Penn National Q4 Results Impressed, But Analyst Has Reservations
Shares of Penn National Gaming (NASDAQ:PENN) gained 1.79 percent last week. That’s after the regional casino giant posted fourth-quarter results that topped Wall Street estimates. But at least one analyst is taking a cautious approach to the downtrodden stock.
In a note to clients last Friday, Roth Capital 카지노사이트analyst Edward Engel lowered his rating on Penn to “neutral” and his price target to $51, citing the potential for 2022 headwinds to emerge.
We downgrade PENN to Neutral, partially in response to 4Q21 results offering a less attractive 2022 outlook. While we remain bullish on PENN’s digital opportunity longer-term, we see several negative catalysts in 2022 that could erode confidence in its market share trajectory,” said the analyst.
When Penn delivered results for the last three months of 2021 last Thursday, the stock rallied after the operator said its digital gaming unit, including Barstool Sportsbook, performed better than expected. That enterprsise lost $6 million on revenue of $150 million in the October through December 2021 period, while analysts forecast a loss of $20 million on sales of $114 million. This year, Penn’s digital operations are expected to lose $50 million, well-below prior guidance calling for a loss of $80 million.
Devil’s in Guidance Details
Penn offered up 2022 guidance, saying it expects net revenue of $6.07 billion to $6.39 billion. That’s on earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of $1.85 billion to $1.95 billion.
That’s a decent outlook, and some analysts argue fears about faltering revenue and margin erosion are mostly factored into Penn’s stock price. But Engel notes it will be tricky to keep margins steady as inflation soars. He also mentions some potential market-specific issues Penn could encounter as 2022 unfolds.
“While easy 1Q comps offset a difficult 2Q, we see downside risks from incremental cannibalization at four properties next year (Bossier, Lake Charles, Council Bluffs and East Chicago),” adds the analyst.
Penn, the largest regional casino operator in the US, derives substantial portions of its revenue from Louisiana and the Midwest.
Cautious on Penn Canada Opportunity, Too
Last August, Penn doled out $2 billion in cash and equity to acquire Score Media and Gaming to gain a foothold in Canada, as that country legalized single-game sports wagering. Ontario, the country’s most populous province, is slated to open the market to private companies in April.
While that could be a positive for Penn, there are significant competitive threats in the forms of Bet365, Entain, and Flutter, which are already operating in Canada’s gray market.
“These operators can also rationalize greater marketing spend, given scale benefits from gray market operations in adjacent provinces,” notes Engel.
FOXBet, Poker Stars Real-Money Apps Down Due to 'Unscheduled Maintenance Issue'
Internet gaming locales run by the Stars Group have been down the whole end of the week. That is as indicated by clients' posts on Twitter, driving the organization to put out a conciliatory sentiment refering to an "unscheduled support issue" as the reason.
It stays questionable when the genuine cash applications will be back on the web. An assertion from a Stars Group representative to Casino.org said the issue was not connected with any security or information break, and that the organization's tech staff was attempting to get those destinations functional as fast as could really be expected.
Clients across all verticals (FOXBet Sportsbook, PokerStars, and Stars Casino) can in any case deal with their records," the assertion read. "We don't expect any effects on client account adjusts. We thank clients for their understanding and apologize for this burden."
Clients started to post messages via online media Friday morning (ET) that they couldn't get into the locales. PokerStars reacted on Twitter that competitions in Michigan, New Jersey, and Pennsylvania were dropped through 10 am ET Monday.
FOXBet is accessible in those states as well as Colorado.
The Stars Group is essential for Flutter Entertainment. Other Flutter brands, which incorporate FanDuel and TVG, are not impacted by the issue. FOXBet's allowed to-play application was additionally functional on Sunday evening.
Stars Group Apps in Michigan's Mid-Tier
Few out of every odd state separates income and handle figures by administrator. Yet, in light of sums from Michigan and Pennsylvania, the Stars Group brand positions in the pack in the two states.
In Michigan, the Stars Group is the internet gaming accomplice to the Little Traverse Bay Bands of Odawa Indians.
In 2021, FOXBet detailed a handle of $56.3 million, as indicated by information from the Michigan Gaming Control Board. That was seventh-best out of the 14 authorized administrators. On the whole, the administrators announced a joined handle of $3.66 billion for the year.
While FOXBet's handle was more than $100 million not exactly the 6th most noteworthy games wagering application in the state, it fared better in changed gaming income (AGR) sums. Its $1.7 million AGR was the fifth-most elevated statewide.
Statewide, the sportsbooks announced a consolidated AGR of $110.6 million. Just eight of the 14 authorized games wagering applications in Michigan created positive AGR last year.
In iGaming, the Stars Casino and PokerStars consolidated to produce an AGR of $36.8 million. That positioned eighth out of the 14 administrators, which consolidated to report $1 billion in AGR.
Driving Poker Site in Pennsylvania
In Pennsylvania, the Stars Group brands are accomplices with the Mount Airy Casino Resort. Through the initial a half year of the 2021-22 financial year, FOXBet's $85.8 million handle positions 6th among the state's 13 versatile games wagering administrators. Its $4 million in available income was seventh-best among administrators.
The state's versatile applications detailed a handle of $3.23 billion and incomes of $142.5 million for the primary portion of the financial year.
PokerStars remains as the biggest web-based poker administrator in Pennsylvania. It revealed $11.5 million of the $17.4 million in income the state's online applications announced from rakes and competition charges for the main portion of the year.
The Stars Casino detailed gross incomes of $12.8 million for online openings and $7.6 million for banked table games for the principal half of the 21-22 monetary year. The gross income figures positioned fifth and fourth, individually, out of the nine iGaming administrators.
