v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We have five reportable segments: Northeast, South, West, Midwest, and Interactive. Our gaming and racing properties are grouped by geographic location, and each is viewed as an operating segment with the exception of our two properties in Jackpot, Nevada, which are viewed as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments.
The retail segments primarily generate revenue from gaming operations (such as slot machines and table games), food and beverage offerings, and hotel visitation. The accounting policies of our retail segments are the same as those described in our significant accounting policies. See Note 2, “Significant Accounting Policies and Basis of Presentation” for further information.
The Interactive segment includes all of our online gaming operations, management of retail sports betting, and media operations. The accounting policies of our Interactive segment are the same as those described in our significant accounting policies. See Note 2, “Significant Accounting Policies and Basis of Presentation” for further information.
The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of our stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park, and our management contract for Retama Park Racetrack. The Other category also includes corporate overhead expenses, which consist of certain expenses, such as: payroll, professional fees, travel expenses, and other general and administrative expenses that have not otherwise been allocated.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer and President. Segment Adjusted EBITDAR (as defined below) is our measure of segment profit or loss for each segment and is utilized by the CODM as follows:
•within the annual budget and forecasting process when making decisions about the allocation of operating and capital resources to each segment;
•to evaluate monthly budget-to-actual variances which are used in assessing segment performance;
•to determine whether to reinvest profits into the segment or into other parts of the Company, such as new development projects, return generating investments in our retail operations and Interactive segment; and
•to determine various capital allocation initiatives such as mergers and acquisitions, share repurchases, and delevering.
The tables below provide information about our revenues, expenses, and Segment Adjusted EBITDAR and provide a reconciliation to net income (loss).
For the three months ended June 30, 2026
(in millions)NortheastSouthWestMidwest
Interactive (1)
Other
Intersegment Eliminations (2)
Total
Total revenues
$731.6 $301.9 $151.5 $320.6 $349.4 $5.6 $(3.2)$1,857.4 
Less:
Gaming taxes(299.3)(66.4)(26.6)(85.8)(230.9)
Compensation and benefits(106.0)(57.3)(33.7)(49.1)(24.0)
Media and advertising (3)
(31.8)
Other segment items (4)
(106.1)(69.2)(36.2)(52.7)(72.2)
Segment Adjusted EBITDAR (5)
$220.2 $109.0 $55.0 $133.0 $(9.5)$507.7 
Other operating benefits (costs) and other income (expenses):
Other category (6)
(31.8)
Rent expense associated with triple net operating leases (7)
(163.3)
Stock-based compensation(17.4)
Cash-settled stock-based awards variance2.6 
Pre-opening expenses(23.0)
Depreciation and amortization(117.8)
Non-operating items of equity method investments (8)
(1.1)
Interest expense, net(100.9)
Interest income2.0 
Loss on early extinguishment of debt(1.8)
Other (9)
(15.5)
Income before income taxes39.7 
Income tax expense(7.1)
Net income$32.6 
(1)Revenues and gaming taxes expense within the Interactive segment are inclusive of gaming tax reimbursement amounts related to third-party OSB and/or iCasino partners for OSB and iCasino market access of $185.5 million for the three months ended June 30, 2026.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)Includes advertising and media expenses across various platforms for both the Hollywood-branded iCasino and theScore Bet, which launched in the US following the termination of the Sportsbook Agreement. Such platforms include television, radio, out-of-home, social media, both paid and organic search, as well as sponsorships and media costs associated with partnerships with major sports leagues, and other professional sports teams.
(4)For each reportable segment, the Other segment items category includes:
a.Northeast segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
b.South segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
c.West segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
d.Midwest segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
e.Interactive segment - professional services, legal expenses, software subscriptions and maintenance fees, software development costs, utilities, supplies, property and liability insurance, other taxes and fees, lease expenses, allocated corporate expenses, and third-party revenue share fees.
(5)We define Segment Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (7) below), stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Segment Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (8) below) added back for our Kansas Entertainment joint venture.
(6)Primarily represents corporate overhead expenses of $29.5 million for the three months ended June 30, 2026.
(7)Pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; and (iii) VICI Master Lease.
(8)Consists primarily of depreciation expense associated with our Kansas Entertainment joint venture.
(9)Represents expenses related to transaction costs and non-recurring restructuring charges (primarily severance) as a result of the Company’s new corporate organizational structure.
