Penn National’s successful year has ‘set the groundwork for future growth’

Penn National’s successful year has ‘set the groundwork for future growth’

Penn National Gaming has hailed a “solid conclusion to another revolutionary year,” in which the company asserts that the achievement of “many strategic objectives” has “laid the groundwork for future growth.” 

Penn National achieves several feats in 2021

The business attributes this growth to the conclusion of its acquisition of Score Media and Gaming, the continuous expansion of Penn Interactive’s operations, the launch of the fourth real-money casino in Pennsylvania, and the roll-out of new technology at multiple casinos.

Jay Snowden, president, and CEO of PNG lauded the company’s ability to “deliver impressive results despite the ongoing pandemic,” with Q4 revenue of $1.57 billion and adjusted EBITDAR of $480.5 million exceeding both the 2020 and 2019 targets of $1.02 billion and $365.4 million, respectively, and $1.34 billion and $199.4 million. Additionally, the casino and entertainment operator reported net profits of $44.8 million, up from $12.7 million in 2020 and a deficit of $92.9 million two years before.

Revenue of $5.9 billion through 2021 represents an increase from $3.57 billion in 2020 and $5.3 billion in 2019, respectively, with adjusted EBITDA of $1.99 billion (2020: $1.09 billion & 2019: $1.6 billion). On an interactive level, PNG asserts that a “disciplined marketing approach and increased scale” have “distinguished us from the competition” as the division posted a lower-than-expected EBITDA loss “despite launching sports betting operations in two new states (Iowa and West Virginia), icasino in West Virginia, and integrating theScore.”

In addition, it notes that recent temporary sportsbook debuts at its Louisiana locations resulted in a combined market share of 58% in the handle and 53% in gross gaming revenue in December 2021. Outside of Nevada, the business estimates that its total national share of the retail sports betting industry is around 12%.

Penn National already handles sports betting in 12 states and igaming in four states, and the company plans to expand its footprint in 2022 with projected debuts in Ontario, Ohio, and Maryland. Additionally, their icasino offering received several enhancements throughout the fourth quarter, including the launch of our first in-house designed games.

These enhancements contributed to the Barstool Casino’s consistent month-over-month growth in both handle and gross gaming revenue this fall. We are particularly happy with our in-house games, which have accounted for more than 20% of our handle in New Jersey since their inception.

Barstool Products 

The ability to leverage Penn Game Studios in the development of titles such as Barstool Blackjack and Barstool Slots enables us to offer bespoke online casino entertainment to the loyal Barstool audience that engages with us through our online sports betting offerings, while also reducing third party content fees. Additionally, the business reports “excellent property level performance” across all land-based divisions for the majority of the quarter, with some softness seen in late December as a result of Omicron, which the company claims alleviated in late January.

In November, the business began offering live sports betting at temporary locations throughout its five Louisiana properties as it expands its market-leading Barstool sportsbook concept at its trademark Lake Charles, Baton Rouge, and Bossier City facilities. Moreover, Penn National’s omnichannel strategy produced overall database growth of over 7% in 2021, with contributions from both its online and traditional assets, resulting in expanded marketing opportunities and a 23.5 percent year-over-year increase in our VIP segment in Q4 2019.

“We continue to be encouraged by the continued visitation of younger demographics and are focused on rethinking our locations and offers in order to increase the entertainment appeal to this constantly rising sector of consumers,” Snowden quoted.

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.