Penn Entertainment Q2 2026 Earnings Call: Operator Remains on Steady Track Amid Rough June Sportsbook Results

Penn Entertainment posted second-quarter 2026 revenue of $1.5 billion on Thursday, and CEO Jay Snowden told investors the operator “continued to execute against our 2026 strategic priorities” despite a rough stretch of sportsbook outcomes in June. Segment Adjusted EBITDAR came in at $517.2 million, good for a 34.4% margin, though the company reported a net loss of $32.6 million for the quarter.

The topline number reflects a business balancing steady retail casino performance against a more volatile online betting segment. Snowden said Penn remains “on track to deliver more than 20% year-over-year adjusted EBITDA growth this year,” pointing to the retail portfolio and improving margins in the interactive division as the primary drivers, alongside corporate overhead cuts that are speeding up debt reduction.

June Sportsbook Results Weighed on the Quarter

Snowden pinned much of the quarter’s softness on “customer-friendly online sportsbook outcomes,” particularly during the NBA Finals and the World Cup in June, when favorites and popular bets cashed at a rate that hurt the house. He also cited lower betting volumes tied to Penn’s decision to pull back marketing spend aimed at lower-value, unprofitable customer segments — a strategy several operators have leaned into as the sports betting market matures and player acquisition costs climb.

The comments came shortly after Flutter Entertainment used its own earnings call to signal it would ramp up investment in FanDuel, its market-leading sportsbook. Snowden downplayed the significance of that move for Penn’s plans heading into football season, which remains the industry’s biggest revenue window.

Prediction Markets and a Crowded Football Season

Asked about the competitive landscape, Snowden pointed to prediction markets entering their first full football season as a wildcard. “You’re going to have prediction markets that are targeting customers for the first football season ever,” he said, adding that Penn had already budgeted for “a very aggressive, irrational marketing spend, advertising, and new customer acquisition approach this football season” from both prediction-market entrants and incumbent sportsbook operators.

Snowden also addressed Pennsylvania’s skill-games landscape after the state Supreme Court ruled in June that the machines qualify as slot machines under state gambling law, with removal expected around October. Penn operates four land-based casinos in Pennsylvania that could see a competitive benefit if unregulated skill-game terminals are pulled from bars and convenience stores statewide. He noted Missouri’s attorney general has taken a similar enforcement stance against skill-based games.

Alberta Expansion and M&A Outlook

Chief Technology Officer Aaron LaBerge struck an optimistic tone on Penn’s rollout in Alberta, Canada, drawing comparisons to the company’s experience launching theScore in Ontario. LaBerge said early handle figures in Alberta have been encouraging even during a slower stretch of the sports calendar, and the company expects to spend aggressively to chase market share similar to what it holds in Ontario.

On capital allocation, Snowden said Penn has “very compelling options” and would consider acquisitions, particularly in Las Vegas, but only under strict conditions. He said the company isn’t interested in a Strip property that would require an additional $400 million to $700 million in capital expenditures to address deferred maintenance, adding that any deal “would have to check a lot of boxes” before Penn moves forward.