is. So, we’re not getting sucked into the noise of prediction markets.”
