PENN Entertainment Targets Q4 Profit After Record Revenue

PENN Entertainment’s digital gaming arm is edging closer to profitability after setting a new revenue record in Q2 2025. Company leaders believe the momentum will carry through the upcoming football season — a period they say could be the turning point for ESPN BET and the rest of PENN’s online platforms.

Good to know

• Q2 digital revenue climbed to $316 million, up from $233 million last year.
• Losses narrowed to $62 million from $103 million in Q2 2024.
• ESPN BET now features expanded parlays, in-game betting, and fantasy football integration.

For the first half of 2025, PENN’s interactive division generated over $606 million, compared with $440 million in the same period last year. The division includes ESPN BET, Hollywood iCasino, theScore Bet in Ontario, and retail sportsbooks. While still operating at a loss, adjusted EBITDAR improved sharply year over year, with CEO Jay Snowden pointing to platform upgrades and better hold rates.

“This type of integration with ESPN is what sets ESPN BET apart from our competitors and we can’t wait for football season to showcase it,” Snowden said, referring to ESPN’s fantasy football platform linking directly with the sportsbook. The company also plans to tap ESPN’s upcoming streaming service, which will feature betting and fantasy content aimed at ESPN BET users.

Despite these gains, ESPN BET holds only around 3% U.S. market share, far behind FanDuel, DraftKings, and other major operators. PENN has not yet posted a profitable quarter for ESPN BET since its 2023 launch, though Snowden insists the “inflection point” is near, with profitability targeted for Q4 2025.

Football Season Could Decide ESPN BET’s Future

The NFL and NCAA football seasons make up the most bet-heavy stretch of the year, and PENN expects Q3 losses of $45–$65 million before turning positive in Q4. Company projections call for another revenue record by year’s end, potentially delivering $5 million in adjusted EBITDAR.

Falling short could put PENN’s branding deal with ESPN at risk. The agreement runs through August 2026 but allows either side to walk away then. Snowden acknowledged the possibility but said the heavy spending phase is “undoubtedly behind us” and expressed confidence in the digital division’s long-term viability.