PENN Entertainment | research notes

Penn Entertainment: A Leading Force in the Gaming Industry

Penn Entertainment is one of the largest and most respected gaming companies in the United States. With over 40 properties across the country, the company offers a wide variety of gaming, entertainment, and dining options to its guests.

The company was founded in 1972 by Peter and Benny Penn, two brothers who had a passion for gaming. The brothers opened their first casino in Wilkes-Barre, Pennsylvania, and quickly expanded their operations to other states. Today, Penn Entertainment is one of the largest employers in the gaming industry, with over 20,000 employees.

One of the things that sets Penn Entertainment apart from its competitors is its commitment to providing guests with a memorable and enjoyable experience. The company's casinos are known for their modern and luxurious facilities, as well as their friendly and knowledgeable staff. Penn Entertainment also offers a variety of loyalty programs that reward guests for their patronage.

In addition to its gaming operations, Penn Entertainment also owns and operates a number of hotels, restaurants, and other entertainment venues. This diversification has helped the company to weather economic downturns and has allowed it to continue to grow and expand.

Penn Entertainment is a publicly traded company, and its shares are listed on the Nasdaq Stock Market. The company has a market capitalization of over $4 billion.

Key Facts about Penn Entertainment:

• Founded in 1972 by Peter and Benny Penn
• One of the largest gaming companies in the United States
• Over 40 properties across the country
• Offers a wide variety of gaming, entertainment, and dining options
• Known for its modern and luxurious facilities and friendly staff
• Owns and operates a number of hotels, restaurants, and other entertainment venues
• Publicly traded company with a market capitalization of over $4 billion

Business Model of PENN Entertainment

PENN Entertainment is a leading entertainment company that operates casinos, racetracks, and online gaming platforms. Its business model consists of the following key elements:

1. Land-Based Gaming:

• Owns and operates over 40 casinos and racetracks across North America
• Offers slot machines, table games, sports betting, and other gaming options

2. Online Gaming:

• Operates popular online casino and sportsbook brands, such as PokerStars, FanDuel, and Barstool Sportsbook
• Provides online poker, casino games, and sports betting to customers in various jurisdictions

3. Interactive Content:

• Owns and produces original entertainment content for television, streaming services, and social media platforms
• Collaborates with major media companies and celebrities to create engaging content

4. Hospitality:

• Operates hotels, dining facilities, and entertainment venues in conjunction with its casinos and racetracks

5. Media Partnerships:

• Has strategic partnerships with major media outlets, such as NBC Sports and ESPN
• These partnerships drive customer acquisition and cross-promotion opportunities

Advantages over Competitors

PENN Entertainment has several key advantages that differentiate it from its competitors:

• Diversified Revenue Streams: The company's diversified business model generates revenue from multiple sources, including land-based gaming, online gaming, and interactive content. This provides a buffer against revenue fluctuations in any one segment.
• Leading Market Share: PENN Entertainment has a significant market share in both land-based and online gaming in the United States. This gives it strong brand recognition and customer loyalty.
• Strong Brand Portfolio: The company owns a portfolio of well-known and trusted brands, such as Caesars, Harrah's, and PokerStars. This enables it to attract new customers and retain existing ones.
• Technology Innovation: PENN Entertainment invests heavily in technology to enhance its gaming and entertainment experiences. This includes developing innovative online gaming platforms and integrating mobile betting capabilities.
• Strategic Partnerships: The company's partnerships with major media outlets and entertainment companies provide it with access to a wider audience and cross-promotion opportunities.
• Customer Focus: PENN Entertainment prioritizes customer service and satisfaction. It offers rewards programs, loyalty promotions, and personalized experiences to enhance customer engagement.

Outlook for Penn Entertainment Company

Financial Performance

• Strong Revenue Growth: Penn Entertainment has consistently reported strong revenue growth, driven by its diversified portfolio of casinos, gaming properties, and online gaming platforms.
• Improving Margins: The company has been improving its profit margins through cost optimization and efficiency initiatives.
• Healthy Cash Flow: Penn Entertainment generates significant cash flow from its operations, which supports its growth and investment plans.

