Case study

PENN Entertainment unified its hybrid cloud data and got 40% better at spotting churn

Teams across PENN worked from separate reporting tools on siloed data, and analytics could only look backward, not predict.

40%better at identifying guests likely to churn

The workflow before#

PENN Entertainment runs casinos and sports betting across North America, and it had grown fast. Its data grew with it, across on-premise systems and the cloud, without a plan for how the pieces fit together. Departments used different reporting tools. Marketing couldn't easily share campaign results with analytics, and the interactive gaming division ran apart from the core business intelligence setup. Analysts spent hours assembling reports that described last month. Nobody could forecast which guests were about to drift away or put a reliable lifetime value on a customer, so retention and marketing spend were decided on hindsight. In a regulated industry, governance across all those copies of data was its own headache.

What we built#

We built one data layer across PENN's on-premise and cloud environments, so every team works from the same source of truth wherever the data physically lives. Analysts can query across both without copying data around. On top of that layer we added machine learning that predicts which guests are likely to churn and what each guest is worth over time, so marketing can act before spend drops.

Querying across on-premise and cloud

Microsoft PolyBase lets analysts query on-premise and cloud data together, without building an ETL job for every question. We chose that over a wholesale migration because PENN's operations couldn't pause while data moved, and much of it had good reasons to stay where it was.

A secure bridge to interactive gaming

AWS VPC peering connects PENN's core operations with its interactive gaming division over private, high-throughput links. Online and on-property behavior now sit in the same view. We kept the architecture cloud-agnostic across AWS and Azure so PENN isn't locked into one vendor.

Churn and lifetime value models

Models built with PySpark on Amazon EMR and deployed through Azure Machine Learning score guests on churn risk and lifetime value. Marketing uses the scores to aim retention offers at guests who are drifting and to put budget where customer value is highest. The models are 40% better at identifying likely churners.

How we delivered it

We started with six stakeholder workshops to map the existing data and agree on where integration mattered most. Rollout was phased: the data science and analytics teams went first as a proof of concept, then research, then the wider enterprise. We trained more than 50 data users and set up new governance for data sharing and security along the way.

Before and after#

MeasureBeforeAfter
Identifying likely churnersBackward-looking reports40% more accurate with predictive models
Report generationHoursMinutes
Data access across teamsSeparate tools and silosOne data layer across on-premise and cloud
Data users trainedNone50+

What's next#

With guest data unified and churn and lifetime value scores in place, PENN can move from scoring guests to acting on them automatically. Next steps include personalized offers triggered by a change in a guest's churn score, and extending the models to new markets as PENN grows, using the same governance framework.

ShareLinkedInEmail

The architecture is a hybrid, cloud-agnostic design across on-premise systems, AWS and Azure. Microsoft PolyBase provides federated queries across on-premise and cloud sources without per-query ETL. AWS VPC peering gives private, high-throughput connectivity between core operations and the interactive gaming division's environment.

Azure is the primary cloud for warehousing and lakehouse patterns, chosen for its hybrid deployment support and security controls suited to gaming compliance. The lakehouse handles both structured transactional data and semi-structured guest behavior data.

The ML layer uses Amazon EMR and PySpark for distributed feature engineering and training, with models deployed and managed through Azure Machine Learning. Governance covers data sharing policies and access controls across teams.

Next step

Let's build the case study we tell next.