Regional casino giant Penn National Gaming announced a program Thursday with Alliance Data Systems Corp. to develop a co-branded credit card that will be marketed to the company’s database of more than 20 million customers.
The credit card will be connected to Penn National’s existing loyalty rewards program and allows customers to earn additional points on hotel, dining, and non-gambling entertainment purchases at Penn’s more than 40 properties across the U.S. Customers can earn additional points when they use the credit card elsewhere for daily purchases.
Alliance Data said the company’s Columbus, Ohio-based card services business offers the technology to simplify and accelerate the process of applying for and receiving the credit card. Approved customers receive their card within minutes, printed onsite at any Penn National property.
Financial terms of the deal were not announced.
Penn National Chief Marketing Officer Jennifer Weissman said the program offers its guests “additional ways to earn valuable benefits, while increasing our current customers’ loyalty and providing us with new insights to help reach even more customers.”
Since the completion of its $2.8 billion buyout of Pinnacle Entertainment last month, Penn now has casinos in 18 states. The company is also acquiring the operations of Margaritaville Casino Resort in Louisiana and Greektown in Detroit.
Jefferies gaming analyst David Katz and the credit card program has numerous positive opportunities for Penn National, including enhanced engagement with database customers and marketing efficiencies.
“The arrangement is similar to some of the other largest companies in the sector, which also offer co-branded credit cards,” Katz said in a note to investors. “We view this as a benefit of scale for Penn and other operators. Ultimately, we believe this endeavor is less about the economic benefits of the card than it is about the ability to drive marketing efficiencies in the business.”
Alliance Data will provide the administration of card sign-ups and ongoing program administration.
“The company will also leverage their data analytics capabilities to provide better insight into customer behavior and loyalty, which should result in greater efficiencies in marketing spend,” Katz said.
Shares of Penn National, traded on the Nasdaq, closed at $22.38 Thursday, down 30 cents or 1.32 percent.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
