Penn National Gaming, Inc. ( PENN Quick Quote PENN - Free Report) recently announced plans for the opening of Barstool sportsbook at Greektown Casino Hotel and rebranded Barstool sportsbook at Hollywood Casino Lawrenceburg on Dec 23, 2020. It also expects to open Barstool sportsbook at Ameristar East Chicago Casino & Hotel on Dec 24. However, the openings are subject to final regulatory approvals. Notably, the Sportsbook comprises sports viewing area, redesigned dining space, betting counter (featuring large odds boards), numerous sports betting kiosks and ticket writer stations to support multiple sports wagering options. It also allows customers to earn tier points and mycash using the company’s myChoice loyalty program. In this regard, Rafael Verde, senior vice president of Regional Operations for Penn National, stated, “The new designs incorporate the spirit of the Barstool Sports brand, resulting in unique sports wagering and dining experiences that we expect our customers will thoroughly enjoy.” Increased Focus on Barstool Sports Partnership
In February 2020, Penn National had reached an agreement to acquire 36% interest in Barstool Sports for nearly $163 million. Per the agreement, Penn National will be Barstool Sports, a leading digital sports media company’s gaming partner. Moreover, the partnership provides Penn National with access to a database of 66 million sports enthusiasts (or Barstool loyalist), out of which 60% are into sports betting while the remaining are avid betters.
During third-quarter 2020, the company unveiled Barstool Sports online sports betting app in Pennsylvania. Within the first two weeks of launch, the company acquired a significant number of new customers on the back of higher promotional allowances. Going forward, the company plans to launch standalone Barstool branded entertainment destinations, thereby acting as a virtual sports books where sports betting is allowed. It also plans to launch Barstool Sportsbook app and new iCasino products in Michigan, pending final regulatory approval. Price Performance
Coming to price performance, shares of Penn National have surged 274.5% so far this year, compared with the
industry’s 6.9% growth. The outperformance can be primarily attributed to the company’s expansion initiatives and cost-saving efforts. Going forward, the company remains confident about its long-term prospects on the back of its differentiated omni-channel approach. Also, partnership with Barstool Sports is likely to drive revenues during the upcoming periods. Meanwhile, earnings estimates for 2021 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential. However, the coronvirus pandemic has dramatically reduced travel and demand for casino gaming and related amenities. If the virus is not contained, further chances of temporary suspension of operations cannot be ruled out. Penn National— which shares space with Caesars Entertainment Corporation ( CZR Quick Quote CZR - Free Report) , MGM Resorts International ( MGM Quick Quote MGM - Free Report) and Red Rock Resorts, Inc. ( RRR Quick Quote RRR - Free Report) in the Zacks Gaming industry — has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. More Stock News: This Is Bigger than the iPhone!
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