Penn National Gaming (PENN) has disclosed a new risk, in the Sales & Marketing category.
Penn National Gaming’s engagement in the sports betting market introduces substantial financial hazards related to trading, liability management, and odds pricing. While the company aspires to maintain an average return through its fixed-odds betting products, the volatility inherent in event outcomes can lead to considerable deviations in the gross win percentage. Despite having systems to mitigate daily gross-win losses, Penn National Gaming cannot guarantee their effectiveness, leaving them vulnerable to potential material adverse impacts on their financial state and operational results. Furthermore, the imposition of a high turnover tax in certain jurisdictions could exacerbate these risks, further threatening the company’s profitability.
Overall, Wall Street has a Moderate Buy consensus rating on PENN stock based on 6 Buys and 9 Holds.
To learn more about Penn National Gaming’s risk factors, click here.