For the three months ended June 30, 2025
(in millions)NortheastSouthWestMidwest
Interactive (1)
Other
Intersegment Eliminations (2)
Total
Total revenues
$711.6 $302.2 $137.7 $297.0 $316.1 $5.7 $(5.3)$1,765.0 
Less:
Gaming taxes(290.4)(65.8)(25.4)(78.8)(184.5)
Compensation and benefits(103.6)(59.6)(31.1)(44.7)(37.6)
Media and advertising (3)
(73.5)
Other segment items (4)
(108.1)(72.0)(27.7)(51.7)(82.5)
Segment Adjusted EBITDAR (5)
$209.5 $104.8 $53.5 $121.8 $(62.0)$427.6 

Other operating benefits (costs) and other income (expenses):
Other category (6)
(35.5)
Rent expense associated with triple net operating leases (7)
(156.0)
Stock-based compensation(16.1)
Cash-settled stock-based awards variance3.1 
Pre-opening expenses(4.4)
Depreciation and amortization(110.5)
Impairment loss (8)
(15.0)
Non-operating items of equity method investments (9)
(1.1)
Interest expense, net(95.9)
Interest income2.1 
Loss on early extinguishment of debt(11.8)
Other1.6 
Loss before income taxes(11.9)
Income tax expense(6.4)
Net loss$(18.3)
(1)Revenues and gaming taxes expense within the Interactive segment are inclusive of gaming tax reimbursement amounts related to third-party OSB and/or iCasino partners for OSB and iCasino market access of $137.9 million for the three months ended June 30, 2025.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)Includes advertising expenses of $37.5 million related to the Sportsbook Agreement and $14.3 million related to the Investment Agreement with ESPN. Also, includes advertising and media expenses (including such expenses associated with the Hollywood-branded iCasino and theScore Bet) across various platforms. Such platforms include television, radio, out-of-home, social media, and both paid and organic search, as well as sponsorships and media costs associated with partnerships with major sports leagues, and other professional sports teams.
(4)For each reportable segment, the Other segment items category includes:
a.Northeast segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
b.South segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
c.West segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
d.Midwest segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
e.Interactive segment - professional services, legal expenses, software subscriptions and maintenance fees, software development costs, utilities, supplies, property and liability insurance, other taxes and fees, lease expenses, allocated corporate expenses, and third-party revenue share fees.
(5)We define Segment Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (7) below), stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Segment Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (9) below) added back for our Kansas Entertainment joint venture.
(6)Primarily represents corporate overhead expenses of $38.7 million for the three months ended June 30, 2025, which is inclusive of $9.4 million of legal and advisory costs related to activist activity in connection with our 2025 annual meeting of shareholders.
(7)Pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease.
(8)Relates to an impairment charge in our Midwest segment.
(9)Consists primarily of depreciation expense associated with our Kansas Entertainment joint venture.
For the six months ended June 30, 2026
(in millions)NortheastSouthWestMidwest
Interactive (1)
Other
Intersegment Eliminations (2)
Total
Total revenues
$1,418.7 $583.1 $297.2 $626.5 $707.7 $10.9 $(7.7)$3,636.4 
Less:
Gaming taxes(581.9)(127.9)(52.2)(167.7)(465.3)
Compensation and benefits(211.3)(115.1)(67.0)(98.7)(53.9)
Media and advertising (3)
(61.3)
Other segment items (4)
(210.8)(126.9)(69.0)(108.4)(147.6)
Segment Adjusted EBITDAR (5)
$414.7 $213.2 $109.0 $251.7 $(20.4)$968.2 
Other operating benefits (costs) and other income (expenses):
Other category (6)
(63.2)
Rent expense associated with triple net operating leases (7)
(326.6)
Stock-based compensation(31.5)
Cash-settled stock-based awards variance6.0 
Pre-opening expenses(27.2)
Depreciation and amortization(234.8)
Non-operating items of equity method investments (8)
(2.3)
Interest expense, net(201.8)
Interest income3.8 
Loss on early extinguishment of debt(1.8)
Other (9)
(43.2)
Income before income taxes45.6 
Income tax expense(15.8)
Net income$29.8 
(1)Revenues and gaming taxes expense within the Interactive segment are inclusive of gaming tax reimbursement amounts related to third-party OSB and/or iCasino partners for OSB and iCasino market access of $371.3 million for the six months ended June 30, 2026.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)Includes advertising and media expenses across various platforms for both the Hollywood-branded iCasino and theScore Bet, which launched in the US following the termination of the Sportsbook Agreement. Such platforms include television, radio, out-of-home, social media, both paid and organic search, as well as sponsorships and media costs associated with partnerships with major sports leagues, and other professional sports teams.
(4)For each reportable segment, the Other segment items category includes:
a.Northeast segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
b.South segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
c.West segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
d.Midwest segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
e.Interactive segment - professional services, legal expenses, software subscriptions and maintenance fees, software development costs, utilities, supplies, property and liability insurance, other taxes and fees, lease expenses, allocated corporate expenses, and third-party revenue share fees.
(5)We define Segment Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (7) below), stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Segment Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (8) below) added back for our Kansas Entertainment joint venture.
(6)Primarily represents corporate overhead expenses of $57.7 million for the six months ended June 30, 2026.
(7)Pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; and (iii) VICI Master Lease.
(8)Consists primarily of depreciation expense associated with our Kansas Entertainment joint venture.
