Penn Draws Analyst Praise Following Joliet Casino Debut
Posted on: August 13, 2025, 11:56h.
Last updated on: August 13, 2025, 12:15h.
- Penn hosted Tuesday investor event at its revamped Joliet, Ill. casino
- Venue was previously a riverboat casino
- It’s one of Penn’s four major capital projects
Penn Entertainment (NASDAQ: PENN) opened the doors to the Hollywood Casino in Joliet, Ill. Monday, ending a more than three-decade stretch in which that venue operated as a riverboat casino, earning praise from analysts in the process.
The gaming company hosted an investor day at the new regional casino on Tuesday, with analysts remarking it’s now situated at a better location than the old riverboat. In 2020, Illinois regulators granted operators approval to bring riverboat casinos ashore, giving them the ability to add gaming space. Penn took advantage and has since invested $185 million in the Joliet property. That appears to be a smart move by Penn because regional casinos are holding up well, including encouraging data in Illinois.
With regional gaming improving, and PENN moving from defense to offense in a number of markets, we think the company’s retail segment could see upwards earnings revisions,” wrote Truist Securities analyst Barry Jonas in a client note.
He rates shares of Penn a “buy” with a $20 price target, implying upside of 17% from the Tuesday close.
‘What a Regional Casino Should Look Like’
The Joliet casino revamp is part of a broader $850 million expansion effort by Penn that also includes its Aurora, Ill., property, a regional casino in Ohio, and the M Resort Spa Casino in Henderson, Nev.
Illinois refreshes are crucial because that’s one of the largest non-Nevada gaming markets in the US, and one of Penn’s biggest markets, too. The good news for Penn is that Hollywood Joliet is already drawing rave reviews, with Jefferies analyst David Katz saying, “this is what a regional casino should look like.”
“The $185 million spend is appropriate, the amenity and food offerings are strong, and the location is a considerable upgrade from the prior riverboat access,” observes Katz.
He added that while there’s no getting around the Chicago area’s highly competitive casino landscape — and that it’s essential Hollywood Joliet connects with customers in terms of quality of offerings — the venue has the potential to deliver “mid-teens return on investment” over the long term.
ESPN Bet Chatter, Too
With football season just weeks away, it’s not surprising that ESPN Bet remains a point of emphasis for Penn analysts and investors. The company’s online sportsbook unit was discussed on its recent second-quarter earnings call, and there is some optimism that Penn will get it right during the 2025 NFL campaign.
We see dual optionality with ESPN Bet,” adds Jonas. “Either, A) new functionality could drive higher adoption and market share gains (and hence upside to valuation), or B) management could restructure the ESPN Bet agreement to drive greater profitability for PENN, which should also be accretive to valuation.”
Katz said management has to answer for sports betting-related spending, noting “the prospects for reasonable returns are highly unlikely,” but also pointing out ESPN Bet faces limited downside from here.
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