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Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2023
Accounting Policies [Abstract] |
Schedule of Operating Segments within Reportable Segments | For financial reporting purposes, we aggregate our operating segments into the following reportable segments:
| Location |  | Real Estate Assets Lease or Ownership Structure
Northeast segment |  |  |
Ameristar East Chicago | East Chicago, Indiana |  | Pinnacle Master Lease
Hollywood Casino Bangor | Bangor, Maine |  | AR PENN Master Lease
Hollywood Casino at Charles Town Races | Charles Town, West Virginia |  | AR PENN Master Lease
Hollywood Casino Columbus | Columbus, Ohio |  | 2023 Master Lease
Hollywood Casino at Greektown | Detroit, Michigan |  | Greektown Lease
Hollywood Casino Lawrenceburg | Lawrenceburg, Indiana |  | AR PENN Master Lease
Hollywood Casino Morgantown | Morgantown, Pennsylvania |  | Morgantown Lease (1)
Hollywood Casino at PENN National Race Course | Grantville, Pennsylvania |  | AR PENN Master Lease
Hollywood Casino Perryville | Perryville, Maryland |  | 2023 Master Lease
Hollywood Casino at The Meadows | Washington, Pennsylvania |  | 2023 Master Lease
Hollywood Casino Toledo | Toledo, Ohio |  | 2023 Master Lease
Hollywood Casino York | York, Pennsylvania |  | Operating Lease (not with REIT Landlord)
Hollywood Gaming at Dayton Raceway | Dayton, Ohio |  | AR PENN Master Lease
Hollywood Gaming at Mahoning Valley Race Course | Youngstown, Ohio |  | AR PENN Master Lease
Marquee by PENN (2) | Pennsylvania |  | N/A
Plainridge Park Casino | Plainville, Massachusetts |  | Pinnacle Master Lease
South segment |  |  |
1 st Jackpot Casino | Tunica, Mississippi |  | AR PENN Master Lease
Ameristar Vicksburg | Vicksburg, Mississippi |  | Pinnacle Master Lease
Boomtown Biloxi | Biloxi, Mississippi |  | AR PENN Master Lease
Boomtown Bossier City | Bossier City, Louisiana |  | Pinnacle Master Lease
Boomtown New Orleans | New Orleans, Louisiana |  | Pinnacle Master Lease
Hollywood Casino Gulf Coast | Bay St. Louis, Mississippi |  | AR PENN Master Lease
Hollywood Casino Tunica | Tunica, Mississippi |  | AR PENN Master Lease
L’Auberge Baton Rouge | Baton Rouge, Louisiana |  | Pinnacle Master Lease
L’Auberge Lake Charles | Lake Charles, Louisiana |  | Pinnacle Master Lease
Margaritaville Resort Casino | Bossier City, Louisiana |  | Margaritaville Lease
West segment |  |  |
Ameristar Black Hawk | Black Hawk, Colorado |  | Pinnacle Master Lease
Cactus Petes and Horseshu | Jackpot, Nevada |  | Pinnacle Master Lease
M Resort Spa Casino | Henderson, Nevada |  | 2023 Master Lease
Zia Park Casino | Hobbs, New Mexico |  | AR PENN Master Lease
Midwest segment |  |  |
Ameristar Council Bluffs | Council Bluffs, Iowa |  | Pinnacle Master Lease
Argosy Casino Alton (3) | Alton, Illinois |  | AR PENN Master Lease
Argosy Casino Riverside | Riverside, Missouri |  | AR PENN Master Lease
Hollywood Casino Aurora | Aurora, Illinois |  | 2023 Master Lease
Hollywood Casino Joliet | Joliet, Illinois |  | 2023 Master Lease
Hollywood Casino at Kansas Speedway (4) | Kansas City, Kansas |  | Owned - Joint Venture
Hollywood Casino St. Louis | Maryland Heights, Missouri |  | AR PENN Master Lease
Prairie State Gaming (2) | Illinois |  | N/A
River City Casino | St. Louis, Missouri |  | Pinnacle Master Lease
(1)Upon termination of the Morgantown Lease, ownership of the constructed building and all tenant improvements will transfer from the Company to GLPI. (2)VGT route operations. (3)The riverboat is owned by us and not subject to the AR PENN Master Lease. (4)Pursuant to a joint venture with NASCAR Holdings LLC (“NASCAR”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns Hollywood Casino at Kansas Speedway. The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to net income (loss).
