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• A blend of MGM Resorts (for physical casinos) and DraftKings (for online sports betting and gaming).
• The Caesars Entertainment or MGM Resorts of regional casinos and online sports betting.

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• Casino Gaming: Operating physical casino establishments offering various games of chance.
• Online Gaming: Providing digital platforms for users to engage in casino games over the internet.
• Live Racing: Hosting and managing live racing events, such as horse racing.
• Sports Betting: Facilitating the placement of wagers on outcomes of various sports events.
• Video Gaming Terminals (VGTs): Operating electronic gaming machines in various locations, often outside traditional casinos.
• Digital Sports Content: Creating and distributing digital media focused on sports, likely to inform and engage an audience.

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PENN Entertainment primarily sells its services directly to individuals.

The major categories of individual customers it serves include:

• Casino Gaming Patrons: Individuals who visit PENN's physical casino properties (such as Hollywood Casino, Ameristar, Tropicana Las Vegas) to engage in slot machine play, table games, and other in-person gambling activities.
• Online Sports Bettors and iGaming Players: Individuals who utilize PENN's digital platforms for online sports betting (e.g., ESPN BET) and online casino games.
• Racegoers and Entertainment Seekers: Individuals who attend live racing events at PENN's tracks or visit its properties for dining, lodging, live entertainment, and other non-gaming resort amenities.

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Everi Holdings Inc. (NASDAQ: EVRI)

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Konami Holdings Corporation (TYO: 9766)

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Jay Snowden, Chief Executive Officer and President

Jay Snowden joined PENN Entertainment in 2011 and assumed the role of CEO in 2020. He is credited as the architect behind the company's transformation from a regional casino operator into a diverse provider of retail and interactive gaming, sports betting, media, and entertainment. Before joining PENN, Mr. Snowden held various leadership positions with Caesars Entertainment Corporation in markets such as Las Vegas and Atlantic City. Under his leadership, PENN acquired Barstool Sports and Score Media and Gaming (theScore), and he oversaw the integration efforts following the acquisition of Pinnacle Entertainment.

Felicia Hendrix, Executive Vice President, Chief Financial Officer

Felicia Hendrix brings over two decades of Wall Street experience to her role as CFO, which she commenced in March 2021. Prior to joining PENN, she served as a Managing Director and Equity Research Analyst at Barclays, where she covered the gaming, lodging, and leisure industries. Before her tenure at Barclays, Ms. Hendrix was a Managing Director at Lehman Brothers.

Chris Rogers, Executive Vice President, Chief Strategy and Legal Officer and Secretary

In his role, Chris Rogers is responsible for leading the development and execution of PENN's strategic growth initiatives. He joined Penn National in August 2013 as Vice President, Deputy General Counsel. Prior to joining Penn National, Mr. Rogers worked as a corporate attorney at the Dallas, Texas-based law firm of Vinson and Elkins.

Aaron LaBerge, Chief Technology Officer & Head of Interactive

Aaron LaBerge is responsible for driving PENN Entertainment's overall technology strategy and execution, as well as leading its interactive division. As of January 2026, he has also assumed responsibility for the company's enterprise IT functions.

Jennifer Weissman, Senior Vice President and Chief Marketing Officer

Jennifer Weissman focuses on achieving omnichannel results for PENN Entertainment. Her role involves close collaboration with the Chief Technology Officer and Head of Interactive to enhance the PENN Play loyalty program and optimize cross-selling initiatives.

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Key Risks to PENN Entertainment

1. Intense Competition and Challenges in the Interactive/Online Gaming Segment: PENN Entertainment operates in a fiercely competitive gaming, media, and entertainment industry, particularly within its interactive and online gaming segments. The company faces significant competition from established players and emerging forms of gaming, such as prediction markets, which PENN's CEO has publicly identified as a "major threat" and a form of "illegal gambling." This competitive pressure has contributed to ongoing losses in PENN's interactive segment, necessitating continuous investment in platform enhancements and substantial capital expenditures. Furthermore, strategic shifts, including the termination of its ESPN partnership and the rebranding to theScore Bet, have affected user acquisition and retention, leading to significant impairment charges and ongoing efforts to achieve profitability in this crucial growth area.
2. Regulatory and Legal Risks: The gaming industry is subject to extensive and constantly evolving regulatory and legal frameworks. PENN Entertainment must maintain constant vigilance and adapt to comply with these regulations, especially in its interactive segment, which can lead to increased operational costs. Changes in federal, state, and local regulations, including those related to consumer privacy, environmental laws, potential tax increases, or the introduction of new forms of gaming, could adversely affect the company's operations and profitability. The ongoing controversy surrounding the legality of prediction markets poses a particular risk, as it could put PENN's valuable gaming licenses at risk if the company were to engage in activities deemed unlawful by regulators.
3. Economic Sensitivity and Discretionary Consumer Spending: As a regional operator offering casino gaming, online gaming, and sports betting, PENN Entertainment's business is highly sensitive to overall economic conditions and changes in discretionary consumer spending. Economic downturns or other external factors that reduce consumers' disposable income can directly impact the demand for gaming and entertainment, thereby adversely affecting PENN's revenue and financial performance.

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The intensifying competition and high customer acquisition costs in the rapidly evolving online sports betting and iGaming market. Major competitors with substantial resources and aggressive marketing strategies are making it increasingly challenging and expensive for PENN Entertainment to gain and retain profitable market share in its interactive segment, potentially jeopardizing its long-term growth and profitability in this critical area.

