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Penn National (PENN) Strengthens Partnership With Everi Holdings

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Penn National Gaming, Inc. (PENN - Free Report) recently strengthened its relationship with Everi Holdings Inc. (EVRI - Free Report) in an effort to utilize the latter’s digital CashClub Wallet technology to power Penn National’s new mychoice Wallet at Hollywood Casino York in Pennsylvania.

The new mychoice Wallet will provide Penn National's guests a secure, convenient cashless payment method on the casino floor. Everi Holdings has previously installed this facility at Hollywood Casino at Penn National Race Course and the Meadows Racetrack & Casino in Pennsylvania.

Todd George, executive vice president of operations at Penn National said, “The implementation of mychoice Wallet at our casino properties is an important step in our ongoing initiative to deploy a new generation of cashless, cardless and contactless technologies (the 3Cs) to improve guest service and operational efficiency.”

Increased Focus On 3Cs

Penn National continues to embrace the new generation of cordless, cashless and contactless technology, collectively known as 3Cs. Amid the ongoing pandemic, such initiatives are likely to improve efficiency and customer service, thereby boosting the top line. Going forward, the company plans to launch the 3Cs across its casinos in Pennsylvania. It plans to roll-out in other regions as well, subject to regulatory approvals.

During June 2021, the company successfully launched its 3C technology at Hollywood Casino at Penn National Race Course. This was followed by another implementation of 3C at the Meadows Casino in mid-July. The company’s Hollywood Casino York features 3C technology from the beginning. It expects to introduce 3Cs technology across the Penn enterprise by the next 12 to 18 months, subject to some regulatory approvals.

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Price Performance

Shares of Penn National have surged 39.5% in the past year compared with the industry’s growth of 23.5%. Most of the gaming companies are now banking on sports betting following its legalization outside Nevada. The company has announced historic strategic partnerships with DraftKings, PointsBet, theScore and The Stars Group. These partnerships will help the company to maximize sport betting and iGaming across 19 states.

Zacks Rank & Key Picks

Penn National currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same space include Boyd Gaming Corporation (BYD - Free Report) and Golden Entertainment, Inc. (GDEN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming has a three-five year earnings per share growth rate of 40.8%.

Golden Entertainment’s 2021 earnings are expected to soar 128%.

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