Market Position

• Leading Casino Operator: Penn Entertainment is one of the largest casino operators in the United States, with over 40 properties in 20 states.
• Significant Online Gaming Presence: The company has a strong presence in the online gaming market through its BetMGM joint venture with MGM Resorts.
• Diverse Revenue Streams: Penn Entertainment has a diversified revenue base from various sources, including casino gaming, sports betting, online gaming, and food and beverage operations.

Industry Trends

• Growth in Online Gaming: The online gaming industry is rapidly growing, providing Penn Entertainment with significant growth opportunities.
• Legalization of Sports Betting: The legalization of sports betting in several states has created a new revenue stream for the company.
• Consolidation in the Casino Industry: The casino industry is experiencing consolidation, with larger operators acquiring smaller ones. Penn Entertainment is well-positioned to benefit from this trend.

Growth Drivers

• Expansion into New Markets: Penn Entertainment plans to expand its presence into new markets, both domestically and internationally.
• Investment in Online Gaming: The company is investing heavily in online gaming through its BetMGM partnership.
• Development of New Properties: Penn Entertainment is developing new casino properties in key markets, such as the Fontainebleau Las Vegas.

Risks and Challenges

• Economic Downturn: A recession could impact Penn Entertainment's revenue and profitability.
• Competition: The company faces competition from other casino operators, as well as new entrants to the online gaming market.
• Regulatory Changes: Changes in gaming regulations could affect Penn Entertainment's operations.

Long-Term Outlook

Penn Entertainment is well-positioned for long-term growth, given its strong financial performance, market position, and growth drivers. The company's diversified revenue base, focus on online gaming, and expansion plans provide significant opportunities for continued success.

Valuation

Penn Entertainment's stock is currently trading at a reasonable valuation relative to its peers. The company's growth prospects and strong financial position make it an attractive investment for investors seeking exposure to the gaming industry.

Companies Similar to Penn Entertainment That Customers May Also Like:

1. Caesars Entertainment

• Homepage: https://www.caesars.com/
• Why customers like it: Known for its luxurious casino resorts, entertainment venues, and wide range of gaming options. It offers a wide variety of slot machines, table games, and poker tournaments. Caesars also has a strong presence in sports betting and online gaming.

2. MGM Resorts International

• Homepage: https://www.mgmresorts.com/
• Why customers like it: Operates world-renowned casino resorts in Las Vegas, Atlantic City, and other major destinations. MGM is known for its high-quality accommodations, gourmet dining, and live entertainment. It offers a diverse selection of gaming options, including slot machines, table games, poker, and sports betting.

3. Boyd Gaming Corporation

• Homepage: https://www.boydgaming.com/
• Why customers like it: Focuses on providing value-oriented gaming and entertainment experiences. Boyd operates casino resorts in Nevada, Indiana, Illinois, Ohio, and Kansas. It is known for its friendly atmosphere, affordable accommodations, and generous player rewards program.

4. Golden Nugget Casinos

• Homepage: https://www.goldennugget.com/
• Why customers like it: Known for its upscale casino resorts and unique gaming experience. Golden Nugget offers a variety of slot machines, table games, and poker tournaments. Its signature feature is the world's largest gold nugget on display at its Las Vegas property.

5. Hard Rock International

• Homepage: https://www.hardrock.com/
• Why customers like it: Combines gaming and entertainment with a rock 'n' roll theme. Hard Rock operates casino resorts in major cities around the world. It offers a wide range of gaming options, along with live music venues, signature restaurants, and retail stores.

Early Years:

• 1963: Founded as Boyd Gaming in Las Vegas, Nevada by William S. Boyd.
• 1993: Went public on the New York Stock Exchange under the ticker symbol BYD.

Expansion and Acquisitions:

• 1994: Acquired Gold Strike Hotel and Gambling Hall in Jean, Nevada.
• 1996: Acquired Stardust Resort and Casino in Las Vegas.
• 1998: Acquired Eldorado Hotel and Casino in Reno, Nevada.
• 2005: Acquired Borgata Hotel Casino & Spa in Atlantic City, New Jersey.
• 2008: Acquired Valley Forge Casino Resort in King of Prussia, Pennsylvania.

Rebranding and Diversification:

• 2018: Renamed to Penn National Gaming (PENN).
• 2019: Acquired Pinnacle Entertainment for $2.8 billion, significantly expanding its regional footprint.
• 2020: Acquired Barstool Sportsbook, a popular online sports betting platform.