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The addressable markets for PENN Entertainment's main products and services in the U.S. are as follows:

• Casino Gaming (U.S.): The land-based casino gaming market in the U.S. was valued at approximately USD 63.5 billion in 2024. Traditional casino gaming revenue expanded to USD 50.94 billion in 2025.
• Online Gaming (U.S. iGaming/Online Casino): The U.S. iGaming market is projected to reach USD 26.8 billion in 2025.
• Live Racing (U.S. Horse Racing): The market size of Horse Racing Tracks in the U.S. was USD 6.4 billion in 2024 and is estimated at USD 6.3 billion in 2025.
• Sports Betting (U.S.): The U.S. sports betting market size was estimated at USD 17.94 billion in 2024 and is expected to reach USD 19.76 billion in 2025. Sports betting revenue rose to USD 16.96 billion in 2025.

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PENN Entertainment (PENN) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, focusing on both its interactive and retail segments, alongside strategic operational enhancements.

1. Expansion of the Interactive Segment with iCasino and Online Sports Betting: PENN Entertainment anticipates significant growth from its Interactive segment, with a projected revenue of approximately $1.6 billion for 2026, representing about a 20% year-over-year improvement (excluding tax gross-up). This growth is primarily fueled by the expansion of its iCasino offerings, particularly the Hollywood-branded standalone iCasino product, and improved customer retention within the Hollywood app. The company's strategic shift to a more regionally targeted approach post-rebranding its U.S. online sportsbook to theScore Bet is also expected to contribute positively. Penn aims for its Interactive segment to reach adjusted EBITDA breakeven in 2026, becoming a notable contributor to cash flow. Initial data from ESPN Bet indicates a substantial increase in mobile wagers and the addition of over 1 million new customers, demonstrating its potential for customer acquisition. The strategy now focuses on leveraging deep integrations within the ESPN ecosystem for efficient customer acquisition and retention.

2. New Retail Property Openings and Strategic Renovations: The company projects growth in its retail operations, bolstered by the opening of new properties and the anniversarying of recently launched venues. Key projects include the new hotel tower at M Resort in Las Vegas, which opened in December 2025, and the new Hollywood Casino Joliet, both of which are already showing strong results. Furthermore, PENN plans to open two additional retail growth projects by the end of the second quarter of 2026, including a new facility in Aurora, Illinois, and the Hollywood Columbus Hotel Tower in Ohio. These new developments are anticipated to deliver mid-teens percentage returns. Ongoing investments in upgrading existing casinos, refreshing slot floors, and enhancing non-gaming amenities are also expected to drive sustained performance.

3. Leveraging Omnichannel Strategy and Customer Loyalty Program: PENN Entertainment is focused on an omnichannel approach, integrating its digital offerings with its physical properties to create a seamless customer experience. This strategy is crucial as omnichannel customers are six times more valuable and exhibit three times better retention rates compared to single-channel customers. The company has observed a steady increase in active retail customers also engaging with its online platforms. By leveraging its extensive PENN Play loyalty program, which boasts over 30 million members, PENN aims to enhance customer engagement and drive future success in the evolving entertainment landscape.

4. Operational Efficiencies and Optimized Cost Management: PENN is implementing various initiatives to improve operational efficiencies and reduce costs, which are expected to positively impact revenue growth by boosting profitability. A new corporate organizational structure, introduced in early 2026, is projected to result in over $10 million in annualized run-rate cost savings in corporate overhead. Additionally, the company anticipates reducing its marketing spend in the Interactive segment by approximately $150 million compared to 2025, by adopting a more regionally focused marketing strategy emphasizing iCasino and Canada. Maintenance capital expenditures are also expected to decrease by $20 million, returning to near pre-COVID levels following significant property investments. These cost optimizations, combined with a higher mix of higher-margin iCasino revenues, are set to enhance overall profitability.

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Share Repurchases

• PENN repurchased 20,090,831 shares for $354.4 million under the December 2022 Authorization.
• As of November 5, 2025, $395.4 million remained available under the December 2022 Authorization.
• A new $750 million share repurchase program was authorized on October 30, 2025, set to commence on January 1, 2026, and expire on December 31, 2028.

Share Issuance

• The acquisition of theScore in August 2021 was funded with approximately $1 billion in cash and stock, resulting in current Penn National and theScore shareholders holding roughly 93% and 7% respectively, of the company's outstanding shares.
• As part of a 2023 agreement, ESPN was to purchase nearly 32 million shares of Penn worth $500 million.
• The repurchase of $233.5 million of 2.75% Convertible Senior Notes due 2026 eliminated approximately 9.6 million shares from the diluted share count.

Outbound Investments

• In August 2021, Penn National agreed to acquire Score Media and Gaming (theScore) for approximately US$2.0 billion in cash and stock, with the transaction closing in the first quarter of 2022.
• PENN fully acquired Barstool Sports in February 2023 for approximately $388 million, building on an initial 36% stake purchased in 2020 for US$163 million.
• In August 2023, PENN sold 100% of Barstool Sports back to its founder for a nominal cash consideration ($1.00) and concurrently entered a ten-year, $2 billion licensing agreement with ESPN Inc. to rebrand its sportsbook as ESPN Bet, which included paying $1.5 billion in cash to ESPN and giving ESPN options for $500 million of PENN stock. This partnership was terminated in November 2025, leading to the rebranding of ESPN Bet to theScore Bet.

Capital Expenditures

• Capital expenditures for 2025 totaled $647.7 million, an increase from $482.7 million in 2024.
• For 2026, PENN anticipates total capital expenditures of $445 million, consisting of $225 million for project capital expenditures and $220 million for maintenance capital expenditures.
• The focus of these expenditures includes ongoing development projects such as the new Hollywood Casino in Joliet, a new hotel tower at M Resort Spa Casino Las Vegas, and the land-side relocation of Hollywood Casino Aurora, with maintenance capital expenditures returning to near pre-COVID levels.