Penn Entertainment Stock Could Be Lifted by New Projects, Sports Betting
Posted on: September 29, 2025, 01:54h.
Last updated on: September 29, 2025, 02:04h.
- Regional casino enhancements could boost shares
- Analyst sees interactive wagering, including ESPN Bet, contributing to bull case
In somewhat quiet fashion, Penn Entertainment (NASDAQ: PENN) is higher by 10.46% over the past 90 days. At least one analyst believes the regional casino operator could notch more upside.
Citing contributions from enhancements at some regional casinos and online betting, Morningstar analyst Dan Wasiolek placed a fair value estimate of $22 on Penn, implying upside of more than 10% from where the stock trades today. He’s constructive on the operator’s revamping of several of its gaming venues.
We also think a handful of development projects across its regional portfolio over the next few years stands to improve the company’s competitive standing,” observes Wasiolek. “The first of these projects was the opening of a relocated land property from a riverboat location in Joliet, Illinois, in August 2025. This is followed by two projects scheduled to open in the first half of 2026.”
The recent debut of a land-based casino in Joliet, Ill., and the early 2026 launch of the revamped Aurora, Ill., property are seen as catalysts for Penn at a time when Illinois gaming revenue is rising. Earlier this month, the gaming company said its $206 million 384-room expansion at M Resort in Henderson, Nev. will be open to the public on December 1.
Penn Entertainment Stock Could Land Interactive Boost
Penn’s ESPN Bet unit remains a source of concern for some in the investment community, with some considering the current football season a make-or-break period for the sports betting app.
On the other hand, there’s a sense on Wall Street that ESPN Bet entered the 2025 football on strong footing, and data indicate Penn’s Hollywood iGaming platform is making impressive strides in the higher margin internet casino industry. Wasiolek believes Penn’s online wagering ventures will contribute to earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) upside for the operator.
“Penn is positioned to benefit from the multi-billion-dollar sports betting and iGaming market, aided by further integration with the ESPN franchise, as well as the addition of parlay products and a dedicated iGaming app launched in early 2025,” adds the analyst. “We expect the company to maintain a mid-single-digit percentage revenue share and expect profitability in 2026, with EBITDAR margins ramping to the low-20s by the end of the decade. We forecast for 29% of the company’s total sales to be generated from its interactive business by 2029, a meaningful lift from 14%-15% in 2024.”
Like rivals Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), Penn is an omnichannel operator, meaning it has both land- and web-based businesses. Wasiolek believes Penn can, over the long term, leverage its brick-and-mortar casinos for online success.
Regional Casinos Sturdy in Trying Environment
The aforementioned M Resort is Penn’s only gaming venue in the Las Vegas market. These days, that lack of exposure is a favorable trait because Strip visitation is slumping, and some analysts are concerned that ominous trend will eventually trickle down to casinos focusing on Las Vegas locals. Bottom line: Penn’s lack of Las Vegas exposure is a positive in this environment.
Amid economic uncertainty, Penn’s drive-to casino locations and digital businesses are performing well,” notes Wasiolek. “We see revenue growth continuing as the company launches several noteworthy products over the next several quarters. We think 2026-28 sales growth can average 7%, fueled by new products.”
The Morningstar analyst is more constructive on Penn’s Midwest portfolio because the South is a more competitive region where the operator is contending with new offerings from rivals.
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