Penn Entertainment, Inc. · NASDAQ:PENN
Penn Entertainment — Investor Day (October 2024)
95 slides from Penn Entertainment's investor day presentation, Oct 7, 2024
Slide 1: Investor Event G2E Conference October 7, 2024
INVESTOR EVENT 4 G2E Conference October 7, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 4 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “inten
Slide 3: Agenda
AGENDA Company Strategy Jay Snowden, CEO Retail & Omni-Channel Todd George, EVP of Operations Interactive Aaron LaBerge, CTO Jason Birney, Head of Interactive Operations Financials Felicia Hendrix, CFO Closing Remarks Jay Snowden, CEO 4
Slide 4: Senior Leadership Team
SENIOR LEADERSHIP TEAM Jay Snowden Chief Executive Officer Todd George EVP, Operations Felicia Hendrix EVP, Chief Financial Officer Aaron LaBerge EVP, Chief Technology Officer Chris Rogers EVP, Chief Strategy & Legal Officer Wendy Hamilton SVP, Chief Human Resources Officer Eric Schippers SVP, Publi
Slide 5: Strong, Diversified Gaming Business
5 STRONG, DIVERSIFIED GAMING BUSINESS Retail 43 Properties (20 States) 4 New Growth Projects Interactive OSB (20 Jurisdictions) iCasino (5 Jurisdictions) $5.7b Retail $6.4b FY23 Revenue NY Launch Sept 27th, 2024 (1) Interactive revenue includes a tax gross-up of $390.4 million. $0.7b Interactive (1)
Slide 6: Leading Brands, Assets and Reach
LEADING BRANDS, ASSETS AND REACH PENN Play Loyalty Members 31M TOTAL 3.9M DIGITAL 6
Slide 7: Our Vision for ESPN BET
Provide a home for the everyday sports fan and mass-market bettor Create the leading media & betting ecosystem experience with ESPN Develop a best-in-class product to improve monetization Cross-sell our growing database to iCasino and our retail properties OUR VISION FOR ESPN BET 6
Slide 8: Recent Progress Reinforces Our Vision
RECENT PROGRESS REINFORCES OUR VISION Higher Parlay Mix Higher Net Revenue Higher Gross Margin Lower Promo Expense Higher Hold Over-Indexing with Mass-Market Higher Parlay Mix & Hold More Predictable Revenue Higher Conversion of Handle to NGR Better Unit Economics Improved ESPN BET Product Offering
Slide 9: Performance Highlights
9 +403% NGR +161% Users Monthly Unique PERFORMANCE HIGHLIGHTS +211% Parlay Users Monthly Unique +608bps Parlay Mix of Handle +430bps % Hold Rate September 2024 Year-Over-Year Growth +151% GGR 27.5% 21.4% 9.1% 4.8% Note: All results are preliminary September 2024 vs. September 2023 for our U.S. onlin
Slide 10: Our Product Has Improved Dramatically
OUR PRODUCT HAS IMPROVED DRAMATICALLY… Refreshed Home Page Parlay Lounge Profit Boosts Enhanced SGP Offering and more… 10
Slide 11: And Our ESPN Integrations Are Deepening
…AND OUR ESPN INTEGRATIONS ARE DEEPENING ESPN BET is becoming omni- present within the ESPN ecosystem, including Fantasy Deeper integrations are on the way with Account Linking in Q4 10
Slide 12: Strategy Has Been Successful in Ontario
12 STRATEGY HAS BEEN SUCCESSFUL IN ONTARIO… Double-Digit 1H24 OSB Market Share in Ontario Note: Reflects GGR market share of online sports betting in Ontario through June 2024.