Recent Developments:

• 2021: Launched Penn Interactive, a wholly-owned subsidiary specializing in online gaming and sports betting.
• 2022: Acquired Score Media and Gaming, a Canadian sports media and betting company.
• 2023: Renamed to PENN Entertainment to reflect its broader entertainment offerings.

Key Milestones:

• Operates over 40 gaming properties in 20 states.
• One of the largest casino operators in the United States.
• Leading provider of online gaming and sports betting through Penn Interactive and Barstool Sportsbook.
• Strong financial performance with consistent revenue and earnings growth.
• Committed to responsible gaming and community involvement through its "Focus on Prevention" program.

Last Three Years

• 2020

  • Completed acquisition of Chalkline Sports, a leading provider of online sports betting technology.
  • Announced partnership with Barstool Sports to launch a new online sportsbook.
  • Purchased Greektown Casino-Hotel in Detroit, Michigan.

• 2021

  • Completed acquisition of Pinnacle Entertainment, expanding its footprint in the gaming industry.
  • Launched BetMGM online sportsbook, a joint venture with MGM Resorts International.
  • Opened new casinos in St. Louis, Missouri and Baton Rouge, Louisiana.

• 2022

  • Acquired the remaining interest in Hollywood Casino Baton Rouge from Eldorado Resorts.
  • Expanded BetMGM's presence into additional markets, including Arizona and Pennsylvania.
  • Announced plans to sell 39 non-core gaming properties for $1.8 billion.

Recent Timelines

• January 2023
  • Completed sale of 39 non-core gaming properties, reducing debt and enhancing financial flexibility.
• February 2023
  • Announced acquisition of Maryland Jockey Club, operator of Pimlico Race Course and Laurel Park.
• March 2023
  • Released strong financial results for Q4 and full-year 2022, with revenue growth and improved margins.
• Present
  • Continuing to expand online gaming and sports betting operations through partnerships and acquisitions.
  • Investing in property upgrades and renovations to enhance customer experiences.
  • Exploring new growth opportunities in emerging markets.

5 Stars: Exceptional Entertainment Experience with PENN Entertainment

As an avid entertainment enthusiast, I was thrilled to experience the unparalleled offerings of PENN Entertainment. From their extensive casino portfolio to their world-class live events and sports betting platforms, PENN Entertainment has consistently surpassed my expectations.

Casinos: A Gambling Haven

PENN Entertainment boasts an impressive collection of casinos across the United States, each offering a unique and thrilling atmosphere. The sleek and modern designs, impeccable customer service, and vast array of gaming options cater to every player's preferences. Whether you're a slot machine enthusiast, table game aficionado, or high-roller, PENN Entertainment has something to entice you.

Live Events: Unforgettable Experiences

Beyond casinos, PENN Entertainment also excels in live entertainment. I recently attended a concert at one of their iconic venues, and I was blown away by the state-of-the-art sound and lighting systems, as well as the intimate setting that created an unforgettable musical experience.

Sports Betting: The Ultimate Fan Engagement

PENN Entertainment's sports betting platforms are simply the best. Their user-friendly interfaces, diverse betting options, and competitive odds allow sports enthusiasts to immerse themselves in the excitement of betting on their favorite teams and events. The seamless integration with PENN Entertainment's casino rewards program further enhances the experience.

Customer Service: Exceeding Expectations

Throughout my interactions with PENN Entertainment, I have been consistently impressed by their exceptional customer service. The staff is knowledgeable, courteous, and always goes the extra mile to ensure that I have a positive and enjoyable experience. Their prompt responses and willingness to address any concerns have built an unparalleled level of trust.

Conclusion

PENN Entertainment is the undisputed leader in the entertainment industry. Their unwavering commitment to providing exceptional experiences in casinos, live events, and sports betting makes them a destination of choice for countless patrons. I highly recommend PENN Entertainment to anyone seeking an unforgettable and immersive entertainment experience.

Discover the Premier Gaming Destination with PENN Entertainment!

Prepare to be captivated as you embark on an unforgettable gaming experience with PENN Entertainment, the industry leader in world-class gaming, entertainment, and hospitality. Our state-of-the-art website is your gateway to a thrilling universe of online gaming, where the excitement never ends.

