Stifel has officially reaffirmed its Buy rating on PENN Entertainment, highlighting the operator’s accelerating momentum following a decisive strategic shift toward iGaming.
In its November US online gambling monthly tracker, the investment firm observed that PENN’s renewed focus on digital casino offerings has triggered a re-acceleration in performance. This shift places the operator alongside market leader FanDuel as a primary beneficiary of the ongoing consumer migration from retail to digital gambling products.
Market Trends and Prediction Markets
The report notes that online sports betting handle growth remains strong, trending in the high-single to low-double digits. Stifel attributes recent spikes to elevated promotional activity and a favorable calendar that included an additional NFL Sunday. Beyond traditional betting, the competitive landscape for prediction markets is intensifying rapidly. Robinhood is preparing an in-house exchange, while Fanatics and Polymarket recently entered the sector. Stifel anticipates imminent launches from major players like DraftKings and FanDuel, signaling widespread institutional interest in this emerging vertical.
Analyst Sentiment and Financials
Within the iGaming sector, FanDuel maintains a clear market lead, yet PENN is gaining significant ground. Analyst data from InvestingPro supports a positive outlook for the broader sector, noting continued revenue growth for DraftKings, which is currently trading slightly below its estimated fair value. Furthermore, the report highlighted robust early user acquisition in Missouri following the state’s online sports betting launch earlier this month.
Regulatory Updates
Regulatory news remains quiet but impactful. A federal judge in Las Vegas recently lifted an order blocking Nevada regulators from acting against prediction market startup Kalshi. This decision empowers the Nevada Gaming Commission to proceed with potential enforcement actions. Meanwhile, analysts at Benchmark and Citizens have maintained positive ratings for DraftKings and Caesars Entertainment, reinforcing confidence in established operators despite the rise of new betting exchanges.
