PENN Entertainment's ESPN BET investment shows continued struggles, with a $109.8 million fourth-quarter loss in its interactive division. Overall, the company missed analyst forecasts, reporting $1.67 billion in revenue and $133.8 million in net losses.

ESPN BET's market share in key states remains low, ranking seventh in revenue and holding only 1% to 2% of the market, far from the company's target of 20% by 2027.

Another scary stat for PENN from its earning call: Less than 0.1% of ESPN app users have linked an ESPN BET account.

From Front Office Sports:

Penn Entertainment president and CEO Jay Snowden acknowledged the uphill climb in an earnings call Thursday morning with analysts.

“We have more work to do to unlock the full potential and value of our partnership with ESPN,” Snowden said.

He then continued, and suggested that Penn Entertainment could even exercise an opt-out clause in its 10-year ESPN deal that is available in 2026.

“When we announced our partnership, both sides made it very clear that we expected to compete for a seat at the podium. And we’re not on pace right now to do that,” Snowden said. “We have tremendous plans in place for 2025 and 2026. But if, for whatever reason, we’re not hitting the levels that we need to, then obviously as you’re approaching the third anniversary, you have a three-year clause in that contract that both sides will have to do what’s in their best interests. And so that’s always out there.”
Read more here: https://frontofficesports.com/2b-esp...-2026-opt-out/