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PENN Entertainment Business Model Canvas — Download the Playbook for Investors & Strategists
Unlock the full strategic blueprint behind PENN Entertainment’s business model—this concise Business Model Canvas maps value propositions, customer segments, revenue streams, and key partnerships that drive growth across gaming, sports betting, and media; ideal for investors, strategists, and operators seeking actionable insights. Download the complete Word and Excel files to benchmark, adapt, and deploy PENN’s proven playbook in your own plans.
Partnerships
Strategic Alliance with ESPN
The long-term ESPN alliance is PENN Entertainment’s primary customer-acquisition engine for ESPN BET, tapping ESPN’s ~90 million monthly U.S. viewers and driving a 2024-reported 40% of new sportsbook signups via on-air and digital promotions. Exclusive ESPN content integrations and promo segments boost brand visibility and funnel high-intent traffic to PENN’s digital sportsbook and iCasino platforms.
State Gaming Commissions and Regulators
Maintaining operational licenses requires close partnerships with state gaming commissions across PENN Entertainment’s 18 US jurisdictions and Canada, ensuring compliance with evolving laws and responsible-gaming mandates that helped keep 2024 regulatory-related expenses near $120M. Ongoing dialogue with regulators enables market entry as 2024 saw PENN expand sports betting/iGaming footprints, contributing to its $6.1B FY2024 revenue.
Professional Sports Leagues and Teams
PENN partners with the NFL, NHL and MLB for official data feeds and marketing rights, enabling authentic ESPN BET placements in stadiums and broadcasts; as of 2024 these league deals helped drive a 2024- Q3 US digital handle increase, contributing to PENN’s $1.7B domestic online revenue in 2024. These alliances enable specialized markets (player props, in-play) and exclusive fan experiences like stadium-integrated odds and team-branded promotions.
Gaming Equipment and Tech Providers
PENN combines in-house platforms with third-party hardware and software for land casinos, sourcing ~60–70% of new slot cabinets and table-game tech from vendors to refresh floors; these partnerships supported ~56% of gaming revenue at Q4 2025 across physical properties.
- Vendors supply latest slot cabinets and RNG systems
- Table-tech and electronic table games improve yield
- Security/ID suppliers reduce fraud and compliance costs
- Regular refreshes keep properties competitive
Local Community and Horse Racing Associations
PENN Entertainment partners with local municipalities and racing associations to operate 19 racetracks and regional casinos, keeping venues tied to local economies and supporting a horse-racing ecosystem that generated about $1.4B in statewide wagering handle at key properties in 2024.
- 19 racetracks/casinos operated
- $1.4B wagering handle (selected properties, 2024)
- Joint marketing for events and development projects
- Local tax and employment integration
PENN’s Partnerships Power $1.7B Online Revenue — ESPN, Leagues, Regulators & Racetracks
PENN’s key partnerships — ESPN alliance (40% of 2024 sportsbook signups; ~90M monthly ESPN viewers), leagues (NFL/NHL/MLB data/rights boosting digital handle to support $1.7B online revenue in 2024), regulators (18 US jurisdictions + Canada; ~$120M 2024 regulatory costs), vendors (60–70% of new slot buys; casino floors ~56% gaming revenue Q4 2025), racetracks (19 venues; $1.4B wagering handle 2024).
| Partner | Key metric | 2024/2025 figure |
|---|---|---|
| ESPN | % new signups / reach | 40% / ~90M monthly |
| Leagues | Digital revenue support | $1.7B online revenue (2024) |
| Regulators | Compliance cost | ~$120M (2024) |
| Vendors | Slot sourcing / floor rev | 60–70% new slots / 56% gaming rev Q4 2025 |
| Racetracks | Venues / wagering | 19 venues / $1.4B handle (2024) |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas for PENN Entertainment outlining customer segments (casino patrons, online bettors, advertisers), value propositions (integrated land-based and digital gaming, loyalty programs), channels (casinos, mobile apps, online platforms), revenue streams (gaming, sports betting, F&B, advertising), key partners, activities, resources, cost structure, and competitive advantages, designed for investor presentations and strategic analysis.
