PENN’s M Resort Expansion and theScore Bet Launch Might Change The Case For Investing In PENN (PENN)

• PENN Entertainment has opened the second hotel tower at M Resort Spa Casino Las Vegas, nearly doubling room capacity to 765 and expanding total conference and event space to more than 100,000 square feet, while also completing the rebrand of its online sports betting platform to theScore Bet and launching it in Missouri.
• Together, the Las Vegas expansion and theScore Bet rollout highlight PENN’s push to grow both on-property hospitality revenue and its integrated digital betting ecosystem across more U.S. jurisdictions.
• We’ll now examine how the expanded M Resort capacity reshapes PENN Entertainment’s existing investment narrative around digital and retail growth.

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PENN Entertainment Investment Narrative Recap

PENN Entertainment still requires you to believe in its omni channel vision: profitable growth from both physical casinos and a scaled digital betting business, despite current losses and high leverage. The M Resort expansion and theScore Bet rollout support that thesis but do not meaningfully change the near term tension between heavy capital spending, a 6x net debt to EBITDA ratio, and the need to improve digital segment economics. The biggest immediate risk remains execution under this balance sheet pressure.

The most relevant recent move here is the full rebrand of PENN’s online sports betting platform to theScore Bet and its launch in Missouri, now live in 21 U.S. jurisdictions. This connects directly to the key catalyst of deeper integration across media, retail casinos, and digital wagering, with Missouri providing a concrete test of whether PENN can turn its technology and omni channel ambitions into better profitability rather than just higher marketing and operating costs.

Yet behind the expanded rooms and new app branding, investors should be aware that PENN’s elevated leverage could...

Read the full narrative on PENN Entertainment (it's free!)

PENN Entertainment’s narrative projects $8.0 billion revenue and $471.4 million earnings by 2028. This requires 6.0% yearly revenue growth and about a $547 million earnings increase from -$75.6 million today.

Uncover how PENN Entertainment's forecasts yield a $19.44 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community cluster between US$19.44 and US$63.82, showing how far apart individual views on PENN can be. Against that wide range, PENN’s ongoing capital intensive retail projects and loss making digital operations keep its execution and balance sheet risk firmly in focus, so it can help to explore several contrasting opinions before forming your own view.

Explore 4 other fair value estimates on PENN Entertainment - why the stock might be worth over 4x more than the current price!

Build Your Own PENN Entertainment Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PENN Entertainment research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free PENN Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PENN Entertainment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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