Sports betting is not PENN Entertainment’s primary focus. But of the markets in which it offers that product, Ontario is by far the best-performing for the owner of theScore Bet.
“It is actually by a good margin our number one market for [online sports betting],” PENN Chief Executive Officer Jay Snowden said of theScore’s home province on a Q2 earnings call on Thursday. He added that online sports betting revenue in Ontario is likely around twice or 2.5x what it is in PENN’s home state of Pennsylvania.
The fact that Ontario is PENN Interactive’s best market for sports betting is not necessarily surprising.
Firstly, theScore has years and years of history and exposure as a sports brand in that province and elsewhere in Canada. theScore Bet has offered sports betting in the province since 2022, increasingly tying the betting experience to its flagship sports media app, which PENN says has approximately four million monthly active users across North America.
Secondly, PENN’s sports betting ventures south of the border have not been particularly successful, with the failed Barstool Sportsbook venture replaced by the since-abandoned ESPN Bet brand.
Incidentally, an investor presentation released on Thursday shows that PENN’s online casino revenue now exceeds its online sports betting revenue, a reversal of its position this time last year. Snowden said that in online casino, which is PENN’s core online gambling focus these days, Ontario and Pennsylvania are closely separated as the top two markets by revenue.
Canada leads the way for PENN Interactive
Now, theScore Bet is PENN’s sports betting brand in both Canada and the U.S., having taken over from ESPN Bet last December.
In Canada, PENN operates three separate platforms in both Ontario’s and Alberta’s regulated iGaming markets:
- theScore Bet sportsbook and casino
- theScore Casino
- Hollywood Casino
Just as PENN Entertainment’s revenue reporting does not break down its operations by individual jurisdiction, nor does iGaming Ontario divide its reporting by individual operator. Exactly what market share PENN has in Ontario iGaming across its three platforms is uncertain, although Snowden said in 2025 that theScore Bet held double-digit share in sports betting and a high single-digit share in casino at that time.
Reporting its Q2 results on Thursday, PENN stated that theScore Bet-led Canada, as well as its U.S. online casino focus with the Hollywood brand, are the primary drivers of its Interactive division. American sports betting is not mentioned in the release.
“Our Ontario gaming operations continued to gain momentum, supported by strong growth in online sports betting revenues, aided by solid World Cup engagement and cross-sell of the reactivated World Cup OSB user base into iCasino,” read a quote from Snowden in the written release.
“In terms of profitability through the end of the year, clearly, it’s going to be casino-driven and Canada-driven,” he added on the call. “Those are our big focuses.”
theScore’s Alberta entry worth the investment for PENN
PENN launched its three online gambling platforms in Alberta on day one of Canada’s second regulated iGaming market, July 13.
Snowden said last year that Alberta can be a top three or four market for PENN, boosted by theScore’s Canadian cachet and the fact it can offer both sports betting and casino. The company is investing US$20m in Alberta this year, including on things such as a multi-channel marketing campaign and a new partnership with the Canadian Football League.
PENN executives reiterated again on Thursday that the company is targeting a market share in Alberta that is similar to its operations in Ontario — whatever that may be.
“While still early, we are encouraged by our Alberta user and handle volumes on a per capita basis and believe our exclusive strategic partnership in Canada with the Toronto Blue Jays will complement the strength of theScore Bet brand there,” Snowden told analysts on the call.
“We’re going into a competitive market, but we’re spending aggressively relative to what we did in Ontario. Early results from a handle perspective, even though it’s a slow sports calendar, are very encouraging. We anticipate being very aggressive, and we hope to have the same or similar market share to what we enjoy in Ontario. That’s the focus, and it’s looking good so far.”
The expected US$20m investment in the province will result in an adjusted EBITDA loss of roughly the same amount, said PENN Chief Financial Officer Felicia Hendrix.
As a result of the Alberta expenses, PENN expects Q3 2026 to yield its largest quarterly loss of the year, but that PENN Interactive’s adjusted EBITDA will turn positive for Q4 after years of that segment making a loss. Interactive net losses were down to US$9.5m in Q2 2026, compared to US$62m in Q2 2025.
All in all, PENN Entertainment returned to profit in Q2 2026, earning a net income of US$32.6m for the three-month period ended June 30, 2026, versus an $18.3m loss this time last year. Total revenue was up slightly to US$1.86bn, and consolidated adjusted EBITDA rose 32% year-on-year to US$312.6m.
Could Canada offer the right conditions for land-based expansion?
So, Canada is PENN Interactive’s north star. Could the company, whose roots are in brick-and-mortar casino gaming, also look to expand its land-based gaming footprint north of the border?
PENN previously operated the First Nations-owned Casino Rama in Ontario until 2018, at which point the operations were taken over by Gateway Casino & Entertainment. Last November, Snowden said publicly that reestablishing a Canadian brick-and-mortar presence “would remain on our radar” and that PENN would “definitely take a hard look” at any opportunities that presented themselves at the right time.
PENN already has 30 retail properties located in U.S. states in which it offers online gambling. Snowden was asked again about potential retail expansion on Thursday’s call and, while he did not address Canada directly, he suggested that PENN could make a move if the conditions are right.
“It’s going to have to check several boxes for us,” Snowden acknowledged. “It’s going to have to be something that adds strategic value for us in terms of geographic location. Does it get us to a new market or a bigger presence in a market that we enjoy being in? …
“If you want to see omnichannel work, you need iCasino and land-based casino. Just having sports betting as the digital offering and land-based, you’re not going to see as much crossover. I would circle the states that are either already live with iCasino or states that are maybe most likely to go next … It would have to be right price, right location, and potentially omnichannel.”