(9)Represents expenses related to settlement costs and related legal and advisory fees associated with the Cooperation Agreement with HG Vora Capital Management, LLC and related parties, as well as transaction costs and non-recurring restructuring charges (primarily severance) related to the Company’s new corporate organizational structure.
For the six months ended June 30, 2025
(in millions)NortheastSouthWestMidwest
Interactive (1)
Other
Intersegment Eliminations (2)
Total
Total revenues
$1,392.5 $590.5 $267.4 $579.9 $606.2 $11.0 $(10.0)$3,437.5 
Less:
Gaming taxes(569.9)(129.2)(49.1)(153.5)(353.1)
Compensation and benefits(207.1)(116.4)(62.4)(88.8)(74.3)
Media and advertising (3)
(162.0)
Other segment items (4)
(211.8)(136.8)(56.7)(102.0)(167.8)
Segment Adjusted EBITDAR (5)
$403.7 $208.1 $99.2 $235.6 $(151.0)$795.6 

Other operating benefits (costs) and other income (expenses):
Other category (6)
(74.3)
Rent expense associated with triple net operating leases (7)
(311.9)
Stock-based compensation(31.7)
Cash-settled stock-based awards variance6.3 
Pre-opening expenses(4.9)
Depreciation and amortization(218.5)
Impairment loss (8)
(15.0)
Non-operating items of equity method investments (9)
(2.2)
Interest expense, net(206.7)
Interest income5.3 
Gain on financing arrangement (10)
215.1 
Loss on early extinguishment of debt(11.8)
Other2.0 
Income before income taxes147.3 
Income tax expense(54.1)
Net income$93.2 
(1)Revenues and gaming taxes expense within the Interactive segment are inclusive of gaming tax reimbursement amounts related to third-party OSB and/or iCasino partners for OSB and iCasino market access of $266.1 million for the six months ended June 30, 2025.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)Includes advertising expenses of $75.0 million related to the Sportsbook Agreement and $28.5 million related to the Investment Agreement with ESPN. Also, includes advertising and media expenses (including such expenses associated with the Hollywood-branded iCasino and theScore Bet) across various platforms. Such platforms include television, radio, out-of-home, social media, and both paid and organic search, as well as sponsorships and media costs associated with partnerships with major sports leagues, and other professional sports teams.
(4)For each reportable segment, the Other segment items category includes:
a.Northeast segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
b.South segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
c.West segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, and allocated corporate expenses.
d.Midwest segment - cost of goods sold, professional services, legal expenses, facility maintenance, utilities, supplies, property and liability insurance, advertising and promotional expenses, property taxes, sales and use taxes, other taxes and fees, non-REIT lease expenses, allocated corporate expenses, and third-party revenue share fees.
e.Interactive segment - professional services, legal expenses, software subscriptions and maintenance fees, software development costs, utilities, supplies, property and liability insurance, other taxes and fees, lease expenses, allocated corporate expenses, and third-party revenue share fees.
(5)We define Segment Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (7) below), stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening expenses, loss on disposal of a business, non-cash gains/losses associated with REIT transactions, and other. Segment Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (9) below) added back for our Kansas Entertainment joint venture.
(6)Primarily represents corporate overhead expenses of $74.7 million for the six months ended June 30, 2025, which is inclusive of $17.1 million of legal and advisory costs related to activist activity in connection with our 2025 annual meeting of shareholders.
(7)Pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease.
(8)Relates to an impairment charge in our Midwest segment.
(9)Consists primarily of depreciation expense associated with our Kansas Entertainment joint venture.
(10)Relates to the $215.1 million non-cash gain on financing arrangement. See Note 5, “Long-Term Debt.”
The table below presents capital expenditures by segment:
For the three months ended June 30,For the six months ended June 30,
(in millions)2026202520262025
Capital expenditures:
Northeast segment$24.7 $31.4 $44.8 $44.9 
South segment9.5 17.1 19.4 30.8 
West segment4.4 42.8 8.1 83.3 
Midwest segment55.8 64.5 113.3 116.2 
Interactive segment— 0.1 0.1 3.7 
Other3.1 3.5 6.3 5.7 
Total capital expenditures$97.5 $159.4 $192.0 $284.6 
The measure of segment assets is reported on our unaudited Consolidated Balance Sheets as total consolidated assets.
The table below presents investment in and advances to unconsolidated affiliates and total assets by segment:
(in millions)NortheastSouthWestMidwestInteractive
Other (1)
Total
Balance sheet as of June 30, 2026
Investment in and advances to unconsolidated affiliates$0.1 $— $— $77.4 $— $1.3 $78.8 
Total assets$1,756.0 $1,254.9 $423.4 $1,424.4 $1,388.4 $7,822.1 $14,069.2 
Balance sheet as of December 31, 2025
Investment in and advances to unconsolidated affiliates$0.1 $— $— $77.8 $— $1.5 $79.4 
Total assets$1,815.6 $1,295.2 $427.6 $1,567.5 $1,530.0 $7,632.6 $14,268.5 
(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, net, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.