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State of Play
- David Einhorn’s DME Capital pared its holding in PENN Entertainment heading into 2026.
- The move comes as PENN shares have tumbled roughly 46% over the past year, a signal investors are losing confidence and a development bettors should watch for its potential impact on sportsbook investment and promotions.
DME Capital Management, the hedge fund run by David Einhorn, trimmed its stake in PENN Entertainment during the fourth quarter of 2025, according to the firm’s Form 13F filed with the SEC.
The filing shows DME entered 2026 owning 6.04 million shares, down from 6.77 million at the start of Q4 reduction of nearly 700,000 shares. That appears to follow an earlier sell-down from 7.5 million shares at the end of June 2025, making this at least the second straight quarter of reductions.
PENN remains the only casino stock in DME’s portfolio. The Q4 period also included PENN’s announcement it would scrap the troubled ESPN BET venture. While that decision drew mixed investor reaction, the stock continued to drift lower and sits near six‑year lows.
Keep an eye out for more selloffs
Hedge fund selling of a major operator like PENN matters for players because it can affect capital available for marketing, promotions and product investment. Continued investor pullback – amid a near‑50% stock decline – can pressure management to prioritize cost controls or strategic shifts rather than aggressive customer acquisition.
For bettors that can mean fewer welcome offers or slower rollout of new features, while competitor sportsbooks that are attracting investor confidence (for example, DraftKings saw a boost from Eminence Capital in Q4) may be better positioned to spend on promotions.
Operators also face reputational and M&A pressures: visible selling by well‑known funds can accelerate consolidation or force strategic pivots as companies balance growth investments with shareholder returns.
Watch for subsequent Form 13F updates and PENN’s corporate announcements – any further selling by large holders would be a bearish signal, while new strategic moves (partnerships, cost cuts or asset sales) could stabilize sentiment.
Based on reporting by Todd Shriber for Casino.org.
