Vancouver, British Columbia--(Newsfile Corp. - December 16, 2025) - Jackpot Digital Inc. (TSXV: JJ) (OTCQB: JPOTF) (Frankfurt Stock Exchange: LVH3) (the "Company" or "Jackpot Digital")Jackpot Digital, the world's leading provider of innovative dealerless electronic poker gaming solutions, is pleased to announce that it has finalized installation agreements to deploy its Jackpot Blitz® dealerless poker electronic table games ("ETGs") at Boomtown Casino Biloxi and Hollywood Casino Gulf Coast in Mississippi, ...

Dec 1, 2025 12:30 PM Eastern Standard Time PENN Entertainment Celebrates the Official Opening of Second Hotel Tower at M Resort Las Vegas Share M Resort is the Second of PENN's Five Growth Projects to be Completed WYOMISSING, Pa. & HENDERSON, Nev.--(BUSINESS WIRE)--PENN Entertainment, Inc. (Nasdaq: PENN) ("PENN†or the "Company†) is pleased to announce that the second hotel tower at M Resort Spa Casino Las Vegas ("M Resort†) has officially opened. The project was completed on budget and ahead of time. Th ...

Dec 1, 2025 10:49 AM Eastern Standard Time theScore Bet Now Live In 21 U.S. Jurisdictions Share PENN Entertainment Completes Rebrand of U.S. Online Sports Betting Platform to theScore Bet; Launches Sports Betting in Missouri WYOMISSING, Pa.--(BUSINESS WIRE)--PENN Entertainment, Inc. (Nasdaq: PENN) ("PENN†or the "Company†) announced today that it has completed the rebrand of its online sports betting (OSB) platform to theScore Bet and has successfully launched its OSB product in Missouri. Existing customer ...

Core Insights - Penn Entertainment has ended its exclusive U.S. online sports betting partnership with ESPN earlier than expected, effective December 1, 2025, after mutual agreement due to missed market share goals [2][3] Company Overview - Penn Entertainment operates a portfolio of land-based casino and racetrack properties across multiple states, alongside significant digital gaming and sports-betting platforms, with a market capitalization of approximately $2 billion [3] Partnership Details - The partnership with ESPN, initiated in August 2023, was a 10-year deal costing Penn $150 million annually plus stock warrants for the rights to the ESPN BET brand [2] - ESPN contributed nearly 3 million users to Penn's platform, but both parties agreed to amicably wind down the partnership [2][3] Stock Performance - Over the past 52 weeks, PENN stock has declined by 29%, currently trading down 34% from its 52-week high of $23.08 [4] - Year-to-date, the stock is down approximately 23%, with a recent 6.5% decline in just the past five days due to strategic moves like the early termination of the ESPN deal [4] - PENN stock is trading at a discount to industry peers at 0.32 times forward sales [5]

Core Insights - PENN Entertainment reported Q3 CY2025 revenue of $1.72 billion, a 4.8% year-on-year increase, but fell short of analyst expectations of $1.73 billion, resulting in a 0.6% miss [5] - The company experienced a non-GAAP loss of $0.22 per share, significantly below the consensus estimate of a loss of $0.03 [5] - Adjusted EBITDA was reported at $194.9 million, missing analyst expectations of $385.2 million, reflecting an 11.3% margin and a 49.4% miss [5] Management Commentary - Management attributed the underperformance to challenges in digital operations, particularly lower-than-expected online sports betting volumes and customer-friendly game outcomes [3] - The early termination of the ESPN partnership was noted, with management stating it was necessary to realign interactive focus and enhance connectivity across the ecosystem [3][4] - The transition to a unified digital brand strategy is expected to improve efficiency and profitability, with a focus on cross-selling between digital and land-based assets [3] Strategic Changes - PENN announced the early conclusion of its ESPN marketing agreement due to insufficient competitive scale for ESPN Bet, reallocating resources to higher-return segments [6] - The company is shifting its digital focus to theScore Bet, leveraging its established presence in Canada and North America, with a seamless customer transition planned [6] - The North American iCasino business achieved a record quarterly gaming revenue, with a 40% year-over-year improvement attributed to increased cross-sell from sports betting [6] Operational Insights - The core regional casino business showed stable demand, particularly in markets without new competition, with new property openings contributing to customer reactivation [7] - Increased marketing and labor expenses in competitive markets led to temporary margin compression, but management expects these pressures to normalize as promotional activities stabilize [7]

