Some investors may not like the fact that Penn Entertainment Inc. (NASDAQ: PENN) completed an acquisition earlier this year -- only to turn around and sell the business back to its founder months later for a symbolic dollar. But this may not be as negative as it sounds. In fact, it may have actually been the right decision, and one that will lead to growth for the company's online sports betting business.

Penn operates casinos and hotels, and these businesses actually generate most of the company's revenue. But, as more and more states legalize sports betting, strengthening its presence in this market could be a very smart idea. So, is Penn, down 30% this year, a buy considering its recent decisions and prospects down the road? Let's find out.

First, a bit of background. Penn owns 43 casinos and racetracks and more than 7,800 hotel rooms throughout North America, and it offers sports betting in 16 jurisdictions. The company's big move in the sports betting arena came three years ago when it struck a deal to buy Barstool Sports from founder Dave Portnoy. The company completed the deal earlier this year, spending a total of more than $550 million on the acquisition.

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Source Fool.com