| For the year ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Revenues: |  |  |  |  |
Northeast segment | $ | 2,738.4 |  |  | $ | 2,695.9 |  |  | $ | 2,552.4 |
South segment | 1,216.4 |  |  | 1,314.2 |  |  | 1,322.2 |
West segment | 528.5 |  |  | 581.9 |  |  | 521.4 |
Midwest segment | 1,172.6 |  |  | 1,159.6 |  |  | 1,102.7 |
Interactive segment | 718.8 |  |  | 663.1 |  |  | 432.9 |
Other (1) | 20.2 |  |  | 21.3 |  |  | 10.6 |
Intersegment eliminations (2) | (32.0) |  |  | (34.3) |  |  | (37.2) |
Total | $ | 6,362.9 |  |  | $ | 6,401.7 |  |  | $ | 5,905.0 |
Adjusted EBITDAR (3): |  |  |  |  |
Northeast segment | $ | 831.0 |  |  | $ | 842.5 |  |  | $ | 848.4 |
South segment | 494.1 |  |  | 548.1 |  |  | 587.0 |
West segment | 204.2 |  |  | 220.1 |  |  | 195.0 |
Midwest segment | 496.6 |  |  | 501.2 |  |  | 500.1 |
Interactive segment | (402.5) |  |  | (74.9) |  |  | (35.4) |
Other (1) | (110.8) |  |  | (97.6) |  |  | (100.7) |
Total (3) | 1,512.6 |  |  | 1,939.4 |  |  | 1,994.4 |
Other operating benefits (costs) and other income (expenses): |  |  |  |  |
Rent expense associated with triple net operating leases (4) | (591.1) |  |  | (149.6) |  |  | (454.4) |
Stock-based compensation | (85.9) |  |  | (58.1) |  |  | (35.1) |
Cash-settled stock-based awards variance | 13.8 |  |  | 15.5 |  |  | (1.2) |
Loss on disposal of assets | (0.1) |  |  | (7.9) |  |  | (1.1) |
Contingent purchase price | (1.9) |  |  | 0.6 |  |  | (1.9) |
Pre-opening expenses (5) | — |  |  | (4.1) |  |  | (5.4) |
Depreciation and amortization | (435.1) |  |  | (567.5) |  |  | (344.5) |
Impairment losses (6) | (130.6) |  |  | (118.2) |  |  | — |
Insurance recoveries, net of deductible charges | 13.9 |  |  | 10.7 |  |  | — |
Non-operating items of equity method investments (7) | (7.4) |  |  | (7.9) |  |  | (7.7) |
Interest expense, net | (464.7) |  |  | (758.2) |  |  | (562.8) |
Interest income | 40.3 |  |  | 18.3 |  |  | 1.1 |
Loss on disposal of Barstool (8) | (923.2) |  |  | — |  |  | — |
Gain on Barstool Acquisition, net (9) | 83.4 |  |  | — |  |  | — |
Gain on REIT transactions, net (10) | 500.8 |  |  | — |  |  | — |
Loss on early extinguishment of debt | — |  |  | (10.4) |  |  | — |
Other (5)(11) | (24.4) |  |  | (127.3) |  |  | (42.3) |
Income (loss) before income taxes | (499.6) |  |  | 175.3 |  |  | 539.1 |
Income tax benefit (expense) | 8.2 |  |  | 46.4 |  |  | (118.6) |
Net income (loss) | $ | (491.4) |  |  | $ | 221.7 |  |  | $ | 420.5 |
(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston, and Valley Race Park, the Company’s joint venture interests in Freehold Raceway, and our management contract for Retama Park Racetrack. The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate or have not otherwise been allocated. Corporate overhead costs were $106.7 million, $98.5 million, and $103.3 million for the years ended December 31, 2023, 2022, and 2021, respectively. (2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive. (3)We define 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 (4) 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; non-cash gains/losses associated with partial and step acquisitions as measured in accordance with ASC 805 “Business Combinations”; and other. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (7) below) added back for Barstool and our Kansas Entertainment joint venture. (4)For the year ended December 31, 2023, pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease. For the year ended December 31, 2022, pertains to the operating lease components contained within the (i) PENN Master Lease (specific to the land and building components associated with the operations of Dayton and Mahoning Valley); (ii) Meadows Lease; (iii) Margaritaville Lease; (iv) Greektown Lease; and (v) Tropicana Lease (which terminated on September 26, 2022). For the year ended December 31, 2021, pertains to the operating lease components contained within the (i) PENN Master Lease (specific to the land, inclusive of the variable expense associated with Columbus and Toledo); (ii) Pinnacle Master Lease (specific to the land); (iii) Meadows