Immerse Yourself in a Gaming Paradise

At PENN Entertainment's website, you can delve into a vast selection of casino games that will ignite your competitive spirit and satisfy your craving for entertainment. Spin the reels of our slot machines, featuring captivating themes and colossal jackpots. Experience the thrill of blackjack, poker, roulette, baccarat, and more.

Unparalleled User Experience

Our website is meticulously crafted to provide an exceptional user experience. With its sleek and intuitive design, you can effortlessly navigate through our game library, track your progress, and manage your account with ease. Our dedicated customer support team is always on hand to ensure a seamless and enjoyable experience.

Exclusive Bonuses and Promotions

As a valued customer, you will enjoy an array of exclusive bonuses and promotions that will enhance your gaming journey. From welcome bonuses to loyalty rewards, we go above and beyond to provide our players with the best value.

Exceptional Customer Service

We are committed to providing our customers with unparalleled customer service. Our knowledgeable and friendly support team is available 24/7 to assist you with any questions or concerns you may have. We value your feedback and strive to create a positive and rewarding experience for every player.

Join the Winning Team

Don't miss out on the opportunity to join the winning team at PENN Entertainment. Register on our website today and embark on a captivating gaming adventure. Let the reels spin, the cards fall into place, and the thrill of victory become yours.

Visit Our Website Now!

Click here to visit PENN Entertainment's website and experience the thrill of world-class gaming: [Insert Website Link]

Follow us on social media for the latest updates, exclusive offers, and more:

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Main Suppliers (Upstream Service Providers) of Penn Entertainment

Gaming Equipment and Technology

• Aristocrat Technologies (https://www.aristocratgaming.com/)
• Bally Technologies (https://www.ballytech.com/)
• Scientific Games (https://www.scientificgames.com/)
• IGT (https://www.igt.com/)
• PlayAGS (https://www.playags.com/)

Casino Management Systems

• Everi Holdings (https://www.everi.com/)
• WMS Gaming (https://www.wms.com/)
• IGT (https://www.igt.com/)
• Scientific Games (https://www.scientificgames.com/)

Content and Entertainment

• Everi Holdings (https://www.everi.com/)
• WMS Gaming (https://www.wms.com/)
• International Game Technology (IGT) (https://www.igt.com/)
• Scientific Games (https://www.scientificgames.com/)

Service Providers

• BetMGM (https://www.betmgm.com/)
• FanDuel (https://www.fanduel.com/)
• DraftKings (https://www.draftkings.com/)
• PointsBet (https://www.pointsbet.com/)
• William Hill (https://www.williamhill.com/)

Other Suppliers

• Gaming Laboratories International (GLI) (https://www.gaminglabs.com/): Testing and certification services for gaming equipment
• Gaming Standards Association (GSA) (https://www.gamingstandards.com/): Standards organization for the gaming industry
• American Gaming Association (AGA) (https://www.americangaming.org/): Trade association for the gaming industry
• National Council on Problem Gambling (NCPG) (https://www.ncpgambling.org/): Non-profit organization dedicated to reducing the harms associated with gambling

Main Customers (Downstream Companies) of Penn Entertainment Company

Penn Entertainment Company is a leading provider of integrated entertainment, sports betting, and casino gaming experiences with operations across the United States. Its main customers are:

1. Individual Bettors

• Sports bettors and casino game players who place wagers through Penn Entertainment's online and in-person platforms.

2. Online Sports Betting Operators

• Third-party online sports betting operators that use Penn Entertainment's proprietary technology and services to offer sports betting to their customers.
  • BetMGM (https://www.betmgm.com/)
  • Barstool Sportsbook (https://www.barstoolsportsbook.com/)
  • theScore Bet (https://ca.thescore.bet/)

3. Casino Operators

• Land-based and online casino operators who lease or license Penn Entertainment's gaming machines and technology.
  • Tropicana Casino and Resort (https://www.tropicanacasino.com/)
  • Hollywood Casino at Penn National Race Course (https://www.hollywoodpnrc.com/)

4. Hotel and Resort Guests

• Individuals who stay and play at Penn Entertainment's hotel and resort properties.
  • Penn National Gaming (https://www.pngaming.com/)
  • Hollywood Gaming at Mahoning Valley Race Course (https://www.hollywoodmahoningvalley.com/)

