Penn National Gaming Reports Fourth Quarter Revenues

Penn National Gaming today reported financial results for the three months and year ended December 2021. Penn National owns, operates or has ownership interests in 39 gaming and racing facilities, and video gaming terminal operations across the United States of America.

2021 Fourth Quarter Financial Snapshot:

  • Revenues of $1.6 billion, an increase of $545.1 million year-over-year and $231.3 million versus 2019;
  • Net income of $44.8 million and net income margin of 2.8%, as compared to net income of $12.7 million and net income margin of 1.2% in the prior year and net loss of $92.9 million and net loss margin of 6.9% in 2019;
  • Adjusted EBITDAR of $480.5 million, an increase of $115.1 million year-over-year and $81.1 million versus 2019;
  • Adjusted EBITDA of $369.0 million, an increase of $113.1 million year-over-year and $65.0 million versus 2019; and
  • Adjusted EBITDAR margins of 30.6%, as compared to 35.6% in the prior year and 29.8% in 2019.

Jay Snowden, President and CEO commented, “I am pleased to report a strong finish to another transformative year for Penn National. Our fourth quarter revenues of $1.6 billion and Adjusted EBITDAR of $480.5 million exceeded both 2020 and 2019 levels as our best-in-class operating teams continue to deliver impressive results despite the ongoing pandemic.”

Penn National Gaming expects full-year revenue in the range of $6.07 billion to $6.39 billion.

While the market for online gambling is growing and can be a promising revenue stream for Penn, analysts caution there could be bumps in the road. Two of the so-called Big Four states still do not allow sports betting. New York and Michigan recently passed laws allowing sports wagering, but California and Florida have not.

The company also owns a 36% stake in sports and pop culture blog, Barstool Sports.

How Quarantine Has Impacted Online Business and Gambling

Did quarantine negatively impact online business and gambling? The COVID-19 outbreak has created a situation that has never been seen before, with enormous health, social, and economic impacts. Although not all industries were affected equally, the financial markets saw a crash from the outset of the pandemic. One of the least affected sectors by the market downturn has been online businesses like casinos, gaming, and eSports, both in Canada and worldwide. With online casinos Canada joining the regulated gambling markets, quarantine and lockdowns have boosted online business.

Our author, Kevin N. Cochran, a gaming expert, has put together the following article on how quarantine has affected online business and gambling.

You can view his other works here:

Increased Online Activity

It was vital for people to engage in things that provided them satisfaction and excitement at home because they did not have a clear grasp of their future. While everyone adhered to lockdowns and COVID-19 rules imposed by their local governments, people attempted to find new indoor activities to deal with the health crisis and its consequences. Thousands of people worldwide, including many Canadians, turned to gamble during the quarantine to pass their time, connect with other like-minded players and earn winnings.

Improved Mental Health

Due to the global emergency, governments in many countries implemented quarantine and lockdown measures to mitigate the detrimental impacts of the global pandemic. As a result, educational institutions and cultural and entertainment venues have been forced to close for a while.

Anxiety, uncertainty, and the desire to relieve a low mood have all contributed to an increase in the use of information and communication technologies (ICTs), such as television, online gambling platforms, and video games.

It appears that the online gambling and gaming industries have discovered the right combination of ingredients to thrive amid the pandemic.

Aside from the fact that they are feasible, appealing, and entertaining, online casinos and games are an effective way to raise general mood levels and, ultimately, improve mental health. This is particularly true for those forced to spend a significant amount of time alone due to quarantine.

Rise of eSports

Several major league games, including soccer and basketball, and sporting events, have had to be postponed or cancelled due to the COVID-19 outbreak. Therefore, these leagues have been compelled to rethink their commercial purpose almost from scratch to remain competitive.

Sports organisations have been more open to the eSports model as a result of the increasing importance that the internet and online gaming have played and will continue to play in the future. Physical contact is avoided in eSports, which reduces the risk of health complications. When faced with adversities such as the COVID-19 pandemic, this feature makes eSports a particularly appealing extension of traditional sports.

A large number of reports indicate that around one-third of Canadian e-Sports fans take part in online sports betting. Many gaming and sports organisations are attempting to expand their market penetration due to the great potential in this area. They have received additional funding, which will aid in expanding the business.

E-Sports is undoubtedly one of the most appealing businesses for companies. Its growth is expected to be sustained in both developed and developing economies over the next few years.

Innovations in the Gaming Industry

As a result of the quarantine and worldwide social isolation, users automatically seek action-packed online games that provide them with a rush of adrenaline to help them cope. They are visiting more online casinos in search of fresh and exciting experiences.

Traditional games are increasingly going out of fashion. As a result, the emerging games are focused on plot, the extraordinary, and relevance in today’s world. Online slot games with themes like the apocalypse, bacteria and viruses, blockades, and other anti-utopian elements are becoming increasingly popular. And the game developers, as well as the casinos, have achieved success by providing innovative gaming experiences.

Increased Demand for Virtual Reality (VR)

Technology is a significant growth engine in the gaming industry. Facial and sound recognition, gesture control, and virtual reality (VR) have completely altered online games and piqued great interest in people who had previously avoided playing them.