Lease; (iv) Margaritaville Lease; (v) Greektown Lease; and (vi) Tropicana Lease. (5)During the first quarter of 2021, acquisition costs were included within pre-opening and acquisition costs. Beginning with the quarter ended June 30, 2021, acquisition costs are presented as part of other expenses. (6)For the years ended December 31, 2023 and 2022, amounts relate to impairment charges in our Northeast segment of $130.6 million and $116.4 million, respectively. See Note 9, “Goodwill and Other Intangible Assets.” (7)Consists principally of interest expense, net, income taxes, depreciation and amortization, and stock-based compensation expense associated with Barstool prior to us acquiring the remaining 64% of Barstool common stock (see Note 6, “Acquisitions and Dispositions”) and our Kansas Entertainment joint venture. (8)Relates to the loss incurred on the sale of 100% of the outstanding shares of Barstool which was completed on August 8, 2023. See Note 6, “Acquisitions and Dispositions.” (9)Includes a gain of $66.5 million associated with Barstool related to remeasurement of the equity investment immediately prior to the acquisition date of February 17, 2023 and a gain of $16.9 million related to the acquisition of the remaining 64% of Barstool common stock. See Note 6, “Acquisitions and Dispositions.” (10)Upon the execution of the February 21, 2023 AR PENN Master Lease and the 2023 Master Lease, both effective January 1, 2023, we recognized a gain of $500.8 million as a result of the reclassification and remeasurement of lease components. See Note 12, “Leases.” (11)For the year ended December 31, 2023, primarily relates to unrealized holding losses on our equity securities of $6.4 million and non-recurring acquisition and transaction costs of $25.0 million, partially offset by dividend income received. See Note 19, “Fair Value Measurements.” For the year ended December 31, 2022, primarily relates to unrealized holding losses on our equity securities of $69.9 million and non-recurring acquisition and transaction costs of $52.1 million. See Note 19, “Fair Value Measurements.” For the year ended December 31, 2021, primarily relates to realized and unrealized losses on our equity securities of $24.9 million, non-recurring acquisition and transaction costs of $43.1 million, offset by a gain on our equity method investment of $29.9 million. See Note 19, “Fair Value Measurements” and Note 7, “Investments in and Advances to Unconsolidated Affiliates.” The table below presents capital expenditures by segment:
| For the year ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Capital expenditures: |  |  |  |  |
Northeast segment | $ | 113.7 |  |  | $ | 110.6 |  |  | $ | 144.8 |
South segment | 93.0 |  |  | 70.7 |  |  | 39.0 |
West segment | 30.3 |  |  | 11.5 |  |  | 8.5 |
Midwest segment | 73.6 |  |  | 35.8 |  |  | 19.8 |
Interactive segment | 33.2 |  |  | 19.7 |  |  | 6.3 |
Other | 16.2 |  |  | 15.1 |  |  | 25.7 |
Total capital expenditures | $ | 360.0 |  |  | $ | 263.4 |  |  | $ | 244.1 |
The table below presents investment in and advances to unconsolidated affiliates and total assets by segment:
(in millions) | Northeast |  | South |  | West |  | Midwest |  | Interactive |  | Other (1) |  | Total
Balance sheet as of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 80.8 |  |  | $ | — |  |  | $ | 4.1 |  |  | $ | 84.9 |
Total assets | $ | 1,827.4 |  |  | $ | 1,244.5 |  |  | $ | 388.6 |  |  | $ | 1,241.1 |  |  | $ | 2,549.9 |  |  | $ | 8,812.7 |  |  | $ | 16,064.2 |
Balance sheet as of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 81.5 |  |  | $ | 160.9 |  |  | $ | 6.1 |  |  | $ | 248.6 |
Total assets | $ | 2,231.8 |  |  | $ | 1,191.9 |  |  | $ | 372.4 |  |  | $ | 1,305.5 |  |  | $ | 4,233.7 |  |  | $ | 8,166.8 |  |  | $ | 17,502.1 |
Balance sheet as of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 83.8 |  |  | $ | 164.4 |  |  | $ | 6.8 |  |  | $ | 255.1 |
Total assets | $ | 2,283.6 |  |  | $ | 1,224.6 |  |  | $ | 394.8 |  |  | $ | 1,215.8 |  |  | $ | 2,618.3 |  |  | $ | 9,135.0 |  |  | $ | 16,872.1 |
(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.
