Penn Entertainment bets $20m on Alberta online market, eyes Ontario-style recovery

Penn Entertainment is making a $20m bet on Alberta’s newly regulated online market, CEO Jay Snowden revealed during the company’s Q2 earnings call.

The investment comes as the operator’s interactive division continues to bleed money, though losses are narrowing. The division reported a $9.5m loss in Q2 2026, down sharply from $62m a year earlier.

Snowden pointed to Ontario as the model. He told investors that Ontario is now Penn’s biggest online market, generating 2 to 2.5 times more sports betting revenue than its home jurisdiction of Pennsylvania. Online casino revenue in Ontario is roughly level with Pennsylvania.

That performance is driving the Alberta strategy. Penn has committed the $20m to its first year of operation in the province, which launched its regulated market on 13 July with 50 operators approved.

Chief Technology Officer Aaron LaBerge said the company is spending aggressively relative to its Ontario launch. “Our product has never been better,” he said. “Early results from a handle perspective, even though it’s a slow sports calendar, are very encouraging.”

CFO Felicia Hendrix warned that the Alberta spend will push the interactive division to its largest quarterly loss of the year in Q3. But she added: “We expect the fourth quarter interactive segment adjusted EBITDA to be positive.”

For the full year, Penn trimmed interactive revenue guidance from $1.6bn to $1.57bn but held the line on EBITDA, still projecting a $20m loss for the segment.

The wider retail-heavy group tells a different story. Penn raised its full-year retail segment guidance to $5.87bn in revenue and $1.96bn in adjusted EBITDAR.

But the appeal of the online segment is clear: without depreciation or rent costs, EBITDA converts more efficiently into net income when the business performs. That is the upside Penn is chasing in Alberta.

The bet is significant for a company that has reported net losses in recent years under high debt and rent burdens. For Malta’s iGaming community, it illustrates the aggressive spending and market-specific playbooks required to capture share in newly regulated jurisdictions.