Casino and sports betting company Penn National Gaming announced fourth-quarter earnings before market open Thursday.
What Happened: Fourth-quarter revenue totaled $1.03 billion for Penn National Gaming PENN, which was down from the prior year and missed the Street estimate of $1.09 billion.
The lower revenue came as the company saw closures of casinos in Illinois, Michigan and Pennsylvania and restrictions in place in states like Ohio and Massachusetts. The company said that revenue was trending ahead of forecasts before the restrictions.
Barstool Sports: The strength in the fourth-quarter report came from the Barstool Sports brand.
In Pennsylvania, the Barstool Sportsbook has been downloaded 72,000 times and taken in $300 million in bets with limited marketing, according to Penn.
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“We view Barstool Sports not only as a fantastic channel to promote our offerings, but also an undervalued media asset that has evolved from primarily a sports brand into a highly relevant sports and life-style brand,” Penn National CEO Jay Snowden said in a statement.
Penn rebranded several physical casinos to match the Barstool brand. The sports betting handle at the rebranded Ameristar East Chicago saw a 38% increase in revenue after the rebranding. Revenue from the Barstool-themed table games and slots areas were up 27% and 26%, respectively, year-over-year.
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What’s Next: Since the end of the fourth quarter, Penn National Gaming launched the Barstool Sportsbook in Michigan, the second state for the brand.
Barstool Sportsbook was downloaded by 48,000 new customers in Michigan and saw $27.5 million in betting handle in the first 10 days.
Fifty percent of Michigan customers bet on Barstool exclusive bets, one of the things that sets the company apart from other betting apps.
The company said it's encouraged by trends in January, with increased visitation and length of play improving.
Penn expects the Barstool Sportsbook to be live in 10 states by the end of 2021.
PENN Price Action: Shares of Penn National were trading up 3.84% to $113.24 at last check Thursday.
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