Players can enjoy a near-reality experience using virtual reality technology as long as they are physically active and engaged in the game. Many active competitive gaming websites and online casinos are now using VR. As a result, developers are now concentrating on augmented reality and virtual reality technology to differentiate their games in the market.


Online casinos and gaming provide some respite from the stresses of long-haul quarantine and mental health strain. The enormous expansion of gaming throughout the epidemic has demonstrated that many people have discovered a new outlet and a much-needed connection during their time of adversity.

Why Now Is The Right Time To Start An Online Gaming Business

In the past few years, online gaming has been growing at a staggering rate. While there are a handful of established gaming developers, many new developers have begun to see incredible success in this industry, and the future looks bright for online gaming.

Nonetheless, before you go barrelling into setting up your own casino business, you should first understand some of the reasons why online gambling is going through a period of rapid growth.

Why Would You Want To Start A Casino Business?

Besides the obvious benefits, such as the potential for huge profits, it has become easier than ever before to set up your own online casino business. Due to the rapid increase in online gambling, there has never been such a great time to start for the reasons discussed later in the post. Furthermore, the barrier to entry has decreased considerably with options such as white label casino solutions that make it far more straightforward to set up shop. You can use these solutions to essentially buy into a franchise. While it is not strictly a franchise, you will receive all the tools and licenses you need to start.

This can be hugely beneficial if you already have business experience but are new to the online casino space. As discussed previously, there has never been a better time to begin, but what has influenced this increase in online gambling?

Global Lockdowns

There is nothing more beneficial to online platforms as a global pandemic! Even though it is not something to laugh about, it remains the case that people still have to do something because they have been locked inside their homes for over a year. This, coupled with the extreme boredom that accompanies lockdowns, has led to many people turning to the internet for entertainment. One form of entertainment that has proven popular is gambling and playing the multitude of different games available.

Many other casinos have discovered that catering to newcomers has increased their revenues substantially. Nonetheless, there is still plenty of room for other players, but you may miss out on the lockdown wave if you don’t start now.

It Is Highly Accessible

Even if you were to factor out the COVID-19 aspect, most people still prefer the convenience compared with a traditional casino. For example, you can choose any game you like at any time of the day and pay however you want. You can’t get much more convenient than that! Additionally, many casinos offer the chance to play via an application that you can download directly to your phone or mobile device. There has also been an increase in casual gaming, whereby people no longer play only to win but also because they find it exciting and enjoy gambling as a pastime.

Many players enjoy playing poker for fun, but they may not be able to organise a poker group from their friends or acquaintances. The next best thing would be to use an online casino with live poker tournaments.

There Are More Games Than To Choose From

Large game libraries have been commonplace since the dawn of online gambling. Still, the main difference these days is a massive proliferation of high-quality titles ready to play at any time. Moreover, the companies providing gaming solutions to online casino entrepreneurs keep upgrading their offerings and hiring talented developers to stay competitive. This creates a snowball effect as more players join because of an ever-increasing game selection but stay gambling as those games become even more exciting.

Your business will benefit from this improvement in in-game quality by differentiating itself from your competitors, even more so if you keep your selection up to date and stay perceptive to your customers’ playing habits.

Secure Payment Methods

In choosing a casino, most players are concerned with how to make a deposit. Additionally, there is another concern for any casino player who wins money: how to retrieve their winnings. Today, online casinos have made it easier than ever to make deposits and collect winnings. With the advent of multiple secure payment processors to handle these payments, it has become elementary for players to move their money around.

Moreover, players are increasingly being provided with the option of using cryptocurrencies (usually Bitcoin) as their preferred currency. Consequently, more international players who have traditionally been locked out from global banking systems can now sign up and participate without restriction.

There Is A Real Chance Of Winning Money

Although there are more and more casual players onstream, the fact remains that most players are competing to win. This is no bad thing, as the more players can win, the more likely they will continue playing at their favourite casino. In general, online casinos offer far better odds than their brick and mortar counterparts, making it more attractive to move from the real world to the online world.

This means that if you are to open your own online casino, you should see which casino software solution offers games that appeal to your sense of risk.

Easy For Beginners To Get Started

Perhaps the most significant reason to open an online casino as soon as possible is that it has never been easier for new players to start gambling. In the past, conventional casinos were perceived to be the hangout of professional gamblers. In some cases, there are even entrance fees, body searches, and if you are unlucky, tap-downs by big, burly security personnel. However, these days, nothing could be further from the truth.

The process of opening an account, depositing money, and playing either the computer or other live players is no longer intimidating for a beginner.

Incredible Analytics

Most gambling software solutions will come with an advanced suite of analytical data that you can employ to increase your revenue. A range of factors can be considered, from marketing performance to how long players stay with a specific game. These data will help you determine what you need to do to boost revenues and attract more players.

Since it has never been easier or more lucrative, there has never been a better time to start an online gaming business. Whether it’s being able to attract a captive audience or the plethora of payment options making it easier than ever to keep players inside your ecosystem, there’s never been a better time to get started.