Penn National Gaming, Inc. (PENN, Financial), a regional U.S. casino company, declined due to investor concerns over elevated marketing expenses in its Barstool Sports digital business. We think marketing costs will decline over time as Penn grows its customer base and retains existing customers. The core bricks and mortar casino business remains strong, and Penn has a strong balance sheet to fund the digital losses.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund fourth-quarter 2021 letter.
