<SEC-DOCUMENT>0001214659-25-007507.txt : 20250513
<SEC-HEADER>0001214659-25-007507.hdr.sgml : 20250513
<ACCEPTANCE-DATETIME>20250513171734
ACCESSION NUMBER:		0001214659-25-007507
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250513
DATE AS OF CHANGE:		20250513

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PENN Entertainment, Inc.
		CENTRAL INDEX KEY:			0000921738
		STANDARD INDUSTRIAL CLASSIFICATION:	HOTELS & MOTELS [7011]
		ORGANIZATION NAME:           	05 Real Estate & Construction
		EIN:				232234473
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24206
		FILM NUMBER:		25941393

	BUSINESS ADDRESS:	
		STREET 1:		825 BERKSHIRE BLVD STE 200
		STREET 2:		WYOMISSING PROFESSIONAL CENTER
		CITY:			WYOMISSING
		STATE:			PA
		ZIP:			19610
		BUSINESS PHONE:		6103732400

	MAIL ADDRESS:	
		STREET 1:		825 BERKSHIRE BLVD
		STREET 2:		SUITE 200
		CITY:			WYOMISSING
		STATE:			PA
		ZIP:			19610

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PENN NATIONAL GAMING INC
		DATE OF NAME CHANGE:	19940415

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HG Vora Capital Management, LLC
		CENTRAL INDEX KEY:			0001525362
		ORGANIZATION NAME:           	
		EIN:				264369896
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		330 MADISON AVENUE
		STREET 2:		21ST FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		(212) 707-4300

	MAIL ADDRESS:	
		STREET 1:		330 MADISON AVENUE
		STREET 2:		21ST FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
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<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>
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<P STYLE="font: bold 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SCHEDULE 14A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Rule 14a-101)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proxy Statement Pursuant to Section 14(a) of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>the Securities Exchange Act of 1934</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Filed by the Registrant <FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Filed by a Party other than the Registrant <FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box:</P>

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    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) </B></FONT></TD></TR>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material Pursuant to &sect; 240.14a-12</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
<P STYLE="font: bold 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PENN Entertainment, Inc.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Registrant as Specified In Its Charter)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>HG VORA CAPITAL MANAGEMENT, LLC </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>HG VORA SPECIAL OPPORTUNITIES MASTER FUND, LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DOWNRIVER SERIES LP &ndash; SEGREGATED PORTFOLIO
C</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PARAG VORA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>JOHNNY HARTNETT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CARLOS RUISANCHEZ</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WILLIAM CLIFFORD</B><BR>
<FONT STYLE="font-size: 10pt">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payment of Filing Fee (Check the appropriate box):</P>
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    <TD STYLE="font-size: 10pt">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</TD></TR>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">On May 13, 2025, HG Vora Capital Management, LLC and certain of its
affiliates, the beneficial owners of approximately 4.80% of the outstanding common stock of PENN Entertainment, Inc. (NASDAQ: PENN), issued
the following press release:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>HG Vora Files Definitive Proxy Materials and Sends Letter
to PENN Entertainment, Inc. Shareholders</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>Highlights Years of Underperformance and Strategic Missteps</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>Believes Incumbent Directors Have Taken Self-Serving and Unlawful
Actions Intended to Disenfranchise Shareholders</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>Urges Shareholders to Vote for HG Vora&rsquo;s Nominees on
the GOLD Proxy Card to Send a Clear Message to PENN&rsquo;s Board that Genuine Change Is Needed</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><I>Launches www.WinAtPENN.com</I></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><B>NEW YORK &ndash; May 13, 2025 &ndash; </B>HG Vora Capital
Management, LLC (together with its affiliates, &ldquo;HG Vora&rdquo;) filed its definitive proxy statement with the Securities and Exchange
Commission (the &ldquo;SEC&rdquo;) in connection with its nomination of candidates for election to the Board of Directors (the &ldquo;Board&rdquo;)
of PENN Entertainment, Inc. (Nasdaq: PENN) (&ldquo;PENN&rdquo; or the &ldquo;Company&rdquo;) at the Company&rsquo;s 2025 Annual Meeting
of Shareholders (the &ldquo;Annual Meeting&rdquo;), which is scheduled to be held on June 17, 2025.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">HG Vora today also sent a letter to PENN shareholders. The full
text of the letter, as well as additional information regarding HG Vora&rsquo;s director nominees, can be viewed online
at www.WinAtPENN.com. The full text of the letter is below.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center">* * *</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">May 13, 2025</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Dear Fellow PENN Shareholders,</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">HG Vora Capital Management, LLC (together with its affiliates,
&ldquo;HG Vora,&rdquo; &ldquo;we&rdquo; or &ldquo;us&rdquo;) is one of the largest shareholders of PENN Entertainment, Inc. (&ldquo;PENN&rdquo;
or the &ldquo;Company&rdquo;). We are long-term shareholders and currently own approximately 4.8% of the Company&rsquo;s outstanding shares.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">PENN&rsquo;s stock has underperformed those of its
publicly traded gaming peers<SUP>1</SUP> over the last two, three, four, five, six, seven, eight, nine and ten years, and during the
tenure of the Company&rsquo;s CEO and most of the independent directors.<SUP>2</SUP> In our view, this is the direct result of an
unsuccessful strategic shift that has been plagued by value-destructive deal-making, reckless capital allocation and poor execution.