Slide 13: With Strong Results in Year 3
13 6.5% 7.6% 7.5% 7.9% 8.4% 9.6% 21% 23% 25% 27% 28% 30% 1H22 Q3 '24 2H22 1H23 % Hold Rate 2H23 1H24 % of Handle …WITH STRONG RESULTS IN YEAR 3 Parlay + SGP Sept ‘24 34% Sept ‘24 11.2% Revenue +30% +54% Gross Profit +227% Contribution Profit Total OSB Y/Y Growth (Sep ’24 LTM) (2) All results are pre
Slide 14: A Proven Strategy in the UK
14 A PROVEN STRATEGY IN THE UK Powerful brand and media integrations with Sky Sports helped Sky Bet grow over time into one of the largest operators in the UK 2014 2017 6% 12% Sky Bet Market Share of Total UK Online Gaming Market Today >20% Note: Market share estimates based on publicly available in
Slide 15: Brand Strength Is Already Evident in Year 1
15 BRAND STRENGTH IS ALREADY EVIDENT IN YEAR 1 16% User Share #3 Sportsbook The ESPN BET brand is resonating with bettors, with significant upside as monetization continues to improve Weekly Average Users Note: The Sensor Tower data shown represents the week beginning September 23, 2024 through Sept
Slide 16: Recent NY Launch Further Expands Our Reach
16 RECENT NY LAUNCH FURTHER EXPANDS OUR REACH New York September 27th Launch (1) Sept. ’23 to Jan ‘24 average visitors per month across ESPN App, ESPN Fantasy, and ESPN.com in the state of New York. 10m+ New York (Avg. Monthly Visitors) (1) Strong To-Date NY Cohort vs. Existing States +296% Avg. Dai
Slide 17: Sports Betting Fuels Omni-Channel Strategy
SPORTS BETTING FUELS OMNI-CHANNEL STRATEGY Sports Betting Retail Gaming iCasino 17
Slide 18: Retail Growth Projects on the Horizon
RETAIL GROWTH PROJECTS ON THE HORIZON Hollywood Joliet (IL) Relocation Hollywood Aurora (IL) Relocation Hollywood Columbus (OH) Hotel Tower M Resort (NV) Hotel Tower 2H25 Ahead of Schedule 17 1H26 1H26 1H26
Slide 19: 2024 Looking Ahead
2024 LOOKING AHEAD Peak Interactive Losses Key Upgrades to Digital Products Interactive Losses Narrow Toward Breakeven and Balance Sheet De-Levers Transformational Digital Product / ESPN Integrations + Standalone iCasino Product Opening of Hollywood Joliet 2H25 Interactive Inflect to Profitability R
Slide 20: Retail & Omni-Channel
RETAIL & OMNI-CHANNEL 21 Todd George, EVP of Operations
Slide 21: Retail
Retail 22
Slide 22: Retail Growth Strategy
RETAIL GROWTH STRATEGY Focus on a growth mindset through strategic partnerships and differentiated offerings Drive greater loyalty through our PENN Play program and omni-channel offerings Reinvest in our properties to enhance the guest experience and evolve entertainment offerings Maintain leading m
Slide 23: We Are Taking Market Share
23 WE ARE TAKING MARKET SHARE Hollywood Casino Columbus, OH Hollywood Casino Kansas Speedway, KS Plainridge Park Plainville, MA Ameristar Casino Black Hawk, CO Hollywood Greektown Detroit, MI M Resort Las Vegas, NV YTD Market Share Growth in 16 of 24 Regional Markets Note: Year-to-date market share
Slide 24: Broadening Our Reach via Partnerships
BROADENING OUR REACH VIA PARTNERSHIPS F&B CONCEPTS TEAM DEALS 24
Slide 25: Industry-Leading Retail Margins
INDUSTRY-LEADING RETAIL MARGINS Labor Efficiencies Enhanced Procurement More efficient communication and promo offers Change in Revenue Mix to higher tax markets Increased costs for insurance, utilities, and other +200 bps 2024E Margins ~34% Payroll Cost of Goods Marketing Gaming Tax G&A 2019 Margin
Slide 26: A Leader in Retail Sports Betting
26 A LEADER IN RETAIL SPORTS BETTING 30 Retail Sportsbooks in 13 States Retail Sports Betting GGR Market Share 26% Active States 17% Total U.S. ex-NV Hollywood Greektown (MI) Hollywood Kansas Speedway (KS) L’Auberge Baton Rouge (LA) Margaritaville Bossier City (LA) Hollywood Columbus (OH) Hollywood
