Published on: October 7, 2024, 06:02h. 

Last updated on: October 7, 2024, 06:02h.

Penn Entertainment (NASDAQ: PENN) informed investors today that its interactive unit, which includes ESPN Bet, is expected to report a lower third-quarter loss than initially anticipated.

In a Form 8-K filing with the Securities and Exchange Commission (SEC), the regional casino operator stated that its digital gaming business is set to incur a loss of $90 million to $100 million for the September quarter, which is an improvement from the initial forecast of $115 million to $135 million.

The better-than-expected performance was driven by a higher parlay mix powered by product enhancements and reduced promotional costs, as per the regulatory document.

Penn’s comments on hold and parlay mix potentially signify growing momentum for ESPN Bet, although there are suggestions that the online sports betting app needs to enhance its parlay offerings to compete better with industry giants like DraftKings and FanDuel.

The positive news regarding Penn Interactive’s financials comes after the operator announced job cuts in the digital business three months ago.

Penn Offers Strong Regional Casino Projection

While ESPN Bet and Penn’s previous online sports betting ventures have overshadowed the company’s regional casino operations — its primary revenue source — some investors might be pleased with the firm’s latest financial outlook.