PENN Not Pleased with Sports Betting Performance

by Blake Roberts, May 07, 2025

PENN Entertainment, holder of one of the largest gaming footprints in the US, including the famous Hollywood Casino, hasn’t had much luck with sports betting. Its partnership with ESPN, a big name with plenty of impact, isn’t giving the anticipated results.

PENN Notes Difficulties but Wants to Improve

PENN Entertainment has been facing tough times, especially with its sports betting business falling short of expectations and shareholder pressure growing. The big question is, can the company really turn things around in a market that’s controlled by FanDuel and DraftKings, with BetMGM trailing close behind?

Penn CEO Jay Snowden and Chairman David Handler think so. They’ve written a new letter ahead of the upcoming annual meeting on June 17, where ESPN Bet’s recent struggles will surely come up. In the letter, the company’s top executives acknowledged the harsh realities they’re facing right now.

“That said, our market share and financial performance in sports betting to date has not met our expectations. Our Board and management team are moving swiftly and decisively to recalibrate execution and unlock the full value of this partnership. We have a committed partner and shared desire to compete and build share in a financially responsible way,”

the letter explained.

Still, there’s some good news—PENN has made some progress, especially when it comes to bringing in new players, thanks to its partnership with ESPN. They’re working hard to improve results, but nothing is certain. In fact, both leaders mentioned keeping their options open and maintaining control over the company’s future if things don’t go as planned.

PENN Nominates Two New Directors

New additions to leadership could help turn the situation around, with two nominees currently being considered.

Penn has nominated two new board members, as investor HG Vora recommended earlier this year. Johnny Harnett brings solid experience in sports betting; he was CEO of Superbet Group and held several roles at Flutter before that. Carlos Ruisanchez, a seasoned finance executive, was CFO at Pinnacle Entertainment when Penn acquired the company back in 2018.

That said, ESPN could still walk away from the partnership with PENN. In August, both sides will have the option to end the agreement, as outlined in the original contract signed exactly three years ago. Right now, ESPN Bet holds only about 2.8% of the US sports betting market, which is a modest piece, especially considering that PENN didn’t start from scratch and that the ESPN brand is such a big name.