Upgrades - Piper Sandler upgraded Expedia (EXPE) to Neutral from Underweight with a price target of $250, increased from $190, following "very strong" Q3 results and positive Q4 guidance [2] - Macquarie upgraded Unity (U) to Outperform from Neutral with a price target of $50, up from $33, after a Q3 earnings beat as Vector continues to improve [2] - Oppenheimer upgraded JFrog (FROG) to Outperform from Perform with a price target of $75, citing strong quarterly performance and accelerating Cloud growth [3] - Benchmark upgraded Trade Desk (TTD) to Buy from Hold with a price target of $65, noting revenue growth of about 22% year-over-year excluding political acceleration [3] - KeyBanc upgraded Datadog (DDOG) to Overweight from Sector Weight with a price target of $230 post Q3 report, highlighting revenue acceleration excluding OpenAI and sustained visibility into OpenAI spending [4] Downgrades - Williams Trading downgraded Canada Goose (GOOS) to Sell from Hold with a price target of C$12, down from C$20, indicating that the company will not be sold or go private [5] - Needham downgraded CarMax (KMX) to Hold from Buy, citing a choppy macro recovery and increased competition leading to negative unit growth [5] - RBC Capital also downgraded CarMax to Sector Perform from Outperform with a price target of $34, down from $59 [5] - Needham downgraded Penn Entertainment (PENN) to Hold from Buy, removing the previous $22 price target after the early termination of the partnership with Disney's ESPN [5] - Goldman Sachs downgraded Sweetgreen (SG) to Sell from Neutral with a price target of $5, down from $10, due to pressures on both revenue and profitability [5] - UBS downgraded Cogent (CCOI) to Neutral from Buy with a price target of $27, down from $50, following softer results and a dividend cut [5]

Core Insights - Analysts at Stifel upgraded Penn Entertainment (NASDAQ: PENN) to a buy rating with a price target of $21 per share following the early termination of its sports betting agreement with ESPN [2][6] - Deutsche Bank upgraded Baidu (NASDAQ: BIDU) to a buy rating with a price target of $156, up from $88, citing AI as a key growth driver [5][7] - Bank of America reiterated a buy rating on Qualcomm (NASDAQ: QCOM) with a price target of $215, emphasizing its long-term benefits from the adoption of 3G-4G-5G technologies [8] Company-Specific Summaries Penn Entertainment - The company has mutually agreed to wind down its collaboration with ESPN, allowing it to refocus on its iCasino business and leverage its position as a leading regional retail casino operator [4][6] - The termination of the agreement is expected to provide a tailwind for future growth [6] Baidu - The upgrade by Deutsche Bank highlights the potential of Baidu's AI initiatives, including Baidu AI Cloud and intelligent search capabilities, as well as its chip subsidiary's positioning in the AI capital expenditure market [5][7] Qualcomm - Analysts believe Qualcomm will benefit from the global adoption of 3G-4G-5G technologies across smartphones, tablets, and machine-to-machine communications [8] Datadog - KeyBanc upgraded Datadog (NASDAQ: DDOG) to an overweight rating with a price target of $230, noting accelerated revenue growth excluding OpenAI and a renewed commitment from OpenAI [9]

Core Insights - The article expresses skepticism regarding ESPN's late entry into the sports betting market with its BetESPN platform, which only captured a 2.8% market share in its first year [1]. Group 1: Industry Analysis - The casino and gaming sector is experiencing significant changes, with new entrants like ESPN attempting to capture market share in sports betting [1]. - The article highlights the importance of management quality in informing investment decisions within the gaming industry [1]. Group 2: Expert Background - Howard Jay Klein, with 30 years of experience in major casino operations, leads an investing group called The House Edge, focusing on actionable research in the casino, online betting, and entertainment industries [1]. - Klein's extensive intelligence network spans various levels within the US gambling and entertainment sectors, providing valuable insights for investment strategies [1].

