PENN Entertainment has shrunk its adjusted EBITDAR loss for its interactive arm to $10.8m (£8m) as bosses praised the first full quarter under its new online approach.
Adjusted EBITDAR loss declined from $89m in Q1 2025 and $39.9m in Q4 2025.
PENN dropped the ESPN Bet brand on 1 December last year after cancelling its partnership with Disney.
ESPN Bet went live in the summer of 2023, replacing the Barstool Sportsbook. Bosses had initially aimed for a 20+% share of the market, but the brand struggled to take off.
The Pennsylvania-based operator then shifted to theScore Bet brand across the US, deploying an igaming-first approach. TheScore Bet is also live in Canada.
Interactive revenue increased from $290.1m in Q1 2025 to $358.3m in the opening quarter of 2026, although this included a tax gross up of $185.8m.
Online casino revenue was up 14.9% year on year (YoY) to $70.9m and online sports betting revenue jumped 5.2% to $65.2m.
Average monthly active users were down 3.5% to 540,000, although average revenue per monthly active increased 14% to $84.
Management said the gains reflected the “first full quarter under our realigned digital strategy”.
Marketing spend was down more than 65% YoY, which bosses noted was a driver of shrinking losses.
Online casino also reported record monthly revenue in March as well as a quarterly record. PENN has been pushing out standalone casino apps across the US and Canada.
The apps went live in Pennsylvania (December 2024), Michigan (January 2025), New Jersey (March 2025), Ontario (April 2025) and West Virginia (August 2025).
PENN said there had been strong growth in Ontario, and pointed to Alberta’s upcoming launch in July as a key milestone.
The province will follow Ontario in becoming the second commercial gambling market in the country.
Overall group revenue jumped to $1.8bn and adjusted EBITDAR was $265.8m.
Jay Snowden, PENN CEO, said: “Our Interactive segment delivered a meaningful adjusted EBITDA improvement year over year, which marks the first full quarter under our realigned digital strategy.
“Icasino revenue growth of approximately 15% year over year was driven by the continued momentum of standalone icasino, which notably achieved record quarterly revenue in the first quarter as well as record monthly revenue in March.
“The trends we are seeing provide us with confidence in the trajectory of the business and upcoming launch in Alberta.”
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Division focusing on igaming and theScore Bet as losses continue to track down, with Alberta launch viewed as a key growth driver for H2
The post PENN interactive losses shrink again in Q1 as management praise new strategy first appeared on EGR Intel.