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PENN Entertainment: The Joliet Water-to-Land Play—Could It Become a Capital Allocation Home Run?

PENN Entertainment’s recent earnings call highlighted several significant developments and shifts in strategy. The company, led by CEO Jay Snowden, announced the early termination of its exclusive online sports betting partnership with ESPN, effective December 1. From a strategic standpoint, this move allows PENN Entertainment to realign its focus on its digital assets, especially in Canada, and its Hollywood iCasino offerings in the U.S. The shift suggests a prioritization of cross-selling opportunities and the leveraging of PENN’s significant retail casino business, supported by a customer database of over 33 million. One notable change involves the rebranding and transitioning of the U.S. and Canadian online sports betting brands to theScore Bet, which has shown strong performance in Ontario, one of North America’s most competitive online markets.