PENN Entertainment: After Being Bullish, I Am Now Bearish Absent A Boyd Gaming Deal


  • PENN Entertainment, Inc. has struggled with earnings and digital results, particularly with their Barstool Sports acquisition.
  • The company’s foray into digital gaming has been costly, leading to potential interest from Boyd Gaming Corporation for an acquisition.
  • A potential merger between PENN Entertainment and Boyd Gaming could create a powerhouse with significant cost-cutting and revenue potential.

Winning bet on sporting event, money in sport and sports betting conceptual idea with baseball glove, football, soccer ball and wad of cash isolated on green background


Above: Sports betting has a low barrier of entry, slim margins but strong growth and takes the staying power of multi-millions of dollars to buy market share.


My understanding of the long-term prospects of the PENN Entertainment, Inc.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

We call hold only as long as BYD possible deal lingers. If it dies, we call sell.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The House Edge is widely recognized as the only marketplace service on the casino/gaming/online sports betting sectors, researched, written and available to SA readers by Howard Jay Klein, a 30 year c-suite veteran of the gaming industry. His inside out information and on the ground know how benefits from this unique perspective and his network of friends, former associates and colleagues in the industry contribute to a viewpoint has consistently produced superior returns. The House Edge consistently outperforms many standard analyst guidance with top returns.

According to TipRanks, Klein rates among the top 100 gaming analysts out of a global total of 10,000.

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