PENN Entertainment recently held its Q2 2026 earnings call, where the company outlined its commitment to enhancing its online casino initiatives. The discussion emphasized plans to further develop its online casino business as the company solidifies its presence in North America's gaming market, following the conclusion of a $1.5 billion deal to operate ESPN Bet.
During the call, CFO Felicia Hendrix reported, "On the revenue side, we experienced solid growth across our key focus areas: U.S. iCasino and our Canadian operations."
PENN is witnessing growth in its iCasino sector, mainly due to the introduction of standalone wagering applications. The latest additions to this segment are three standalone apps launched in Alberta: theScore Bet Sportsbook & Casino, Hollywood Casino, and theScore Casino.
CEO Jay Snowden noted, "We’re seeing strong growth on our standalone casino products, and we have since we launched. We still feel really good about our standalone business and casino through the end of the year."
Executives also highlighted the company's sports betting performance, pointing out opportunities for growth in that area, particularly following their split with ESPN. The strategy includes cross-promoting its iCasino and sports betting services. Chief Technology Officer Aaron LaBerge shared insights about theScore brand's loyal customer base, stating, "As our audience normalizes, what we’ve realized is theScore brand, while still small and growing in the U.S., is very loyal, and so we’re taking care of those users. We saw a lot of engagement and reactivation through the World Cup. We’re keeping those people engaged through football, so we feel good there. Cross-sells should continue as the sportsbook business grows as well."
PENN's overall revenue for Q2 2026 amounted to $1.8 billion, a slight increase from $1.7 billion in the same quarter the previous year. The retail segment contributed significantly, generating $1.5 billion. Meanwhile, the interactive sector made $349.4 million in revenue, with theScore Bet and theScore Casino at its core, as well as the online Hollywood Casino operations. Snowden remarked, "Our U.S. Hollywood-branded standalone casino app generated quarter-over-quarter as well as year-over-year growth, achieving record revenues in Q2."
The interactive segment faced challenges due to favorable outcomes for customers in the online sportsbook realm, particularly observed in June during the NBA Finals and World Cup. PENN revealed that around 70% of its sportsbook customers placed World Cup bets, with about 45% doing so for the first time.
Ontario remains PENN's largest online sports betting market, while Pennsylvania stands out as its most profitable territory for online casino operations.
In terms of profitability, PENN reported a consolidated adjusted EBITDA of $312.6 million for Q2 2026, up from $236 million in Q2 2025. The company achieved a net income of $32.6 million, a significant recovery from a net loss of $18.3 million the previous year.
Looking ahead, PENN projected full-year revenue for its interactive segment at $1.5 billion, adjusted from the previous estimate of $1.6 billion. This adjustment follows the company's recent entry into Alberta’s commercial gaming market, where it launched sports betting and online casino products. However, despite growth prospects, PENN anticipates reporting losses in the third quarter due to this expansion. Hendrix explained, "As we have guided previously, the third quarter is expected to be the largest quarterly loss of the year given our investment in Alberta."
The company also anticipates fierce competition in the upcoming North American football season, with significant marketing efforts geared toward customer acquisition. Snowden stated, "You’re going to have prediction markets that are targeting customers for the first football season ever, given the timeline of when they actually went live, which was close to the Super Bowl last year. We already assumed it was going to be a very aggressive, irrational marketing spend for advertising and new customer acquisition approach this football season.