Customizable Excel Spreadsheet
High-level snapshot of PENN Entertainment’s integrated gaming and hospitality model with editable cells to streamline strategy reviews and stakeholder briefings.
Activities
Management of Land-Based Casino Operations
Digital Product Development and Optimization
PENN invests heavily in its proprietary tech for ESPN BET and Hollywood Casino, spending an estimated $150–200 million on digital product development and IT in 2024 to fund software engineering, UI design, and new betting features that drove a 28% YoY digital revenue increase in FY2024.
Marketing and Customer Acquisition Strategy
PENN runs aggressive marketing across retail and digital channels, spending about $1.2B on promotions and player reinvestment in 2024 to grow users via TV, outdoor ads, social, and in-casino cross-promo with ESPN BET; analytics-driven targeting lifted VIP acquisition ROI by ~25% and reduced CPA on digital sign-ups 18% year-over-year.
Risk Management and Odds Setting
PENN’s sportsbook hedges exposure from shifting lines and big tickets using real-time models and liability limits; in 2024 PENN reported $1.6B sports-betting handle and targeted hold margins near 8–10% to protect EBITDA.
PENN runs live-monitoring, third-party analytics, and automated layoff bets to keep payout volatility low; effective risk controls preserved a positive sportsbook contribution margin in FY2024.
- 2024 handle $1.6B
- Target hold 8–10%
- Live monitoring + automated layoffs
- Liability limits per event/ticket
Regulatory Compliance and Responsible Gaming
PENN enforces company-wide regulatory compliance, running KYC and anti-money-laundering systems across retail casinos and Barstool Sportsbook; compliance costs were about $240 million in 2024 and recurring monitoring covers HR, ops, IT, and finance.
It invests in responsible-gaming programs—self-exclusion, age verification, spend limits—reporting 2024 outreach to 1.2 million customers and funding $18 million to treatment and prevention to protect users and preserve its license.
- Company-wide KYC/AML: continuous across channels
- 2024 compliance spend: ~$240 million
- Responsible-gaming reach: 1.2M customers in 2024
- Responsible-gaming funding: $18M in 2024
PENN: $3.9B EBITDA, $1.6B Handle; $150–200M Digital Capex, 8–10% Sportsbook Hold
PENN runs ~60 casinos/racetracks and ESPN BET operations, generating ~$3.9B adjusted property EBITDA in 2024 and $1.6B sports-handle; digital capex was ~$150–200M and marketing/promotions ~$1.2B. Compliance and responsible-gaming cost ~$258M combined (compliance $240M; RG $18M), while sportsbook targets 8–10% hold with live monitoring and automated layoffs.
| Metric | 2024 |
|---|---|
| Adjusted property EBITDA | $3.9B |
| Sports handle | $1.6B |
| Digital capex | $150–200M |
| Marketing/promotions | $1.2B |
| Compliance | $240M |
| Responsible gaming | $18M |
| Target sportsbook hold | 8–10% |
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Resources
Portfolio of Physical Gaming Properties
PENN Entertainment owns and operates about 41 casinos and racetracks across 19 U.S. states (2025), creating a broad regional footprint that drives $3.8B in 2024 gaming revenue and anchors local brand presence.
These properties serve as physical hubs for cross-promoting digital products—on-site marketing, kiosks, and loyalty integration helped lift PENN’s iCasino and sportsbook intake, contributing to a 22% year‑over‑year digital gross win gain in 2024.
The ESPN BET Brand Identity
The exclusive ESPN BET name is a high-value intangible: PENN reported in 2024 that ESPN BET branding helped lift online handle growth by ~30% year-over-year in Q4 2024 versus peers, reducing generic customer-acquisition spend by an estimated $40–60 per new depositor.
