PENN Expands Its Casino Footprint: Can New Projects Drive Growth?

PENN stock has gained 49% in six months, driven by strong retail performance and progress in its Interactive segment. The company's Interactive business saw a narrowed EBITDA loss and expects profitability in Q4. However, challenges include sports-betting volatility, competitive pressure, and substantial capital commitments. PENN trades at a discount to the industry, with a forward P/E of 12.58. Earnings estimates have declined, and the stock is rated a 'Hold' by Zacks.

PENN Entertainment Inc. plans to invest $195M to relocate its Boomtown Casino & Hotel New Orleans to a new land-based property, rebranding it as Hollywood Casino New Orleans. The project, pending regulatory approval, is expected to open in 2029 and will include 875 slot machines, 45 table games, and a retail sportsbook. PENN expects to finance the project with cash on hand or other liquidity sources.

PENN Entertainment said it will invest about $195M to replace its Boomtown Casino & Hotel New Orleans riverboat operation with a land-based Hollywood Casino New Orleans near the current Harvey, Louisiana site. The project, subject to regulatory approval, would add 875 slots, 45 table games, and a sportsbook, targeting a 2029 opening. PENN plans to fund mainly with cash on hand.

PENN Entertainment said it will phase out the Boomtown Casino & Hotel New Orleans riverboat and move operations to adjacent land, rebranding it as Hollywood Casino New Orleans. The $195 million project is pending regulatory approval, to be financed with cash on hand and possibly other liquidity sources. Expected opening is 2029. PENN shares were $18.90 late Monday.

PENN Entertainment reported Q2 2026 results on an earnings call. Total revenue rose to $1.86B, with retail revenue at $1.5B and retail adjusted EBITDAR of $517.2M. Interactive revenue was $349.4M, while interactive adjusted EBITDA loss narrowed to $9.5M. Management raised full-year retail revenue and retail EBITDAR guidance and refined interactive guidance; liquidity was $1.9B and net leverage improved to 5.9x.

Pennsylvania Supreme Court ruled last month that many “games of skill” machines operating statewide are illegal slot machines, with enforcement starting Oct. 15 after a 120-day safe harbor. The decision could benefit racinos, including Hollywood Casino at Penn National Race Course, Parx Racing, and Presque Isle Downs, which generated about $51.9M for the Race Horse Development Fund in FY ended June. Churchill Downs CEO Bill Carstanjen said CDI expects added interest and is selling nine casinos i