PENNNasdaqHotels & MotelsUS GAAP · USD

PENN Entertainment, Inc.

PENN Entertainment, Inc. operates a diversified North American gaming and entertainment business spanning regional casinos, racetracks, and online sports betting and iCasino offerings. Its portfolio combines physical gaming properties with digital wagering, media, and loyalty assets under brands such as Hollywood Casino, L’Auberge, theScore Bet, and PENN Play.

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Revenue6,961m USD
+5.8 %y/y
Operating profit (EBIT)-674m USD
−1,029.1 %y/y
EBIT margin-9.7%
−10.8 ppy/y
Net income-843m USD
−170.7 %y/y
Free cash flow508m USD
+41.4 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2,00002,0004,0006,0008,000m USD2020: 3,579 m USD2020: EBIT -410 m USD20202021: 5,905 m USD2021: EBIT 1,060 m USD20212022: 6,402 m USD2022: EBIT 974 m USD20222023: 6,363 m USD2023: EBIT -690 m USD20232024: 6,578 m USD2024: EBIT 73 m USD20242025: 6,961 m USD2025: EBIT -674 m USD20256,961-674
RevenueOperating profit (EBIT)
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Business

Share of revenue
Retail gaming properties70 %

Casino and racetrack operations with slot, table game, food, beverage, and hotel revenue.

Online sports betting12 %

Mobile and online sportsbook offerings in U.S. and Canadian markets.

iCasino / online casino10 %

Digital casino games and related online gaming content and platforms.

Media and interactive services5 %

Sports media, retail sportsbook management, and customer acquisition support.

Loyalty and ancillary services3 %

PENN Play rewards, promotions, and cross-sell-related customer engagement services.

Products

Reported · share of revenue
76.9%13.1%FY2025100 %
  • Casino76.9 %
  • Other13.1 %
  • Food and Beverage6.4 %
  • Occupancy3.6 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

PENN serves leisure and gaming customers who visit regional casinos and racetracks for slots, table games, dining, and hotel stays. It also serves online bettors and digital casino players who use mobile apps and web platforms for sports wagering and iCasino play. The PENN Play loyalty program and media partnerships are designed to convert these customers across retail and digital channels.

Regional casino guests

Customers visiting casinos and racetracks for gaming, food, beverage, and lodging.

Online sports bettors

Mobile and web users placing wagers through OSB brands such as theScore Bet.

iCasino players

Digital casino customers who play online slots and table-style games.

PENN Play loyalty members

Members enrolled in the rewards ecosystem who are targeted for repeat play and cross-sell.

Partner-branded sportsbook users

Customers acquired through media and strategic brand partnerships that support sportsbook traffic.

Strategy

PENN’s strategy centers on cross-selling customers between its retail casinos, sportsbook, iCasino, media, and loyalty platforms. It is also focused on using proprietary technology, theScore media assets, and PENN Play to deepen customer engagement and improve acquisition efficiency across channels.

Cross-sell between retail and digital channelsShort term

The business model depends on converting casino visitors into online users and vice versa.

Strengthen iCasino and online gaming offeringsMedium term

Digital gaming is a key growth vector and can scale beyond local property markets.

Use media and partnerships to lower acquisition costsMedium term

Brand partnerships can improve customer reach and support sportsbook and casino traffic.

Optimize the property portfolio and local market presenceLong term

Regional casinos remain the core cash-generating base and support omnichannel growth.

Geography

PENN operates in 28 jurisdictions across North America, with a broad footprint of retail properties in the United States and digital gaming exposure in both the U.S. and Canada. Its business is organized into Northeast, South, West, Midwest, and Interactive segments, reflecting a mix of local casino markets and online wagering markets. Geography matters because the company depends on state and provincial gaming regulation, local market competition, and the performance of a concentrated set of regional properties.

Risks

PENN faces intense competition in both regional gaming and online wagering, where customer acquisition, pricing, and product quality are critical. Its results are also exposed to discretionary spending, seasonality, regulatory change, third-party dependence, and lease-heavy capital structure obligations tied to many of its properties.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Intense competition in gaming and online wagering1Discretionary consumer spending sensitivity2Sportsbook trading and pricing risk3Lease and debt service burden4Third-party and regulatory dependence6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Intense competition in gaming and online wageringImpact: HighLikelihood: Medium

    The company competes with casinos, lotteries, sweepstakes, fantasy sports, and other digital platforms.

    ExposureRetail casinosOSBICasino
  2. Discretionary consumer spending sensitivityImpact: HighLikelihood: Medium

    Gaming and entertainment spend can fall when household budgets tighten or travel weakens.

    Exposure: Casino visitation and digital wagering volumes

  3. Sportsbook trading and pricing riskImpact: HighLikelihood: Medium

    Sports betting margins depend on hold rates, liability management, and event outcomes.

    Exposure: Online sports betting

  4. Lease and debt service burdenImpact: HighLikelihood: Medium

    A large share of cash flow is committed to rent and interest under master leases and debt.

    Exposure: Property portfolio and capital structure

  5. Goodwill and intangible asset impairmentImpact: High

    The company carries significant goodwill and trademarks that can be written down when outlook changes.

    Exposure: Interactive and retail reporting units

  6. Third-party and regulatory dependenceImpact: MediumLikelihood: Low

    Digital gaming requires geolocation, identity verification, payment processing, and approvals.

    Exposure: Interactive segment and jurisdictional expansion

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Accounting

Judgemental items
Goodwill impairment testing

Interactive goodwill was tested using DCF and market multiples, and impairment can materially reduce reported earnings.

Impact: Non-cash charges can be large and irregular

Trademark and gaming license impairment

Indefinite-lived intangibles are tested when indicators arise and can be written down if fair value falls.

Impact: Affects operating results and asset carrying values

Lease accounting for master leases

Most real estate assets are subject to triple net master leases, creating recurring rent expense and liabilities.

Impact: Influences EBITDA-to-cash flow conversion and leverage analysis

Seasonality in gaming revenue

Casino visitation and wagering volumes fluctuate by season, events, and local market conditions.

Impact: Quarterly revenue and margin comparability can be uneven

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Last updated: 24/09/2026