However, PENN’s choice may have been affected by other factors explains Shmulik Segal, CEO and Founder of Media Troopers.
Some believe that the expansion of prediction markets in the US, combined with the country’s evolving regulatory environment, played a role in PENN’s decision to reevaluate its strategy.
Sports betting platforms and online casinos operate under clear state regulations and licenses, whereas prediction markets face different rules, prompting PENN to focus on its core strengths.
What Happened?
Back in August 2023, PENN and ESPN signed a 10-year online sports betting agreement, giving PENN exclusive access to the ESPN Bet brand in the US in return for $150 million annually and warrants to purchase PENN stock.
Either party had the choice to end the partnership after three years if specific market share targets were not met. The deal ended ahead of schedule, effective from December 1, 2025, showing PENN’s strategic refocus in response to rapidly evolving market conditions.
Stock Market Reaction
In the aftermath of the announcement, the stock market saw a burst of activity as investors reacted to the deal being called off. Wall Street initially reacted positively to the termination, with PENN’s stock rising approximately 10 per cent in premarket trading and around five per cent at the opening bell.
However, by the end of the day, PENN’s stock fell more than 10 per cent to $14.65 per share. Still, many analysts pointed out that this move saves PENN money on fees and stock warrants to ESPN, which allows the company to focus on profitability and its core sportsbook and iGaming operations.
How PENN’s Strategy Differs
PENN has rebranded its US sportsbook to theScore Bet, a gambling brand that is already operational in Ontario, where it boasts around four million monthly active users, alongside doubling down on its core casino operations. But before diving into how PENN is changing its digital strategy, it’s worth looking into how competitors are dealing with the evolving US gambling market.
For example, DraftKings is moving in a slightly different direction. In the company’s Q3 2025 earnings letter, the company’s CEO, Jason Robins, described prediction markets as a “significant incremental opportunity”. He stressed that they operate in a different space than traditional sports betting.
DraftKings is actively dedicating resources to expanding its prediction markets presence in the US – the company is preparing to launch DraftKings Predictions, a new regulated predictions platform pending final state approvals, which it hopes to roll out “in the coming months”.
This is part of a larger industry trend, as many prominent gambling operators are increasingly investing in both regulated gambling operations (like traditional sports betting and casino gaming) and prediction market products, aiming to capture emerging segments of sports fan engagement.
On the other hand, PENN is taking a more focused and traditional approach, concentrating solely on regulated sports betting and iGaming to improve its core business and drive profits.
Avoiding Prediction Markets
Jay Snowden, the CEO of PENN Entertainment, highlighted the growing presence of federally regulated prediction markets as a potential threat. He said that these platforms, which are currently legal across all 50 US states, could potentially expand into casino-style products, creating new forms of competition for traditional operators. Specifically, Snowden views them as a “major threat to the industry.”
Instead of focusing on these emerging markets, PENN is concentrating on regulated sports betting and iGaming, where it already has strong brand recognition. According to Snowden, the company will continue taking direction from state-level regulatory frameworks, avoiding the uncertainty that surrounds prediction markets.
An important element of the company’s strategy is the expansion of theScore Sportsbook in the US, building on the brand’s success in Ontario. PENN is aiming to accelerate growth in its highest-margin jurisdiction with renewed focus and resources to support the gambling brand. This also includes the expected launch in Alberta in 2026 for both sports betting and iGaming.
While PENN’s previous partnership with ESPN may have ended early, the company came out of the deal with a new database, successfully drawing over 2.9 million new users to its ecosystem.
Alongside sports betting, PENN is also focusing on its core casino and iGaming operations with the Hollywood Casino brand, targeting a wider demographic with an improved iCasino product pipeline, including expanded connectivity with the PENN Play loyalty scheme.
Ultimately, PENN’s new digital strategy focuses on leveraging its established brands (Hollywood Casino for iGaming and theScore for sports betting) while improving marketing and product innovation to maximise growth across regulated North American markets.
The post How PENN Entertainment is Realigning its Strategy appeared first on G3 Newswire.
However, PENN’s choice may have been affected by other factors explains Shmulik Segal, CEO and Founder of Media Troopers. Some believe that the expansion of prediction markets in the US, combined with the country’s evolving regulatory environment, played a role in PENN’s decision to reevaluate its strategy. Sports betting platforms and online casinos operate under…
The post How PENN Entertainment is Realigning its Strategy appeared first on G3 Newswire.