PENN Entertainment to Close Hollywood Casino Aurora for New $360M Property Opening
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Source: seekingalpha
- New Casino Opening: PENN Entertainment plans to close the Hollywood Casino Aurora on June 10 in preparation for the grand opening of a new $360 million land-based casino on June 24, marking a significant strategic move in the market.
- Geographic Advantage: The new casino is strategically located about 38 miles west of downtown Chicago, adjacent to the Chicago Premium Outlets, which is expected to attract a large customer base and enhance the company's market share in the region.
- Rich Amenities: The new facility will feature approximately 1,200 gaming positions, including high-limit slots and table games, a 226-room premium hotel, and diverse dining options, significantly enhancing the customer experience.
- Market Performance: PENN's shares have risen over 17% in the past six weeks, indicating strong market confidence in its growth potential, while the short interest stands at 13.3%, reflecting investor concerns about stock price volatility.
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Analyst Views on PENN
Wall Street analysts forecast PENN stock price to fall
15 Analyst Rating
9 Buy
5 Hold
1 Sell
Moderate Buy
Current: 20.240
Low
14.15
Averages
19.38
High
26.00
Current: 20.240
Low
14.15
Averages
19.38
High
26.00
About PENN
PENN Entertainment, Inc., together with its subsidiaries, operates in 28 jurisdictions throughout North America, with a portfolio of casinos, racetracks, and online sports betting (OSB) and iCasino offerings. Its focus is on organic cross-selling opportunities, reinforced by its retail casinos, sports media assets and technology, including a proprietary fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. Its Northeast segment includes Ameristar East Chicago, Hollywood Casino at Greektown, and Hollywood Casino Bangor. Its South segment includes 1st Jackpot Casino, Ameristar Vicksburg, Boomtown New Orleans, and L’Auberge Baton Rouge. Its West Segment includes Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort Spa Casino and Zia Park Casino. Its Midwest Segment includes Ameristar Council Bluffs, Hollywood Casino Aurora, and River City Casino. Its Interactive segment includes OSB, online casino/iCasino, and social gaming operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hollywood Casino Aurora's New Land-Based Property Set to Open
- New Property Opening: PENN Entertainment announced that the new land-based Hollywood Casino Aurora will open on June 24, 2026, with an investment of $360 million, expected to attract a large customer base and drive local economic development.
- Facility Highlights: The new casino will feature approximately 1,200 gaming positions, including high-limit slots and table games, along with a premium hotel offering 226 luxury rooms, a full-service spa, and several high-end dining options, enhancing the overall customer experience.
- Customer Loyalty Program: Hollywood Casino Aurora will share the PENN Play customer rewards program with Hollywood Casino Joliet and Ameristar East Chicago, increasing customer retention and promoting cross-location spending.
- Operational Transition Plan: The riverboat casino will continue normal operations until June 10, 2026, and any unused chips can be redeemed at the new casino until December 31, 2026, ensuring a smooth transition for customers.
See More
PENN Entertainment to Close Hollywood Casino Aurora for New $360M Property Opening
- New Casino Opening: PENN Entertainment plans to close the Hollywood Casino Aurora on June 10 in preparation for the grand opening of a new $360 million land-based casino on June 24, marking a significant strategic move in the market.
- Geographic Advantage: The new casino is strategically located about 38 miles west of downtown Chicago, adjacent to the Chicago Premium Outlets, which is expected to attract a large customer base and enhance the company's market share in the region.
- Rich Amenities: The new facility will feature approximately 1,200 gaming positions, including high-limit slots and table games, a 226-room premium hotel, and diverse dining options, significantly enhancing the customer experience.
- Market Performance: PENN's shares have risen over 17% in the past six weeks, indicating strong market confidence in its growth potential, while the short interest stands at 13.3%, reflecting investor concerns about stock price volatility.
See More
Caesars Entertainment Buyout Sparks Industry Transformation
- Caesars Deal Overview: Caesars Entertainment announced a definitive agreement to be acquired by Fertitta Entertainment for approximately $17.6 billion in cash, providing shareholders with $31 per share, a 49% premium over the unaffected price on February 25, 2026, which is set to reshape the regional casino landscape.
- Red Rock Resorts Potential: Red Rock Resorts stands out as the most likely candidate for a take-private deal due to its premium assets and consistent quarterly adjusted EBITDA exceeding $200 million, with most real estate owned outright, mirroring the acquisition potential seen in Caesars.
