- PENN Entertainment recently faced a patent infringement lawsuit from Single Action Bet Tech over alleged unauthorized use of single-action betting technology in its Hollywood Casino digital products, while also moving ahead with plans to introduce Jackpot Digital’s dealerless poker tables at its Mississippi properties following Jackpot’s licensing earlier this year.
- These developments highlight both PENN’s push to expand its digital and technology-enabled gaming offerings and the legal and operational complexities that can accompany that shift.
- We’ll now examine how PENN’s legal dispute over single-action betting technology could influence its investment narrative built around digital expansion.
AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
PENN Entertainment Investment Narrative Recap
To own PENN today, you have to believe the shift toward higher margin digital gaming can eventually offset pressure on legacy casinos and current losses. The Single Action Bet Tech lawsuit adds legal uncertainty around PENN’s core Hollywood Casino app, but on its own does not appear to alter the near term catalyst, which remains execution in online betting and iCasino. The key risk is still whether the Interactive segment can scale efficiently enough to justify ongoing investment.
Among recent updates, PENN’s agreement to install Jackpot Digital’s dealerless poker tables at Boomtown Biloxi and Hollywood Casino Gulf Coast ties directly into that digital and technology enabled thesis. While these tables will start at just two Mississippi properties, they show PENN extending its product mix beyond traditional, labor intensive table games, which could support its omni channel ambitions and help counter some of the pressure on its brick and mortar portfolio.
But against that opportunity, investors also need to be aware of the growing legal and regulatory pressures around PENN’s digital products and how those could...
Read the full narrative on PENN Entertainment (it's free!)
PENN Entertainment's narrative projects $8.0 billion revenue and $471.4 million earnings by 2028. This requires 6.0% yearly revenue growth and a $547.0 million earnings increase from -$75.6 million today.
Uncover how PENN Entertainment's forecasts yield a $19.44 fair value, a 35% upside to its current price.
Exploring Other Perspectives
Four fair value estimates from the Simply Wall St Community range from US$19.44 to US$63.82, underlining how differently investors are modelling PENN’s future. Set against this spread, PENN’s loss making Interactive unit and the new patent suit over single action betting show why broader legal and execution risks matter when you weigh those competing views.
Explore 4 other fair value estimates on PENN Entertainment - why the stock might be worth over 4x more than the current price!
Build Your Own PENN Entertainment Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your PENN Entertainment research is our analysis highlighting 3 key rewards that could impact your investment decision.
- Our free PENN Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PENN Entertainment's overall financial health at a glance.
Want Some Alternatives?
Every day counts. These free picks are already gaining attention. See them before the crowd does:
- The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 26 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
- These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com