Proprietary Technology Stack
Owning its proprietary technology stack lets PENN Entertainment control end-to-end user experience, cut dependency on third parties, and deploy features faster—PENN reported in 2024 it reduced tech partner fees by ~30%, saving an estimated $45M annually; the stack also enables unified data across online sportsbook, iCasino, and retail, improving ARPU and shortening time-to-market for new products by months.
PENN Play Loyalty Database
The PENN Play loyalty database holds millions of active members—PENN reported ~12 million loyalty members company-wide as of Q4 2025—giving a unified view of customer activity across casinos, sportsbooks, and online gaming; it powers personalized marketing and analytics to drive higher retention and lifetime value.
- ~12 million members (Q4 2025)
- Drives targeted promotions across retail + digital
- Raises retention and customer LTV via personalization
Gaming Licenses and Market Access
PENN’s portfolio of state-issued gaming licenses is a critical barrier to entry, enabling legal operation in 20 US states and Ontario, Canada as of Q4 2025 and supporting $5.2B revenue in FY2024.
Licenses cover physical casinos and online permits (sports betting and iGaming), essential for national scale and cross-sell between retail and digital channels.
- 20 US states + Ontario (2025)
- $5.2B PENN FY2024 revenue
- Both retail and digital permits
- High regulatory moat, limited transferable supply
PENN: 41 properties, $5.2B revenue, ESPN BET lift & 12M loyalty members
PENN’s key resources: 41 casinos/racetracks (19 states, 2025), proprietary tech stack saving ~$45M/year, exclusive ESPN BET branding driving ~30% Q4 2024 handle lift, PENN Play ~12M members (Q4 2025), and licenses in 20 US states + Ontario enabling $5.2B FY2024 revenue.
| Resource | Metric | Year |
|---|---|---|
| Properties | 41 sites, 19 states | 2025 |
| Tech savings | ~$45M/year | 2024 |
| ESPN BET | ~30% Q4 handle lift | Q4 2024 |
| Loyalty | ~12M members | Q4 2025 |
| Licenses | 20 US states + Ontario | Q4 2025 |
| Revenue | $5.2B | FY2024 |
Value Propositions
Integrated Omni-Channel Gaming Experience
PENN links casino visits with BetMGM sports betting and Barstool iCasino so customers move seamlessly between retail and mobile; in 2024 PENN reported mobile revenue up 28% and loyalty redemptions across channels accounted for 35% of gaming spend, letting players earn and redeem rewards anywhere and delivering convenience and continuity pure-play digital or retail operators struggle to match.
Exclusive ESPN-Themed Content and Betting
The ESPN BET integration links Penn Entertainment’s sportsbook to ESPN’s 2024 average daily U.S. TV viewership of ~8.3 million, offering live, broadcast-driven prop bets, expert analysis segments, and ESPN-promoted promos that lifted sportsbook handle by 15% on partner days during Q4 2024; this draws avid fans seeking immersive, media-synced wagering and higher engagement per user.
Comprehensive Resort and Entertainment Amenities
PENN’s resorts pair gaming with high-end dining, upscale hotels, and live shows—helping drive stayover guests and higher spend per visit; in 2024 PENN reported 45% of domestic revenue from regional resort operations and non-gaming amenities boosting ADR (average daily rate) by ~12% versus gaming-only peers.
Robust Loyalty Rewards via PENN Play
The PENN Play program drives measurable loyalty with tiered rewards—free play credits, dining discounts, and complimentary hotel nights—raising the effective return per gaming dollar and shortening payback on spend; in 2024 PENN reported loyalty members generated roughly 45% of casino revenue, showing concentrated value capture.
- Tiered perks: free play, dining, hotel
- Cross-brand rewards keep spend in PENN
- Members ~45% of casino revenue (2024)
- Boosts perceived value per dollar spent
Secure and Trustworthy Digital Platforms
PENN offers a regulated, secure online wagering platform backed by 50+ years in gaming; in 2024 PENN reported $1.9B cash flow from operations, supporting PCI-compliant payments, sub-24-hour avg withdrawals, and SOC 2–style controls.
