PENN Entertainment is making changes to its workforce.
The gaming and entertainment giant is parting ways with more than 75 employees at its Canadian sports media and gaming brand theScore. PENN is laying off members of theScore’s content and sales teams with roughly half of its editorial newsroom set to dissolve.
“These changes reflect the ongoing evolution of our digital business,” a company spokesperson told SBC. “Under the leadership of key recent product and technology hires, we are structured to advance our online strategy and efficiently grow our business.”
PENN is downsizing its workforce at theScore after recently launching a standalone casino app for the brand’s offerings in Ontario. PENN acquired theScore in 2021 for $2 billion after the brand launched in New Jersey as a sports betting and iGaming operator.
A year later, theScore launched in Ontario when the province opened commercial gaming. While ESPN Bet has struggled to resonate with U.S. bettors, that does not seem to be the case for the Canadian media company. Ontario regulators do not break down revenue reports by operators, but PENN has said on earnings calls that they are pleased with theScore’s market share in the province.
Several rounds of layoffs
theScore is undergoing workforce changes after a round of layoffs by PENN in 2024.
Last July, PENN Interactive laid off a group of employees including talent at ESPN Bet. PENN parted ways with roughly 100 employees during the round of layoffs to focus on growth for ESPN Bet. Two months later, PENN underwent another round of layoffs.
The job cuts also impacted the workforce at ESPN Bet.
PENN faces criticism from investors
PENN is cutting jobs amid recent criticism from investors.
Earlier this year, PENN investor HG Vora shared its concerns regarding its acquisitions.
In an open letter to PENN shareholders, HG Vora’s founder accused PENN CEO Jay Snowden and other executives of “value-destructive deal-making, reckless capital allocation and poor execution.” The sentiment was sparked by PENN’s acquisition of theScore and its $2 billion deal with ESPN to launch its U.S. gaming brand ESPN Bet.
PENN’s previous partnership with Barstool Sports is also being scrutinized.
In 2020, PENN purchased a 36% stake in the media company for $163 million. That same year, the two entities launched Barstool Sportsbook. Penn acquired the remaining 64% of Barstool in February 2023 for $388 million. PENN later sold Barstool back to its founder Dave Portnoy for $1 before securing its deal with ESPN to launch the ESPN Bet brand.
“PENN has executed a string of transactions that, in our view, stand among the worst in the industry’s history,” said HG Vora founder Parag Vora in the open letter.
HG Vora is PENN’s third-largest shareholder. It currently holds a 4.8% stake in PENN. PENN’s deals have also drawn the attention of another investor, the Donerail Group.
“The company’s $2.1 billion USD acquisition of theScore, a small Canadian-based sports media company with less than $25 million USD of annual revenue, highlighted just how drastically the Penn investment thesis had changed under Mr. [Jay] Snowden’s watch,” said Donerail Group Managing Partner Will Wyatt in a letter to PENN’s board of directors.