- PENN Entertainment Financial Performance: PENN Entertainment reported an adjusted EPS of $0.11 for Q1 2026, surpassing consensus estimates, with adjusted EBITDA rising 53.4% year-over-year to $265.8 million, indicating positive outcomes from its digital turnaround strategy.
- Bally's Strategic Challenges: Bally's has a market cap of approximately $684.8 million but faces long-term debt of $4.41 billion, and despite its sprawling asset base, the future acquisition path remains unclear, with shares down 15.3% year-to-date.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Investment Position: Palidye Holdings acquired 1.4 million shares of PENN Entertainment in Q1 2026, with a market value of $21.04 million, indicating confidence in the company and enhancing portfolio diversification.
- Stake Proportion Analysis: This acquisition brings Palidye's stake in PENN to 3.9%, highlighting its significance in the 13F assets under management and potentially increasing market attention on PENN.
- Financial Performance Overview: PENN Entertainment's latest report shows a net income of -$957.2 million; however, its retail segment adjusted EBITDAR remains robust at $471.4 million, indicating that the core casino business continues to support overall financial health.
- Digital Business Outlook: While PENN's digital segment still faces challenges with an adjusted EBITDA loss of $10.8 million, the improvement from the previous year suggests that its digital strategy is gradually taking effect, with potential for future profitability.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Position Report: Palidye Holdings (Caymans) Ltd initiated a position of 1.4 million shares in PENN Entertainment during Q1 2026, with an estimated trade size of $19.47 million, indicating confidence in the company's prospects.
- Asset Management Shift: Post-trade, the value of PENN's stake reached $21.04 million, representing 3.9% of Palidye's 13F reportable assets under management, reflecting diversification in its investment portfolio.
- Market Performance Analysis: As of May 14, 2026, PENN's share price stood at $15.83, down 2.2% over the past year, which may affect investor expectations regarding its future growth potential.
- Business Model Assessment: PENN Entertainment's core operations remain focused on regional casinos, and while its digital business is gradually improving, it must maintain stable cash flow to support future investments and development.
See More
UNITE HERE Urges Shareholders to Support PENN Board Declassification Proposal
- Shareholder Voting Call: UNITE HERE urges PENN Entertainment shareholders to vote for the board declassification proposal at the AGM on June 16, 2026, highlighting that despite shareholder support in 2010, the board has yet to implement this change, indicating a disconnect between corporate governance and shareholder expectations.
- Evolving Governance Standards: Recent years have seen an average shareholder support of 77.9% for declassification proposals, with an 86% passage rate, reflecting a growing investor expectation for annual elections, and PENN risks governance challenges if it fails to adapt to this trend.
- Industry Comparison Analysis: While PENN argues that attracting talented directors is hindered by its regulatory environment, competitors like MGM and Caesars maintain annual elections, suggesting that PENN's rationale lacks credibility and fails to clarify why its situation differs from its peers.
- Benefits of Annual Elections: Annual elections enhance board accountability and responsiveness during disruptions in the traditional gaming industry, thereby supporting long-term value creation and aligning with modern governance standards.
See More
Hollywood Casino Aurora's New Land-Based Property Set to Open
- New Property Opening: PENN Entertainment announced that the new land-based Hollywood Casino Aurora will open on June 24, 2026, with an investment of $360 million, expected to attract a large customer base and drive local economic development.
- Facility Highlights: The new casino will feature approximately 1,200 gaming positions, including high-limit slots and table games, along with a premium hotel offering 226 luxury rooms, a full-service spa, and several high-end dining options, enhancing the overall customer experience.
- Customer Loyalty Program: Hollywood Casino Aurora will share the PENN Play customer rewards program with Hollywood Casino Joliet and Ameristar East Chicago, increasing customer retention and promoting cross-location spending.
- Operational Transition Plan: The riverboat casino will continue normal operations until June 10, 2026, and any unused chips can be redeemed at the new casino until December 31, 2026, ensuring a smooth transition for customers.
See More
PENN Entertainment to Close Hollywood Casino Aurora for New $360M Property Opening
- New Casino Opening: PENN Entertainment plans to close the Hollywood Casino Aurora on June 10 in preparation for the grand opening of a new $360 million land-based casino on June 24, marking a significant strategic move in the market.