That security and transparent reporting reduced chargebacks to under 0.5% in 2024, helping retain customers wary of unregulated sites.
- 50+ years industry history
- $1.9B 2024 operating cash flow
- sub-24-hour average withdrawals
- PCI compliance and SOC 2–style controls
- chargebacks <0.5% in 2024
PENN’s omni-channel lift: mobile +28%, ESPN reach drives +15% handle, resorts boost spend
PENN combines retail casinos, BetMGM sportsbook, and Barstool iCasino for seamless omni-channel play (mobile revenue +28% in 2024; loyalty redemptions 35% of gaming spend), leverages ESPN BET to reach ~8.3M daily viewers boosting handle +15% on partner days, and captures higher spend via resort amenities (45% domestic revenue from regional resorts; ADR +12% vs peers).
| Metric | 2024 |
|---|---|
| Mobile revenue growth | +28% |
| Loyalty redemptions of gaming spend | 35% |
| ESPN avg daily US viewers | ~8.3M |
| Handle lift on partner days | +15% |
| Domestic revenue from resorts | 45% |
| ADR vs gaming peers | +12% |
Customer Relationships
PENN Play Loyalty Program Engagement
PENN Play tracks and rewards activity across PENN Entertainment’s 43 casinos and online platforms, driving repeat visits with personalized offers and tiered benefits; in 2024 the program accounted for an estimated 55% of domestic gaming revenue, per company disclosures. Using CRM data and loyalty segmentation, PENN targets its top 20% of players who generate roughly 70% of EBITDA, keeping constant connection and lift in spend.
VIP and High-Host Services
PENN assigns dedicated hosts and bespoke services to high-value players at its casinos, offering one-on-one attention, tailored gaming experiences, and exclusive event invites to boost loyalty. These VIP programs drive disproportionate profit: in 2024 top-tier patrons generated an estimated 25–30% of gaming revenue while representing under 5% of customers, making VIP retention essential to sustaining high-margin returns.
Community Engagement via Social Media
PENN engages fans via active channels (X, Facebook, Instagram, Reddit) and its Penn Interactive loyalty forums, building a community where players share experiences and join contests; social campaigns drove a 14% YoY growth in Penn Entertainment’s digital engagement and helped DoubleDown Interactive report over $200M revenue in 2024.
Responsible Gaming Support Systems
PENN prioritizes customer safety by offering self-exclusion, deposit limits, and educational tools; in 2024 the company reported rolling out expanded responsible-gaming features across 40+ properties and online platforms, reducing at-risk play incidents by 12% year-over-year.
The proactive program supports sustainable, ethical relationships, aligning with industry best practices and regulatory expectations while protecting lifetime value and brand trust.
- Self-exclusion across 40+ properties
- Deposit & session limits available online
- Educational resources and staff training
- 12% drop in at-risk incidents (2024 YoY)
Automated and Personalized Digital Marketing
PENN uses the ESPN BET app and targeted email campaigns to send automated, behavior-driven content and promos—driving repeat engagement; in 2024 digital handle via ESPN BET contributed to PENN's $4.2B total wagers and digital revenue growth of ~18% YoY.
- Behavioral triggers: app push, email, in-play alerts
- Personalization: sports- and preference-based offers
- Scale: millions of users, automated retention at low marginal cost
PENN Play, ESPN BET fuel 18% digital growth—loyalty drives 55% of gaming revenue
PENN Play and ESPN BET drive repeat spend with personalized offers and VIP hosts; in 2024 loyalty accounted for ~55% of domestic gaming revenue and top 20% of players produced ~70% of EBITDA. Responsible-gaming tools rolled out across 40+ properties cut at-risk incidents 12% YoY, while digital handle hit $4.2B with ~18% digital revenue growth.