Slide 27: Case Study: Retail Sportsbooks
CASE STUDY: RETAIL SPORTSBOOKS Ohio (4 Properties) GGR Growth +2.4% GGR Share Growth +70 bps GGR Growth +4.8% GGR Share Growth +106 bps Kansas (Kansas Speedway) 27 Note: All GGR dollars growth and GGR share growth are Y/Y changes from state reported data during January-August 2024 vs. January-August
Slide 28: Case Study: Retail Sportsbooks
CASE STUDY: RETAIL SPORTSBOOKS GGR Growth +4.1% GGR Growth +6.7% GGR Share Growth +49 bps GGR Share Growth +69 bps Colorado (Black Hawk) Massachusetts (Plainridge Park) 27 Note: All GGR dollars growth and GGR share growth are Y/Y changes from state reported data during January-August 2024 vs. Januar
Slide 29: Growth Projects Remain On-Track
GROWTH PROJECTS REMAIN ON-TRACK Hollywood Aurora (IL) Hollywood Joliet (IL) Hollywood Columbus (OH) M Resort (NV) Relocation Relocation Hotel Tower Hotel Tower 1H 2026 2H 2025 1H 2026 1H 2026 Ahead of Schedule 29
Slide 30: Hollywood Casino Joliet
HOLLYWOOD CASINO JOLIET \D PENN HOLLYWOOD Casino
Slide 31: Superior Location – Hollywood Joliet
SUPERIOR LOCATION – HOLLYWOOD JOLIET Hollywood Casino Joliet Hollywood Casino Joliet is moving to Rock Run Collection, a new mixed-use development to include hotels, retail, food & beverage, and entertainment offerings The new site is located at the intersection of I-80 & I-55, with 240,000 daily ve
Slide 32: Hollywood Casino Aurora
HOLLYWOOD CASINO AURORA 29
Slide 33: Superior Location – Hollywood Aurora
SUPERIOR LOCATION – HOLLYWOOD AURORA Hollywood Casino Aurora Hollywood Aurora is relocating to a prime location in Chicagoland, adjacent to Chicago Premium Outlets New location at I-88 and Farnsworth interchange: 100,000+ daily vehicles (compared to 8,000 at current location), 8 million annual shopp
Slide 34: Recent Relocation Comps Are Encouraging
RECENT RELOCATION COMPS ARE ENCOURAGING July 2024 Y/Y Revenue Growth +88% The Queen Casino (Baton Rouge, Louisiana) – Opened August 24, 2023 Note: Data based on publicly reported info. 34 July 2024 Y/Y Revenue Growth +76% Treasure Chest (Kenner, Louisiana) – Opened June 6, 2024
Slide 35: Hotel Expansions
HOTEL EXPANSIONS Hollywood Casino Columbus (OH) 205 luxury hotel rooms Creates regional destination at one of PENN’s most successful properties Bolsters the property’s competitive positioning in the Columbus market 35 M Resort (NV) 2nd tower with 375 luxury rooms, lifting total to 765 Enhanced offer
Slide 36: Technology Driven Efficiencies
TECHNOLOGY DRIVEN EFFICIENCIES Friction. Lines. Cash. Plastic Cards. Digital. Experiential. Frictionless. THE PAST 35 PRESENT & FUTURE
Slide 37: PENN Play & PENN Wallet Value
37 PENNPLAY & PENN WALLET VALUE Note: The data above is as of August 2024. (1) Pre vs. post analysis of customers in the 90 days before and after wallet enrollment. 1.3m App Registrations 367k Mo. Active Customers 350k Downloads 4.40 Google PENN Play App PENN Wallet App Store Ratings 4.64 Apple 3X C
Slide 38: Benefits of Digital Experiences
BENEFITS OF DIGITAL EXPERIENCES Driving customer engagement Delivering margin enhancing efficiencies Creating a frictionless digital experiences 38
Slide 39: Key Digital Applications – 3C's & Beyond
KEY DIGITAL APPLICATIONS – 3C’s & Beyond Enhanced digital communications Real time promotions More efficient hospitality Cutting edge cashless capabilities 38
Slide 40: Omni-Channel
Omni-Channel 38
Slide 41: Online Has Driven Company Database Growth
