After rebranding away from ESPN Bet and trimming business operations, parent company PENN still reported positive earnings thanks to both brick-and-mortar locations and online betting platforms. With two major sports catalysts on the horizon, analysts expect more growth on the balance sheet from Q3 2026 to Q1 2027. 

Source: Unsplash

Why UK Investors Should Pay Attention

PENN Entertainment may be a US-based business, but its a business worth watching for any UK-based investor with an eye on the American sports betting sector. The impending World Cup is a real test for the US market’s ability to convert tournament fans into long-term customers. If PENN sees real profit from their tournament activity, it’ll be a sign of maturity for the American sports betting market and a boost to investor confidence.

PENN’s Q1 Earnings Report

A legacy gambling business dating back to the ‘60s, PENN Entertainment took the same leap many others did by opening its own online sportsbook. Licensing the name from ESPN, they operated the ESPN Bet platform until November 2025, when they changed its name. The result was theScore Bet, a sportsbook offering markets in all four big leagues and bonuses like $1,000 first bet resets for new users. As of Q2 2026, they operate in 20 US states.

After some shakiness following the rebrand, PENN nevertheless beat Q1 earnings with $1.78 billion, up 6.4% from Q1 2025 revenue ($1.67 billion). The EPS beat was 120% overall, reporting at $0.11 despite a $0.05 forecast. Year-over-year, EBITDA also rose from $173.3 million last year to $265.8 million. However, PENN’s balance sheet ultimately flipped from $111.5 million in net income last year to a $2.8 million loss. While a hit to investor confidence, analysts at Stifel added a dollar to PENN’s price target (up to $23) and held fast with a buy rating.

Can the World Cup Save Q3?

Looking to the future, it’ll be the Q3 2026 earnings report that shows the full impact of the World Cup on PENN’s underperforming online sportsbook venture. While their physical locations drove the lion’s share of profit in past quarters, events like the World Cup and later the Super Bowl will spur more casual bettors in North America to put a wager down. If that pans out, investors should expect to see improvement in the digital side of the business starting in Q2, if only slightly, before the finals make their mark on Q3 data.

Historically, Q3 has been one of the weaker quarters for most sportsbook operators. Most of the big leagues are off-season, and the NFL’s September start usually doesn’t register on earnings. That’s because, no matter the sport or the competition, most betting activity floods in toward the end of the tournament when the stakes get higher. This is corroborated by data from Optimove, which also found that while true, the average bet size gets smaller.

Will They Turn a Profit in Q1 2027?

After the World Cup and an expected quiet period over Q4, the next catalyst should come in the form of Super Bowl LXI. This coincides with when some analysts expect the interactive segment of the business, responsible for its sportsbook and digital operations, to turn a profit for the first time.

Source: Unsplash

For operators like PENN, January tends to be their strongest month for bet volume. That’s because you get the NFL playoffs, the Super Bowl and March Madness in rapid succession, the most bet-on American football events. That’s why analysts are bullish on Q1 2027, especially as PENN’s Interactive division settles into and promotes its new sportsbook name.

Q1 2027’s performance will hinge on whether they get enough attention from bettors while keeping operations tight, so they don’t give potential profit back in costs. The World Cup in the summer will give early indications on whether PENN is setting the stage for a profit turnaround.

For UK investors with exposure to the US sports betting market, the World Cup will carry real weight. A solid, lasting turnaround could be a sign that American online betting has really turned a corner.

Please note: This article is provided for general information and entertainment purposes only. It does not constitute betting, financial, or professional advice. Readers should conduct their own research and, where applicable, gamble responsibly. Participation in betting and gambling activities is restricted to those aged 18 and over in the UK.

Featured image: Upsplash