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Consumer Cyclical · Resorts & Casinos · PENN

What PENN Entertainment Does & How It Makes Money (PENN)

Updated October 2026 · reflects PENN Entertainment's latest reported financials

U.S. casino, racetrack and online sports betting operator. It makes money mainly from gaming revenue at its casinos and racetracks, including slots and table games, plus food, beverage and hotel spending.

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How PENN Entertainment makes money

It makes money mainly from gaming revenue at its casinos and racetracks, including slots and table games, plus food, beverage and hotel spending. It also earns wagering revenue from its online sportsbook and iCasino apps.

What PENN Entertainment does

PENN Entertainment, founded in 1972 and based in Wyomissing, Pennsylvania, operates a portfolio of casinos and racetracks across the U.S., organized into Northeast, South, West and Midwest segments. Its properties offer slot machines, table games, food and beverage, and hotel stays under brands including Hollywood Casino, Ameristar, Argosy, Boomtown, L'Auberge and M Resort. Through its Interactive segment, PENN runs online sports betting and iCasino products, including theScore Bet, theScore Casino and Hollywood Casino apps, supported by its in-house content studio PENN Game Studios. It also owns theScore sports media and esports brands, and ties its physical and digital businesses together through the PENN Play loyalty program. The company was known as Penn National Gaming until it renamed itself in August 2022.

Products & services

What is PENN Entertainment worth?

On an owner-earnings DCF, PENN Entertainment's most-likely value is about $17 versus a recent price near $15 (11% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$10) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge
Owner-earnings fair value · recent price ≈ $15
Fair value (most likely)
$17
Range
$13–$27
No-growth floor
$10
Price
~$15

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

⚠ High leverage — net debt is 65.9× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Resorts & Casinos HQ United States Ticker PENN Official site

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