Penn National released its quarterly earnings call to keep its stakeholders updated on the company’s endeavors. Notably, CEO Timothy Wilmott emphasized the significance of sports betting multiple times during his remarks.
He discussed the company’s performance during the third quarter of 2018, specifically referring to the period that concluded on September 30th.
Wilmott made a direct statement, highlighting sports betting as a significant aspect of Penn National.
In terms of sports betting, we started accepting live bets at our Mississippi properties in August and at Hollywood Casino at Charles Town Races in West Virginia in September. We are excited to introduce sports betting in Pennsylvania later this year, and real money iGaming in the first quarter of 2019. Additionally, as the largest regional gaming operator in the country, we are actively seeking strategic partnerships with various sports wagering and iGaming operators, as well as prominent media companies and content providers.
Penn National is an enormous corporation with a year-to-date revenue of nearly $3.6 billion, as stated in the earnings call.
The company’s leader has explicitly acknowledged a segment that emerged only in May 2018, emphasizing the significant role of sports betting in the company’s strategic plans.
Wilmott further highlighted that both of Penn National’s upcoming satellite casinos in Pennsylvania will include sportsbooks, even before the official launch of sports betting in the state.
Hollywood Casino Charles Town is another property owned by Penn National. Currently, it is one of the two locations in West Virginia that offer sports betting. Out of the two, it is significantly more lucrative.
Even ignoring sports betting, Penn National has had a busy year
Penn National does not just operate sportsbooks, but it has become one of the largest gaming companies in the US following an acquisition completed two weeks ago.
Penn National successfully acquired Pinnacle Entertainment on October 15, thereby increasing its gaming properties to a total of 40, which are now located in 18 states or countries.
The acquisition of Pinnacle increased Penn’s player database to more than five million customers. Wilmott projected that this deal would result in approximately $30 million in cost savings during the last quarter of 2018. These savings primarily stem from capitalizing on economies of scale within the expanded company’s operations.
In addition, Wilmott discussed the ongoing construction of two properties in Pennsylvania, which will require an estimated investment of around $230 million from Penn National.
In addition, these “mini-casinos” will enhance the company’s presence in Pennsylvania prior to the introduction of sports betting and online casinos. Each establishment will offer 750 slot machines and 30 table games for customers.
The company is currently experiencing a thriving period, with no doubt that sports betting is significantly contributing to the overall financial success.
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