Circa Sports and ESPN Bet have implemented minimum bet requirements for sports wagers in Illinois in response to the state's new per-bet tax increase. ESPN Bet raised its minimum bet to $1, effective August 8, while Circa Sports increased its minimum to $10, the largest such requirement announced to date. Both companies stated they will not impose per-bet transaction fees, which are currently charged by DraftKings, Fanatics, and FanDuel. The move follows a broader industry response to Illinois' second sports betting tax increase in a year, with at least five operators now enforcing minimum bet sizes. Public opinion favors minimum bet requirements over per-bet fees, which are seen as passing tax costs directly to customers.

Penn Entertainment, Inc. (PENN) operates 43 properties across 20 states under 12 brands, including Hollywood Casino and Ameristar. In 2024, land-based casinos accounted for 85% of total sales, while the interactive segment—encompassing sports, iGaming, and media—contributed 15%. The company achieves mid-30s EBITDAR margins from its retail portfolio, which supports its pursuit of digital wagering licenses. Its media assets, theScore, are central to its digital expansion and revenue growth.

Public sector pension investment boards have acquired shares of Penn Entertainment, Inc. (NASDAQ:PENN), a move that has sparked speculation and attention, particularly given the context of Warren Buffett's recent investment in UNH, which has been interpreted as a broader signal of confidence in certain sectors. The article includes a mix of stock market updates, including mentions of Applied Materials, Baidu, Ethereum-related stocks, Amprius Technologies, and Green Dot, but the primary focus is on the pension board's investment in Penn Entertainment.

PENN Entertainment, a major U.S. gaming and leisure company with a $2.53 billion market capitalization, is navigating significant financial and strategic challenges. The company faces high debt levels, a weak financial health score of 1.67 out of 5, and underperformance in its digital gaming segment, particularly with its ESPN Bet partnership. Despite projected revenue growth to $7.44 billion by 2026 and a focus on expanding its iGaming presence—especially in Canada—where it holds over 10% market share, PENN is under pressure from activist investor HG Vora, which has initiated a proxy battle. The company is considering restructuring or exiting the ESPN Bet partnership by August 2026, which could yield cost savings of up to $7 per share for every $100 million in reductions. Additionally, new casino expansions, such as Hollywood Joliet (opened August 11, 2025) and Aurora (expected in early 2026), are underway with a target of achieving mid-teens returns. Analysts project improved EBITDAR to $1.933 billion by 2026 and a positive free cash flow of $285 million by 2026, though high leverage (7.1x in 2025, projected to drop to 5.1x by 2026) and underperformance in the interactive segment remain key risks. The company’s strategic pivot toward iGaming and integrated entertainment experiences is seen as a potential growth driver, but success hinges on profitability and investor confidence.

3G Capital, managed by Jorge Paulo Lehman, exited its position in DraftKings (DKNG), having held 70,000 shares of Class A stock at an average cost of $38.20 during the first quarter. The exit occurred during the second quarter, with the stock trading at lower levels in April through June. Similarly, David Tepper’s Appaloosa Management sold its position in Wynn Resorts (WYNN), while George Soros’s Soros Fund Management exited Las Vegas Sands (LVS), though it maintained positions in Caesars Entertainment (CZR), Churchill Downs (CHDN), and Flutter Entertainment (FLUT). In contrast, David Einhorn’s DME Capital Management increased its stake in Penn Entertainment (PENN), and Keith Meister’s Corvex maintained its stake in MGM Resorts International (MGM). These movements reflect broader trends in professional investor activity in the gaming sector during the second quarter of 2025.