PENN Entertainment makes second round of redundancies involving interactive arm
ESPN Bet workers expected to lose their jobs after first tranche of layoffs in July following theScore acquisition
PENN Entertainment has made another round of redundancies within its interactive arm, just two months after it last laid off workers.
Members of the ESPN Bet team are expected to lose their jobs, but the exact number of redundancies remains unclear.
Upon request for comment from EGR North America, a PENN spokesperson said: “These changes, affecting a limited number of positions at PENN Interactive, are part of the deferred organizational initiatives that followed our acquisition of theScore, which we have previously spoken about.”
According to an internal letter signed by PENN CEO Jay Snowden, a “limited number” of employees were let go in July in an attempt to “streamline reporting lines, enhance operational efficiencies, and leverage shared resources across PENN.”
At the time, Snowden wrote: “While it is difficult to see colleagues impacted, we deeply appreciate their contributions and are committed to supporting them through their transition.”
As per July’s redundancies, PENN once again made reference to the $2bn acquisition of theScore in October 2021. Two months ago, the acquisition was identified as a rationale for PENN setting aside “any potential organizational changes that would typically follow a major acquisition.”
However, the company’s “new phase of growth” is now underway — as Snowden explained in July — allowing it to “build upon the momentum of our partnership with ESPN with upcoming product enhancements and a deeper integration into the ESPN ecosystem.”
ESPN Bet and its parent company have experienced a turbulent few weeks, with PENN missing its target to get ESPN Bet live in New York in time for the start of the college football season.
The sportsbook also missed the start of the NFL campaign in the Empire State because it had not yet obtained a sports betting licence to operate there.
This was despite PENN paying $25m in February to acquire Wynn Interactive’s license from Wynn Resorts subsidiary WSI US.
The New York State Gaming Commission is expected to hold a meeting later today, September 23, during which PENN’s application to acquire Wynn Interactive will be considered.
Last month, Snowden was reluctant to comment on rumors that Flutter Entertainment and Boyd Gaming could team up to acquire PENN, despite lingering speculation that Flutter would look to take control of PENN’s digital operations while Boyd focuses on the land-based efforts.
Snowden instead took the opportunity to insist his focus remained firmly on integrating ESPN Bet with the rest of the ESPN brand.
Notable improvements to ESPN Bet are on the horizon, as Snowden admits he harbors hopes of transforming the bookmaker into “America’s sportsbook”, adding “We don’t just want to compete here, we want to win.”
Amid the redundancies, PENN welcomed in new executives this year, including the appointment of Aaron LaBerge as chief technology officer, who recently took to X, formerly Twitter, to issue a rally cry over the future of ESPN Bet.
LaBerge wrote: “We’re still in the early innings of online sports betting. Betting adds another layer of fun and connection to your favorite players, teams, and sports and will continue to be an essential part of the modern fan experience. We’re just getting started!”
PENN’s share price has fallen by 1% to $19.88 at the time of writing.