We believe PENN trades at a discount to its intrinsic value because its management team and Board of Directors (the
&ldquo;Board&rdquo;) have lost credibility and investors fear further value destructive decisions.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Surprisingly, it seems that the Board thinks PENN&rsquo;s performance
has been laudable. In the Company&rsquo;s proxy statement, for example, the Board claims that there has been a &ldquo;<I>substantial increase
in shareholder value&hellip;</I> over the last decade.&rdquo;<SUP>3</SUP> That is simply not true. PENN&rsquo;s stock price has <I>declined</I>
over the last ten years.<SUP>4</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Despite the Company&rsquo;s severe and objective underperformance,
the Board appears unwilling to accept responsibility for its failures. Instead, it has taken extraordinary measures to avoid accountability
and disenfranchise shareholders. Among other tactics, the Company publicly advocated to a state gaming regulator that HG Vora not be permitted
to nominate director candidates, and the Board subsequently threatened to invalidate our nomination notice to prevent us from nominating
candidates.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">But perhaps the most brazen act of entrenchment was the Board&rsquo;s
last-minute move to reduce the number of directors up for election at the 2025 Annual Meeting of Shareholders (the &ldquo;Annual Meeting&rdquo;)
from three to two, after we had properly nominated three director candidates. The Board did so just ten days after declaring to us there
were three seats up for election. We believe this desperate maneuver not only deprives shareholders of their fundamental right to elect
directors of their choosing but is also a violation of law and a breach of the Board&rsquo;s fiduciary duties.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We believe shareholders should not tolerate such a manipulation
of the electoral process, nor should they continue to accept PENN&rsquo;s dismal performance. Shareholders deserve a Board that welcomes
their input, is dedicated to serving their interests, is committed to holding management accountable and is open to all avenues for maximizing
value.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><B>Accordingly, we urge all PENN shareholders to vote &ldquo;FOR&rdquo;
all three independent director candidates nominated by HG Vora using the <FONT STYLE="color: #FFC000"><U>GOLD</U></FONT> Proxy Card. By
using the <FONT STYLE="color: #FFC000"><U>GOLD</U></FONT> Proxy Card, shareholders can express their disapproval of the incumbent Board.</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B><I>PENN&rsquo;s Strategy Has Destroyed Significant Shareholder
Value</I></B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We invested in PENN because we believe it owns the best
portfolio of geographically diverse regional casinos in the country and, prior to the distractions introduced by the current
management team, had a track record of industry-leading efficiency in its core brick-and-mortar business. We were attracted to the
consistency, predictability and steady growth of the core business as well as the potential upside opportunity from online casino
gaming, an area in which we believe PENN is well positioned to succeed as a large scale omni-channel operator with a combination of
the established  Hollywood Casino brand and significant cross-sale opportunities from its large retail database.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">However, under the leadership of its President and CEO, Jay
Snowden, and Board Chair, David Handler, PENN has been pursuing a misguided transformation from a best-in-class regional casino operator
to a sports, media and technology conglomerate. Unfortunately, this transformation has been characterized by massively overpaying for
acquisitions and poor execution.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman">Since the beginning
of 2020, PENN has invested heavily in online sports betting, committing more than $4.3 billion<SUP>5</SUP></FONT> &nbsp;<FONT STYLE="font-family: Times New Roman">of
shareholder capital &mdash; nearly double PENN&rsquo;s entire equity market value today &mdash; to several value-destructive acquisitions
and partnerships.<SUP>6</SUP> Under the oversight of the Board and  Mr. Handler &mdash; who purports to be an expert in gaming and
technology M&amp;A<SUP>7</SUP> &mdash; PENN has executed a string of transactions that, in our view, stand among the worst in the industry&rsquo;s
history. PENN paid more than $2 billion for Score Media and Gaming, a small Canadian company that was generating less than $25 million
in annual revenue,<SUP>8</SUP> and more than $500 million for Barstool Sports,<SUP>9</SUP> whose controversial brand and outspoken
founder reportedly threatened PENN&rsquo;s relationships with its gaming regulators, putting the entire PENN franchise at risk.<SUP>10</SUP>
