Jay Snowden, the Chief Executive Officer and President of Penn Entertainment Inc., announced that the company has allocated $20 million towards its operations in Alberta, aiming to capitalize on its achievements in Ontario and steer its digital segment towards profitability.
“As Alberta’s market presents a more competitive landscape, we recognized the need to enhance our investment per capita, and we’re optimistic about the decision made thus far,” he stated.
During a conversation with investors on August 6 following PENN’s second-quarter financial report, Snowden alongside Aaron LaBerge, Chief Technology Officer and Head of Interactive, emphasized the advancements attributed to the company’s newly adopted “disciplined approach” towards managing its interactive business after prior online setbacks.
PENN’s Significant Investment in Alberta
While PENN’s digital operations have not yet turned a profit, the losses have significantly decreased. The recent report indicated an adjusted EBITDA loss of US$9.5 million for Q2 2026, a stark contrast to the US$62 million loss reported for Q2 2025.
Improvements in online casino performance, stringent cost management, and positive trends in Ontario, fueled by increased sports betting revenues and effective cross-selling of bettors to iCasino, were pivotal in this progression.
Alberta’s regulated market officially commenced on July 13. On this date, Penn launched three sites: Hollywood Casino, theScore Casino, and theScore Bet. A total of 27 digital and sports betting platforms are currently operational in the province, with 50 registered operators poised to introduce their platforms by the end of 2026.
Digital Losses Sharply Reduce
“Though it is still early in the process, we are encouraged by the user engagement and betting volume in Alberta on a per capita basis. We believe our exclusive strategic partnership with the Toronto Blue Jays will bolster the strength of theScore Bet brand in this market,” Snowden remarked.
During the earnings discussion, Snowden elaborated on the company’s notable presence in Ontario’s iGaming sector, which was launched in April 2022. Similar to Alberta, Penn activated theScore Bet when this market opened.
Although the company refrains from providing detailed financial data by jurisdiction, Snowden conveyed that Ontario has risen to become its largest market for online sports betting (OSB) and digital casino operations.
Ontario Emerges as Leading OSB Market
“I would categorize it as our most significant market for OSB, and it closely matches Pennsylvania in terms of iGaming,” he disclosed. “Nevertheless, it stands markedly ahead as our leading market for OSB.”
“You can infer from our Pennsylvania figures that OSB revenue in Ontario is approximately 2 to 2.5 times that of Pennsylvania, with iGaming reflecting similar trends.”
PENN currently operates online sports betting in 20 states across the U.S. and manages online casino gaming in four states.
World Cup Enhances User Engagement
Snowden noted that the company benefitted from substantial engagement during the World Cup, which facilitated the cross-selling of reactivated OSB users into iCasino.
Approximately 70% of sportsbook users participated in World Cup betting, with around 45% of these individuals placing soccer wagers for the first time.
LaBerge highlighted that Alberta’s operational framework positions the company to potentially capture a market share similar to what it holds in Ontario.
“Our product offering has never been stronger,” he confirmed. “Entering a competitive landscape requires aggressive spending compared to our prior investments in Ontario, and preliminary results, despite a slower sports calendar, are quite promising. We aim to be competitive and target similar market shares as we enjoy in Ontario.”
Canada Crucial for Profitability
Although iGaming Ontario publishes monthly financial metrics, it does not disclose operator-specific breakdowns. In June, Ontario’s sports betting handle surpassed $1 billion as bettors engaged heavily during the World Cup. This marks the eighth instance in the previous 12 months where the monthly betting handle exceeded the billion-dollar mark.
Currently, the province has 48 licensed operators and 82 active gaming websites, excluding the government-operated Ontario Lottery and Gaming Corporation (OLG) platform.
Reporting from NEXT.io indicates, based on Snowden’s remarks during the earnings call, that sports betting revenue in Ontario ranged between $11.6 million and $14.5 million for Q2 2026.
Anticipated Q3 Loss
“Looking ahead to profitability by year-end, it is evidently driven by casino performance and our expansion in Canada,” Snowden stated. “These are our primary focus areas along with operating profitably in our OSB states while prioritizing high-value customers and retaining our most valuable ones.”
The $20 million investment to establish a foothold in Alberta is expected to result in a significant quarterly loss for Q3; however, management is optimistic about a recovery in Q4, considering the encouraging signals from Alberta and the ongoing strength in Ontario.