41 ONLINE HAS DRIVEN COMPANY DATABASE GROWTH 0.1 0.3 0.9 1.7 2.1 3.9 2019 2020 2021 2022 Q3 2023 Q3 2024 Total Digital Database (M) Since ESPN BET Launch +1.8M Digital Members +85% Growth 2019 Total: 25M Digital: NM Q3 2024 Total: 31M Digital: 3.9M 67% of our total database growth since 2019 has com
Slide 42: Online Reach Expands Our Retail Funnel
53 August 2019 44 August 2024 Average age of our 12-month active database 92k < 30 Miles < 50 Miles < 100 Miles < 10 Miles 450k 746k 1.1m 12-month Active Online Customers Distance from a Retail Property ONLINE REACH EXPANDS OUR RETAIL FUNNEL 43
Slide 43: Cross Channel Value Creation
CROSS CHANNEL VALUE CREATION Play at Retail Play Online 4x Increase in customer value when customers play across multiple channels 43
Slide 44: Potential for Omni-Channel
44 POTENTIAL FOR OMNI-CHANNEL +10% +15% +5% Increase in Database % Conversion to Omni-Channel Incremental Upside from Database Conversion (1) Estimates are based on penetration of addressable database. Potential Annual GGR Lift(1) $50M+ $100M+ $150M+
Slide 45: Interactive
INTERACTIVE 45 Aaron LaBerge, CTO Jason Birney, Head of Interactive Operations
Slide 46: Disney / ESPN Audience
| —— | od FF ‘Disney
Slide 47: Average Monthly Unique Visitors
Average Monthly Unique Visitors DIGITAL 113M FANTASY 13M Unique Fantasy Football Users 46
Slide 48: Interactive Strategy
INTERACTIVE STRATEGY MARKET-LEADING SPORTS MEDIA BRANDS PROPRIETARY TECHNOLOGY STACK OMNI-CHANNEL ECOSYSTEM 46
Slide 49: Interactive Strategy: Market-Leading Sports Media Brands
INTERACTIVE STRATEGY MARKET-LEADING SPORTS MEDIA BRANDS 46
Slide 50: Proprietary In-House Technology Stack
INTERACTIVE STRATEGY PROPRIETARY IN-HOUSE TECHNOLOGY STACK Promotional Engine Player Account Management 46 Risk & Trading Platform In-House Game Studio Retail Sportsbook Technology
Slide 51: Interactive Strategy: Omni-Channel Ecosystem
INTERACTIVE STRATEGY OMNI-CHANNEL ECOSYSTEM 46
Slide 52: Digital Success in Ontario
DIGITAL SUCCESS IN ONTARIO Online Sports Betting +29 DOUBLE DIGIT Market Share of GGR in 1H24 % Y/Y Growth in NGR (Sept - YTD) Online Casino +32 HIGH-SINGLE DIGIT Market Share of GGR in 1H24 % Y/Y Growth in NGR (Sept - YTD) 60% Cross-Play OSB into iCasino +1,182BPS Y/Y +227% Y/Y Growth in Contributi
Slide 53: Alberta Opportunity
ALBERTA OPPORTUNITY Launch Timing TBD 12 % OF THE CANADIAN POPULATION 51% of Canadian Population (Ontario + Alberta) Post-Launch 53
Slide 54: ESPN BET
esSriiBbET
Slide 55: ESPN BET Product Updates
9:41 Eig > esSrnBeET $1,403.00 se E SriiBET = a + @ ® @ | QuickBeTs PARLAYS exctusives MLB WNBA. NFL Promos See Al P ro d U ct IN BONUS BETS Updates —_ ger goo 4 Y | hod Mahomes vs. Tua Champioi 00 Ph Over 12.5 To Sc Yes Jude Over 5.5 Over
Slide 56: Launch Version
941 eSrimiBET o 6G &§ QUCK BETS EXCLUSIVES NFL NoA ne, uve @ 10:23 P3 SJ Sharks # COL Avalanche Promos Featured Golf Odds Boosts Masters: A. Svensson & M. Hughes Each To Finish In The Top 30 In The Tournament (Including Ties) LAUNCH VERSION 56
Slide 57: Home Screen
HOME SCREEN Dark Mode Improved Navigation Expanded Promo Carousel Elevated Offer Discovery Trending Bets Layout Optimizations NEW 53
Slide 58: Parlay Lounge
Dedicated Experience Featured Market Popularity Transparency Shows trending bets 100+ more markets available for Same Game Parlay, including player milestone markets PARLAY LOUNGE NEW 53
Slide 59: Betslip
“Keep picks in betslip” checkbox that allows users to choose to keep selections after placing a bet Making it easier to place bets with a large number of selections BETSLIP NEW 53
Slide 60: Settled
