On May 14, 2026, sources reported that Penn Entertainment is laying off approximately 75 employees from its Penn Interactive division. The cuts primarily affect theScore Bet teams, the digital sports betting arm Penn acquired through its 2023 purchase of theScore for $2 billion.
This marks the third round of cuts in a year for Penn Entertainment as the company continues to restructure its digital gambling operations. The Penn Interactive division, which houses ESPN Bet (Penn's flagship betting brand) and theScore Bet, has been undergoing repeated organizational changes as the company tries to find the right operating model for its online gaming business.
Penn Entertainment sits at the intersection of two major industry trends: the ongoing consolidation of the U.S. sports betting market and the broader gambling industry's recalibration after years of aggressive growth spending. After spending billions to acquire digital brands and licenses, operators like Penn are now cutting staff to improve unit economics.
The relatively small size of this cut (75 people) belies its significance as a signal. Three rounds in a year suggest Penn has not yet found a sustainable headcount for its digital division, and further reductions may follow as ESPN Bet's market share stabilizes.