0000921738--12-312020Q2FALSEus-gaap:AccountingStandardsUpdate201613Memberus-gaap:AccountingStandardsUpdate201602Memberus-gaap:AccountingStandardsUpdate201613Member0.0427350.0555555penn:LeaseRightOfUseAssetpenn:LeaseLiabilityCurrentpenn:LeaseLiabilityCurrentpenn:LeaseLiabilityNoncurrentpenn:LeaseLiabilityNoncurrentP5YP5Y0.001P3Y00009217382020-01-012020-06-30xbrli:shares00009217382020-07-31iso4217:USD00009217382020-06-3000009217382019-12-3100009217382019-06-30iso4217:USDxbrli:shares0000921738us-gaap:SeriesBPreferredStockMember2019-12-310000921738us-gaap:SeriesBPreferredStockMember2020-06-300000921738us-gaap:SeriesCPreferredStockMember2019-12-310000921738us-gaap:SeriesCPreferredStockMember2020-06-300000921738us-gaap:SeriesDPreferredStockMember2020-06-300000921738us-gaap:SeriesDPreferredStockMember2019-12-310000921738us-gaap:CasinoMember2020-04-012020-06-300000921738us-gaap:CasinoMember2019-04-012019-06-300000921738us-gaap:CasinoMember2020-01-012020-06-300000921738us-gaap:CasinoMember2019-01-012019-06-300000921738penn:FoodBeverageHotelAndOtherMember2020-04-012020-06-300000921738penn:FoodBeverageHotelAndOtherMember2019-04-012019-06-300000921738penn:FoodBeverageHotelAndOtherMember2020-01-012020-06-300000921738penn:FoodBeverageHotelAndOtherMember2019-01-012019-06-3000009217382020-04-012020-06-3000009217382019-04-012019-06-3000009217382019-01-012019-06-300000921738us-gaap:PreferredStockMember2020-03-310000921738us-gaap:CommonStockMember2020-03-310000921738us-gaap:TreasuryStockMember2020-03-310000921738us-gaap:AdditionalPaidInCapitalMember2020-03-310000921738us-gaap:RetainedEarningsMember2020-03-310000921738us-gaap:ParentMember2020-03-310000921738us-gaap:NoncontrollingInterestMember2020-03-3100009217382020-03-310000921738us-gaap:CommonStockMember2020-04-012020-06-300000921738us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000921738us-gaap:ParentMember2020-04-012020-06-300000921738us-gaap:RetainedEarningsMember2020-04-012020-06-300000921738us-gaap:NoncontrollingInterestMember2020-04-012020-06-300000921738us-gaap:PreferredStockMember2020-06-300000921738us-gaap:CommonStockMember2020-06-300000921738us-gaap:TreasuryStockMember2020-06-300000921738us-gaap:AdditionalPaidInCapitalMember2020-06-300000921738us-gaap:RetainedEarningsMember2020-06-300000921738us-gaap:ParentMember2020-06-300000921738us-gaap:NoncontrollingInterestMember2020-06-300000921738us-gaap:PreferredStockMember2019-03-310000921738us-gaap:CommonStockMember2019-03-310000921738us-gaap:TreasuryStockMember2019-03-310000921738us-gaap:AdditionalPaidInCapitalMember2019-03-310000921738us-gaap:RetainedEarningsMember2019-03-310000921738us-gaap:ParentMember2019-03-310000921738us-gaap:NoncontrollingInterestMember2019-03-3100009217382019-03-310000921738us-gaap:CommonStockMember2019-04-012019-06-300000921738us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300000921738us-gaap:ParentMember2019-04-012019-06-300000921738us-gaap:RetainedEarningsMember2019-04-012019-06-300000921738us-gaap:NoncontrollingInterestMember2019-04-012019-06-300000921738us-gaap:PreferredStockMember2019-06-300000921738us-gaap:CommonStockMember2019-06-300000921738us-gaap:TreasuryStockMember2019-06-300000921738us-gaap:AdditionalPaidInCapitalMember2019-06-300000921738us-gaap:RetainedEarningsMember2019-06-300000921738us-gaap:ParentMember2019-06-300000921738us-gaap:NoncontrollingInterestMember2019-06-300000921738us-gaap:PreferredStockMember2019-12-310000921738us-gaap:CommonStockMember2019-12-310000921738us-gaap:TreasuryStockMember2019-12-310000921738us-gaap:AdditionalPaidInCapitalMember2019-12-310000921738us-gaap:RetainedEarningsMember2019-12-310000921738us-gaap:ParentMember2019-12-310000921738us-gaap:NoncontrollingInterestMember2019-12-310000921738us-gaap:CommonStockMember2020-01-012020-06-300000921738us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300000921738us-gaap:ParentMember2020-01-012020-06-300000921738us-gaap:PreferredStockMember2020-01-012020-06-3000009217382019-01-012019-12-310000921738srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310000921738us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000921738srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000921738us-gaap:RetainedEarningsMember2020-01-012020-06-300000921738us-gaap:NoncontrollingInterestMember2020-01-012020-06-300000921738us-gaap:PreferredStockMember2018-12-310000921738us-gaap:CommonStockMember2018-12-310000921738us-gaap:TreasuryStockMember2018-12-310000921738us-gaap:AdditionalPaidInCapitalMember2018-12-310000921738us-gaap:RetainedEarningsMember2018-12-310000921738us-gaap:ParentMember2018-12-310000921738us-gaap:NoncontrollingInterestMember2018-12-3100009217382018-12-310000921738us-gaap:CommonStockMember2019-01-012019-06-300000921738us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-300000921738us-gaap:ParentMember2019-01-012019-06-3000009217382018-01-012018-12-310000921738srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2018-12-310000921738us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310000921738srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310000921738us-gaap:RetainedEarningsMember2019-01-012019-06-300000921738us-gaap:NoncontrollingInterestMember2019-01-012019-06-30xbrli:pure0000921738penn:BarstoolSportsIncMember2020-06-30penn:propertypenn:statepenn:numberOfEmployeepenn:project0000921738penn:RevolvingCreditFacilityEntered2017Due2022Member2020-03-132020-05-190000921738penn:TropicanaLasVegasMember2020-03-132020-05-190000921738penn:HollywoodCasinoMorgantownMember2020-03-132020-05-190000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-05-3100009217382020-03-132020-05-1900009217382020-05-140000921738penn:SeniorSecuredCreditFacilityMember2020-04-142020-04-14penn:facility0000921738penn:JackpotNevadaMember2020-06-30penn:segment0000921738penn:JackpotNevadaMember2020-01-012020-06-300000921738penn:KansasEntertainmentLLCMember2020-06-300000921738us-gaap:FoodAndBeverageMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMember2019-01-012019-06-300000921738us-gaap:OccupancyMember2020-04-012020-06-300000921738us-gaap:OccupancyMember2019-04-012019-06-300000921738us-gaap:OccupancyMember2020-01-012020-06-300000921738us-gaap:OccupancyMember2019-01-012019-06-300000921738us-gaap:ProductAndServiceOtherMember2020-04-012020-06-300000921738us-gaap:ProductAndServiceOtherMember2019-04-012019-06-300000921738us-gaap:ProductAndServiceOtherMember2020-01-012020-06-300000921738us-gaap:ProductAndServiceOtherMember2019-01-012019-06-300000921738penn:ContractWithCustomerLiabilityLoyaltyCreditMember2020-06-300000921738penn:ContractWithCustomerLiabilityLoyaltyCreditMember2019-12-310000921738penn:ContractWithCustomerLiabilityLoyaltyCreditMember2020-01-012020-06-300000921738penn:ContractWithCustomerLiabilityAdvancePaymentsOnGoodsAndServicesYetToBeProvidedAndUnpaidWagersMember2020-06-300000921738penn:ContractWithCustomerLiabilityAdvancePaymentsOnGoodsAndServicesYetToBeProvidedAndUnpaidWagersMember2019-12-31penn:agreement0000921738penn:OnlineSportsBettingAndIGamingMarketAccessMember2020-06-300000921738penn:OnlineSportsBettingAndIGamingMarketAccessMember2019-12-310000921738penn:NortheastSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CasinoMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:WestSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CasinoMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:CasinoMember2020-04-012020-06-300000921738us-gaap:CasinoMemberus-gaap:IntersegmentEliminationMember2020-04-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:FoodAndBeverageMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:WestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:CorporateNonSegmentMember2020-04-012020-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:IntersegmentEliminationMember2020-04-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:OccupancyMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:WestSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:OccupancyMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:OccupancyMember2020-04-012020-06-300000921738us-gaap:OccupancyMemberus-gaap:IntersegmentEliminationMember2020-04-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:WestSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2020-04-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberus-gaap:IntersegmentEliminationMember2020-04-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300000921738us-gaap:CorporateNonSegmentMember2020-04-012020-06-300000921738us-gaap:IntersegmentEliminationMember2020-04-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CasinoMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:WestSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CasinoMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:CasinoMember2019-04-012019-06-300000921738us-gaap:CasinoMemberus-gaap:IntersegmentEliminationMember2019-04-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:FoodAndBeverageMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:WestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:CorporateNonSegmentMember2019-04-012019-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:IntersegmentEliminationMember2019-04-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:OccupancyMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:WestSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:OccupancyMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:OccupancyMember2019-04-012019-06-300000921738us-gaap:OccupancyMemberus-gaap:IntersegmentEliminationMember2019-04-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:WestSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2019-04-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberus-gaap:IntersegmentEliminationMember2019-04-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300000921738us-gaap:CorporateNonSegmentMember2019-04-012019-06-300000921738us-gaap:IntersegmentEliminationMember2019-04-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CasinoMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:WestSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CasinoMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:CasinoMember2020-01-012020-06-300000921738us-gaap:CasinoMemberus-gaap:IntersegmentEliminationMember2020-01-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:FoodAndBeverageMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:WestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:CorporateNonSegmentMember2020-01-012020-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:IntersegmentEliminationMember2020-01-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:OccupancyMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:WestSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:OccupancyMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:OccupancyMember2020-01-012020-06-300000921738us-gaap:OccupancyMemberus-gaap:IntersegmentEliminationMember2020-01-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:WestSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-06-300000921738us-gaap:ProductAndServiceOtherMemberus-gaap:IntersegmentEliminationMember2020-01-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300000921738us-gaap:CorporateNonSegmentMember2020-01-012020-06-300000921738us-gaap:IntersegmentEliminationMember2020-01-012020-06-300000921738penn:NortheastSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CasinoMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:WestSegmentMemberus-gaap:CasinoMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CasinoMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:CasinoMember2019-01-012019-06-300000921738us-gaap:CasinoMemberus-gaap:IntersegmentEliminationMember2019-01-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:FoodAndBeverageMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:WestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:FoodAndBeverageMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:CorporateNonSegmentMember2019-01-012019-06-300000921738us-gaap:FoodAndBeverageMemberus-gaap:IntersegmentEliminationMember2019-01-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:OccupancyMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:WestSegmentMemberus-gaap:OccupancyMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:OccupancyMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:OccupancyMember2019-01-012019-06-300000921738us-gaap:OccupancyMemberus-gaap:IntersegmentEliminationMember2019-01-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:WestSegmentMemberus-gaap:ProductAndServiceOtherMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberpenn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CorporateNonSegmentMemberus-gaap:ProductAndServiceOtherMember2019-01-012019-06-300000921738us-gaap:ProductAndServiceOtherMemberus-gaap:IntersegmentEliminationMember2019-01-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300000921738us-gaap:CorporateNonSegmentMember2019-01-012019-06-300000921738us-gaap:IntersegmentEliminationMember2019-01-012019-06-300000921738penn:GreektownCasinoHotelMember2019-05-232019-05-230000921738penn:GreektownCasinoHotelMember2019-05-23penn:renewal_option0000921738penn:GreektownCasinoHotelMember2020-03-310000921738penn:GreektownCasinoHotelMemberus-gaap:LicensingAgreementsMember2020-03-310000921738us-gaap:TrademarksMemberpenn:GreektownCasinoHotelMember2020-03-310000921738penn:MargaritavilleResortCasinoMember2019-01-012019-01-010000921738penn:MargaritavilleResortCasinoMember2020