Result selections that meet specified criteria before the natural milestone of an event or market Issue winnings to a patron's wallet as soon as possible Supported scenarios include: Early payout Goodwill gestures Isolated voiding for past posting and venue changes SETTLED NEW 53
Slide 61: Profit Boosts
Top tier promotional tool that empowers customers to amplify their odds on a bet Unlocking potential for higher payout PROFIT BOOSTS NEW 53
Slide 62: Referral Program
REFERRAL PROGRAM NEW Patrons can share their unique referral codes to earn rewards on top of regular promotional offerings Drives acquisition and user growth natively, through lower cost channel Reward amounts are configurable 53
Slide 63: Gamecast & Watch
ESPN Gamecast direct links on My Bets and Event Pages Watch Options to see what games are available on ESPN networks, with direct links to streams GAMECAST & WATCH NEW - ECOSYSTEM INTEGRATIONS 53
Slide 64: ESPN & Fantasy
ESPN & FANTASY Add to Betslip - add market directly to betslip from ESPN or theScore app driving user acquisition and placed bets through tightly integrated experience ESPN Fantasy Native Activations - Targeted offers based on Fantasy team members and odds link out from ESPN Fantasy apps NEW - ECOSY
Slide 65: Media & Product Pairings
MEDIA & PRODUCT PAIRINGS NEW - ECOSYSTEM INTEGRATIONS 53
Slide 66: My Bets via ESPN BET
EsSriiBET Coming Up Next Amen Thompson ejected for pushing Maxi Kleber | Bi My Bets via ESrmiBeET Upcoming, Live Settled PARLAY+ 12 legs TE Milwaukee Bucks @ Indiana Pacers GameCast De @) Over 31.5 Damian Lillard Total Points -110 a Minnesota Timberwolves @ Phoenix Suns GameCast Mil 66
Slide 67: SGP Offering Enhancements
SGP OFFERING ENHANCEMENTS NFL Week 1 2024 - 2025 3x More SGP Markets Continued improvement through NFL Season Smart filtering in Parlay Lounge Player prop discovery Logos and branding imagery COMING UP 53
Slide 68: Account Linking Screens
Link to unlock the full betting experience! Link My Accounts, Skip Link your ESPN Account to ESPN BET? Allow and Link Cancel Linking ESPN with ESPN BET... 68
Slide 69: ESPN - ESPN BET Account Linking
ESPN - ESPN BET ACCOUNT LINKING Betslip and place bets are synced across apps for a seamless contextual user experience LAUNCHING BEFORE NBA 53
Slide 70: • Betslip and place bets are synced across apps for a seamless contextual user
• Betslip and place bets are synced across apps for a seamless contextual user experience LAUNCHING BEFORE NBA 53
Slide 71: Ecosystem Advantage
ECOSYSTEM ADVANTAGE INTEGRATIONS FANTASY DIGITAL TALENT 53
Slide 72: iCasino
iCasino 73
Slide 73: Online Casino Strategy
ONLINE CASINO STRATEGY 2 Cross-sell active online sports betting users into iCasino 3 Offer engaging content & user experience BRANDS STRATEGY 1 Drive top-of-funnel via media assets and retail database 73
Slide 74: Q3 Performance Highlights
74 Q3 PERFORMANCE HIGHLIGHTS +233% +53% +63% +27% +16% +15% MAUs GGR NGR Y/Y Growth In Year 1 of ESPN BET Launch In Year 3 of theScore BET Launch Note: All Q3 2024 data is preliminary.
Slide 75: Introduction to Penn Game Studios
75 INTRODUCTION TO PENN GAME STUDIOS Penn Game Studios is our in-house game design & development studio that creates a variety of original games for both our Hollywood Casino and theScore BET apps in North America (1) Based on preliminary September 2024 results. 26% of Total U.S. iCasino Handle(1) 4
Slide 76: Standalone iCasino App Launch
76 Initial Standalone iCasino App Launch planned for Pennsylvania, with additional jurisdictions to follow COMING SOON Q1 2025 BRAND EXPANSION Note: Estimated launch is subject to regulatory approvals.
