Penn Entertainment plans to lay off about 100 employees as it focuses on growth for ESPN Bet.

CEO Jay Snowden told staff members in an internal email that the changes will enhance operational efficiencies following its 2021 acquisition of Canadian media and gaming powerhouse theScore.

The company employs about 20,000 people.

“When PENN acquired theScore, we hit the ground running with the build-out of our proprietary tech stack and the migration of our sportsbook to theScore’s best-in-class-platform,” Snowden wrote in the memo. “This led us to temporarily set aside any potential organizational changes that would typically follow a major acquisition.”

Advertisement

Penn went on to say it’s embarking on a new phase of growth in its interactive business, which includes ESPN Bet, a $2 billion branding partnership with Disney’s ESPN. Snowden said the initiatives include product enhancements and deeper integration into ESPN’s ecosystem.

Investors are impatient for Penn to demonstrate its muscle with the rebranded sportsbook, and activist investor Donerail Group has called on the board to sell the casino company.

Rumors have swirled about the potential interest from many other online gaming and brick-and-mortar casino companies.

Truist gaming analyst Barry Jonas wrote in a note Thursday that a sale is unlikely in the near term because of the complexity of a transaction that would likely involve major divestitures.

Penn’s release of new ESPN Bet features this fall during football season should meaningfully improve its product, Jonas said, and a focus on costs indicate the company’s commitment to seeing its investment yield results.

Advertisement

Penn shares have plummeted 25% year to date. It has missed earnings expectations the last two quarters and lowered guidance.

“Investors continue to wonder what an ESPN Bet success could look like, and how much more investment (beyond what’s guided) it’ll take to reach,” Jonas notes.

ESPN BET, the official sportsbook of ESPN, launched in North Carolina as the state’s legal sports betting market opened. Fans in the state now have access to the state-of-the-art mobile and web betting platform, which offers a variety of markets across sports and leagues from around the world, including straight bets, cross-sport parlays, props, and in-game wagering, along with daily odds boosts, custom offers, exclusive promotions and integrations with ESPN content and personalities. ESPN BET, operated by PENN Entertainment, is now live in 18 states.

To celebrate, ESPN BET is hosting a launch party for fans 21+ at Rally in Charlotte on Friday, March 15, featuring ESPN’s Stephen A. Smith. The event will begin at 5:30 pm and will include complimentary refreshments, music, activities, prizes, and plenty of screens to follow all the March college basketball action.

“We’re thrilled to bring ESPN BET to North Carolina, which marks the first new state launch under our ESPN partnership. Together, we’re excited to engage with sports fans across the state and deliver an exceptional sports wagering experience. We commend the North Carolina State Lottery Commission and all of the stakeholders involved in establishing this new legal sports betting market,” Jay Snowden, CEO and President of PENN Entertainment, said.

“Launching ESPN BET for North Carolina fans is a pivotal moment. This marks a significant stride forward, building on the momentum from our inaugural launch in November. Now, fans have the chance to align themselves with a sportsbook backed by the trusted ESPN brand, offering an unparalleled experience in the world of sports betting,” Mike Morrison, Vice President of ESPN BET and ESPN Fantasy, said.

PENN secured market access in North Carolina through a partnership with Quail Hollow Club, a private golf club in Charlotte that has hosted some of the game’s greatest players and events. Additionally, ESPN BET is the exclusive official betting operator of the Wells Fargo Championship, a PGA TOUR Signature Event that will be held at Quail Hollow Club in May.

Advertisement

PENN and ESPN are committed to providing a safe environment for all customers to enjoy gaming responsibly. ESPN BET offers comprehensive Responsible Gaming tools and resources, including limits on time, deposits, and wagering amounts.

PENN Entertainment announced that the founding family behind theScore – John Levy, Benjie Levy, Aubrey Levy, and Noah Levy – will be stepping down from their roles at PENN Interactive, with John departing in mid-February and with Benjie, Aubrey and Noah departing in April 2024. In conjunction with this planned leadership transition, the Company is in the final stages of its search for a new Head of Interactive.

“This transition plan comes at a natural inflection point, with the migration to our proprietary technology platform complete, theScore’s media and betting business delivering record results, and ESPN BET off to a strong start. The Levys are a family of successful entrepreneurs and are truly pioneers in the sports media and gaming industry. I am very proud of what we’ve been able to accomplish with them, including the development of an extremely deep and talented bench at PENN Interactive. With this experienced, best-in-class team firmly in place, we are well prepared for this to be a seamless transition and to continue growing our position as a leader in online gaming and sports media,” Jay Snowden, CEO and President of PENN Entertainment, said.

“Working at PENN has been extremely rewarding and we want to thank Jay, Todd George and the entire PENN team for their partnership and support as we brought these two organizations together to execute on our uniquely integrated media and betting strategy. Our focus on creating industry leading technology and products has been second only to our efforts in building a world class team and fostering a special place to work. We could not be more proud of this team and what we have accomplished together, and we look forward to watching as they continue to build upon the successful foundation we established at theScore,” Benjie Levy, Head of PENN Interactive and President and Chief Operating Officer of theScore, said.

PENN acquired Score Media and Gaming Inc. (theScore) in October 2021 and integrated theScore with its PENN Interactive unit under the leadership of Benjie Levy as Head of Interactive with John Levy assuming the role of Executive Chairman of theScore. The integrated interactive team further established PENN as an online gaming leader across North America, including launching and sustaining a leading position in Ontario with theScore Bet, completing the successful migration onto a proprietary, cutting-edge technology stack, and most recently executing the highly anticipated and successful launch of ESPN BET.

Advertisement

“The enduring success of theScore is due to the passionate and committed team that helped launch, develop and innovate our products to provide the best possible fan experience. Empowering fans with a seamlessly integrated media and betting experience has been core to our mission since day one. That strategy has led to the success of theScore and theScore Bet in Ontario and ESPN BET in the US and will continue to differentiate this online gaming business going forward,” John Levy, Executive Chairman of theScore, said.