PENN Entertainment operates dozens of retail casinos across the country, including Hollywood Casino at Greektown in Michigan. It’s possible the Detroit casino could be under new ownership in the near future.
There have been reports of a potential tag-team acquisition of PENN Entertainment, where Flutter would control online sports betting brand ESPN BET and Boyd Gaming would own the retail properties. The latter would impact Hollywood Casino at Greektown.
Reports of impatient investors have surfaced over the last month and have suggested that PENN Entertainment sell its assets.
Where there’s smoke, there’s usually fire. The possibility of a PENN Entertainment sale is more likely than it’s ever been.
Boyd Gaming could own Hollywood Casino at Greektown
Hollywood Casino at Greektown is one of the largest casinos in Michigan. The 100,000 square-foot facility is home to more than 2,000 slot machines, 64 table games, a poker room and a new ESPN BET retail sportsbook, which successfully opened just before the NFL Draft in April.
There has been tension among PENN investors because of poor performance, especially on the online side. One top shareholder, The Donerail Group, published a letter last month questioning PENN’s leadership and suggested a sale of the company.
The Deal, according to the Earnings+More newsletter, is reporting a joint acquisition between Boyd and Flutter of PENN. The potential sale would result in Boyd owning and operating all 43 of PENN’s retail properties, including Hollywood Casino at Greektown.
Since Boyd does not own any properties in Michigan, it would likely have to go through some kind of process with the Michigan Gaming Control Board to gain approval. The MGCB has not immediately responded to PlayMichigan‘s request on that topic.
Boyd is no stranger to the gaming industry, operating 36 facilities itself across 10 states. It has the most properties in Nevada, owning 13 properties in the state.
PlayMichigan will certainly provide updates from the MGCB on the protocols it must complete to operate in Michigan. Judging by its track record of facilities, it shouldn’t be too much of an issue.
How has Hollywood Casino at Greektown performed in Michigan?
PENN Entertainment acquired the Hollywood Casino at Greektown in May 2019 and has been able to increase revenue throughout the years, which included the COVID-19 pandemic. The casino has had revenue of $1.31 billion since being acquired by PENN for a price of $1 billion.
The Greektown casino has produced the following yearly revenue totals (slots and table games):
- 2019: $223.8 million (May through the rest of the year — $337.2 million for the whole year)
- 2020: $140.6 million
- 2021: $274.5 million
- 2022: $260.5 million
- 2023: $285.2 million
- 2024 $124.4 million (through the first five months of 2024)
The pandemic impacted 2020 heavily, which carried into 2021. However, Hollywood Casino at Greektown recovered nicely in 2021. Despite a slight dip in 2022, the property had its best year since coming under PENN’s ownership in 2023.
Five months into 2024, the Detroit casino has generated $124.4 million in revenue. It’s on pace to deliver $298.5 million in revenue, which would be considered the best year of PENN’s ownership tenure.
Hollywood Casino at Greektown is third among the three Detroit casinos, MGM Grand Detroit and MotorCity Casino. However, it doesn’t mean Hollywood isn’t a strong product in Michigan.
What happens to ESPN BET in Michigan?
The other domino to fall to this potential deal would be PENN’s online product. Boyd would overtake the retail business while Flutter would own the online portion of PENN, which would include ESPN BET.
Flutter owns and operates FanDuel in Michigan, the market leader among Michigan online sportsbooks.
ESPN BET is the No. 4 sportsbook in the Great Lakes State, in terms of handle, in 2024, so far. However, its market share has continued to falter since launching the app in mid-November.
PlayMichigan asked the MGCB the protocols Flutter must go through if it does acquire ESPN BET. We have not received word, yet.
It could be a similar process to Caesars’ new approach. Caesars completed the acquisition of WynnBet’s sports betting license last month, and plans to launch another skin “before the end of the year, pending regulatory approval,” Eric Hession, President of Caesars Sports & Online, said in May.
It will be interesting to see if Flutter is able to take the same strategy as Caesars.