PENN has also committed to paying Disney more than $2 billion for the right to the ESPN Bet trademark for ten years, <SUP>11</SUP> a sum that Disney&rsquo;s
CEO noted was substantially more than other suitors were willing to pay.<SUP>12</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Despite this prolific spending, we believe that PENN&rsquo;s
online sports betting strategy has failed. Nearly two years after Mr. Snowden announced that the Company was targeting double-digit market
share<SUP>13</SUP> and a &ldquo;podium position,&rdquo;<SUP>14</SUP> ESPN Bet is the 8<SUP>th</SUP>-ranked online sports betting platform
in the U.S., with its market share hovering around 2%.<SUP>15</SUP> Additionally, by nearly all relevant measures, the Company is less
profitable and less valuable than it was before the Company embarked on its digital transformation. Earnings, Adjusted EBITDAR, return
on invested capital and free cash flow have all declined over the last five years, while the Company&rsquo;s share count and leverage
have increased significantly.<SUP>16</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Nevertheless, the Board continues to insist that success
is just around the corner, assuring shareholders that the digital business is nearing an &ldquo;inflection point&rdquo;<SUP>17</SUP>
and will turn profitable in 2026.<SUP>18</SUP> Shareholders have heard these claims before. PENN also said that it expected its
digital business to achieve profitability in 2021,<SUP>19</SUP> 2022,<SUP>20</SUP> 2023<SUP>21</SUP> and 2025.<SUP>22</SUP> Why
should shareholders trust that this time will be different when the strategy, management team and a majority of the Board members
remain the same?</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B><I>PENN&rsquo;s Compensation Is Excessive and Misaligned with
Shareholders</I></B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Even as the Company&rsquo;s fundamental performance has deteriorated,
management&rsquo;s attempt to build a digital business has floundered, and most shareholders have seen the value of their investment decline
substantially, PENN&rsquo;s executives &mdash; especially Mr. Snowden &mdash; have been lavishly rewarded by the Board. While PENN&rsquo;s
market value has declined by approximately $11 billion since the beginning of 2021,<SUP>23</SUP> Mr. Snowden has been paid more than
$120 million.<SUP>24</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Despite PENN&rsquo;s abysmal track record during his tenure,
Mr. Snowden is now the second highest-paid CEO among his peers after the Company rewarded him with a greater than 70% increase to his
target compensation in 2024.<SUP>25</SUP> This increase in target compensation is particularly tone-deaf, in our view, given the fact
that PENN&rsquo;s stock price declined for the third consecutive year in 2023, underperforming the Company&rsquo;s publicly traded gaming
peers by nearly 30 percentage points.<SUP>26</SUP> Institutional Shareholder Services &mdash; a leading independent proxy advisory firm
&mdash; recognized this disconnect between pay and performance even before the massive increase in pay in 2024, assigning PENN a score
of -100 on its &ldquo;Relative Degree of Alignment&rdquo; evaluation, the lowest possible score, with respect to PENN&rsquo;s 2023 executive
compensation.<SUP>27</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B><I>Genuine Change Is Urgently Needed at PENN</I></B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">To ensure that the Company&rsquo;s future does not look
like the last five years under the leadership of Mr. Snowden and Mr. Handler, we believe genuine change is needed at PENN. But this
change is unlikely to come from the very executives and directors that devised the current strategy, a strategy on which they claim
to remain &ldquo;laser focused.&rdquo;<SUP>28</SUP> Instead, in our view, PENN needs a Board that will ask tough questions,
challenge the status quo and make difficult but necessary decisions about the Company and Board&rsquo;s leadership.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">PENN&rsquo;s incumbent directors have seemingly refused to
objectively evaluate PENN&rsquo;s situation and have instead put up every roadblock possible to interfere with the election of three
new highly qualified independent directors. Accordingly, for the first time in our firm&rsquo;s history, we decided to take our case
directly to shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B><I>The Three Independent Candidates Can Help Enhance
Oversight and Restore Accountability</I></B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We have nominated three candidates &mdash; William Clifford,
Johnny Hartnett and Carlos Ruisanchez &mdash; who are independent of both the Company and HG Vora for election at the Annual Meeting.