Business Operations - PENN Entertainment operates in 28 jurisdictions across North America, with a diversified portfolio including casinos, racetracks, and online sports betting, supported by over 33 million members in its PENN Play loyalty program [187]. - The company plans to rebrand its U.S. online sports betting offering to theScore Bet by December 1, 2025, leveraging its existing media app with approximately 4 million monthly active users [188]. - The Joliet Project, relocating its riverboat casino, opened on August 11, 2025, featuring approximately 1,000 slots and 43 live table games, with $130 million in funding from GLPI resulting in a $10.1 million increase in annual rent [193]. - The Aurora Project is expected to open in Q2 2026, featuring roughly 1,200 gaming positions and 220 guest rooms, with up to $50 million funded by the City of Aurora [194]. - The second hotel tower at M Resort is set to open on December 1, 2025, adding 384 rooms and resulting in an $11.7 million increase in annual rent after receiving $150 million in funding from GLPI [195]. - The Ameristar Council Bluffs project is anticipated to cost between $180 million and $200 million, with GLPI committed to finance up to $150 million at a 7.1% cap rate [197]. Financial Performance - Total revenues for the three months ended September 30, 2025, increased by $78.1 million, or 4.8%, to $1,717.3 million compared to $1,639.2 million in the prior year [215]. - Interactive segment revenues for the three months ended September 30, 2025, increased by $53.1 million, or 21.7%, to $297.7 million compared to $244.6 million in the prior year [213]. - Net loss for the three months ended September 30, 2025, was $865.1 million, compared to a net loss of $37.5 million in the prior year [213]. - Consolidated Adjusted EBITDA for the three months ended September 30, 2025, was $194.9 million, a slight increase from $193.5 million in the prior year [213]. - Gaming revenues for the nine months ended September 30, 2025, increased by $112.6 million, or 2.9%, to $3,991.2 million compared to $3,878.6 million in the prior year [216]. - Operating expenses for the three months ended September 30, 2025, increased by $922.0 million, or 58.7%, to $2,493.7 million compared to $1,571.7 million in the prior year [219]. - Food, beverage, hotel, and other revenues for the three months ended September 30, 2025, increased by $40.9 million, or 11.6%, to $392.1 million compared to $351.2 million in the prior year [217]. Impairment and Charges - The Company recorded an impairment charge of $825.0 million in the Interactive segment for the three months ended September 30, 2025, due to a realignment of its digital focus following the early termination of the Sportsbook Agreement with ESPN [224]. - For the nine months ended September 30, 2025, the Company also recognized an additional impairment charge of $15.0 million at its ACB property related to a trademark rebranding decision [225]. - The company recorded a goodwill impairment of $825.0 million due to the carrying amount exceeding the fair value of the reporting unit [298]. Capital Expenditures and Debt - The company incurred capital expenditures of $324.1 million during the nine months ended September 30, 2025, primarily related to PENN Development Projects [274]. - The company anticipates capital expenditures of approximately $255.0 million for the year ending December 31, 2025, including $430.0 million for capital project expenditures related to PENN Development Projects [274]. - As of September 30, 2025, the company had $2.9 billion in aggregate principal amount of indebtedness, including $1.9 billion outstanding under Amended Credit Facilities [277]. - The company maintains a capital structure with a mix of equity and debt financing, expecting to meet debt obligations through internally-generated funds or refinancing [294]. Tax and Interest - Income tax expense for the three months ended September 30, 2025, was $5.3 million, compared to $2.8 million for the same period in 2024 [234]. - The effective tax rate for the three months ended September 30, 2025, was (56.7)%, reflecting significant changes in tax calculations [234]. - Interest expense, net decreased by $21.2 million for the three months ended September 30, 2025, compared to the prior year [228]. Future Outlook - The company expects future growth from online sports betting and iCasino businesses, expansions of existing properties, and strategic acquisitions [199]. - Future cash flow generation will depend on various economic and competitive factors, with no assurance of achieving anticipated earnings projections [293]. - The company expects future growth through acquisitions, development projects, and expansion in under-penetrated markets, though there are no guarantees [293]. - A 10% decrease in forecasted revenues and EBITDA could result in an additional impairment loss of $105.0 million for the Interactive reporting unit [301]. Currency Adjustments - An unrealized foreign currency translation adjustment loss of $38.2 million was incurred for the three months ended September 30, 2025 [310]. - The company experienced an unrealized foreign currency translation adjustment gain of $53.8 million for the nine months ended September 30, 2025 [310]. - The company did not enter into hedging arrangements to mitigate foreign currency fluctuations [310].

Core Insights - ESPN has terminated its partnership with PENN Entertainment and has signed a new deal with DraftKings, making it the exclusive Official Sportsbook and Odds Provider of ESPN [1][7] - This shift highlights the competitive landscape of the U.S. sports betting market, particularly in light of recent scandals involving the NBA [3][5] Company Developments - The previous deal with PENN was valued at $1.5 billion over 10 years, with termination rights based on market share performance [4] - DraftKings' shares increased by nearly 1% following the announcement, while PENN's shares fell by over 6% [2][7] Market Context - The transition from PENN to DraftKings reflects the intense competition in the sports betting sector, especially as ESPN's betting platform struggled to compete with established players like DraftKings and FanDuel [3][4] - The change comes amid increased scrutiny of sports gambling practices, particularly following recent arrests related to NBA betting scandals [5][8]