PENN Entertainment Targets Further Canadian iGaming Expansion After Strong Alberta Launch

PENN Entertainment is positioning itself for further expansion across Canada's regulated online gambling market after reporting strong early results in Alberta, where its theScore Bet and Hollywood Casino brands have established a presence since the province opened to commercial operators in July.

Speaking during the company's third-quarter earnings call on 5 November, CEO Jay Snowden said PENN was encouraged by growing customer numbers and betting volumes in Alberta, alongside continued momentum in Ontario. The operator believes the performance of both markets could encourage additional Canadian provinces to introduce licensing frameworks for private online gambling companies.

The comments accompanied a 17% year-on-year increase in PENN Interactive revenue to US$348.4 million during the third quarter of 2026, with the division also substantially reducing its adjusted EBITDA losses.

PENN Claims Early Alberta Market Share Of Around 10%

PENN entered Alberta's regulated market on its opening day, 13 July, launching three platforms: theScore Bet, theScore Casino and Hollywood Casino. The province began operations with 22 licensed gambling websites, creating a competitive environment that Snowden described as considerably busier than Ontario's market opening in April 2022.

Despite the competition, PENN has reported encouraging early customer acquisition and betting activity. Snowden said its online sports betting business was approaching the market share levels already achieved in Ontario, where the operator estimates it holds a low double-digit percentage of the market.

Asked by an analyst whether PENN's Alberta sports betting share was approximately 9% to 10%, Snowden confirmed that the estimate was accurate. However, neither Alberta nor Ontario publicly discloses operator-level revenue figures, meaning the company's claimed market share cannot be independently verified through provincial reporting.

“We’re off to a really strong start on online sports betting, already scratching at the same market share levels we deliver in Ontario through the first few months in Alberta, so that’s very encouraging,” Snowden said.

He added that the company's sports betting handle had grown faster than the wider Alberta market on a month-to-month basis during its first four months. Online casino performance has also been positive, although PENN estimates its Alberta iCasino market share is currently approximately half the level achieved in Ontario.

Snowden suggested that Alberta's online casino market could ultimately prove larger than the company initially anticipated, partly because customers were already familiar with digital gambling products through previously unregulated operators.

“The more encouraging part on the iGaming side is that, perhaps because it’s a more mature market in Alberta from the grey market, the TAM on iCasino looks a lot larger than we anticipated,” he explained.

Further Canadian Provinces Consider Regulated iGaming

PENN's optimism extends beyond its existing operations in Alberta and Ontario, with several other Canadian provinces considering whether to permit privately operated online gambling platforms.

New Brunswick's government has confirmed that it is exploring regulatory options for private online operators, while Nova Scotia officials have acknowledged ongoing discussions and indicated that they are monitoring developments in Ontario and Alberta. Quebec has also attracted attention following comments from its newly elected Premier, Paul St-Pierre Plamondon, who expressed support for expanding regulated iGaming before his election in October.

Although no additional provincial market openings have been confirmed, Snowden believes the economic and regulatory experience of Ontario and Alberta could encourage other governments to pursue similar arrangements.

“In Canada, Ontario has been a really good story, both from an OSB and iGaming perspective, tax generation, and delivering on what the province was hoping to deliver on, and Alberta’s off to a great start,” he said.

Snowden added that he expected other provinces to continue examining the results achieved by the two regulated markets over the coming quarters and years. For PENN, further liberalisation would create opportunities to extend theScore's established Canadian brand recognition into new jurisdictions without relying exclusively on its Ontario operations.

PENN Interactive Revenue Rises As Losses Narrow

PENN Interactive generated revenue of US$348.4 million in the third quarter of 2026, compared with US$297.7 million during the equivalent period last year. The 17% increase was accompanied by a substantial improvement in adjusted EBITDA, with the division recording a loss of US$18.3 million against a loss of US$76.6 million in Q3 2025.

The company attributed the improvement partly to sustained growth across its Canadian online gambling operations and the development of its standalone Hollywood Casino offering in the United States. Online casino gaming now represents a larger proportion of PENN Interactive's gaming revenue mix than a year earlier, reflecting the company's efforts to expand beyond sports betting.

Ontario remains one of PENN's most attractive regulated markets, with increases in active customers and revenue per user supporting growth across both online casino and sports betting. Alberta's early performance has provided an additional source of momentum, particularly as the operator sees potential for the province's online casino market to exceed its original expectations.

PENN has also strengthened its Canadian sports partnerships, including becoming presenting sponsor of the Canadian Football League's new mobile application and free-to-play fantasy game. In October, the company secured a Canadian-focused agreement with the NFL, giving theScore and Hollywood Casino official league partner status and access to associated intellectual property and advertising rights.

The partnerships form part of PENN's wider strategy to build customer recognition across Canada, including provinces where commercial online gambling licensing has not yet been introduced.

Snowden said Alberta's early results demonstrated that theScore's appeal extended beyond its established Ontario customer base.

“I think Alberta’s early results are proving that theScore is a Canadian brand, not an Ontario brand,” he said. “And our market share results are going to showcase that.”

With its interactive division narrowing losses and Canadian operations continuing to grow, PENN is preparing for the possibility of further provincial market openings while concentrating on building its position in Alberta and Ontario.