Penn Entertainment has announced impressive revenue figures of $1.4 billion for the first quarter of 2026, with an adjusted EBITDAR of $471.4 million. This growth can be attributed to an increase in casino visitors and higher spending per visit, marking the company's best retail performance in three years.
CEO Jay Snowden highlighted the positive momentum the company has experienced in both its physical and digital operations, thanks to ongoing investments and operational enhancements.
Snowden remarked, “The rise in visitors and spending across the board has led to significant year-over-year revenue growth in all rated segments, representing our largest quarterly increase in three years.”
The retail segment benefitted from various upgrades and expansions at properties such as M Resort in Nevada, Ameristar Black Hawk in Colorado, Hollywood Columbus in Ohio, and Hollywood Casino Aurora in Illinois.
Snowden pointed out that these investments were crucial to the company's improved performance, alongside consistent customer demand in regional markets.
“I mentioned in our previous earnings call that 2026 would be a year of strong execution for Penn,” he stated. “While we still have the remainder of the year to navigate, I'm pleased to say we have made a strong start. Moving forward, we will concentrate on enhancing our free cash flow while managing corporate expenses and maintaining disciplined capital allocation.”
Regional casinos have shown robust performance, with Snowden noting that most customers live nearby, which lessens their sensitivity to external costs like fuel prices.
“The majority of our regional customers are within a 30-minute drive,” he explained. “Gas prices are unlikely to influence their decision to visit the casino weekly or bi-weekly, as the travel cost is minimal.”
Penn's interactive segment brought in $358.3 million in revenue for the quarter but recorded an Adjusted EBITDA loss of $10.8 million, partly due to the upcoming launch of theScore Bet in Alberta, Canada.
Snowden mentioned that the interactive segment showed significant year-over-year Adjusted EBITDA improvement, marking the first full quarter under their revamped digital strategy. The iCasino revenue alone grew by about 15% year-over-year, driven by strong performance from the standalone iCasino, which achieved record quarterly and monthly revenues in March.
During the earnings call, Snowden provided insights into the Alberta launch, where Penn has received approval from the Alberta Gaming, Liquor, and Cannabis (AGLC) to operate its mobile sports betting and iCasino platform, theScore Bet.
“We are optimistic about our setup in Alberta,” Snowden noted. “We have conducted extensive analysis on our Ontario launch to identify what worked and what didn’t. We are implementing more effective strategies and anticipate market share results in Alberta similar to those achieved in Ontario, where we continue to gain momentum.”
Chief Technology Officer Aaron LaBerge commented on the strong growth of the standalone iCasino business in the U.S., despite facing challenges with online sports betting operations.
“It’s important to highlight that our standalone casino growth is substantial,” LaBerge stated. “We are achieving record revenues there. While we are experiencing some softness in the online sports betting sector, we are countering this with disciplined spending and reinvestment in critical areas.”
LaBerge also mentioned that Penn has revised its marketing strategy, reducing expenditures in states focused solely on sports betting.