Due to raking in an impressive amount of revenue from their online gambling services, Hollywood Casino in PA and Penn Entertainment, its publicly-traded parent company, reported a $1.63bn third-quarter revenue with a comfortable $123.5m profit, much to the surprise of every Wall Street analyst.
Before we give you an in-depth breakdown of their financial results, a brief introduction is in order.
About Hollywood Online Casino
Ever since 2017, the casino has kept on providing nothing but stellar services to new and experienced players alike.
In short, according to this review, Hollywood online casino boasts an impressive selection of 181 slot titles to choose from, among which are Da Vinci Diamonds, Sparkling Roses, and 88 Fortunes.
On top of that, there is always some live action going on, and with 11 live tables, you won’t run out of things to do anytime soon!
An In-depth Look at the Numbers
Compared to November 2021’s $432.5m market revenue, November 2022’s $452.4m stands out as a 4.6% increase. The slot titles turned out to be the main breadwinner of Hollywood online casino in PA, bringing in $185.6m in a single month alone, which falls in line with the trends observed last year.
What stands out the most is a 37% year-on-year casino revenue increase that reached $128.6m in November. Online slots represented a massive chunk of the profits generated, with $86.6m coming just from this single source of revenue.
The online table games brought in $39.5m which is a 32.8% increase. Surprisingly, online poker performed below expectations, slipping 7.8% to bring in a relatively modest $2.5m in revenue.
Sports betting was arguably the most significant financial letdown, with the figures dropping 17% compared to the previous year, all the way down to revenue of $52.9m. Out of this, the vast majority came from online bets ($48.2m), while only $4.7m came from retail betting.
The Competition in Pennsylvania Is Increasing
Suffice it to say that the Hollywood online casino in PA is not the only contender in the region. Todd George, executive vice president of operations at Penn Entertainment, revealed that the impact of this was more or less varied between the different casinos they run.
On one hand, the newer properties in York and Morgantown managed to perform exceptionally well in the face of ever-increasing competition, while the same cannot be said for their properties Grantville and The Meadows properties – these did, in fact, lose some market share.
Penn Entertainment’s Expectations for 2023 Remain High
Jay Snowden, Penn Entertainment CEO, is convinced that the company’s 2023 operations will turn out to be profitable. Allegedly, their offerings keep attracting the business of 21-44-year-old demographics, with most of them being male.
A key characteristic observed by the company is the fact that most of them also like to wager on sports in the hopes of turning a profit. Snowden revealed that profits generated will be reinvested in the company’s growth, mainly being funneled into their existing properties.
Felicia Hendrix, CFO at Penn Entertainment, added that inflation and rising interest rates will certainly be a challenge to overcome, but none of it should stand in the way of the company delivering a quality product.
The Focus Turns To Brick-and-Mortar Property Investments
The company will be putting $850m to work by focusing on property investment initiatives. After all, knowing how to start investing and having a diversified investment portfolio always turns out to be the winning recipe for stable financial growth. As part of this, the riverboat properties currently under their control will be migrated to Aurora and Joliet, their brick-and-mortar locations. Notably, much to the liking of all who live in its vicinity, the M Resort is due for an expansion.
However, Penn Entertainment is not the only force that’s catering to the gambling crowd. Greenwood Gaming is constructing Parx Casino in Shippensburg which will be opening its doors at some point in early 2023. And let’s not forget the partnership between Lubert’s SC Gaming and Bally’s Corporation of Providence, the result of which will be a massive 94.000 square foot facility, a project worth $123m. This is bound to breathe some new life into Nittany Mall which mostly sits around vacant.
Year in and year out, Hollywood casino PA keeps delivering impressive results thanks to competitive game offerings and the kind of user experience that leaves nothing to be desired. The journey ahead in 2023 won’t be easy due to inflation and ever-increasing competition, both in the brick-and-mortar as well as the online market. Still, the company officials remain confident that we are looking at another year of financial success.