Penn National triples casino profit, hails Barstool betting ‘success story’

Casino operator Penn National Gaming (PNG) saw its profit more than triple in the third quarter, while hailing its new Barstool Sports betting product as a customer acquisition machine.

Figures released Thursday show PNG generated revenue of $1.13b in the three months ending September 30, down 16.6% from the same period last year. However, in what’s becoming a pattern with US regional casino operators, PNG’s adjusted earnings gained 10.2% to $343.6m while net income more than tripled to $141.2m.

All of PNG’s geographic casino segments posted negative revenue growth in Q3, led by the Northeast ($545m, -13.3%), South ($255.6m, -7.2%), Midwest ($229m, -17%) and West ($78.7m, -51.2%). But only the West segment posted negative earnings growth, while the Northeast and South segments were up 8.3% and 35%, respectively.

The lone revenue gainer was PNG’s ‘other’ grouping, which includes its nascent sports betting, online gambling and social gaming operations. ‘Other’ revenue nearly doubled year-on-year to $23.7m while the segment cut its net earnings loss to $14.6m from a $25m loss in Q3 2019.