Sports betting and iGaming provider PENN Entertainment announced Tuesday it is restructuring its corporate model to better reflect its strategic priorities, including realigning its focus on its digital assets in Canada, as well as its Hollywood iCasino product in the U.S.
Key Takeaways
- PENN is restructuring its corporate organizational structure.
- The new model will reflect its priority in its strategies across the U.S. and Canada.
- The restructuring comes just months after the termination of PENN's partnership with ESPN, leading to the closure of ESPN BET.
As part of the restructuring, Todd George, executive vice president of operations, and Rich Primus, senior vice president and chief information officer, will both leave their roles as their positions have been eliminated.
George worked for PENN for over 13 years in various positions across the U.S. and oversaw the opening of the Hollywood Casino Joliet in Illinois. Primus served as CIO for over 10 years, assisting in the development of PENN’s strategic technology plan and its cybersecurity framework.
Jay Snowden, chief executive officer and president, said, “As we turn the calendar to 2026, we are restructuring our corporate organization to achieve greater operational efficiencies, deepen customer engagement across channels, maximize free cash flow, and drive shareholder value.”
The senior vice presidents of regional operations, Rafael Verde, Aaron Rosenthal, and Justin Carter, will continue in their roles.
The changes are effective immediately, with the company evaluating further opportunities to streamline its operations. An update is expected in the Q4 2025 report, detailing its anticipated savings and cash flow generation.
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ESPN BET shuts down after PENN, ESPN terminate partnership
In November, ESPN BET announced it would be shutting down after PENN and its branding partner, ESPN, announced the termination of their partnership.
In the two years that PENN operated ESPN BET, it reported $1 billion in adjusted pre-tax, pre-depreciation, pre-amortization, and pre-restructuring losses.
The partnership was announced in August 2023, with the aim of capturing 20% of the sports betting market share. As ESPN BET closed, it had captured only 3% of the market, while sportsbooks FanDuel and DraftKings both held over 30% each.
Snowden, said, “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space. Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.”
PENN then announced it would launch theScore Bet in 21 U.S. jurisdictions Dec. 1 following its acquisition of the media assets and tech platform from Ontario-based theScore in 2021.
Missouri residents saw theScore Bet replace ESPN BET ahead of the state's sports betting launch Dec. 1.