Maryland Lawmakers File Bill to Allow Slot Machines at Baltimore/Washington Airport
A couple of Republican Maryland legislators recorded a bill Thursday that would open the entryway for gaming machines at Baltimore/Washington International Thurgood Marshall Airport (BWI).
Dels. Ric Metzgar (R-Essex), and Susan Krebs (R-Sykesville) documented House Bill 733, which would permit in excess of 3,000 gaming machines to be situated at the air terminal. That is dependent upon specific conditions being met.
As far as one might be concerned, an administrator would have to present a permit application no later than April 15, 2024. What's more, it would require citizens across the state to endorse the extended gaming measure.
In a meeting with WBAL-TV, Metzgar said it's an incredible way for the state to produce additional income.
Postponed flights, individuals are currently at the air terminal hanging out, with time to spare, this is an enraptured crowd, and it's a chance for us to get outside cash," he said.
A conference on the bill will occur on Feb. 23 in the state House Ways and Means Committee.
Other than horse racing and the lottery, Maryland at present has six gambling clubs, and sports wagering at physical offices began in December. Portable games wagering is relied upon to send off in the state not long from now.
Past Efforts Unsuccessful at BWI
This isn't the initial time legislators in the Old Line State have proposed adding openings at the air terminal. The Maryland General Assembly site noticed that lawmakers offered a comparable bill in 2009. Different endeavors fizzled during the previous ten years too.
As its name recommends, BWI is situated between the two significant urban areas, 10 miles south of Baltimore and 25 miles north of DC. It's the biggest of the three air terminals serving the Washington region. In 2019, 13.3 million travelers loaded up planes there, making it the 22nd-biggest US air terminal in traveler traffic.
BWI, as Harry Reid International Airport in Las Vegas, fills in as a working base for Southwest Airlines.
Yet, while it's a bustling office, air terminal authorities let WBAL know that there may not be sufficient room for that many openings at BWI. Best case scenario, they said the air terminal could oblige around 1,000 machines.
Two US Airports Offer Slots, Guess Where
BWI would not be the principal air terminal in the country to offer openings to travelers anticipating a flight.
Any individual who has flown into or out of Harry Reid in Las Vegas or the Reno-Tahoe International Airport has likely seen the gaming machines in both Nevada air terminals.
Harry Reid, previously known as McCarran International, offers around 1,400 machines. In Reno, the air terminal there has around 250 machines. The gaming machines at the Nevada air terminals are viewed as probably the hardest in the state, as individuals can't go openly to one more gambling club as they can somewhere else.
Somewhere else, the city of Chicago has incorporated the choice of working gambling machines at O'Hare International and Midway air terminals to the bidder it chooses to foster a club resort in the city. City authorities are exploring five proposition for its first gambling club. Notwithstanding, it stays unsure whether the triumphant bidder will take up the city's discretionary deal.
Georgia Sports Betting Discussion to Start Up Soon in Legislature, Lawmaker Says
A main defender of growing gaming in Georgia said in a new opinion piece that officials will be taking up a games wagering measure soon.
State Rep. Ron Stephens, R-Savannah, composed a visitor section in the Bryan County News on Thursday in regards to what has occurred in the General Assembly. The House Economic Development and Tourism Committee director said he intends to take up a sacred change that would let the Georgia Lottery supervise sports wagering.
Stephens has been a vocal ally of bringing club resorts and legitimizing sports wagering in the state for quite a long time. He needs to see continues from gaming used to give more subsidizing to school grants.
With this being the 30th commemoration of the lottery vote making the HOPE Scholarship, multiple million Georgians have lifted themselves up through an advanced education and specialized school vocations," Stephens composed. "More than 1.6 million families got pre-K early advantages. We will take up sports gaming in the days to come to close the hole with HOPE and pre-K. Main concern, this will be another lottery game."
The state Senate endorsed a goal last year that would start the cycle for a sacred change on sports wagering.
Adversaries Prepare for Fight
Extended gaming faces a tough test in Georgia, with social traditionalists driving the battle.
Mike Griffin, a representative for the Georgia Baptist Mission Board, told WJCL-TV in Savannah on Friday that the discussion on gaming has as of late gotten "significantly more extreme." There are likewise worries about habit, expressing that addictions to gaming are "in a similar classification as heroin, narcotics, tobacco, liquor, and cocaine," he said.
"I think addressing the issue beforehand is better than addressing any aftermath later," he added.
This year is additionally a political decision year for Georgia's top political positions. One Republican contender for lieutenant lead representative has said the state needs to obstruct endeavors to sanction gaming. The lieutenant lead representative serves a vital regulative job as leader of the senate and can make a tie-breaking choice.
Jeanne Seaver said others running for the GOP's assignment in the race "are pawns of popularized gaming lobbyists," and have supported bills to grow gaming.
"Assuming that sports wagering passes, it will open the entryway for really betting extension," Seaver tweeted on her mission account Saturday. "We really want solid pioneers to remain against ALL betting and keep our state liberated from this ruthless industry!"
Georgia One of Seven with a Sports 바카라사이트Betting Bill
Sports wagering is dynamic or sanctioned in 33 states, in addition to the District of Columbia. Georgia is one of seven different states with dynamic regulation that would sanction it, as per the American Gaming Association.
With a populace of right around 11 million, Georgia is additionally perhaps the biggest state in the country that presently can't seem to permit it in some structure. California - where at least one games wagering measures might go before electors in November - and Texas are the main states with a bigger populace that still can't seem to follow up on sports wagering.
Adjoining Florida passed sports wagering when it confirmed a corrected gaming reduced with the Seminole Tribe. Notwithstanding, that understanding has been struck somewhere near a government judge. Ancestral pioneers and the national government have pursued that choice.