PENN Entertainment (PENN) Swings To Profit As Debt Comes Down

Penn Entertainment began construction on an $180M-$200M Hollywood Casino in Council Bluffs, replacing the Ameristar riverboat. The 2028 project includes 1,000 slot machines, 25 table games, and new restaurants like Shake Shack. Existing hotel and dining facilities will remain, according to the company.

PENN Entertainment (PENN) announced a groundbreaking ceremony for Hollywood Casino Hotel Council Bluffs, set to open in 2028. The $180–$200 million project will replace the Ameristar Council Bluffs riverboat casino and create 450 construction jobs and 50 permanent roles. The new facility will feature 1,000 slots, 25 table games, and new dining options. PENN may finance up to $150 million from GLPI (GLPI) at a 7.10% cap rate.

PENN Entertainment (PENN) is investing $195 million to relocate and rebrand its New Orleans casino. The company's share price has seen mixed performance, with a YTD return of 20.20% but a 1-year return of -10.35%. Analysts suggest the stock is undervalued at $17.85, with a fair value estimate of $28.00, citing growth potential in hybrid gaming/hospitality.

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 expanded its casino footprint with recent projects driving Q2 2026 revenue and EBITDAR growth. The company raised its 2026 guidance, with more projects planned. Competitors like Boyd Gaming and Caesars Entertainment may pose challenges. PENN's stock gained 51.6% in six months, trading at a 12.47 forward P/E, with revised earnings estimates showing strong growth.

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.