Penn Entertainment Announces 100 Layoffs Due to Operational Restructuring

19.07.2024

Penn Entertainment is set to lay off approximately 100 employees as part of its strategic focus on growth for ESPN Bet.

Integration and Technological Advancements

CEO Jay Snowden communicated to staff in an internal email that these layoffs are aimed at enhancing operational efficiencies following the company’s acquisition of theScore in 2021.

The acquisition of theScore marked the beginning of technological advancements for Penn. According to Snowden, the company prioritized building out its proprietary tech stack and migrating its sportsbook operations to theScore’s platform, temporarily delaying organizational changes typically associated with such a major acquisition.

Strategic Growth and Branding Partnership

Penn Entertainment is now entering a new phase of growth in its interactive business, highlighted by ESPN Bet, a $2 billion branding partnership with Disney’s ESPN.

The focus includes product enhancements and deeper integration into ESPN’s ecosystem, aiming to capitalize on the upcoming football season with new features.

Investor impatience is mounting for Penn to demonstrate substantial growth with the rebranded sportsbook. Activist investor Donerail Group has even suggested that the board consider selling the casino company. While rumors circulate about potential interest from other gaming companies,

Truist gaming analyst Barry Jonas indicated that a sale is unlikely in the near term due to the complexity of such a transaction.