PENN Entertainment (PENN) Is Down 11.1% After Early End to ESPN BET Partnership – What's Changed

• On November 6, 2025, PENN Entertainment, Inc. and ESPN, Inc. jointly announced the early termination of their exclusive U.S. online sports betting agreement, which will end on December 1, 2025, three years into its original 10-year term.
• This mutual decision follows a period in which PENN was paying ESPN US$150 million annually and offering warrants in exchange for the ESPN BET brand and marketing rights, signaling a major shift in PENN's digital strategy.
• We'll examine how the end of the PENN-ESPN BET agreement could reshape PENN Entertainment's investment outlook and business model moving forward.

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PENN Entertainment Investment Narrative Recap

To be a PENN shareholder right now, you need to believe in the company’s ability to adapt both its physical casino and digital gaming strategies for sustainable growth, even as the ESPN BET deal’s early exit removes a short-term online betting catalyst and heightens the importance of successfully repositioning PENN’s interactive business. For now, the biggest risk remains margin pressure from both new regional casino supply and digital losses; the recent news does not fundamentally change these issues, but it could limit near-term digital momentum.

The latest quarterly results add context to the situation. PENN reported an increased net loss of US$864.6 million in the third quarter, primarily reflecting higher costs relative to modestly higher revenues, further highlighting the urgency of improving profitability in both digital and retail segments given the sudden end of the ESPN BET partnership.

Yet, against the backdrop of these shifting digital ambitions, investors should also consider the lingering headwinds facing PENN’s legacy casino markets...

Read the full narrative on PENN Entertainment (it's free!)

PENN Entertainment's narrative projects $8.0 billion in revenue and $471.4 million in earnings by 2028. This requires 6.0% yearly revenue growth and a $547 million increase in earnings from the current -$75.6 million.

Uncover how PENN Entertainment's forecasts yield a $21.09 fair value, a 53% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span from US$21.09 to US$84.48 across 4 different models. While these diverse views underscore wide-ranging expectations, remember that intensified regional casino competition remains critical to PENN’s future results and long-term strategy.

Explore 4 other fair value estimates on PENN Entertainment - why the stock might be worth just $21.09!

Build Your Own PENN Entertainment Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PENN Entertainment research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free PENN Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PENN Entertainment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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