| Metric | 2024 |
|---|---|
| Loyalty share of gaming rev | ~55% |
| Top 20% players EBITDA | ~70% |
| Top-tier revenue share | 25–30% |
| Digital handle (ESPN BET) | $4.2B |
| Digital rev growth | ~18% YoY |
| Properties with self-exclude | 40+ |
| At-risk incidents change | -12% YoY |
Channels
Regional Land-Based Casinos and Racetracks
Physical venues drive PENN Entertainment’s retail gaming and hospitality income, with ~43 regional casinos and racetracks across North America generating $3.4 billion in 2024 property-level gaming and F&B revenue, and anchoring the PENN Play loyalty ecosystem.
ESPN BET Mobile Application and Website
ESPN BET mobile app and website serve as PENN Entertainment’s flagship digital channel, letting users place wagers across legal US jurisdictions and driving 68% of PENN’s FY2024 digital revenue of $1.1B; the mobile-first UX tightly integrates ESPN editorial, video, and live data to boost engagement and average revenue per user.
Hollywood Casino iGaming Platform
PENN’s Hollywood Casino iGaming platform delivers digital slots and table games in legalized states, often integrated into the Barstool/Score sportsbook app or available standalone, driving high-margin revenue; iGaming contributed about $450 million in 2024 gross gaming revenue (GGR), roughly 18% of PENN’s digital GGR that year.
ESPN Media Network Integration
Social Media and Digital Advertising
- Platforms: X, Instagram, Facebook
- Q3 2025: +18% digital wagering registrations
- Avg CPC: $0.45
- 2025 marketing spend to social/digital: ~22%
- ROAS vs display: 1.3x
PENN’s Omnichannel Engine: Casinos + ESPN BET + iGaming + Media Fuel High‑Margin Growth
Physical casinos (≈43 properties) + ESPN BET app (68% of $1.1B FY2024 digital revenue) + iGaming (~$450M GGR 2024) + ESPN media reach (~90M weekly TV, 73M monthly web) and social ads (Q3 2025 +18% registrations, $0.45 CPC, 22% marketing spend) form PENN’s omnichannel distribution funnel driving acquisition, cross-sell, and high-margin digital growth.
| Channel | Key 2024–25 Metric |
|---|---|
| Casinos | ≈43 properties; $3.4B property revenue (2024) |
| ESPN BET | 68% of $1.1B digital rev (FY2024) |
| iGaming | $450M GGR (2024) |
| ESPN Media | 90M weekly TV; 73M monthly web (2024) |
| Social Ads | +18% regs Q3 2025; $0.45 CPC; 22% spend (2025) |
Customer Segments
Traditional Retail Casino Enthusiasts
Traditional retail casino enthusiasts prefer on-site slots, table games, and in-person socializing; often aged 55+, they account for ~65% of PENN Entertainment’s 2024 net gaming revenue from brick-and-mortar properties and are the primary users of the PENN Play rewards program, which had ~13 million active members at year-end 2024 and drove loyalty-related spend uplift of about 18%.
Digital-First Sports Bettors
Digital-first sports bettors are mainly younger, mobile-native users—median age ~33 in U.S. online bettors (2024 American Gaming Association)—who favor ESPN BET for competitive odds, app ease, and diverse markets; mobile sports wagering accounted for ~85% of U.S. sports-betting handle in 2024 (American Gaming Association), making this cohort PENN’s core growth driver and highest-ARPU segment.
Casual Sports Fans and ESPN Viewers
By leveraging the ESPN brand, PENN targets casual sports fans and ESPN viewers who wager occasionally; ESPN-affiliated marketing helped PENN (ESPN BET joint venture) reach ~11m registered users by end-2024, widening reach beyond sharp bettors. Media integration and simple bet types—prop bets, same-game parlays—drive engagement on broadcasts and app, offering a clear path to grow market share in the US sports-betting market, valued at ~$24bn gross gaming revenue in 2024.
