There will be new items and technology to look forward to, but Penn's earnings will be dragged down by a "unfavourable hold."

 Despite the anticipated third-quarter deficit, Penn Entertainment CEO Jay Snowden expressed optimism about the company's future due to recent sports betting integration, the upcoming introduction of a standalone digital casino app, and the ongoing focus on land-based projects.
 Bet on Sports on ESPN
 As revenue lags, Snowden mentioned a "unfavourable hold" in the northeast and a drop in southern casino traffic from weather and construction.  According to him, demand from retail customers has been steady.  Regarding hold, Snowden stated that Penn was not alone in the industry experiencing poor hold in the third quarter.  The United States has two of its slowest gambling months in the third quarter.

 Prior to the release, at least one analyst—Joseph Greff of JP Morgan—had reduced expectations.  Reporting results that were "in-line with expectations," Jefferies Equity Research issued a report on Thursday morning.

 Penn has a substantial amount of cash and equivalents on hand, totalling $1.8 billion (£1.38 billion/€1.66 billion), which, according to Snowden, puts it in a strong position moving forward.  With an adjusted EBITDAR margin of 33.8% and retail sales of $1.4 billion, the firm had a profit after tax of $471.7 million.  Although digital sales were $244.6 million, Penn's adjusted EBITDA deficit was $90.9 million.

 Executives announced a decline in financials at last month's investor day in Sin City.  The beginning of the fourth quarter has been positive, according to Snowden, who made the announcement on Thursday.

 Launch of ESPN Bet-ESPN is a Resounding Success!
 Weeks ago, Penn revealed the newest enhancements to the ESPN Bet platform, which has been around for a year.  That went live on November 14, 2023.  In what the business hopes would be a revolutionary move, customers may now connect their ESPN and ESPN Bet accounts.  Both ESPN and ESPN Bet will be able to tailor their betting and media offers to each individual user thanks to the new technology.

 "We've had tens of thousands of people link already and, as you would expect, they are placing more bets so that means higher GGR, higher handle," added chief tech officer Aaron LaBerge during the call.  Plus, they're watching more ESPN.  Truly, they are devoted admirers.  It's a basic experience that will lay the groundwork for our customisation efforts.  I think people are going to love the customisation of clubs and players that you'll see on ESPN and ESPN Bet.

 "A big technical feat" was what Snowden described as the integration.

 Executives made it plain on the call that ESPN Bet caters to a "casual bettor" and is making adjustments to its services accordingly.  With the introduction of new products, Penn's per-player handling continued to rise throughout the quarter.  Improving in-play betting, adding additional branded feature bets, and enhancing same-game parlay options are the next steps.

 Furthermore, Penn may now "see your fantasy lineup" thanks to the new integration, which opens up a lot of options.  The business witnessed a 20% increase in growth after implementing "pseudo personalisation" around fantasy in September.  It will be "natively integrated" in the eyes of customers, according to Penn, who plans to use that access moving forward.

 Uptown Manhattan
 Near the end of the third quarter, EPSN Bet went live in New York.  The corporation is experiencing a "higher quality customer" and a higher handling per customer, according to Snowden.  The New York market presents unique challenges to numerous platforms.  There is a 51% tax rate and promotions are not deductible.  Penn has been "disciplined" in its promotional offerings to achieve this goal.

 Instead, reactivating and retaining customers has been the main emphasis.

 Given the high volume of daily out-of-state consumers in New York, Snowden said that his organisation is making an effort to be agile there.  The possibilities for cross-selling to clients in nearby states, such as New Jersey, are unlimited, he added, but they change from Monday through Friday to Saturday and Sunday.

 When it comes to retail, Penn renamed seven sportsbooks—including two in Ohio and three in Louisiana—to ESPN Bet.

 Platform for Hollywood casinos on the way
 On Thursday, the executives mostly discussed ESPN Bet's development and expansion, but they did make reference to the digital platform for Hollywood Casino that is about to be launched.  For online gambling and betting, Penn is now referring its casino customers to ESPN Bet.  Even though Penn has "a whole group of people who don't understand that they can access the icasno through ESPN Bet," VP of operations Todd George acknowledged that the issue is "messy," and Snowden brushed it off.  Therefore, this will clarify things.

 In the first three months of 2025, Penn intends to introduce the new platform to the Pennsylvania market.  It is also planning to launch in other US jurisdictions, which might encompass West Virginia, New Jersey, and Michigan.

 Two of the company's Hollywood casinos are moving to Illinois, and in Ohio and Nevada, it is constructing hotel towers on top of existing retail casinos.