5. Content Providers

• Suppliers of gaming content, such as slot machine games, table games, and sports betting odds, to Penn Entertainment's platforms.
  • Everi Holdings (https://www.everi.com/)
  • IGT (https://www.igt.com/)
  • Scientific Games (https://www.scientificgames.com/)

6. Manufacturers and Suppliers

• Companies that provide equipment, goods, and services to support Penn Entertainment's operations, such as gaming machines, furniture, and maintenance services.
  • International Game Technology (https://www.igt.com/)
  • Konami Gaming (https://www.konamigaming.com/)
  • Aristocrat Leisure (https://www.aristocrat.com/)

Penn Entertainment, Inc. Revenue Streams

Gaming Operations:

• Casino Gaming (estimated $5.4 billion annual revenue): Largest revenue stream, generated from slot machines, table games, and other casino-related activities.
• Sports Betting (estimated $300 million annual revenue): Rapidly growing segment, driven by the legalization of sports betting in several states.
• Online Gaming (estimated $200 million annual revenue): Includes iGaming (casino games) and sports betting through online platforms.

Property Rentals:

• Third-Party Hotel Operations (estimated $200 million annual revenue): Revenues from hotels located within Penn's casino properties that are operated by third-party companies.

Food and Beverage:

• Restaurant and Bar Operations (estimated $300 million annual revenue): Income from restaurants, bars, and other food and beverage outlets within Penn's properties.

Other Revenue Streams:

• Live Entertainment (estimated $50 million annual revenue): Revenues from concerts, shows, and other live entertainment events at Penn's venues.
• Marketing Services (estimated $20 million annual revenue): Fees for marketing and promotional services provided to other businesses.
• Other Revenue (estimated $50 million annual revenue): Includes revenue from parking, retail operations, and other miscellaneous sources.

Total Estimated Annual Revenue:

Approximately $6.5 billion

Note: These revenue estimates are based on publicly available financial data and industry reports and may vary slightly from actual figures.

Penn National Gaming, Inc.

Key Partners

• Caesars Entertainment, Inc. (www.caesars.com) - Penn National and Caesars Entertainment have a strategic partnership that includes cross-marketing initiatives, loyalty program benefits, and joint development opportunities.
• DraftKings, Inc. (www.draftkings.com) - Penn National has a long-term partnership with DraftKings to offer online sports betting and iGaming in several states.
• Flutter Entertainment plc (www.flutter.com) - Penn National owns a significant stake in Flutter Entertainment, which operates online gaming platforms such as FanDuel and PokerStars.
• Hollywood Casino at Penn National Race Course (www.hollywoodcasino.com/penn-national) - This is Penn National's flagship casino property in Pennsylvania.
• M Resort Spa Casino (www.themresort.com) - This is a luxury casino resort in Las Vegas, Nevada, owned by Penn National.
• Parx Casino and Racing (www.parxcasino.com) - This is Penn National's largest casino property in Pennsylvania.
• Rocket League (www.rocketleague.com) - Penn National has a partnership with Psyonix, the developer of Rocket League, to host esport tournaments and events.
• The Stars Group Inc. (www.starsgroup.com) - Penn National acquired The Stars Group in 2019, gaining control of its online gaming brands, including PokerStars and BetStars.
• Unibet (www.unibet.com) - Penn National acquired Unibet in 2019, expanding its international online gaming presence.
• Wynn Resorts, Limited (www.wynnresorts.com) - Penn National has a joint venture with Wynn Resorts to operate a casino in Massachusetts.

Key Cost Structure of Penn Entertainment

Penn Entertainment, Inc. is a publicly traded company that owns and operates casinos, racetracks, and other entertainment venues. As of December 31, 2021, the company operated 44 properties in 20 states.

The company's key cost structure includes:

• Gaming expenses: This category includes the costs of operating the company's casinos, including slot machines, table games, and sports betting. In 2021, gaming expenses were $4.4 billion, or 72% of the company's total operating expenses.
• Property and equipment expenses: This category includes the costs of maintaining and repairing the company's properties, as well as depreciation and amortization of the company's assets. In 2021, property and equipment expenses were $779.6 million, or 13% of the company's total operating expenses.
• Selling, general, and administrative expenses: This category includes the costs of marketing and advertising the company's properties, as well as the costs of general and administrative functions. In 2021, selling, general, and administrative expenses were $694.5 million, or 11% of the company's total operating expenses.
• Other expenses: This category includes the costs of interest expense, taxes, and other miscellaneous expenses. In 2021, other expenses were $150.4 million, or 2% of the company's total operating expenses.

