A surprising betting company’s CEO informed employees via internal email that the company is currently laying off 100 people.
While concentrating on expanding ESPN Bet, Penn Entertainment will be laying off around 100 workers.
Nearly twenty thousand individuals work for the organization.
Within an internal email, CEO Jay Snowden informed employees that the company is entering a new development phase in its interactive business. This growth phase includes ESPN Bet, a $2 billion branding deal with Disney’s ESPN.
Activist investor Donerail Group has urged the Penn board to sell the casino company, and investors are waiting for the rebranded sportsbook to show its strength.
In a memo that was seen by CNBC, Snowden said, “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.”
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“As a result of this, we decided to temporarily halt any planned organizational changes that usually accompany a large acquisition.”
Activist investor Donerail Group has urged the Penn board to sell the casino company, and investors are waiting for the rebranded sportsbook to show its strength.
Allegedly, numerous additional internet gambling and brick-and-mortar casino corporations are interested.
Due to the intricacy of the transaction, which would likely require large divestitures, Truist gaming analyst Barry Jonas wrote in a report Thursday that a sale is improbable in the short term.
The introduction of additional ESPN Bet features this fall during the football season should significantly enhance Penn’s product, according to Jonas. The company’s dedication to seeing its investment pay off is demonstrated by its focus on expenses.
“Investors are still curious about the potential success of ESPN Bet and the amount of additional investment beyond what is currently intended to reach our goal,” Jonas says.
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