The opening of M Resorts’ 375-room tower in December was a big reason for an increase in revenue for regional gaming giant Penn Entertainment Inc., company executives said Thursday in its first-quarter earnings call with investors.
Penn CEO Jay Snowden said the company saw revenue grow 12.4 percent for the Wyomissing, Pennsylvania-based company’s West division, which bodes well for three more casino expansion projects in the company’s pipeline.
The new tower, which increased M’s capacity to 765 rooms, opened on December 1 and resulted in record net income for the property both in the quarter and in the month of March. During that time frame, the property had record slot and table game revenue and hosted the five largest businesses in the group in its 17-year history.
The M expansion was the second of five major capital projects for Penn, which also relocated its Hollywood Joliet casino in Illinois in August. The company is also slated to open a new hotel tower at its Hollywood Columbus property in Ohio and will relocate its Hollywood Aurora casino in Illinois, both in June, and move its Hollywood Council Bluffs property in Iowa in 2028.
Overall, Penn reported a net loss of $2.8 million, 2 cents a share, due to one-time expenses for its iGaming and sports betting launch in Alberta, Canada, on revenue of $1.8 billion for the quarter ended March 31. That compares with net income of $111.8 million, or $68 billion per share, on revenue for the same quarter a year earlier.
Snowden said the increase in gas prices in March has not yet affected casino visits, and he suspects that the reason is that many consumers are enjoying higher wages as a result of tax cuts offered in President Donald Trump’s “Big Beautiful Bill.”
“It’s hard for us to know exactly what the drivers are,” Snowden said in response to an investor’s question. “There’s definitely opportunity. Gas prices are higher. Although, as I’ve said before, when you look at regional play over the last few decades, really the economic indicator that most closely correlates with behavior on the regional play side is going to be employment. And employment actually continues to be a really good story.”
Snowden indicated that the company would keep a close eye on how gas pricing affects casino attendance.
“Gas prices can be a bit of a noise and a headwind,” he said. “The vast majority of our customers in the regional portfolio come within a 30-minute drive, so you’re probably not making a decision about the price of gas if you visit a casino once a week or two weeks or once a month, because it’s not going to cost you much to get there.
“Certainly we’re seeing some benefit from the tax refunds being higher year over year and that, from what I’ve read, 11, 12 percent, which is useful,” Snowden said. “And I think we’ll probably continue to see and feel April very much through the first three weeks, as a continuation of Q1, which is good. So we’re not seeing any cracks in the armor. We’re actually feeling really good as we look out for the rest of the year.”
This is a development story. Check back for updates.
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