Penn National Gaming (NASDAQ: PENN) owns 12 casinos, 7 racetracks, and off-track betting facilities in 14 states and in Ontario, Canada.^[1] In 2009, the company generated $2.37 billion in revenue but incurred a net loss of $265 million.^[2]

State regulations are a mixed bag for Penn. On the one hand, a loosening of gambling regulations in Pennsylvania let Penn install 3000 new slot machines in its Granville, PA racetrack - each of which can generate $200 per day. On the other hand, tight gambling restrictions keep competitors out of the market, and the absense of gambling in many states adjacent to Penn properties means the company can draw out of state visitors to its casinos. For instance, the company's casino in Lawrenceberg, Indiana (responsible for 20% of the company's revenue) has benefited from influxes of customers from Ohio and Kentucky. Both Kentucky and Ohio are re-examining their bans on casino gaming and other states in Penn's market areas, such as New Jersey, are granting licenses for new casino development. These new licenses encourage new competitors to enter Penn's markets.

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