The following table provides a summary of the company's key cost structure, as well as the estimated annual cost for each category:

| Category | Estimated Annual Cost | |---|---| | Gaming expenses | $4.4 billion | | Property and equipment expenses | $779.6 million | | Selling, general, and administrative expenses | $694.5 million | | Other expenses | $150.4 million |

Total | $6.0 billion

It is important to note that these are only estimates, and the actual cost structure of the company may vary depending on a number of factors, such as the company's business strategy, the competitive landscape, and the overall economic environment.

Sales Channels

PENN Entertainment operates through various sales channels, including:

• Land-based Casinos (90% of revenue): This channel includes regional casinos, racetrack casinos, and tribal gaming operations.
• Online Gaming (10% of revenue): This channel encompasses online casino, sports betting, and poker platforms.
• Other (less than 1% of revenue): This category includes revenue from amenities such as hotel accommodations, dining, and entertainment venues.

Estimated Annual Sales

PENN Entertainment's estimated annual sales for the fiscal year 2023 (FY23) are as follows:

Land-based Casinos

• Regional Casinos: $2.4 billion
• Racetrack Casinos: $0.6 billion
• Tribal Gaming: $1.2 billion

Online Gaming

• Online Casino: $0.6 billion
• Sports Betting: $0.4 billion
• Poker: $0.1 billion

Other

• Hotel Accommodations: $0.1 billion
• Dining: $0.1 billion
• Entertainment: $0.1 billion

Total Estimated Annual Sales: $5.4 billion

Key Points

• Land-based casinos dominate PENN Entertainment's sales revenue, accounting for approximately 90% of the total.
• Online gaming is a growing segment, with an estimated 10% contribution to revenue.
• Other revenue streams, such as hotel accommodations and entertainment, account for less than 1% of sales.

Customer Segments of PENN Entertainment

PENN Entertainment, Inc. is a leading provider of entertainment and gaming experiences with operations across the United States and Canada. The company targets a diverse range of customer segments with its portfolio of casinos, racetracks, online gaming platforms, and sports media properties.

1. Casual Gaming Enthusiasts

• Estimated annual sales: $2.5 billion
• Characteristics: Individuals who enjoy occasional casino visits, typically for slots or table games. They may be attracted to PENN's regional casinos and smaller venues.

2. High-Stake Gamblers

• Estimated annual sales: $1.5 billion
• Characteristics: Individuals who wager significant amounts of money on casino games. They seek venues with high-limit tables, VIP programs, and luxury amenities. PENN's flagship casinos in major cities cater to this segment.

3. Racetrack Patrons

• Estimated annual sales: $0.5 billion
• Characteristics: Individuals who attend racetracks for live horse racing, simulcasting, and gaming. PENN's racetracks provide entertainment, wagering opportunities, and dining options for this segment.

4. Online Gaming Players

• Estimated annual sales: $1.0 billion
• Characteristics: Individuals who enjoy playing casino games and sports betting online. PENN's BetMGM platform and other online offerings target this growing segment.

5. Sports Media Consumers

• Estimated annual sales: $0.5 billion
• Characteristics: Individuals who follow sports and engage with sports media content. PENN's ownership of Barstool Sports and its partnership with DraftKings provide access to this segment through podcasts, live events, and sports betting promotions.

6. Convention and Meeting Planners

• Estimated annual sales: $0.2 billion
• Characteristics: Individuals responsible for organizing events at convention centers and hotels. PENN's properties in major cities offer meeting space, accommodations, and entertainment options for this segment.

Total Estimated Annual Sales: $6.2 Billion

These estimates are based on industry data, company reports, and analyst projections. PENN Entertainment's actual sales may vary depending on market conditions, competitive dynamics, and strategic initiatives.

Value Proposition of Penn Entertainment Company

Target Audience:

• Gaming enthusiasts
• Sports bettors
• Casino goers
• Entertainment seekers

Core Value Proposition: Penn Entertainment offers a comprehensive and integrated gaming and entertainment experience tailored to the diverse needs of its target audience.