-01-012020-03-310000921738penn:HollywoodCasinoPerryvilleMember2020-04-162020-04-160000921738penn:TropicanaLasVegasMember2020-04-162020-04-160000921738penn:TropicanaLasVegasMember2020-06-300000921738penn:TropicanaLasVegasMember2020-01-012020-06-300000921738penn:TropicanaLasVegasMember2020-04-012020-06-300000921738penn:LandAndLandImprovementsNotSubjectToMasterLeaseMember2020-06-300000921738penn:LandAndLandImprovementsNotSubjectToMasterLeaseMember2019-12-310000921738penn:BuildingsVesselsAndImprovementsNotSubjectToMasterLeaseMember2020-06-300000921738penn:BuildingsVesselsAndImprovementsNotSubjectToMasterLeaseMember2019-12-310000921738penn:FurnitureFixturesAndEquipmentNotSubjectToMasterLeaseMember2020-06-300000921738penn:FurnitureFixturesAndEquipmentNotSubjectToMasterLeaseMember2019-12-310000921738penn:LeaseholdImprovementsNotSubjectToMasterLeaseMember2020-06-300000921738penn:LeaseholdImprovementsNotSubjectToMasterLeaseMember2019-12-310000921738penn:ConstructionInProgressNotSubjectToMasterLeaseMember2020-06-300000921738penn:ConstructionInProgressNotSubjectToMasterLeaseMember2019-12-310000921738penn:AssetsExcludingAssetsHeldUnderMasterLeasesMember2020-06-300000921738penn:AssetsExcludingAssetsHeldUnderMasterLeasesMember2019-12-310000921738penn:LandAndLandImprovementsSubjectToMasterLeaseMember2020-06-300000921738penn:LandAndLandImprovementsSubjectToMasterLeaseMember2019-12-310000921738penn:BuildingsVesselsAndImprovementsSubjectToMasterLeaseMember2020-06-300000921738penn:BuildingsVesselsAndImprovementsSubjectToMasterLeaseMember2019-12-310000921738penn:AssetsHeldUnderMasterLeasesMember2020-06-300000921738penn:AssetsHeldUnderMasterLeasesMember2019-12-310000921738penn:AssetsHeldUnderMasterLeasesMember2020-04-012020-06-300000921738penn:AssetsHeldUnderMasterLeasesMember2019-04-012019-06-300000921738penn:AssetsHeldUnderMasterLeasesMember2020-01-012020-06-300000921738penn:AssetsHeldUnderMasterLeasesMember2019-01-012019-06-300000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000921738us-gaap:CorporateNonSegmentMember2019-12-310000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2020-06-300000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-06-300000921738penn:WestSegmentMemberus-gaap:OperatingSegmentsMember2020-06-300000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-06-300000921738us-gaap:CorporateNonSegmentMember2020-06-3000009217382020-01-012020-03-310000921738us-gaap:LicensingAgreementsMember2020-01-012020-03-310000921738us-gaap:TrademarksMember2020-01-012020-03-310000921738penn:NortheastSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000921738penn:SouthSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000921738penn:MidwestSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-03-310000921738penn:NortheastSegmentMemberus-gaap:LicensingAgreementsMember2020-01-012020-03-310000921738penn:SouthSegmentMemberus-gaap:LicensingAgreementsMember2020-01-012020-03-310000921738penn:MidwestSegmentMemberus-gaap:LicensingAgreementsMember2020-01-012020-03-310000921738penn:NortheastSegmentMemberus-gaap:TrademarksMember2020-01-012020-03-310000921738us-gaap:TrademarksMemberpenn:SouthSegmentMember2020-01-012020-03-310000921738us-gaap:TrademarksMemberpenn:MidwestSegmentMember2020-01-012020-03-310000921738us-gaap:TrademarksMemberpenn:WestSegmentMember2020-01-012020-03-31penn:reporting_unit0000921738penn:NortheastSegmentMemberpenn:HollywoodCasinoatCharlesTownRacesMember2020-03-310000921738penn:NortheastSegmentMemberpenn:HollywoodCasinoToledoMember2020-03-310000921738penn:NortheastSegmentMemberpenn:PlainridgeParkCasinoMember2020-03-310000921738penn:BoomtownNewOrleansMemberpenn:SouthSegmentMember2020-03-310000921738penn:AmeristarCouncilBluffsMemberpenn:MidwestSegmentMember2020-03-310000921738us-gaap:LicensingAgreementsMember2020-06-300000921738us-gaap:LicensingAgreementsMember2019-12-310000921738us-gaap:TrademarksMember2020-06-300000921738us-gaap:TrademarksMember2019-12-310000921738us-gaap:OtherIntangibleAssetsMember2020-06-300000921738us-gaap:OtherIntangibleAssetsMember2019-12-310000921738us-gaap:CustomerRelationshipsMember2020-06-300000921738us-gaap:CustomerRelationshipsMember2019-12-310000921738us-gaap:OtherIntangibleAssetsMember2020-06-300000921738us-gaap:OtherIntangibleAssetsMember2019-12-310000921738us-gaap:LineOfCreditMemberpenn:RevolvingCreditFacilityDue2023Member2020-06-300000921738us-gaap:LineOfCreditMemberpenn:RevolvingCreditFacilityDue2023Member2019-12-310000921738us-gaap:LineOfCreditMemberpenn:TermLoanAFacilityDue2023Member2020-06-300000921738us-gaap:LineOfCreditMemberpenn:TermLoanAFacilityDue2023Member2019-12-310000921738penn:TermLoanB1FacilityDue2025Memberus-gaap:LineOfCreditMember2020-06-300000921738penn:TermLoanB1FacilityDue2025Memberus-gaap:LineOfCreditMember2019-12-310000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2020-06-300000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2019-12-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-06-300000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2019-12-310000921738us-gaap:NotesPayableOtherPayablesMember2020-06-300000921738us-gaap:NotesPayableOtherPayablesMember2019-12-310000921738penn:RevolvingCreditFacilityEntered2017Due2022Memberus-gaap:LineOfCreditMember2017-01-012017-01-310000921738penn:RevolvingCreditFacilityEntered2017Due2022Memberus-gaap:LineOfCreditMember2017-01-310000921738penn:TermLoanAFacilityEntered2017Due2022Memberus-gaap:LineOfCreditMember2017-01-012017-01-310000921738penn:TermLoanAFacilityEntered2017Due2022Memberus-gaap:LineOfCreditMember2017-01-310000921738penn:TermLoanBFacilityEntered2017Due2024Memberus-gaap:LineOfCreditMember2017-01-012017-01-310000921738penn:TermLoanBFacilityEntered2017Due2024Memberus-gaap:LineOfCreditMember2017-01-310000921738penn:RevolvingCreditFacilityEntered2017Due2022Memberus-gaap:LineOfCreditMember2020-06-300000921738penn:TermLoanAFacilityDue2023IncrementalCapacityMemberus-gaap:LineOfCreditMember2018-10-150000921738penn:TermLoanB1FacilityDue2025Memberus-gaap:LineOfCreditMember2018-10-150000921738penn:SeniorSecuredCreditFacilityMemberpenn:CovenantReliefPeriodOneMember2020-04-140000921738penn:CovenantReliefPeriodTwoMemberpenn:SeniorSecuredCreditFacilityMember2020-04-140000921738penn:SeniorSecuredCreditFacilityMemberpenn:CovenantReliefPeriodThreeMember2020-04-140000921738penn:SeniorSecuredCreditFacilityMemberpenn:CovenantReliefPeriodFourMember2020-04-140000921738srt:MaximumMemberpenn:SeniorSecuredCreditFacilityMember2020-04-140000921738srt:MinimumMemberpenn:SeniorSecuredCreditFacilityMember2020-04-140000921738penn:SeniorSecuredCreditFacilityMember2020-04-140000921738us-gaap:BaseRateMemberpenn:SeniorSecuredCreditFacilityMember2020-04-142020-04-140000921738penn:SeniorSecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