Hollywood Gaming parent company stocks drops 18 percent overnight. Why?
Penn Entertainment, the owner of Hollywood Gaming at the Mahoning Valley Race Course in Austintown, is seeing its stock fall to the lowest level since the beginning days of the pandemic.
The stock fell nearly 18 percent in the last 24 hours and has declined from an all-time high of 130.47 on March 12, 2021, falling to 32.33 to the highest stock value in the previous year.
What is causing the sell-off?
When Penn Entertainment issued its fourth quarter, it showed earnings for the last quarter of 2022 - $20.8 million, compared to a loss of $358.1 million in the last quarter of 2023.
Revenue also was down nearly 12 percent comparing the last quarter of 2022 to the Q4 in 2023, dropping from $1.59 billion to $1.40 billion.
CNBC reported that most of the loss of revenue came from the late launch of ESPN Bet after Penn Entertainment after it missed out on joining the nation's largest sports betting market, New York.
Penn Entertainment, in a media release, announced on Tuesday it had reached a deal to acquire Wynn Interactive Holdings, which holds the mobile sports wagering licenses for New York, for $25 million.
"This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America," said Jay Snowden, PENN Entertainment CEO and President.
Penn Entertainment operates 43 properties in 20 states and online sports betting in 15 jurisdictions.