With gambling stocks taking some heat in the recent growth market selloff there are a few stocks that show
great potential. Penn National Gaming (PENN) is one gambling stock in particular that has seen a harsh sell-
off from highs. In March there were highs of $142 and now with the stock bouncing in the high $70’s range,
one may ask whether PENN is a buy or not.
PENN is the largest regional gambling service in the nation. It has 41 properties across the span of 19 states.
With this many physical casinos spanning in the US and Canada, there is a lot of money moving in and out of
Penn made a huge step forward in November of 2020 by offering the Barstool sportsbook. For those of you
that don’t know Barstool sports is a social media company that has captivated the college audience. Their
social media is filled with girls, booze, and sports. If you ask any college fratboy what barstool sports are, they
will be able to tell you. The reason that this is important is that with capturing an entire audience at such a
young age if online sports betting becomes legal this demographic will run to barstool bet book.
On May 3rd of this year, Penn announced an in-house content development team that is focused on making
iCasino content. To help with this Penn acquired Hit Point studios, Hit Point has been around since 2008
developing online multiplayer games.
On March 23 Penn National Gaming was included in the S&P 500, this inclusion gives extremely bullish sentiment to the stock and puts it above many other choices in the gambling sector.
With sports underway and the nation opening up there will only be more foot traffic inside physical casinos as
well. Vegas is now operating at 100% capacity and the mask mandate lifted for those vaccinated. With people
not being able to spend their money as often pre-pandemic the gamblers are ready to come back.