Penn National Gaming last week announced fourth-quarter results that CEO Jay Snowden said capped off a “transformational” year for the multi-state regional gaming operator.
While revenues of $1.3 billion or the quarter that ended December 31 were flat compared to a year ago, the company’s net revenue for the year was $5.3 billion, a 47 percent jump, mostly because the company absorbed 12 casinos of the former Pinnacle Entertainment and acquired casinos in Louisiana and Detroit.
“This past year has been transformational for Penn National,” Snowden said in a statement. “We see meaningful cross-selling opportunities and would expect recently enacted sports betting legislation in states such as Colorado and Michigan to positively impact our brick-and-mortar business. We anticipate being live with sports betting in these markets as soon as we receive all necessary regulatory approvals.”
Snowden, who became CEO with the January retirement of Timothy Wilmott, also looked ahead to the opening of two new Penn properties in Pennsylvania in 2020, and to the company’s widening sports betting business in the wake of its $163 million deal with Barstool Sports.
Snowden told investors last week that one of the company’s biggest priorities is to sell its Tropicana Las Vegas property, and that there’s much interest in the property. “On the Tropicana side, there’s been so much unsolicited interest that it’s just very active,” Snowden told investors in a conference call announcing the fourth-quarter earnings. “We got another call two days ago with interest in potentially acquiring some or all of the land holdings there. It’s very active.”
Snowden said the sale of the Tropicana is a priority to deleverage debt the company has compiled through all those acquisitions. He said he is confident Penn can channel its Las Vegas customers to the operator’s M Resort on the south end of Las Vegas Boulevard.
“Delivering (on a sale of the Tropicana) is a very high priority for all of us here,” Snowden said. “We’re continuing to have active conversations and we’re encouraged because with the NFL Draft coming up in April in Las Vegas, the Raiders’ stadium is almost completed and the season launches in August-September. And it’s a great convention year for Vegas as well. So there’s a lot of interest. We know the land we have there is extremely valuable and we’re going to continue to explore that as a high priority for us.”
The M is about a mile away from the Raiders’ headquarters and training facility expected to be completed and occupied by summer.
“I think we can move some business from Trop to M Resort,” Snowden said. “We market both of those properties to our database, some prefer to be on Strip, some prefer to be off Strip. M Resort is on fire, It has been for years. Could we accelerate some of that movement and visitation to M from the Strip? Sure we could, and that would be by design.”
In other Penn National news, the company announced last week that it has completed a multi-year partnership agreement with NASCAR to become the authorized gaming operator for racing series, marking the company’s first deal with a professional sports league.
The partnership includes the Kansas Speedway in Kansas City, where Penn operates the Hollywood Casino, a gaming facility that overlooks the racetrack’s second turn.
The title sponsorship for the Hollywood Casino 400 at Kansas Speedway, a NASCAR Cup Series race, was extended through 2026.
“Hollywood Casino at Kansas Speedway has been able to entertain thousands of their customers, not only from the Kansas City area, but also from around the country during the Hollywood Casino 400 the last several years,” said Kansas Speedway President Patrick Warren. “I’m excited that we have extended our title race sponsorship agreement.”
The NASCAR partnership is part of Penn’s strategy to create an omni-channel provider of retail and online gaming and sports betting entertainment. Penn will promote NASCAR across its properties and on its soon-to-launch sports betting app.
