Fact checked by Wilbur Thompson.
Penn Entertainment emphasized the significance of its exclusive technology stack to maintain its market share in Ontario, Canada. The integrated sports content, entertainment, and casino gaming operator entered the regulated market in April 2022, launching its mobile sportsbook and casino through its subsidiary, theScore Bet. In July, Penn declared the official launch of its proprietary risk and trading platform, which was the outcome of the company’s plan to internalize its sportsbook technology and operate on a vertically integrated technology stack to improve its presence in Ontario.
The outcome of this strategy became evident in February when Penn declared that Ontario had become its prime market in North America for sports betting and online casinos, with revenues of $1.59 billion (+8% YoY) and adjusted EBITDA of $483.3 million (+18.8% YoY) in Q4 2022. It was aided by better-than-expected results in the online casino division.
Earlier this week, when Penn declared total revenues of $2.25 billion (USD$1.67 billion), marking a 7% year-over-year increase in Q1 2023, CEO Jay Snowden acknowledged the success of its tech stack in Ontario and reiterated that the platform would be introduced in the US in Q3.
Snowden stated that in Ontario, the company witnesses the advantages of the exclusive technology stack, which has led to the constant market share in one of the most competitive markets in North America. He also mentioned that having complete control over the product roadmap in the US would enable the company to interact with its customers on a more personalized level and quickly incorporate new features and betting markets. It would also improve the company’s iCasino products with new content and bonus mechanics. Furthermore, Snowden stated that the company’s proprietary sports betting and iCasino technology platform, which is presented in Ontario, continues to produce compelling results and market share.