Schedule of Receivables | The Company’s receivables as of December 31, 2023 and 2022 primarily consisted of the following:
| December 31,
(in millions) | 2023 |  | 2022
Markers and returned checks | $ | 14.3 |  |  | $ | 13.1 |
Payment processors, credit card, and other advances to customers | 117.2 |  |  | 80.2 |
Receivables from ATM and cash kiosk transactions | 39.3 |  |  | 26.1 |
Hotel and banquet | 4.9 |  |  | 4.7 |
Racing settlements | 10.2 |  |  | 8.0 |
Online gaming and licensing receivables from third party operators, including taxes | 77.4 |  |  | 62.7 |
Media receivables | 16.0 |  |  | 15.0 |
Other | 43.9 |  |  | 45.7 |
Provision for credit losses | (4.2) |  |  | (8.5) |
Accounts receivable, net | $ | 319.0 |  |  | $ | 247.0 |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Depreciation of property and equipment is recorded using the straight-line method over the shorter of the estimated useful life of the asset or the related lease term, if any, as follows:
| Years
Land improvements | 15
Buildings and improvements | 5 to 31
Vessels | 10 to 31
Furniture, fixtures, and equipment | 1 to 31
Property and equipment, net, consisted of the following:
| December 31,
(in millions) | 2023 |  | 2022
Property and equipment - Not Subject to Master Leases |  |  |
Land and improvements | $ | 137.2 |  |  | $ | 137.1 |
Building, vessels, and improvements | 323.2 |  |  | 324.6 |
Furniture, fixtures, and equipment | 1,846.3 |  |  | 1,753.6 |
Leasehold improvements | 521.2 |  |  | 353.5 |
Construction in progress | 172.8 |  |  | 166.8 |
| 3,000.7 |  |  | 2,735.6 |
Less: Accumulated depreciation | (1,813.7) |  |  | (1,708.3) |
| 1,187.0 |  |  | 1,027.3 |
Property and equipment - Subject to Master Leases (1) |  |  |
Land and improvements | 1,427.1 |  |  | 1,523.2 |
Building, vessels, and improvements | 1,591.3 |  |  | 3,640.0 |
| 3,018.4 |  |  | 5,163.2 |
Less: Accumulated depreciation | (691.4) |  |  | (1,675.0) |
| 2,327.0 |  |  | 3,488.2 |
Property and equipment, net | $ | 3,514.0 |  |  | $ | 4,515.5 |
Depreciation expense was as follows:
| For the year ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Depreciation expense (2) | $ | 288.7 |  |  | $ | 329.1 |  |  | $ | 314.3 |
(1)As of a result of the lease modification that occurred on January 1, 2023, we derecognized $1.1 billion of “Property and equipment, net” associated with building assets within our Consolidated Balance Sheets, with an offset to “Gain on REIT transaction, net” within our Consolidated Statements of Operations. Refer to Note 12, “Leases” for more information related to the January 1, 2023 lease modification. (2)During the years ended December 31, 2023, 2022, and 2021, we recorded depreciation expense of $112.4 million, $175.6 million, and $183.4 million, related to real estate assets subject to our Master Leases.
Schedule of Complimentaries | Revenues recorded to “Food, beverage, hotel, and other” and offset to “Gaming” revenues were as follows:
| For the year ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Food and beverage | $ | 215.5 |  |  | $ | 209.5 |  |  | $ | 173.7 |
Hotel | 139.0 |  |  | 138.3 |  |  | 125.4 |
Other | 12.4 |  |  | 12.3 |  |  | 10.2 |
Total complimentaries associated with gaming contracts | $ | 366.9 |  |  | $ | 360.1 |  |  | $ | 309.3 |

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