PENN Entertainment Inc (PENN)

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Moody’s raises Penn National Gaming outlook

Moody's Investors Service raised Penn National Gaming Inc.'s outlook as well as its secured bank loan rating on June, saying the casino operator has done well compared to its rivals and improved its credit profile. Moody's boosted Penn's outlook to positive from stable.

However, Penn seems like will have some trouble in the future. MGT Gaming, Inc. has filed a lawsuit claiming patent infringement against multiple companies believed to be violating MGT Gaming's United States Patent No. 7,892,088 ("the ‘088 Patent") entitled "Gaming Device Having a Second Separate Bonusing Event." Penn National Gaming, Inc. is among the multiple companies that may either manufacture, sell or lease gaming systems in violation of MGT Gaming's patent rights, or operate casinos that offer gaming systems in violation of MGT Gaming's patent rights. If MGT win the lawsuit, Penn will have to pay royalties. It may raise the stock price of MGT and drop down that of Penn for sure.