-04-142020-04-140000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2017-01-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-05-012020-05-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-05-140000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-06-302020-06-300000921738us-gaap:DebtInstrumentRedemptionPeriodOneMember2020-05-012020-05-310000921738us-gaap:DebtInstrumentRedemptionPeriodTwoMember2020-05-012020-05-310000921738us-gaap:DebtInstrumentRedemptionPeriodThreeMember2020-05-012020-05-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026LiabilityComponentMember2020-05-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026EquityComponentMember2020-05-310000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-01-012020-06-300000921738us-gaap:ConvertibleDebtMemberpenn:ConvertibleNotesDue2026Member2020-04-012020-06-300000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2020-06-300000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2019-12-310000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2014-12-31penn:payment0000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2014-10-012014-12-310000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2020-04-012020-06-300000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2020-01-012020-06-300000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2019-04-012019-06-300000921738penn:RelocationForHollywoodGamingAtDaytonRacewayAndHollywoodGamingAtMahoningMemberus-gaap:NotesPayableOtherPayablesMember2019-01-012019-06-300000921738us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMemberpenn:ConvertibleNotesDue2026Member2020-05-012020-05-310000921738us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodThreeMemberpenn:ConvertibleNotesDue2026Member2020-05-012020-05-310000921738penn:PennMasterLeaseMember2013-11-010000921738penn:PennMasterLeaseMember2013-11-012013-11-01penn:extension_period0000921738penn:PinnacleMasterLeaseMember2016-04-280000921738penn:PinnacleMasterLeaseMember2016-04-282016-04-280000921738penn:PinnacleMasterLeaseMember2020-05-012020-05-010000921738penn:PinnacleMasterLeaseMember2020-05-010000921738penn:TropicanaLasVegasMember2020-04-160000921738penn:MargaritavilleLeaseMember2020-02-012020-02-010000921738penn:MargaritavilleLeaseMember2020-02-010000921738penn:PennMasterLeaseMember2020-04-012020-06-300000921738penn:PennMasterLeaseMember2019-04-012019-06-300000921738penn:PennMasterLeaseMember2020-01-012020-06-300000921738penn:PennMasterLeaseMember2019-01-012019-06-300000921738penn:PinnacleMasterLeaseMember2020-04-012020-06-300000921738penn:PinnacleMasterLeaseMember2019-04-012019-06-300000921738penn:PinnacleMasterLeaseMember2020-01-012020-06-300000921738penn:PinnacleMasterLeaseMember2019-01-012019-06-300000921738penn:MeadowsLeaseMember2020-04-012020-06-300000921738penn:MeadowsLeaseMember2019-04-012019-06-300000921738penn:MeadowsLeaseMember2020-01-012020-06-300000921738penn:MeadowsLeaseMember2019-01-012019-06-300000921738penn:MargaritavilleLeaseMember2020-04-012020-06-300000921738penn:MargaritavilleLeaseMember2019-04-012019-06-300000921738penn:MargaritavilleLeaseMember2020-01-012020-06-300000921738penn:MargaritavilleLeaseMember2019-01-012019-06-300000921738penn:GreektownLeaseMember2020-04-012020-06-300000921738penn:GreektownLeaseMember2019-04-012019-06-300000921738penn:GreektownLeaseMember2020-01-012020-06-300000921738penn:GreektownLeaseMember2019-01-012019-06-300000921738us-gaap:GeneralAndAdministrativeExpenseMember2020-04-012020-06-300000921738us-gaap:GeneralAndAdministrativeExpenseMember2019-04-012019-06-300000921738us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-06-300000921738us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-06-300000921738us-gaap:CostOfGoodsTotalMember2020-04-012020-06-300000921738us-gaap:CostOfGoodsTotalMember2019-04-012019-06-300000921738us-gaap:CostOfGoodsTotalMember2020-01-012020-06-300000921738us-gaap:CostOfGoodsTotalMember2019-01-012019-06-300000921738us-gaap:CasinoMemberus-gaap:CostOfGoodsTotalMember2020-04-012020-06-300000921738us-gaap:CasinoMemberus-gaap:CostOfGoodsTotalMember2019-04-012019-06-300000921738us-gaap:CasinoMemberus-gaap:CostOfGoodsTotalMember2020-01-012020-06-300000921738us-gaap:CasinoMemberus-gaap:CostOfGoodsTotalMember2019-01-012019-06-300000921738us-gaap:InterestExpenseMember2020-04-012020-06-300000921738us-gaap:InterestExpenseMember2019-04-012019-06-300000921738us-gaap:InterestExpenseMember2020-01-012020-06-300000921738us-gaap:InterestExpenseMember2019-01-012019-06-300000921738penn:DepreciationAndAmortizationExpenseMember2020-04-012020-06-300000921738penn:DepreciationAndAmortizationExpenseMember2019-04-012019-06-300000921738penn:DepreciationAndAmortizationExpenseMember2020-01-012020-06-300000921738penn:DepreciationAndAmortizationExpenseMember2019-01-012019-06-300000921738penn:PennMasterLeaseMemberus-gaap:GeneralAndAdministrativeExpenseMember2020-04-012020-06-300000921738penn:PennMasterLeaseMemberus-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-06-300000921738penn:PennMasterLeaseMemberus-gaap:GeneralAndAdministrativeExpenseMember2019-04-012019-06-300000921738penn:PennMasterLeaseMemberus-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-06-300000921738penn:PennMasterLeaseMemberus-gaap:InterestExpenseMember2020-04-012020-06-300000921738penn:PennMasterLeaseMemberus-gaap:InterestExpenseMember2020-01-012020-06-300000921738penn:PennMasterLeaseMemberus-gaap:InterestExpenseMember2019-04-012019-06-300000921738penn:PennMasterLeaseMemberus-gaap:InterestExpenseMember2019-01-012019-06-300000921738penn:FreeholdRacewayMember2020-06-300000921738penn:MAXXAMMember2020-06-300000921738penn:BarstoolSportsIncMember2020-02-012020-02-290000921738penn:BarstoolSportsIncMember2020-02-290000921738penn:BarstoolSportsIncMember2020-02-290000921738us-gaap:SeriesDPreferredStockMember2020-02-202020-02-200000921738us-gaap:SeriesDPreferredStockMember2020-02-200000921738penn:BarstoolSportsIncMember2020-06-300000921738penn:KansasEntertainmentLLCMember2019-12-310000921738penn:KansasEntertainmentLLCMember2020-04-012020-06-300000921738penn:KansasEntertainmentLLCMember2019-04-012019-06-300000921738penn:KansasEntertainmentLLCMember2020-01-012020-06-300000921738penn:KansasEntertainmentLLCMember2019-01-012019-06-300000921738penn:KansasEntertainmentLLCMember2020-04-012020-06-300000921738penn:KansasEntertainmentLLCMember2019-04-012019-06-300000921738penn:KansasEntertainmentLLCMember2020-01-012020-06-300000921738penn:KansasEntertainmentLLCMember2019-01-012019-06-300000921738penn:MAXXAMMember2020-01-012020-06-300000921738srt:MinimumMember2020-06-300000921738srt:MaximumMember2020-06-3000009217382020-05-142020-05-1400009217382020-05-192020-05-1900009217382020-05-142020-05-1900009217382020-05-190000921738penn:A2018LongTermIncentiveCompensationPlanMember2018-09-300000921738penn:A2018LongTermIncentiveCompensationPlanMember2018-06-012018-06-300000921738us-gaap:RestrictedStockMemberpenn:A2018LongTermIncentiveCompensationPlanMember2018-06-012018-06-300000921738penn:A2018LongTermIncentiveCompensationPlanMember2020-06-300000921738penn:PerformanceShareProgramMemberus-gaap:PerformanceSharesMember2019-02-012019-02-280000921738penn:PerformanceShareProgramMemberus-gaap:PerformanceSharesMember2020-01-012020-06-30penn:performance_period0000921738srt:MinimumMemberpenn:PerformanceShareProgramMemberus-gaap:PerformanceSharesMember2020-01-012020-06-300000921738srt:MaximumMemberpenn:PerformanceShareProgramMemberus-gaap:PerformanceSharesMember2020-01-012020-06-300000921738us-gaap:StockAppreciationRightsSARSMember2020-01-012020-06-300000921738us-gaap:StockAppreciationRightsSARSMember2020-06-300000921738us-gaap:StockAppreciationRightsSARSMember2019-12-310000921738us-gaap:StockAppreciationRightsSARSMember2020-04-012020-06-300000921738us-gaap:StockAppreciationRightsSARSMember2019-04-012019-06-300000921738us-gaap:StockAppreciationRightsSARSMember2019-01-012019-06-300000921738srt:MinimumMemberus-gaap:PhantomShareUnitsPSUsMember2020-01-012020-06-300000921738srt:MaximumMemberus-gaap:PhantomShareUnitsPSUsMember2020-01-012020-06-300000921738us-gaap:PhantomShareUnitsPSUsMember2020-06-300000921738us-gaap:PhantomShareUnitsPSUsMember2019-12-310000921738us-gaap:PhantomShareUnitsPSUsMember2020-01-012020-06-300000921738us-gaap:PhantomShareUnitsPSUsMember2020-04-012020-06-300000921738us-gaap:PhantomShareUnitsPSUsMember2019-04-012019-06-300000921738us-gaap:PhantomShareUnitsPSUsMember2019-01-012019-06-3000009217382019-01-310000921738us-gaap:EmployeeStockOptionMember2020-04-012020-06-300000921738us-gaap:EmployeeStockOptionMember2020-01-012020-06-300000921738us-gaap:RestrictedStockMember2020-04-012020-06-300000921738us-gaap:RestrictedStockMember2020-01-012020-06-300000921738us-gaap:EmployeeStockOptionMember2019-04-012019-06-300000921738us-gaap:EmployeeStockOptionMember2019-01-012019-06-300000921738us-gaap:RestrictedStockMember2019-04-012019-06-300000921738us-gaap:RestrictedStockMember2019-01-012019-06-300000921738penn:RetamaNominalHolderLLCMember2020-06-300000921738penn:PinnacleRetamaPartnersLLCMember2020-06-300000921738penn:PinnacleRetamaPartnersLLCMemberpenn:RetamaDevelopmentCorporationMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310000921738penn:PinnacleRetamaPartnersLLCMemberpenn:RetamaDevelopmentCorporationMemberus-gaap:OtherNoncurrentAssetsMember2020-06-300000921738penn:PinnacleRetamaPartnersLLCMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:OtherNoncurrentAssetsMember2020-06-300000921738penn:PlainridgeParkCasinoMember2020-01-012020-06-300000921738penn:PlainridgeParkCasinoMember2020-06-300000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel1Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738penn:SeniorNotesDue2027Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberpenn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberpenn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMemberpenn:ConvertibleNotesDue2026Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMemberpenn:ConvertibleNotesDue2026Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberpenn:ConvertibleNotesDue2026Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberpenn:ConvertibleNotesDue2026Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:SeniorNotesMemberpenn:ConvertibleNotesDue2026Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel1Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel2Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel1Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel2Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:LineOfCreditMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738penn:SeniorNotesDue2027Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberpenn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738penn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel3Memberpenn:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel1Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel2Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:NotesPayableOtherPayablesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueMeasurementsRecurringMember2019-12-310000921738us-gaap:FairValueMeasurementsRecurringMember2020-01-012020-06-300000921738us-gaap:FairValueMeasurementsRecurringMember2020-06-300000921738us-gaap:FairValueInputsLevel1Member2020-06-300000921738us-gaap:FairValueInputsLevel2Member2020-06-300000921738us-gaap:FairValueInputsLevel3Member2020-06-300000921738us-gaap:FairValueInputsLevel1Memberus-gaap:LicensingAgreementsMember2020-06-300000921738us-gaap:FairValueInputsLevel2Memberus-gaap:LicensingAgreementsMember2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:LicensingAgreementsMember2020-06-300000921738us-gaap:LicensingAgreementsMember2020-01-012020-06-300000921738us-gaap:TrademarksMemberus-gaap:FairValueInputsLevel1Member2020-06-300000921738us-gaap:TrademarksMemberus-gaap:FairValueInputsLevel2Member2020-06-300000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMember2020-06-300000921738us-gaap:TrademarksMember2020-01-012020-06-300000921738us-gaap:FairValueInputsLevel3Memberpenn:PlainridgeParkCasinoMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-06-300000921738us-gaap:LicensingAgreementsMember2020-03-310000921738us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:LicensingAgreementsMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:LicensingAgreementsMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:LicensingAgreementsMemberus-gaap:MeasurementInputLongTermRevenueGrowthRateMember2020-03-310000921738us-gaap:TrademarksMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputLongTermRevenueGrowthRateMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberpenn:MeasurementInputPreTaxRoyaltyRateMember2020-03-310000921738us-gaap:FairValueInputsLevel3Memberus-gaap:TrademarksMembersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberpenn:MeasurementInputPreTaxRoyaltyRateMember2020-03-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 0-24206
PENN NATIONAL GAMING, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2234473
(State or other jurisdiction of incorporation or organization) (I.R.S. employer identification no.)
825 Berkshire Blvd., Suite 200 Wyomissing, Pennsylvania 19610
(Address of principal executive offices)
(Zip code)
(610) 373-2400
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value per share PENN The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
As of July 31, 2020, the number of shares of the registrant’s common stock outstanding was 137,629,433.



PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
Page
1
1
2
3
4
6



PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except share and per share data) June 30,
2020
December 31,
2019
Assets    
Current assets    
Cash and cash equivalents $ 1,244.3    $ 437.4   
Receivables, net of allowance for doubtful accounts of $11.0 and $7.7
71.1    88.7   
Prepaid expenses 57.1    54.6   
Income tax receivable 64.2    22.1   
Other current assets 209.9    40.0   
Total current assets 1,646.6    642.8   
Property and equipment, net 4,677.0    5,120.2   
Investment in and advances to unconsolidated affiliates 264.0    128.3   
Goodwill and other intangible assets, net 2,677.4    3,297.2   
Lease right-of-use assets 4,862.3    4,837.3   
Other assets 194.2    168.7   
Total assets $ 14,321.5    $ 14,194.5   
Liabilities    
Current liabilities    
Accounts payable $ 30.6    $ 40.3   
Current maturities of long-term debt 72.1    62.9   
Current portion of financing obligations 34.6    40.5   
Current portion of lease liabilities 130.1    130.6   
Accrued expenses and other current liabilities 560.4    631.3   
Total current liabilities 827.8    905.6   
Long-term debt, net of current maturities, debt discount and debt issuance costs 3,044.8    2,322.2   
Long-term portion of financing obligations 4,084.6    4,102.2   
Long-term portion of lease liabilities 4,623.8    4,670.0   
Deferred income taxes 130.5    244.6   
Other long-term liabilities 105.1    98.0   
Total liabilities 12,816.6    12,342.6   
Commitments and contingencies (Note 13)
Stockholders’ equity  
Series B Preferred stock ($0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding)
—    —   
Series C Preferred stock ($0.01 par value, 18,500 shares authorized, no shares issued and outstanding)
—    —   
Series D Preferred stock ($0.01 par value, 5,000 shares authorized, 883 shares issued and outstanding)
23.1    —   
Common stock ($0.01 par value, 200,000,000 shares authorized, 139,602,483 and 118,125,652 shares issued, and 137,435,090 and 115,958,259 shares outstanding)
1.4    1.2   
Treasury stock, at cost, (2,167,393 shares held in both periods)
(28.4)   (28.4)  
Additional paid-in capital 2,170.4    1,718.3   
Retained earnings (accumulated deficit) (660.3)   161.6   
Total Penn National stockholders’ equity 1,506.2    1,852.7   
Non-controlling interest (1.3)   (0.8)  
Total stockholders’ equity 1,504.9    1,851.9   
Total liabilities and stockholders’ equity $ 14,321.5    $ 14,194.5   
See accompanying notes to the Condensed Consolidated Financial Statements.
1

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
  For the three months ended June 30, For the six months ended June 30,
(in millions, except per share data) 2020 2019 2020 2019
Revenues    
Gaming $ 259.2    $ 1,062.1    $ 1,162.1    $ 2,096.7   
Food, beverage, hotel and other 46.3    261.0    259.5    509.0   
Total revenues 305.5    1,323.1    1,421.6    2,605.7   
Operating expenses        
Gaming 142.0    564.1    642.9    1,111.6   
Food, beverage, hotel and other 32.9    167.6    189.9    329.3   
General and administrative 204.1    287.0    511.1    573.9   
Depreciation and amortization 91.9    106.0    187.6    210.1   
Impairment losses —    —    616.1    —   
Total operating expenses 470.9    1,124.7    2,147.6    2,224.9   
Operating income (loss) (165.4)   198.4    (726.0)   380.8   
Other income (expenses)
Interest expense, net (135.0)   (134.7)   (264.8)   (267.0)  
Income (loss) from unconsolidated affiliates (1.7)   6.2    2.4    11.9   
Other 29.3    —    7.5    —   
Total other expenses (107.4)   (128.5)   (254.9)   (255.1)  
Income (loss) before income taxes (272.8)   69.9    (980.9)   125.7   
Income tax benefit (expense) 58.4    (18.5)   157.9    (33.4)  
Net income (loss) (214.4)   51.4    (823.0)   92.3   
Less: Net loss attributable to non-controlling interest 0.5    0.2    0.5    0.2   
Net income (loss) attributable to Penn National $ (213.9)   $ 51.6    $ (822.5)   $ 92.5   
Comprehensive income (loss) $ (214.4)   $ 51.4    $ (823.0)   $ 92.3   
Less: Comprehensive loss attributable to non-controlling interest 0.5    0.2    0.5    0.2   
Comprehensive income (loss) attributable to Penn National $ (213.9)   $ 51.6    $ (822.5)   $ 92.5   
Earnings (loss) per share:        
Basic earnings (loss) per share $ (1.69)   $ 0.44    $ (6.78)   $ 0.80   
Diluted earnings (loss) per share $ (1.69)   $ 0.44    $ (6.78)   $ 0.78   
Weighted-average common shares outstanding - basic 126.8    116.0    121.3    116.1   
Weighted-average common shares outstanding - diluted 126.8    117.7    121.3    118.2   
See accompanying notes to the Condensed Consolidated Financial Statements.

2

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
Three Months Ended June 30, 2020 and 2019
Preferred Stock Common Stock Treasury
Stock
Addi-
tional
Paid-In
Capital
Retained Earnings (Accum-
ulated Deficit)
Total Penn National Stock-
holders’
Equity
Non-Control-
ling Interest
Total
Stock-
holders’ Equity
(in millions, except share data) Shares Amount Shares Amount
Balance as of April 1, 2020 883    $ 23.1    116,793,722    $ 1.2    $ (28.4)   $ 1,728.9    $ (446.4)   $ 1,278.4    $ (0.8)   $ 1,277.6   
Share-based compensation arrangements —    —    1,474,701    —    —    22.1    —    22.1    —    22.1   
Common stock offering (Note 14) —    —    19,166,667    0.2    —    331.0    —    331.2    —    331.2   
Convertible debt offering (Note 9) —    —    —    —    —    88.2    —    88.2    —    88.2   
Net loss —    —    —    —    —    —    (213.9)   (213.9)   (0.5)   (214.4)  
Other —    —    —    —    —    0.2    —    0.2    —    0.2   
Balance as of June 30, 2020 883    $ 23.1    137,435,090    $ 1.4    $ (28.4)   $ 2,170.4    $ (660.3)   $ 1,506.2    $ (1.3)   $ 1,504.9   
Balance as of April 1, 2019 —    $ —    117,140,551    $ 1.2    $ (28.4)   $ 1,730.3    $ 158.6    $ 1,861.7    $ —    $ 1,861.7   
Share-based compensation arrangements —    —    1,041    —    —    3.5    —    3.5    —    3.5   
Share repurchases —    —    (1,271,823)   —    —    (24.9)   —    (24.9)   —    (24.9)  
Net income (loss) —    —    —    —    —    —    51.6    51.6    (0.2)   51.4   
Balance as of June 30, 2019 —    $ —    115,869,769    $ 1.2    $ (28.4)   $ 1,708.9    $ 210.2    $ 1,891.9    $ (0.2)   $ 1,891.7   
Six Months Ended June 30, 2020 and 2019
Preferred Stock Common Stock Treasury
Stock
Addi-
tional
Paid-In
Capital
Retained Earnings (Accum-
ulated Deficit)
Total Penn National Stock-
holders’
Equity
Non-Control-
ling Interest
Total
Stock-
holders’ Equity
(in millions, except share data) Shares Amount Shares Amount
Balance as of January 1, 2020 —    $ —    115,958,259    $ 1.2    $ (28.4)   $ 1,718.3    $ 161.6    $ 1,852.7    $ (0.8)   $ 1,851.9   
Share-based compensation arrangements —    —    2,310,164    —    —    32.7    —    32.7    —    32.7   
Common stock offering (Note 14) —    —    19,166,667    0.2    —    331.0    —    331.2    —    331.2   
Convertible debt offering (Note 9) —    —    —    —    —    88.2    —    88.2    —    88.2   
Barstool Sports investment (Note 11) 883    23.1    —    —    —    —    —    23.1    —    23.1   
Cumulative-effect adjustment upon adoption of ASU 2016-13 —    —    —    —    —    —    0.6    0.6    —    0.6   
Net loss —    —    —    —    —    —    (822.5)   (822.5)   (0.5)   (823.0)  
Other —    —    —    —    —    0.2    —    0.2    —    0.2   
Balance as of June 30, 2020 883    $ 23.1    137,435,090    $ 1.4    $ (28.4)   $ 2,170.4    $ (660.3)   $ 1,506.2    $ (1.3)   $ 1,504.9   
Balance as of January 1, 2019 —    $ —    116,687,808    $ 1.2    $ (28.4)   $ 1,726.4    $ (968.0)   $ 731.2    $ —    $ 731.2   
Share-based compensation arrangements —    —    453,784    —    —    7.4    —    7.4    —    7.4   
Cumulative-effect adjustment upon adoption of ASC 842 —    —    —    —    —    —    1,085.7    1,085.7    —    1,085.7   
Share repurchases —    —    (1,271,823)   —    —    (24.9)   —    (24.9)   —    (24.9)  
Net income (loss) —    —    —    —    —    —    92.5    92.5    (0.2)   92.3   
Balance as of June 30, 2019 —    $ —    115,869,769    $ 1.2    $ (28.4)   $ 1,708.9    $ 210.2    $ 1,891.9    $ (0.2)   $ 1,891.7   
See accompanying notes to the Condensed Consolidated Financial Statements.
