Penn National Gaming Inc

PENN Entertainment announced on August 17 that it plans to spend roughly $195 million tearing down one of its own casinos to build a new one next door, relocating the Boomtown Casino & Hotel New Orleans riverboat to a landside site in Jefferson Parish, Louisiana, where it will reopen as Hollywood Casino New Orleans. The project is PENN's fourth landside relocation, following Hollywood Casino Aurora and Hollywood Casino Joliet in Illinois, both of which opened in June 2026, with Hollywood Casino Council Bluffs in Iowa slated for 2028. The announcement followed strong second-quarter results reported on August 6, when PENN swung to net income of $32.6 million, reversing an $18.3 million loss a year earlier, while Consolidated Adjusted EBITDA climbed $52.5 million year over year to $312.6 million. The company retired the remaining $106.7 million of its 2.75% convertible notes in May, removing roughly 4.6 million potentially dilutive shares, and refinanced credit facilities to push maturities out to 2031 and 2033, with traditional net leverage improving from 4.5x to 2.9x. Hollywood Casino New Orleans is not scheduled to open until 2029 and still requires approvals from the Louisiana Gaming Control Board and the Jefferson Parish Council, while PENN carries $2.8 billion in traditional debt against $887.2 million in cash as of June 30 and its Interactive segment posted a $9.5 million Adjusted EBITDA deficit during the quarter.

A new report from ResearchAndMarkets.com forecasts the global gambling market will grow to $910.92 billion by 2035, after reaching $576.72 billion in 2025 and $728.19 billion by 2030. The market, which grew at a CAGR of 14.1% since 2020, is expected to expand at 4.8% from 2025 to 2030 and 4.6% thereafter. Lotteries were the largest segment in 2025, accounting for 59.1% of the market, or about $341.13 billion, while sports betting is projected to be the fastest-growing type through 2030. Offline gambling dominated channels with $412.86 billion, but online gambling is set to grow fastest at 6.8% CAGR. High-value and VIP gamblers formed the largest end-user segment at $246.7 billion, and Asia-Pacific led regions with $197.51 billion, with the Middle East and Asia-Pacific expected to be the fastest-growing regions.

Casino operators are redesigning their properties to look less like traditional casinos and attract Gen Z gamblers who prefer digital betting. Penn Entertainment spent $360 million to transform an old riverboat into the Hollywood Casino and Hotel Aurora near Chicago, featuring a sportsbook styled as a local watering hole, a food hall with street-style tacos, and local art. Steve Cohen's planned Hard Rock casino next to Citi Field in Queens will devote just 10% of its property to gaming, with 25 acres of public park space, athletic fields, and a live music venue. Gun Lake Casino Resort in western Michigan added a spa, pools, a swim-up bar, and a 16-story hotel last year. Many casinos have also banned or reduced indoor smoking, and non-gaming revenue has grown for operators like Penn.

PENN Entertainment opened its new $360 million Hollywood Casino and Hotel Aurora in Illinois and was moved from the Russell 1000 family of indices into the Russell 2000, Russell 2000 Value, and Russell 2000 Dynamic indices as part of the latest rebalancing. The Aurora opening exemplifies PENN's capital-intensive retail strategy, while the index shift ties its investment case more closely to whether new properties can offset legacy market pressures and fund its digital business ramp. Analysts project $8.1 billion revenue and $462.2 million earnings by 2029, requiring 4.7% yearly revenue growth and a roughly $1.42 billion earnings increase from the current -$957.2 million. Some cautious estimates assume only 3.4% annual revenue growth and 2029 earnings of about $337 million, highlighting divergent interpretations of the same developments.

Penn Entertainment shares have surged 48.3% year to date, and multiple tailwinds could extend those gains in the second half of 2026. The company’s regional casino business is showing resilience despite inflation, supported by recent property enhancements including a new hotel tower at Hollywood Casino Columbus and the debut of the Hollywood Casino and Hotel in Aurora, Illinois, a former riverboat now on land. Penn’s interactive unit is improving, with losses expected to narrow from $268 million in 2025 to just $20 million this year, as the company focuses on iGaming under the Hollywood brand in a cost-effective four-state strategy. Industry consolidation is also a positive, as buyout offers for Caesars and MGM imply Penn is undervalued, and a potential reduction in publicly traded casino stocks could increase investor focus on Penn, while possible asset sales by Caesars may create acquisition opportunities for Penn.

PENN Entertainment has officially opened its new Hollywood Casino and Hotel Aurora in Illinois. The $360 million state-of-the-art casino and hotel replaces a former riverboat property that operated on the Fox River since 1993. The facility features over 1,000 slot machines, more than 50 table games, a baccarat room, a retail sportsbook, celebrity-led dining, a 226-room hotel and wellness spa, and an event center. A ribbon-cutting ceremony with Illinois Gaming Board officials and state legislators preceded the public opening at 8:30 p.m. Central Time. The property is part of the PENN Play customer rewards program alongside nearby Hollywood Casino Joliet and Ameristar East Chicago.

A bullish thesis on PENN Entertainment, Inc. argues the company is well positioned to benefit from expanding legalized sports betting and online gaming in the United States. The company operates 43 casino properties across 20 states under brands like Hollywood Casino and Ameristar, while also owning ESPN BET and theScore, giving it a unique omnichannel platform. The thesis highlights that PENN's digital business is in early growth stages, with ESPN BET expanding into new jurisdictions and the interactive segment progressing toward profitability. Favorable regulatory trends and recent technical momentum with rising volume further support the investment case. As of June 15th, PENN shares traded at $21.84 with a forward P/E of 13.14.

PENN Entertainment shareholders have approved an advisory proposal to declassify the company's Board of Directors at the annual meeting held on June 16, according to UNITE HERE. This marks the second time a majority of shareholders have backed board declassification, following similar support in 2010. UNITE HERE Director of Gaming Industry Research Michael Hachey stated that shareholders want annual elections for all directors and urged the board to take necessary steps toward implementation. Derrick Wortes of Cora Strategies emphasized that investors expect real responsiveness rather than performative action. Annual director elections are widely seen as a cornerstone of effective corporate governance, providing a regular mechanism to hold directors accountable.