Key Value Drivers:

Extensive Gaming Portfolio:

• Operates over 40 casino and racetrack properties across 20 states
• Offers a wide range of slot machines, table games, and live dealer options
• Partners with leading gaming providers to offer a diverse and innovative selection of games

Mobile Gaming and Sports Betting:

• Provides access to online casino and sports betting platforms
• Offers a user-friendly mobile app for convenient gaming and wagering on the go
• Partners with BetMGM, one of the largest sports betting operators in the US, to provide a competitive and comprehensive sportsbook experience

Live Entertainment and Events:

• Hosts live entertainment events, including concerts, comedy shows, and sporting events
• Operates entertainment venues, such as the Hollywood Casino Amphitheatre in St. Louis and the Meadows Racetrack & Casino in Washington, Pennsylvania

Player Rewards Program:

• Offers a robust loyalty program, mychoice, which rewards players for their gaming and non-gaming activities
• Provides access to exclusive promotions, discounts, and other perks

Convenience and Accessibility:

• Offers convenient locations and operating hours across multiple states
• Provides multiple channels for accessing gaming and entertainment, including land-based casinos, online platforms, and mobile apps

Competitive Pricing:

• Offers competitive gaming and betting odds and promotions
• Provides a range of entertainment options at various price points to cater to different budget levels

Responsible Gaming Commitment:

• Prioritizes responsible gaming and player safety
• Implements measures to prevent underage gambling and problem gambling
• Provides resources and support to players who may need assistance

Differentiation:

Integrated Experience: Penn Entertainment differentiates itself by offering a fully integrated gaming and entertainment experience across land-based and digital platforms.

Commitment to Innovation: The company invests heavily in technological advancements and partnerships to enhance the player experience and offer innovative gaming and entertainment offerings.

Customer Service Excellence: Penn Entertainment emphasizes providing excellent customer service through its well-trained staff and responsive support channels.

Value Creation for Shareholders:

• Generates revenue through gaming, sports betting, entertainment events, and other revenue streams
• Leverages synergies and economies of scale across its extensive operations
• Focuses on maximizing profitability and shareholder returns through strategic investments and operational efficiency

Risk Factors for PENN Entertainment

Financial Risks

• Highly leveraged: PENN has significant debt obligations, which could limit its financial flexibility and increase its risk of default.
• Revenue concentration: The company relies heavily on revenue from slot machines and table games, which can be volatile and subject to competition.
• Dependence on discretionary spending: Customers' disposable income is influenced by economic conditions, which could impact demand for gaming and entertainment.
• Regulatory risks: The gaming industry is heavily regulated, and changes in regulations could negatively impact the company's operations.
• Competition: PENN faces intense competition from other casinos, online gaming operators, and entertainment venues.

Operational Risks

• Technical failures: The company's operations rely heavily on technology, and any disruptions or failures could lead to lost revenue and reputational damage.
• Labor relations: PENN has experienced labor disputes in the past, which could lead to strikes or work stoppages.
• Environmental risks: Natural disasters or environmental accidents could damage the company's properties or interrupt operations.
• Data breaches: The company handles sensitive customer data, and any data breaches could damage its reputation and lead to legal liabilities.

Legal and Compliance Risks

• Anti-money laundering and anti-terrorism financing laws: PENN is subject to strict AML/ATF regulations, and any violations could result in fines, penalties, or license revocation.
• Responsible gaming practices: The company is responsible for ensuring that its customers gamble responsibly, and any failures to do so could lead to legal liability.
• Intellectual property rights: PENN's intellectual property is critical to its success, and any infringement claims could impact its operations.

Political and Economic Risks

• Economic downturn: A recession or economic downturn could reduce consumer spending on gaming and entertainment.
• Political instability: The gaming industry is sensitive to changes in political climate, and any changes could impact the company's operations.
• Tax law changes: Changes in tax laws could impact the company's profitability and cash flow.

Other Risks

• Reputational risk: Any negative publicity or scandals could damage the company's reputation and impact its business.
• Climate change: Climate change could increase the risk of natural disasters, which could impact the company's properties and operations.
• Emerging technologies: The rise of new technologies, such as virtual reality and online gaming, could disrupt the traditional gaming industry.