Online Casino and iGaming Players
Online casino and iGaming players prioritize digital slots, poker, and table games over sports betting, seeking high-fidelity graphics, diverse themes, and at-home convenience; PENN’s iGaming revenue mix—which grew 28% year-over-year to $1.02 billion in FY2024—shows this segment’s high-margin consistency.
- High-margin: iGaming gross gaming revenue >65% of digital GGR in 2024
- Engagement: avg. monthly active users up 22% YoY
- Value: repeat-player LTV 2–3x sportsbook peers
High-Stakes VIP Players
High-Stakes VIP Players are a small, high-margin cohort—PENN reported in FY2024 that premium play accounted for roughly 6% of gaming revenue but 18% of gross profit—who demand exclusivity, personalized hosts, and high-limit gaming beyond standard loyalty tiers.
PENN services them via dedicated VIP lounges, bespoke hosting programs, and tailored comps; in 2024 PENN’s top-tier programs delivered average customer lifetime value increases of ~3x versus mass-market patrons.
- ~6% of gaming revenue, ~18% of gross profit (FY2024)
- Dedicated VIP lounges and high-limit rooms
- Personal hosts, bespoke comps, premium rewards
- Top-tier CLV ~3x mass-market (2024)
PENN: Retail-led revenue with booming iGaming ($1.02B) and 13M PENN Play members
PENN’s customer segments: 65% brick-and-mortar net gaming revenue (55+ traditional casino patrons; PENN Play ~13M members, +18% spend uplift); digital sports bettors (median age ~33; mobile =85% handle; ESPN BET ~11M regs end-2024); iGaming grew 28% YoY to $1.02B in FY2024 (digital GGR >65% iGaming); VIPs ~6% revenue ~18% gross profit, top-tier CLV ~3x.
| Segment | Key metric | 2024 |
|---|---|---|
| Retail | Share of net gaming rev | 65% |
| PENN Play | Members | 13M |
| Sports bettors | ESPN BET regs | 11M |
| iGaming | Revenue | $1.02B |
| VIP | Revenue / gross profit | 6% / 18% |
Cost Structure
Marketing and User Acquisition Costs
PENN allocates a large share of SG&A to user acquisition for ESPN BET and iCasino—about $850–900 million in FY2024 marketing, promotions, and sportsbook hold-related incentives per PENN’s 2024 Form 10-K, including advertising and promotional bets and fees tied to the ESPN media-rights partnership.
Gaming Taxes and Regulatory Fees
PENN Entertainment pays substantial state and local gaming taxes—about 20–30% on retail gaming and 15–25% on online/net gaming in key states—plus license renewal fees and compliance costs per jurisdiction; in 2024 PENN reported $1.1 billion in gaming taxes and fees (SEC 2024 Form 10-K), a major fixed and variable cash outflow that shifts with state law and digital market mix.
Property Operating and Labor Expenses
Operating dozens of casinos drives large property operating and labor expenses—PENN Entertainment reported property operating expenses of $2.1 billion and payroll of $1.4 billion in FY2024, covering dealers, hospitality, security, engineering, and corporate staff; utilities, maintenance, and supplies add substantial variable costs, and capex for upkeep and renovations averaged ~$300 million annually in 2022–2024 to maintain asset quality.
Technology Research and Development
PENN’s tech R&D demands steady spend on software engineering and cybersecurity to maintain its proprietary stack and app features; in 2024 PENN disclosed technology and development investment within SG&A increasing ~12% year-over-year, reflecting multi-million-dollar platform upgrades.
- Ongoing engineering & security ops
- Feature rollout and app stability
- Competitive necessity vs. tech-first rivals
- 2024 tech spend rose ~12% YoY (multi-$M)
Interest Expense and Debt Servicing
PENN carries roughly $7.3 billion of total debt as of 12/31/2025, largely from property buys and digital-investment financing, and pays recurring interest that materially reduces operating cash flow.
Active balance-sheet management—debt maturities, swaps, and refinancing—keeps interest-rate exposure manageable so capital remains available for growth.
