PENN records $110m EBITDAR loss for digital arm in Q4 2024

PENN Entertainment has reported an Q4 adjusted EBITDAR loss of $109.8m (£86.9m) for its interactive arm while announcing a $350m share repurchase program.

The ESPN Bet, theScore Bet, and Hollywood Casino operator announced losses shrank versus Q4 2023’s $333.8m, which coincided with the launch of ESPN Bet in November of that year.

Revenue for the digital arm soared from $31.5m to $275m year-on-year (YoY), although bosses did note this included a tax gross-up of $132.8m.

Without the tax gross-ups, adjusted revenue for the period amounted to $142.2m against a loss of $75.5m in Q4 2023.

PENN said it had delivered “significant” improvements YoY for the online arm, despite “materially negative industry-wide impact on hold” due to customer-friendly sports betting results in Q4.

Promotional spend has also continued to decline as a percentage of online sports betting handle, with 2.3% in Q4 versus 15.5% in Q4 2023.

On ESPN Bet, the company revealed average monthly active users had reached 542,000. The metric previously hit 771,000 in Q4 2023 alongside ESPN Bet’s launch.

However, the company stated it was the largest number of actives since Q1 2024, as customers re-engaged during the NFL season after product improvements and media integrations proved key.

PENN also noted that since the November 2023 launch of ESPN Bet, the firm’s total digital database has secured two million more members.

On the product front, the accompanying investor deck showed the percentage of users wagering with same game parlays (SGPs) had risen since the launch of ESPN Bet.

The business said that 70% of customers had bet an SGP between December 2024 and January 2025, compared to 46% between September and October 2023.

Parlay mix as a percentage of total handle is now sitting at 32% for ESPN Bet, versus 22% prior to the brand’s launch.

For theScore Bet in Canada, parlay mix as a percentage jumped from 28% to 34% in the same time period.

“Our focus on our parlay product offering is resulting in materially higher parlay usage and mix, which is driving higher structural hold rates for our online sports betting business,” the Wyomissing-based operator said.

In terms of online casino, PENN said Q4 entailed record revenue across all three brands, rising 61% YoY.

A standalone Hollywood Casino app was launched in Pennsylvania in December and that was followed by a debut in Michigan in January 2025. New Jersey is the next state due to receive the app.

Lifting the lid on Pennsylvania performance, management said in the 10 weeks post-launch, average weekly users had risen 16%.

Additionally, average weekly GGR was up 38% and average weekly NGR had grown 35% versus the six weeks pre-launch.

There was also a 20% rise in slots as a percentage of handle compared to when Hollywood Casino was only accessible via the ESPN Bet app.

The company added: “We achieved record icasino NGR in Q4 2024 and expect a meaningful lift from our standalone icasino product as we progress through 2025.”

On the share repurchase, the company stated it would claw back $350m worth of stock this year.

Jay Snowden, PENN Entertainment CEO, said: “In the interactive segment, our parlay mix improved sequentially each month since October, and we experienced greater than 30% parlay mix as a percentage of handle in December and January.

“Greater same game parlay adoption contributed to the parlay mix improvement, with SGP mix as a percentage of handle increasing each month since football season began.

“In addition, our online casino business delivered record quarterly gaming revenue, with over 60% growth year over year and continued momentum into 2025.

“We remain focused on delivering further enhancements to our digital offerings this year, including live streaming in the ESPN Bet app, men’s NCAA Tournament Challenge integrations with ESPN, and additional launches of our standalone icasino app offerings,” he added.