Each candidate has a track record of success in the gaming and hospitality industry, and we believe each will pursue all opportunities
to deliver enhanced value to PENN shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PENN&rsquo;s Board also seemingly recognizes that
some change is inevitable and has therefore indicated that it intends to nominate two of our proposed candidates, Mr. Hartnett and Mr.
Ruisanchez, at the Annual Meeting. While the anticipated election of Messrs. Hartnett and Ruisanchez is a step in the right direction,
we believe PENN should welcome <I>all three</I> HG Vora-nominated candidates, including Mr. Clifford, to the Board.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Mr. Clifford has more than 30 years of experience delivering
excellent returns for shareholders in the gaming industry, including 17 years as CFO of PENN and Gaming and Leisure Properties, the real
estate investment trust that owns most of PENN&rsquo;s real estate assets and that spun out of the Company in 2013. At PENN, he helped
source, negotiate, execute and integrate more than a dozen acquisitions of gaming and hospitality assets.<SUP>29</SUP> He is known as
a &ldquo;proven value creator&rdquo;<SUP>30</SUP> who, during his tenure at PENN, compounded shareholder returns at approximately 23%
annually, nearly double the rate of PENN&rsquo;s publicly traded gaming peers.<SUP>31</SUP></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We believe Mr. Clifford&rsquo;s deep knowledge of PENN&rsquo;s
operations and expertise in M&amp;A in the gaming industry make him particularly well-suited to challenge the Board and management to
address its disappointing capital allocation track record and improve performance. In our view, that is precisely why PENN&rsquo;s directors
reduced the number of Board seats available at the Annual Meeting. We believe PENN&rsquo;s  directors do not want Mr. Clifford
in the boardroom to scrutinize their dealmaking or question their strategy or leadership &mdash; even though that is exactly what is needed.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We believe that fair elections are the cornerstone of corporate
democracy. We have therefore commenced litigation against the Company to ensure that shareholders have the opportunity to elect all three
HG Vora-nominated candidates at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B><I>Shareholders Should Vote the <FONT STYLE="color: #FFC000"><U>GOLD</U></FONT>
Proxy Card to Support Change at PENN</I></B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">This election is about more than improving the Board&rsquo;s
composition; it is about catalyzing meaningful change at PENN. It is imperative that shareholders send a clear and unambiguous message
that continued ineffective leadership, lack of accountability and entrenching actions will no longer be tolerated.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We strongly urge shareholders to vote the GOLD proxy card for
the election of each of the three HG Vora-nominated candidates. By voting HG Vora&rsquo;s <B><I>GOLD</I></B> proxy card &mdash; and not
the Company&rsquo;s proxy card &mdash; you can convey that the status quo is no longer acceptable, and that it is time for genuine change.