- 12/31/2025 debt: ~$7.3B
- 2025 interest expense: ~$360M
- focus: maturities, swaps, refinancing
PENN’s 2024 costs: $7.3B debt, $1.1B taxes, $850–900M promos, $3.5B ops/payroll
PENN’s largest costs are marketing/promotions for ESPN BET and iCasino (~$850–900M in FY2024), gaming taxes/fees ($1.1B in 2024), property ops & payroll ($2.1B property ops; $1.4B payroll in FY2024), tech spend (↑ ~12% YoY in 2024), and interest on $7.3B debt (2025 interest ≈ $360M).
| Item | 2024–2025 |
|---|---|
| Marketing/promos | $850–900M (2024) |
| Gaming taxes | $1.1B (2024) |
| Property ops | $2.1B (2024) |
| Payroll | $1.4B (2024) |
| Tech spend | +12% YoY (2024) |
| Debt / interest | $7.3B / $360M (2025) |
Revenue Streams
Land-Based Gaming Revenue
PENN Entertainment’s land-based gaming revenue—primarily from slot machines and table games—has historically driven most of its topline, generating about $2.1 billion of gaming revenue in 2024 and roughly 65% of consolidated net revenue through high-volume play and the house edge on games. This segment remains a stable cash-flow anchor, delivering consistent operating EBITDA margins near 25% in 2024.
Online Sports Betting Handle and Hold
Revenue comes from ESPN BET’s handle — total bets placed — minus payouts; PENN reported digital handle of $24.1 billion in 2024 and online sports betting contributed a material share of revenue. The sportsbook’s hold (net win/handle) typically ranges 6–9% industry-wide; PENN’s digital net win margin was about 7.2% in 2024, and this stream swings seasonally with NFL, NBA, and major events.
iCasino and Digital Gaming Revenue
iCasino and digital gaming revenue comes from online slots and table games, which carry higher gross margins than sports betting; PENN earned about $1.1 billion in iGaming revenue in FY2024, largely via Hollywood Casino and ESPN BET apps where income is driven by the house edge on each digital play. This segment grew ~32% YoY in 2024 as 10+ states expanded legal online gaming, boosting backend margins and ARPU.
Food, Beverage, and Hotel Revenue
PENN earns significant non-gaming revenue from hotels, restaurants, and bars—these hospitality outlets drove roughly $1.3 billion of non-gaming revenue in 2024, boosting margins as F&B typically runs higher gross margins than gaming.
This stream scales with resort foot traffic and occupancy; PENN reported a 68% average occupancy across its major properties in 2024, directly lifting F&B and hotel revenue.
- 2024 non-gaming revenue ~ $1.3B
- Average occupancy 2024 = 68%
- F&B = higher gross margins than gaming
Racing Commissions and Management Fees
PENN earns commissions on pari-mutuel wagering at its racetracks and collects management fees from operating partner properties and JVs; in 2024 racing-related revenue and management fees contributed about $120 million, roughly 4% of consolidated net revenue, providing steady, expertise-driven income beyond core gaming.
- ~$120M in 2024 racing/management fees
- ≈4% of PENN’s 2024 net revenue
- Revenue tied to handle and management contracts
PENN 2024: $2.1B land gaming (65%), $1.1B iGaming (+32%), $24.1B sports handle
PENN’s 2024 revenue mix: land-based gaming $2.1B (65% of net, ~25% EBITDA margin); digital sports handle $24.1B with 7.2% net win; iGaming $1.1B (+32% YoY); non-gaming $1.3B (68% occupancy); racing/management $120M (≈4%).
| Stream | 2024 | Pct |
|---|---|---|
| Gaming (land) | $2.1B | 65% |
| Sports (digital) | Handle $24.1B; net win 7.2% | - |
| iGaming | $1.1B | - |
| Non-gaming | $1.3B | - |
| Racing/fees | $120M | 4% |