- Geographic Advantage: The new casino is strategically located about 38 miles west of downtown Chicago, adjacent to the Chicago Premium Outlets, which is expected to attract a large customer base and enhance the company's market share in the region.
- Rich Amenities: The new facility will feature approximately 1,200 gaming positions, including high-limit slots and table games, a 226-room premium hotel, and diverse dining options, significantly enhancing the customer experience.
- Market Performance: PENN's shares have risen over 17% in the past six weeks, indicating strong market confidence in its growth potential, while the short interest stands at 13.3%, reflecting investor concerns about stock price volatility.
See More
Caesars Entertainment Buyout Sparks Industry Transformation
- Caesars Deal Overview: Caesars Entertainment announced a definitive agreement to be acquired by Fertitta Entertainment for approximately $17.6 billion in cash, providing shareholders with $31 per share, a 49% premium over the unaffected price on February 25, 2026, which is set to reshape the regional casino landscape.
- Red Rock Resorts Potential: Red Rock Resorts stands out as the most likely candidate for a take-private deal due to its premium assets and consistent quarterly adjusted EBITDA exceeding $200 million, with most real estate owned outright, mirroring the acquisition potential seen in Caesars.
- PENN Entertainment Financial Performance: PENN Entertainment reported an adjusted EPS of $0.11 for Q1 2026, surpassing consensus estimates, with adjusted EBITDA rising 53.4% year-over-year to $265.8 million, indicating positive outcomes from its digital turnaround strategy.
- Bally's Strategic Challenges: Bally's has a market cap of approximately $684.8 million but faces long-term debt of $4.41 billion, and despite its sprawling asset base, the future acquisition path remains unclear, with shares down 15.3% year-to-date.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Investment Position: Palidye Holdings acquired 1.4 million shares of PENN Entertainment in Q1 2026, with a market value of $21.04 million, indicating confidence in the company and enhancing portfolio diversification.
- Stake Proportion Analysis: This acquisition brings Palidye's stake in PENN to 3.9%, highlighting its significance in the 13F assets under management and potentially increasing market attention on PENN.
- Financial Performance Overview: PENN Entertainment's latest report shows a net income of -$957.2 million; however, its retail segment adjusted EBITDAR remains robust at $471.4 million, indicating that the core casino business continues to support overall financial health.
- Digital Business Outlook: While PENN's digital segment still faces challenges with an adjusted EBITDA loss of $10.8 million, the improvement from the previous year suggests that its digital strategy is gradually taking effect, with potential for future profitability.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Position Report: Palidye Holdings (Caymans) Ltd initiated a position of 1.4 million shares in PENN Entertainment during Q1 2026, with an estimated trade size of $19.47 million, indicating confidence in the company's prospects.
- Asset Management Shift: Post-trade, the value of PENN's stake reached $21.04 million, representing 3.9% of Palidye's 13F reportable assets under management, reflecting diversification in its investment portfolio.
- Market Performance Analysis: As of May 14, 2026, PENN's share price stood at $15.83, down 2.2% over the past year, which may affect investor expectations regarding its future growth potential.
- Business Model Assessment: PENN Entertainment's core operations remain focused on regional casinos, and while its digital business is gradually improving, it must maintain stable cash flow to support future investments and development.
See More
UNITE HERE Urges Shareholders to Support PENN Board Declassification Proposal
- Shareholder Voting Call: UNITE HERE urges PENN Entertainment shareholders to vote for the board declassification proposal at the AGM on June 16, 2026, highlighting that despite shareholder support in 2010, the board has yet to implement this change, indicating a disconnect between corporate governance and shareholder expectations.
- Evolving Governance Standards: Recent years have seen an average shareholder support of 77.9% for declassification proposals, with an 86% passage rate, reflecting a growing investor expectation for annual elections, and PENN risks governance challenges if it fails to adapt to this trend.
- Industry Comparison Analysis: While PENN argues that attracting talented directors is hindered by its regulatory environment, competitors like MGM and Caesars maintain annual elections, suggesting that PENN's rationale lacks credibility and fails to clarify why its situation differs from its peers.
- Benefits of Annual Elections: Annual elections enhance board accountability and responsiveness during disruptions in the traditional gaming industry, thereby supporting long-term value creation and aligning with modern governance standards.
See More
