Penn Entertainment‘s stock rose by over 11% following the company’s Q1 results published last week. The company saw its online casino sector contribute significant growth, and is focusing on using its land-based properties to promote its digital sector.
Retail still accounts for the majority of revenue, with the company’s 42 properties across 19 states generating $1.4 billion, a 2.8% increase from Q1 2025. Of those properties, 30 are located in states that have either online sports betting or iGaming.
When reporting the results, CEO Jay Snowden said he hopes for the company’s digital sector to become profitable by the end of the year.
Online Casinos Achieve Record Revenues
The interactive segment generated $172.5 million, up from $161.9 million a year ago. Online casinos were the main driver of growth, with revenue increasing 15% from Q1 2025.
Snowden said that Hollywood Casino‘s standalone app has “really good momentum.” Penn launched the platform in Pennsylvania in December 2024, before expanding to Michigan. It is using its Hollywood Casino retail locations in the states to promote the brand.
Converting existing casino customers and retail sports bettors into online casino players is a central strategy. Snowden said 60% of its online casino customers were originally sports betting users.
New Casino Developments Proving Successful
Hollywood Casino is also opening a new property in Aurora in June this year. The company upgraded its Hollywood Joilet location from a riverboat casino to a full-scale casino resort last year. The new location achieved record revenues in Q1.
Snowden said the company remains “excited about the anticipated returns on our development project investments based on the success to date from our recent openings at Hollywood Casino Joliet and M Resort.”
M Resort Hotel Tower opened at its Nevada property in December, completing a $206 million expansion project. Like the Joilet casino, it achieved record revenues this quarter.
theScore Targets Alberta Launch
In Canada, theScore is the company’s flagship brand, and since the end of ESPN Bet, it has also expanded its presence in the US again.
Alberta will launch its regulated gambling market later this year, and the company hopes to capture a substantial share.
“Look, we’ve launched in Ontario and enjoy a very nice market share there today,” Chief Technology Officer Aaron LaBerge stated. “It’s a big part of our gaming business, and we expect to see similar market share there based on the investments we’re going to make.”
The company said it is investing around $20 million in customer acquisition. With a simplified strategy, PENN’s stock price now sits at $17.24, back to the level it was at in October last year.
It still has a long way to go to recover the billions of dollars invested in Barstool Sports and ESPN Bet, but there are signs that it is now on the right track.
