Penn Entertainment will lay off approximately 100 employees as it focuses on expanding ESPN Bet.
In an internal email, CEO Jay Snowden informed staff the layoffs are part of a strategy to improve operational efficiency.
It follows Penn’s 2021 acquisition of the Score, a major Canadian media and gaming company.
With a workforce of around 20,000, Penn has been integrating theScore’s advanced technology into its operations.
Snowden wrote in the memo: “When PENN acquired theScore, we hit the ground running with the build-out of our proprietary tech stack and the migration of our sportsbook to theScore’s best-in-class-platform.
“This led us to temporarily set aside any potential organizational changes that would typically follow a major acquisition.”
The company is now entering a new growth phase, concentrating on its interactive business, including ESPN Bet—a $2 billion branding venture with Disney’s ESPN.
Snowden said the initiatives include product enhancements and plans for greater integration within ESPN’s ecosystem.
Investors are urging Penn to showcase significant results with the rebranded sportsbook.
Need Career Advice? Get employment skills advice at all levels of your career
Activist investor Donerail Group has even pushed the board to consider selling the casino company.
Speculation persists about interest from other online gaming and brick-and-mortar casino firms.
Truist gaming analyst Barry Jonas said a sale is unlikely soon due to the complexities and potential divestitures involved.
He noted that Penn’s upcoming ESPN Bet features, set to launch this fall during football season would improve the product significantly.
Jonas also noted that the focus on controlling costs indicates Penn’s commitment to achieving a return on its investment.