Join us in voting for accountability, fresh thinking and a better future for PENN. Vote <B><I>GOLD</I></B> to Win at PENN.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Thank you for your support.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Parag Vora</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Portfolio Manager &amp; Founder</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">HG Vora Capital Management, LLC</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center">* * *</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>VOTE THE <FONT STYLE="color: #FFC000"><I><U>GOLD</U></I></FONT>
PROXY CARD TODAY TO SEND A MESSAGE TO PENN THAT GENUINE CHANGE IS NEEDED.</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: center"><B>If you have already voted using the Company&rsquo;s proxy
card, you have every right to change your vote by completing and mailing the enclosed <FONT STYLE="color: #FFC000"><I><U>GOLD</U></I></FONT>
proxy card in the pre-paid envelope or by voting via Internet by following the instructions on the <FONT STYLE="color: #FFC000"><I><U>GOLD</U></I></FONT>
proxy card.</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><B>Cautionary Statement Regarding Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The information herein contains &ldquo;forward-looking statements&rdquo;
that can be identified by the fact that they do not relate strictly to historical or current facts. Specific forward-looking statements
can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such
as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;expects,&rdquo; &ldquo;believes,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;plans,&rdquo;
&ldquo;intends,&rdquo; &ldquo;estimates,&rdquo; &ldquo;projects,&rdquo; &ldquo;potential,&rdquo; &ldquo;targets,&rdquo; &ldquo;forecasts,&rdquo;
&ldquo;seeks,&rdquo; &ldquo;could,&rdquo; &ldquo;should&rdquo; or the negative of such terms or other variations on such terms or comparable
terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject
to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven,
correct. If one or more of the risks or uncertainties materialize, or if HG Vora&rsquo;s underlying assumptions prove to be incorrect,
the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward-looking statements should not
be regarded as a representation by HG Vora that the future plans, estimates or expectations contemplated will ever be achieved. The information
herein does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein in any state to
any person.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman"><B>Certain Information Concerning the
Participants</B></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">HG Vora and the other Participants (as defined below) filed
a definitive proxy statement and accompanying gold universal proxy card with the SEC on May 12, 2025 to be used to solicit proxies for
the election of its slate of director nominees at the 2025 annual meeting of shareholders (the &ldquo;2025 Annual Meeting&rdquo;) of PENN
Entertainment, Inc. (&ldquo;PENN&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The participants in the proxy solicitation are currently anticipated
to be HG Vora Capital Management, LLC (the &ldquo;Investment Manager&rdquo;), HG Vora Special Opportunities Master Fund, Ltd. (&ldquo;Master
Fund&rdquo;), Downriver Series LP &ndash; Segregated Portfolio C (&ldquo;Downriver&rdquo;), Parag Vora (&ldquo;Mr. Vora&rdquo; and, collectively
with Investment Manager, Master Fund and Downriver, &ldquo;HG Vora&rdquo;), Johnny Hartnett, Carlos Ruisanchez and William Clifford (collectively
all of the foregoing, the &ldquo;Participants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of the date hereof, (i) Master Fund directly owns 3,825,000
shares of common stock, par value $0.001 per share (the &ldquo;Common Stock&rdquo;), of PENN, including 100 shares of Common Stock as
the record holder and (ii) Downriver directly owns 3,425,000 shares of Common Stock, including 100 shares of Common Stock as the record
holder (collectively, the 7,250,000 shares of Common Stock owned by Master Fund and Downriver, the &ldquo;HG Vora Shares&rdquo;). The
HG Vora Shares collectively represent approximately 4.80% of the outstanding shares of Common Stock, based on the 150,852,769 shares of
Common Stock outstanding as of April 24, 2025, as disclosed by PENN on its proxy statement for the Annual Meeting. The Investment Manager
is the investment manager of Master Fund and Downriver, each of which have delegated all investment and voting decisions to the Investment
Manager. Mr. Vora is the manager of the Investment Manager and has authority over day-to-day operations and investment and voting decisions,
including with respect to the HG Vora Shares, of the Investment Manager. Each of the Investment Manager and Mr. Vora may be deemed to
have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) the HG Vora Shares
and indirect ownership thereof. Mr. Ruisanchez directly owns 3,150 shares of Common Stock. Neither Mr. Clifford nor Mr. Hartnett beneficially
