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Penn National Gaming public offering hits $982.1m target


Casino operator Penn National Gaming (PNG) has raised $982.1m through a public offering of shares, with the proceeds to be used to fund its online betting and gaming expansion plans.

Launched last week, the offering saw a total of 16.1m shares of common stock in PNG made available, at a public price of $61.00 per share.

The offering comprised 14m shares of initial common stock and 2.1m of common stock issued pursuant to the option granted the underwriters.

PNG president and chief executive Jay Snowden said funds generated through the offering will be used to support its omni-channel strategy, with a core focus on the Barstool Sports brand.

“Our strategy includes launching the Barstool Sportsbook app in new markets, developing new products and features, establishing Barstool-branded sports bars and retail sportsbooks and reimagining the customer experience at our casinos, all while fortifying our balance sheet,” Snowden explained.

PNG rolled out its real-money sportsbook, featuring the Barstool Sports brand, in Pennsylvania earlier this month, with Snowdon saying the app broke records for the most downloads for the launch of a new mobile sportsbook in the state.

The app has been downloaded 30,000 times, the operator said last week, with 24,000 users registering for an account. Average first deposit by players stood at $243, with users staking $11m in the first weekend post-launch.

Meanwhile, PNG has published an update on its financial performance during the third quarter, with consolidated revenues expected to range between $1.04bn and $1.15bn.

Consolidated adjusted earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs will range from $410m to $450m, which PNG said would be consistent with its forecasts for the quarter.

“In short, we believe our company is incredibly well positioned for long-term success based on its highly differentiated approach to both land-based and interactive gaming and sports betting,” Snowden said.