PENN Entertainment CEO Jay Snowden has said hitting profitability for the group’s online arm in 2026 is not a “Herculean” target ahead of a potential break clause for ESPN Bet with Disney next year.
Speaking on the operator’s Q2 earnings call today, 7 August, Snowden struck an upbeat tone as he insisted the product developments ahead of the 2025 NFL season had put the business in good stead.
The firm has aimed for deeper integration with ESPN, including launching account-linking, which has paved the way for FanCenter, a new personalisation-driven hub for customers.
In Q2 2025, adjusted EBITDAR losses for the interactive arm shrank to $62m (£46.2m), down from $89m in Q1 and $102.8m in Q2 2024.
Management are still expecting to post positive adjusted EBITDAR in Q4 2025, with full-year 2026 representing a whole 12 months in the black.
CFO Felicia Hendrix added that in Q3 2025, ESPN Bet’s online sports betting market share in the US, excluding New York and based on handle, is forecast to be 3.4%, and then 4% in Q4.
In terms of igaming, where the operator has seen positive signs, market share should be 3% in Q3 and 3.2% in the final quarter of the year.
Next year will mark three years since PENN and Disney entered the 10-year, $1.5bn licensing deal to launch ESPN Bet.
Included in that deal was a three-year break clause, which Snowden has previously said could be actioned upon.
Looking ahead to 2026, Snowden said: “We’re excited and optimistic about our new product enhancements. However, we do still maintain strategic optionality as discussed previously in the digital business as we head into 2026.
“As I said on our Q1 call, we are nearing an inflection point with our digital business. We anticipate each quarter of 2025 delivering a lower loss sequentially throughout the year, our interactive division to be profitable in Q4 2025 and the full year of 2026 and beyond. This is still the case.
“The significant investments in interactive are undoubtedly behind us. Our focus for the balance of this year and going forward remains operational execution and transforming our strategic investments into consistent long-term returns and value creation for our shareholders.”
The CEO went on to note that delivering profitability was the core focus for the division, as he insisted the PENN team had been pulling in the right direction.
He continued: “These aren’t Herculean targets, but we’ve got to continue to grow our share, not just on handle but on GGR and NGR and make sure that we’re reinvesting at the right levels.
“We’ve got all sorts of different sensitivity models. There’s a lot of variables at play as we go into 2026, and so, we’re going to be ready for whatever strategically it is that we’re doing, and to make sure we deliver on profitability in 2026. We’re laser-focused on that.”
The post PENN CEO: Interactive division hitting profitability is not a “Herculean” task first appeared on EGR Intel.
Jay Snowden remains confident on targets for ESPN Bet-led division ahead of 2025 NFL season, with fresh product update implemented and Disney break clause in 2026 looming
The post PENN CEO: Interactive division hitting profitability is not a “Herculean” task first appeared on EGR Intel.