own any shares of Common Stock. Certain of the Participants are also from time to time party to certain derivative instruments that provide
economic exposure to PENN&rsquo;s Common Stock. All of the foregoing information is as of the date hereof unless otherwise disclosed.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman"><B>Important Information and Where to
Find It</B></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">HG VORA STRONGLY ADVISES ALL SHAREHOLDERS OF THE CORPORATION
TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER PROXY MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE
AVAILABLE AT NO CHARGE ON THE SEC&rsquo;S WEBSITE AT WWW.SEC.GOV. THE DEFINITIVE PROXY AND ACCOMPANYING PROXY CARD WILL ALSO BE FURNISHED
TO SOME OR ALL OF THE COMPANY&rsquo;S SHAREHOLDERS. SHAREHOLDERS MAY DIRECT A REQUEST TO THE PARTICIPANTS&rsquo; PROXY SOLICITOR, OKAPI
PARTNERS LLC, 1212 AVENUE OF THE AMERICAS, 17TH FLOOR, NEW YORK, NEW YORK 10036 (SHAREHOLDERS CAN CALL TOLL-FREE: (877) 629-6355).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><B>Contacts</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><B>Investors</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Bruce Goldfarb/Chuck Garske</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Okapi Partners</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">(877) 629-6355</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><B>Media</B></P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Jonathan Gasthalter/Nathaniel Garnick/Iain Hughes</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">Gasthalter &amp; Co.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">(212) 257-4170</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<HR ALIGN="LEFT" COLOR="Black" STYLE="height: 1pt; width: 20%">

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>1</SUP> &ldquo;Publicly traded gaming peers&rdquo; refer to the companies
PENN used to benchmark its stock price performance in the Company&rsquo;s Form 10-K for the fiscal year ended December 31, 2022 and include
Boyd Gaming Corporation, Caesars Entertainment Inc., Las Vegas Sands Corp., MGM Resorts International, Red Rock Resorts, Inc., and Wynn
Resorts, Ltd. Peer data refers to median.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>2</SUP> Source: Bloomberg. Data as of April 25, 2025, the last trading day
before PENN filed its Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>3</SUP> Source: PENN Entertainment Definitive Proxy Statement, filed with
the SEC on April 28, 2025 at page 82.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>4</SUP> Source: FactSet. Data as of April 25, 2025, the last trading day before
PENN filed its Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>5</SUP> Source: Company filings. Includes 1) approximately $569 million in
total consideration for the acquisition of Barstool Sports; 2) approximately $2.1 billion for the acquisition of Score Media and Gaming;
3) $550 million in warrants issued to ESPN; and 4) approximately $1.2 billion in Adjusted EBITDAR losses in the Interactive Segment since
2021.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>6</SUP> Source: FactSet. Data as of April 25, 2025, the last trading day before
PENN filed its Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>7</SUP> See PENN Entertainment Definitive Proxy Statement, filed with the
SEC on April 28, 2025 at page 16 (&ldquo;As a co-founder of an M&amp;A advisory firm focused on the technology sector, Mr. Handler contributes
to the Board deep strategic insights into the evolving industry landscape, expertise in effective risk oversight and the ability to identify
strategic opportunities for PENN's omnichannel growth strategy.&rdquo;)</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>8</SUP> Source: PENN Entertainment Press Release, August 5, 2021. See also
Score Media and Gaming Press Release, July 13, 2021, noting that the company had generated CAD$6.4 million in revenue during the three
months ended May 31, 2021 (i.e., approximately USD$5.3 million based on exchange rates at the time, or approximately USD$21.3 million
on an annualized basis).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>9</SUP> Per PENN Entertainment Press Releases dated January 29, 2020 and February
17, 2023, PENN paid approximately $163 million to acquire a 36% interest in Barstool Sports and $388 million to acquire the remaining
interest.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>10</SUP> See Todd Spangler, &ldquo;Barstool Sports Founder Dave Portnoy Explains
Breakup With Penn: &lsquo;We Got Denied&rsquo; Gambling Licenses &lsquo;Because of Me,&rsquo;&rdquo; <I>Variety</I>, August 9, 2023 (&ldquo;&rsquo;We
got denied [gambling] licenses because of me, you name it,&rsquo; Portnoy said. &lsquo;So the regulated industry [is] probably not the
best place for Barstool Sports and the type of content we make.&rsquo;&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>11</SUP> Source: PENN Entertainment Press Release, August 8, 2023. Amount
