Sports wagering and igaming launches drive Penn National's expansion
Penn National Gaming has reported across the board increases for the year’s third quarter, primarily driven by continued igaming and sports betting expansions across the US.
As revenue jumped 71.5 per cent to $1.35bn (2018: $789.7m), the Wyomissing, Pennsylvania, headquartered firm has lauded a plethora of partnership and launches as a key component to continued success.
Timothy Wilmott, CEO of Penn National, explained: “In the third quarter, we continued to expand our sports betting operations with the opening of a retail sportsbook at Ameristar Casino Council Bluffs in Iowa and two retail sports books in Indiana, one at Hollywood Casino Lawrenceburg and one at Ameristar Casino East Chicago.
“Earlier this month we also opened our retail sports book at the Meadows Casino near Pittsburgh, Pennsylvania. One of our skin partners has also recently launched online sports betting operations in West Virginia and Indiana and should be live in Pennsylvania soon.
“Separately, we were very excited to launch our real money igaming platform in Pennsylvania. We are very encouraged by early market share results from these operations and are excited about the new growth opportunity.
“The combination of our greater than 5m active mychoice player database and our industry leading regional casino footprint positions us well to capitalise on the rapidly expanding sports betting and igaming markets in a way that maximises shareholder value.”
Net income during the third quarter came in at 43.7m, 21 per cent up from $36.1m, with adjusted EBITDA rising 35.6 per cent from $229.7m to $311.6m.
It was said that the results “ reflect the consistency of the consumer” during the last year, with strong performances across the west and south segments offsetting the impacts of increased competition in the northeast.
Remaining on course to achieve a two-year $120m cost synergy target by the end of 2020 as a result of the $2.8bn Pinnacle Entertainment acquisition, Penn also delivered an update on its two Pennsylvania category four casino projects.
“Our development projects in Pennsylvania, the $120m Hollywood Casino York and the $111m Hollywood Casino Morgantown (both inclusive of the gaming license fees), remain on track,” said Wilmott.
“Construction of the Morgantown project is well underway, and we expect to commence construction activities at the York site soon. We anticipate approval from the Pennsylvania Gaming Control Board for our York project in November. Both facilities are scheduled to open in the fourth quarter of 2020.”