3

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
  For the six months ended June 30,
(in millions) 2020 2019
Operating activities    
Net income (loss) $ (823.0)   $ 92.3   
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 187.6    210.1   
Amortization of debt discount and debt issuance costs 5.6    3.8   
Noncash operating lease expense 52.5    61.0   
Change in fair value of contingent purchase price (1.4)   5.8   
Holding gain on equity securities (7.7)   —   
Loss (gain) on sale or disposal of property and equipment (27.9)   0.9   
Noncash rent and interest expense related to the utilization of rent credits 110.7    —   
Income from unconsolidated affiliates (2.4)   (11.9)  
Return on investment from unconsolidated affiliates 10.5    13.5   
Deferred income taxes (114.2)   15.4   
Stock-based compensation 8.9    6.7   
Impairment losses 616.1    —   
Changes in operating assets and liabilities, net of businesses acquired
Accounts receivable 18.3    7.6   
Prepaid expenses and other current assets 4.3    (0.3)  
Other assets 0.3    (1.5)  
Accounts payable (12.0)   0.1   
Accrued expenses (39.9)   (20.0)  
Income taxes (44.0)   7.6   
Operating lease liabilities (49.9)   (78.3)  
Other current and long-term liabilities (23.3)   2.4   
Net cash provided by (used in) operating activities (130.9)   315.2   
Investing activities
Capital expenditures (73.7)   (95.0)  
Consideration paid for Barstool Sports investment (135.0)   —   
Consideration paid for acquisitions of businesses, net of cash acquired (3.0)   (1,359.4)  
Proceeds from sale-and-leaseback transactions in conjunction with acquisitions —    961.1   
Additional contributions to joint ventures (3.6)   (0.3)  
Other (3.2)   (1.0)  
Net cash used in investing activities (218.5)   (494.6)  
4

  For the six months ended June 30,
(in millions) 2020 2019
Financing activities
Proceeds from revolving credit facility 540.0    340.0   
Repayments on revolving credit facility (10.0)   (172.0)  
Proceeds from issuance of long-term debt, net of discounts 322.2    —   
Principal payments on long-term debt (23.3)   (23.4)  
Debt and equity issuance costs (6.1)   —   
Payments of other long-term obligations (8.4)   (7.9)  
Principal payments on financing obligations (18.0)   (25.3)  
Principal payments on finance leases (2.1)   (2.9)  
Proceeds from common stock offering, net of discounts and fees 331.2    —   
Proceeds from exercise of options 27.5    0.7   
Repurchase of common stock —    (24.9)  
Proceeds from insurance financing 19.3    13.8   
Payments on insurance financing (13.4)   (10.5)  
Other (3.8)   (0.7)  
Net cash provided by financing activities 1,155.1    86.9   
Change in cash, cash equivalents, and restricted cash 805.7    (92.5)  
Cash, cash equivalents and restricted cash at the beginning of the year 455.2    481.2   
Cash, cash equivalents and restricted cash at the end of the period $ 1,260.9    $ 388.7   
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents $ 1,244.3    $ 378.8   
Restricted cash included in Other current assets 14.3    8.3   
Restricted cash included in Other assets 2.3    1.6   
Total cash, cash equivalents and restricted cash $ 1,260.9    $ 388.7   
Supplemental disclosure:
Cash paid for interest, net of amounts capitalized $ 188.8    $ 265.6   
Cash payments (refunds) related to income taxes, net $ (1.2)   $ 4.5   
Non-cash investing and financing activities:
Rent credits received upon sale of Tropicana land and buildings $ 307.5    $ —   
Commencement of operating leases $ 63.5    $ 712.8   
Commencement of finance leases $ —    $ 4.3   
Accrued capital expenditures $ (8.6)   $ 3.6   
See accompanying notes to the Condensed Consolidated Financial Statements.
5

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 1—Organization and Basis of Presentation
Organization: Penn National Gaming, Inc., together with its subsidiaries (“Penn National,” the “Company,” “we,” “our,” or “us”), is a leading, diversified, multi-jurisdictional owner and manager of gaming and racing properties, sports betting operations, and video gaming terminal (“VGT”) operations. In addition, we hold a 36% equity interest in Barstool Sports, Inc. (“Barstool Sports”), a leading digital sports, entertainment and media platform. We also operate an interactive gaming (“iGaming”) division through our subsidiary, Penn Interactive Ventures, LLC (“Penn Interactive”), which launched an online casino (“iCasino”) through our HollywoodCasino.com gaming platform in the third quarter of 2019 and is scheduled to launch an online sports betting app called Barstool Sports in the third quarter of 2020. Our MYCHOICE® customer loyalty program (the “mychoice program”) provides our members with various benefits, including complimentary goods and/or services.
As of June 30, 2020, we owned, managed, or had ownership interests in 41 gaming and racing properties in 19 states and were licensed to offer live sports betting at our properties in Indiana, Iowa, Michigan, Mississippi, Nevada, Pennsylvania and West Virginia. The majority of the real estate assets (i.e., land and buildings) used in our operations are subject to triple net master leases; the most significant of which are the Penn Master Lease and the Pinnacle Master Lease (as such terms are defined in Note 10, “Leases,” and collectively referred to as the “Master Leases”), with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”), a real estate investment trust (“REIT”).
