Aug 9 (Reuters) – Penn Entertainment (PENN.O) reported a better-than-expected quarterly profit on Wednesday, as visitors return to its casinos and demand for online sports betting rises.
Shares of the company rose ~15% in premarket hours.
The company late on Tuesday announced a $2 bln deal under which it would rebrand its sports betting business, which is increasingly lucrative in the United States, with Walt Disney’s (DIS.N) ESPN as ESPN Bet. Shares of rival betting firm DraftKings were down 4.8%.
Sports betting is live in 34 states and Washington, D.C. and is legal but not yet operational in another four, according to the American Gaming Association.
Revenue from Penn’s
Penn Entertainment beats profit estimates on rising demand for sports betting