Slide 77: Financials
FINANCIALS Felicia Hendrix, CFO 77
Slide 78: 3Q Preliminary Results
78 3Q PRELIMINARY RESULTS Retail Expect third quarter 2024 Retail Operations Adjusted EBITDAR to be in the range of $465 million to $475 million Unfavorable hold rates within our Northeast segment and volume declines in our South segment associated with severe weather disruptions and hotel remodelin
Slide 79: Omni-Channel Execution Drives Growth
OMNI-CHANNEL EXECUTION DRIVES GROWTH Geographically Diversified Industry-Leading Tax-Adjusted Margins Growth Opportunities Within Portfolio High Growth TAM Identified Path to Podium Position Efficient Cost Structure Medium-Term Inflection to Profit Omni-Channel Execution Expected to Lead to Above Av
Slide 80: Retail
Retail 79
Slide 81: Diversified, Growth Oriented Footprint
81 LTM 2Q 2024 Northeast South Midwest West Properties(1) 16 10 9 4 Adj. EBITDAR Mix 41% 24% 25% 10% Adj. EBITDAR Margin 30% 40% 42% 38% Tax Adjusted EBITDAR Margin(2) 70% 62% 68%(4) 56% Blended Tax Rate(3) 40% 22% 26%(4) 18% Current Projects Columbus hotel Margaritaville & Lake Charles hotel room r
Slide 82: The Benefits of Scale
82 THE BENEFITS OF SCALE Centralized Procurement Proactive Utility Management Shared Services Regionalized / Local Decision Making & Sharing of Best Practices Technology: Labor Efficiency & Customer Experience The benefits of scale and margin-enhancing operating protocols drive our industry leading
Slide 83: Investing in Our Business to Drive FCF
83 INVESTING IN OUR BUSINESS TO DRIVE FCF ($ in millions) Sources Uses GLPI Commitment at 7.75% cap rate $225 Relocation of Hollywood Aurora ~$360 GLPI Commitment at variable cap rate (1) $350 Relocation of Hollywood Joliet ~$185 Funding from the City of Aurora $50 Hotel at Hollywood Columbus ~$100
Slide 84: Interactive
Interactive 84
Slide 85: Components of Our Interactive Business
85 COMPONENTS OF OUR INTERACTIVE BUSINESS OSB & iCasino (Gaming Segment) Retail Sports (Non-Gaming Segment) Media, Social, Races (Non-Gaming Segment) Skins Market Access (Non-Gaming Segment) (within ESPN BET & Standalone iCasino coming) L’Auberge Casino at Baton Rouge (LA) Hollywood Casino at Greekt
Slide 86: Delivering Upon Our Vision
86 DELIVERING UPON OUR VISION Our increased parlay mix has directly benefited hold Total OSB: Parlay Mix (% of Handle) Total OSB: Hold Rate % 6.7% 9.0% Q2-Q3 '23 Pre-ESPN BET Q2-Q3 '24 ESPN BET 22% 27% Q2-Q3 '23 Pre-ESPN BET Q2-Q3 '24 ESPN BET Note: Includes all of North America online sports bettin
Slide 87: Online Gaming Variable Cost Components
87 ONLINE GAMING VARIABLE COST COMPONENTS Our online gaming variable costs are a function of both volumes and revenues Data Fees (% of handle and/or revenues) League Fees (% of handle and/or revenues) Gaming Taxes (% of revenues) Third Party (% of revenues) Market Access (% of revenues) Payment Proc
Slide 88: Hold Has an Outsized Impact on Gross Margin
88 29% 28% 27% 26% 25% 22% 20% 18% 17% 45% 25% 50% 53% 56% 58% 6% 8% 10% 12% 14% Total Interactive: Illustrative Variable Costs as a % of Net Revenue Gaming Taxes All Other Variable Costs Total Variable Costs Gross Margin HOLD HAS AN OUTSIZED IMPACT ON GROSS MARGIN U.S. OSB Hold Rate Note: Above is
Slide 89: Leveraging Our Fixed Costs
89 Marketing: $150M / year Warrants: $55M / year (non-cash) We gain leverage on our fixed costs as we increase our scale Paid Media: U.S. Gaming Non-ESPN Programming: U.S. Gaming theScore BET Marketing Team Partnerships: U.S. & Canada Includes all headcount and technology related costs Paid Media No
Slide 90: Sizing the Opportunity - 2026 Outlook
90 SIZING THE OPPORTUNITY - 2026 OUTLOOK 6% Note: The above includes live PENN OSB and iCasino jurisdictions only (19 U.S. states + Ontario for OSB, 4 U.S. states + Ontario for iCasino) based on Eilers & Krejcik and internal 2026 TAM projections. 7% 8% 9% 10% 4.8% 5.6% 6.4% 7.2% 8.0% ($ in millions)
Slide 91: Well-Positioned for the Future
WELL-POSITIONED FOR THE FUTURE 2Q24 4Q24 2025 2025 2025 / 2026 ~$2b of Liquidity Expected to Rapidly Delever (by ~1.5x) Resume Normal Course Capital Allocation Untapped $750M buyback authorization Continued delevering Investing in growth Access to Liquidity Through GLPI 2026 Return to FCF Generation
Slide 92: Closing Remarks
CLOSING REMARKS 91 Jay Snowden, CEO
Slide 93: People & Communities
PEOPLE & COMMUNITIES 2024 Awards and Accolades Time Magazine’s World’s Best Companies Newsweek’s Greatest Workplaces for Diversity Best of the Best 2024 Top Diverse Employers Top 100 Internship Program Champion of Board Diversity $8m Company-Wide Annual Charitable Contributions 91 9,000 Company-Wide
Slide 94: Q & A
Q & A 91
Slide 95: PENN Entertainment
ENTERTAINMENT