PENN Entertainment, Inc.

What they do

PENN operates casinos, racetracks, and online sports betting and iCasino offerings in 28 North American jurisdictions, organized into four retail segments (Northeast, South, West, Midwest) and one Interactive segment. As of December 31, 2025, it owned, managed, or held interests in 42 gaming and racing properties in 19 states and offers live sports betting in 14 states. Most real estate is leased under triple net master leases, primarily with GLPI. Its PENN Play loyalty program has over 33 million members.

Revenue drivers

• Retail gaming (Northeast, South, West, Midwest segments) — Slot machines, table games, food and beverage, and hotel visitation at 42 properties; second quarter 2026 Retail revenues were $1.5 billion, the large majority of the $1.86 billion quarterly total.
• Interactive (OSB, iCasino, social gaming, media) — U.S. and Canadian online sports betting, Hollywood iCasino, and theScore media app; second quarter 2026 revenues were $349.4 million including a $185.5 million tax gross-up, with an Adjusted EBITDA loss of $9.5 million.
• Canadian operations (theScore Bet, theScore Casino) — theScore Bet has operated in Ontario since 2022; theScore media app has roughly 4 million monthly active users across North America and is used to drive cross-sell.
• PENN Play loyalty cross-sell — Over 33 million members whose rewards and experiences are used to drive cross-sell among retail properties and the digital apps.

Recent performance

Second quarter 2026 revenues were $1.857 billion versus $1.765 billion a year earlier, with net income of $32.6 million versus a $18.3 million loss. Retail segment revenues were $1.5 billion with Segment Adjusted EBITDAR of $517.2 million and a 34.4% margin. Interactive revenues were $349.4 million including a $185.5 million tax gross-up, with an Adjusted EBITDA loss of $9.5 million. Consolidated Adjusted EBITDA was $312.6 million, up $52.5 million year-over-year. For full-year 2025, revenue was $6.96 billion and net loss was $843.1 million, or $5.83 per diluted share.

Strategy

After terminating the U.S. ESPN sportsbook agreement effective December 1, 2025, PENN rebranded its U.S. OSB to theScore Bet and realigned digital focus toward U.S. iCasino and Canada. The company is executing on four GLPI-funded development projects: the Joliet relocation (opened August 11, 2025), the Aurora relocation and Hollywood Columbus hotel tower (both opened June 2026), and a second hotel tower at M Resort. Management cites 2026 priorities of Segment Adjusted EBITDAR growth, corporate overhead reduction, cash flow growth, and balance sheet deleveraging. It refinanced and extended its revolving credit and Term Loan A facilities to April 2031 and repriced and extended its Term Loan B to May 2033.

Risks

• Highly competitive industry — PENN expects competition to intensify, including from new forms of gaming such as prediction markets.
• Discretionary consumer spending — Results are sensitive to reductions in discretionary spending caused by economic downturns and other factors.
• Geographic concentration and fixed obligations — A significant percentage of revenues comes from certain regions, and a significant portion of operating cash flow goes to interest and rent payments under debt and lease agreements.
• Online gaming execution — There is no assurance PENN will compete effectively or generate sufficient returns from its OSB and iCasino operations, including theScore Bet and Hollywood iCasino.

Outlook

Management said Interactive remains on track to deliver previously stated goals, supported by growth in U.S. iCasino and Canada, and that encouraging retail and Interactive trends continued through July 2026. It opened the Hollywood Columbus hotel tower and Hollywood Casino Aurora in June 2026 and launched theScore Bet, theScore Casino, and the standalone Hollywood iCasino apps in Alberta on July 13, 2026. The Joliet relocation opened August 11, 2025, and the M Resort second tower remains under construction subject to regulatory approvals.