includes cash payments of $1.5 billion plus the grant date fair value of warrants to purchase approximately 31.8 million in PENN common
shares.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>12</SUP> Source: The Walt Disney Company Q3 2023 Earnings Call (&ldquo;And
PENN, why PENN? Because PENN stepped up in a very aggressive way and made an offer to us that was better than any of the competitive offers
by far.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>13</SUP> During the Company&rsquo;s Q2 2023 Earnings Call, Mr. Snowden noted
that the Company was targeting market share for ESPN Bet that was &ldquo;within the range that we provided here on Slide 9 in our investor
presentation,&rdquo; which was 10% to 20%.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>14</SUP> Source: PENN Entertainment Q2 2023 Earnings Call.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>15</SUP> Source: Eilers &amp; Krejcik Gaming.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>16</SUP> Source: Bloomberg and Company filings. Data based on a comparison
of 2019 and 2024 financial results.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>17</SUP> Source: PENN Entertainment Letter to Shareholders, filed with the
SEC on April 28, 2025.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>18</SUP> <I>Id</I>. (&ldquo;[W]e anticipate each quarter of 2025 to deliver
a lower loss sequentially throughout the year and our Interactive division to be profitable in 2026 and beyond.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>19</SUP> Source: PENN Entertainment Q4 2020 Earnings Call (&ldquo;I would
assume that 2021 maybe as sort of breakeven-ish on the interactive side.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>20</SUP> Source: PENN Entertainment Q2 2021 Earnings Call (&ldquo;[W]e think
we'll be probably breakeven from the Penn Interactive and theScore combination in 2022.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>21</SUP> Source: PENN Entertainment Q3 2021 Earnings Call (&ldquo;[P]rofitability
is definitely going to be there in 2023, and it would be there in '22 if we weren't also going vertical on tech stack&hellip;&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>22</SUP> Source: PENN Entertainment Q4 2023 Earnings Call (&ldquo;[W]e now
expect the digital segment to inflect to roughly breakeven in 2025&hellip;&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>23</SUP> Source: FactSet. Data as of April 25, 2025, the last trading day
before PENN filed its Definitive Proxy Statement for the 2025 Annual Meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>24</SUP> Source: PENN Definitive Proxy Statements for the 2021, 2022, 2023,
2024 and 2025 Annual Meetings of Shareholders. Mr. Snowden&rsquo;s pay based on the amount disclosed in the Company&rsquo;s Summary Compensation
Table.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>25</SUP> Source: Company filings. &ldquo;Peers&rdquo; refers to the Company&rsquo;s
&ldquo;2024 Compensation Peer Group&rdquo; as disclosed in its Definitive Proxy Statement, filed with the SEC on April 28, 2025, which
includes Boyd Gaming Corporation, Caesars Entertainment Inc., DraftKings, Inc., Electronic Arts Inc., Las Vegas Sands Corp., Lions Gate
Entertainment Corp., Live Nation Entertainment, Inc., MGM Resorts International, Red Rock Resorts, Inc., Roku, Inc., SiriusXM Holdings
Inc. and Wynn Resorts, Limited.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>26</SUP> Source: Bloomberg. &ldquo;Publicly traded gaming peers&rdquo; refer
to the companies PENN used to benchmark its stock price performance in the Company&rsquo;s Form 10-K for the fiscal year ended December
31, 2022 and include Boyd Gaming Corporation, Caesars Entertainment Inc., Las Vegas Sands Corp., MGM Resorts International, Red Rock Resorts,
Inc., and Wynn Resorts, Ltd. Peer data refers to median.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>27</SUP> Source: Institutional Shareholder Services Proxy Research Report,
May 16, 2024.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>28</SUP> Source: PENN Entertainment Letter to Shareholders, filed with the
SEC on April 28, 2025.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>29</SUP> Source: FactSet.</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>30</SUP> Source: Oakmark Funds First Quarter Report, December 31, 2015 (&ldquo;GLPI
is run by CEO Peter Carlino and CFO Bill Clifford&mdash;two proven value creators.&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0"><SUP>31</SUP> Source: FactSet. Based on annualized total shareholder returns from
July 30, 2001 to October 31, 2013. &ldquo;Publicly traded gaming peers&rdquo; refer to the companies PENN used to benchmark its stock
price performance in the Company&rsquo;s Form 10-K for the fiscal year ended December 31, 2022 and include Boyd Gaming Corporation, Caesars
Entertainment Inc., Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts, Ltd. (Red Rock Resorts omitted because it was not
publicly traded during Mr. Clifford&rsquo;s tenure.) Peer data refers to median.</P>

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