PENN Entertainment terminates ESPN sports betting partnership

PENN Entertainment Inc. (NASDAQ: PENN) reported third-quarter results and announced the early termination of its U.S. online sports betting agreement with ESPN Inc., according to a press release.

The company's online sports betting marketing exclusivity with ESPN will end December 1, 2025. Under the termination agreement, cash payments to ESPN will cease at the end of the fourth quarter 2025, and ESPN will retain vested warrants to purchase 7,957,210 shares with a weighted strike price of $28.95. All unvested warrants and performance warrants will be forfeited by ESPN.

PENN plans to rebrand its U.S. online sports betting offering to theScore Bet, with a target date of December 1, 2025, subject to regulatory approvals. The company will retain a database of 2.9 million digital users acquired during the ESPN relationship, including 300,000 acquired this football season.

For the third quarter ended September 30, 2025, PENN reported revenues of $1.72 billion compared to $1.64 billion in the prior year period. The company posted a net loss of $865.1 million, or $6.03 per share, compared to a net loss of $37.5 million, or $0.24 per share, in the third quarter 2024.

The company's retail properties generated revenues of $1.4 billion and segment adjusted EBITDAR of $465.8 million with margins of 32.8%. The Interactive segment reported revenues of $297.7 million, including a tax gross-up of $139.5 million, and an adjusted EBITDA loss of $76.6 million.

During the quarter, PENN repurchased 7,965,282 shares for $154.1 million at an average price of $19.34 per share. The company's board authorized a new $750 million share repurchase program beginning January 1, 2026, and expiring December 31, 2028.

Total liquidity as of September 30, 2025 was $1.1 billion, including $660.1 million in cash and cash equivalents. Traditional net debt stood at $2.2 billion.

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