Impact of the COVID-19 Pandemic and Company Response: On March 11, 2020, the World Health Organization declared the novel coronavirus (known as “COVID-19”) outbreak to be a global pandemic. We began temporary suspension of the operations of all of our 41 properties starting between March 13, 2020 and March 19, 2020 pursuant to various orders from state gaming regulatory bodies or governmental authorities to combat the rapid spread of COVID-19. We began reopening our properties on May 18, 2020 with reduced gaming and hotel capacity and limited food and beverage offerings in order to accommodate comprehensive social distancing and health and safety protocols developed in close consultation with state regulators and local and state public health officials. As of June 30, 2020, we reopened 31 of our properties and as of the date of filing this Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission (the “SEC”), all of our properties, with the exception of Tropicana Las Vegas (“Tropicana”), which is scheduled to reopen on September 1, 2020; Valley Race Park; and Zia Park Casino; have reopened.
During the first quarter of 2020, the Company took various actions to reduce its cost structure during the property closures to help mitigate the operating and financial impact of the COVID-19 pandemic, which included: (i) furloughing approximately 26,000 employees and operating with a minimum staffing of less than 850 employees company-wide during the closures; (ii) enacting meaningful compensation reductions to its remaining property and corporate leadership teams effective April 1, 2020 until such time as the Company determines that its properties have substantially returned to normal operations; and (iii) executing substantial reductions in operating expenses, capital expenditures, including temporarily suspending construction of its two planned Category 4 development projects in Pennsylvania, and overall costs. In addition, the Company’s Board of Directors elected to forgo their cash compensation effective April 1, 2020 until such time as the Company determines that its properties have substantially returned to normal operations. As of June 30, 2020, approximately 13,000 employees have returned to work.
Between March 13, 2020 and May 19, 2020, the Company entered into a series of transactions to improve its financial position and liquidity in light of the COVID-19 pandemic, including: (i) borrowing the remaining available amount of $430.0 million under its Revolving Credit Facility; (ii) entering into a binding term sheet with GLPI (the “Term Sheet”) whereby GLPI agreed to (a) purchase the real estate assets associated with Tropicana in exchange for rent credits of $307.5 million, which closed on April 14, 2020, and (b) purchase the land underlying the Company’s Hollywood Casino Morgantown (“Morgantown”) development project in Morgantown, Pennsylvania, in exchange for rent credits of $30.0 million, which is expected to close in the fourth quarter of 2020 (the land will be immediately leased back from GLPI); (iii) completing an offering of $330.5 million aggregate principal amount of 2.75% Convertible Notes; and (iv) completing a public offering of 19,166,667 aggregate shares of common stock, par value of $0.01 per share, of the Company (“Penn Common Stock”) for gross proceeds of $345.0 million. In addition, on April 14, 2020, the Company entered into an amendment to its Credit Agreement, which, among other things, provides it with relief from its financial covenants for a period of up to one year. The terms “Revolving Credit Facility,” “Convertible Notes” and “Credit Agreement” are defined in Note 9, “Long-term Debt.”
The COVID-19 pandemic caused significant disruptions to our business and a material adverse impact on our financial condition, results of operations and cash flows, the magnitude of which continues to develop based on (i) the timing and extent of any recovery in visitation and consumer spending at our properties; (ii) the continued impact of implementing social
6

distancing and health and safety guidelines at our properties, including reductions in gaming and hotel capacity and limiting the number of food and beverage options; and (iii) whether any of our properties will be required to again temporarily suspend operations in the event that the pandemic worsens. We are currently unable to determine whether, when or how the conditions surrounding the COVID-19 pandemic will change or whether any recovery in visitation and consumer spending is sustainable. In the event that the COVID-19 pandemic worsens and/or we are required to again temporarily suspend our operations, we may need to take additional actions to reduce costs, preserve liquidity and remain in compliance with our financial covenants.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides emergency economic assistance for American workers, families and businesses affected by the COVID-19 pandemic. The economic relief package includes government loan enhancement programs and various tax provisions to help improve liquidity for American businesses. Based on our evaluation of the CARES Act, we qualify for certain employer refundable payroll credits, deferral of applicable payroll taxes, net operating loss carryback and immediate expensing for eligible qualified improvement property. We intend to continue to review and consider any available potential benefits under the CARES Act for which we qualify, including those described above.
The Company could experience other potential adverse impacts as a result of the COVID-19 pandemic, including, but not limited to, further charges from adjustments to the carrying amount of goodwill and other intangible assets, long-lived asset impairment charges, or impairments of investments in joint ventures. In addition, the negative impacts of the COVID-19 pandemic may result in further changes in the amount of valuation allowance required. Actual results may differ materially from the Company’s current estimates as the scope of the COVID-19 pandemic evolves, depending largely, though not exclusively, on the impact of required capacity reductions, social distancing and health guidelines, and the sustainability of current trends in recovery at our reopened properties.
Basis of Presentation: The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Results of operations and cash flows for the interim periods presented herein are not necessarily indicative of the results that would be achieved during a full year of operations or in future periods. These unaudited Condensed Consolidated Financial Statements and notes thereto should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Note 2—Significant Accounting Policies
Principles of Consolidation: The unaudited Condensed Consolidated Financial Statements include the accounts of Penn National Gaming, Inc. and its subsidiaries. Investments in and advances to unconsolidated affiliates that do not meet the consolidation criteria of the authoritative guidance for voting interest entities or variable interest entities (“VIEs”) are accounted for under the equity method. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates: The preparation of unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
7

Segment Information: We view each of our gaming and racing properties as an operating segment with the exception of our two properties in Jackpot, Nevada, which we view as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments. See Note 17, “Segment Information,” for further information. For financial reporting purposes, we aggregate our operating segments into the following four reportable segments:
Location Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago East Chicago, Indiana Pinnacle Master Lease
Greektown Casino-Hotel Detroit, Michigan Greektown Lease
Hollywood Casino Bangor Bangor, Maine Penn Master Lease
Hollywood Casino at Charles Town Races Charles Town, West Virginia Penn Master Lease
Hollywood Casino Columbus Columbus, Ohio Penn Master Lease
Hollywood Casino Lawrenceburg Lawrenceburg, Indiana Penn Master Lease
Hollywood Casino at Penn National Race Course Grantville, Pennsylvania Penn Master Lease
Hollywood Casino Toledo Toledo, Ohio Penn Master Lease
Hollywood Gaming at Dayton Raceway Dayton, Ohio Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course Youngstown, Ohio Penn Master Lease
Marquee by Penn (1)
Pennsylvania N/A
Meadows Racetrack and Casino Washington, Pennsylvania Meadows Lease
Plainridge Park Casino Plainville, Massachusetts Pinnacle Master Lease
South segment (2)
1st Jackpot Casino
Tunica, Mississippi Penn Master Lease
Ameristar Vicksburg Vicksburg, Mississippi Pinnacle Master Lease
Boomtown Biloxi Biloxi, Mississippi 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 Penn Master Lease
Hollywood Casino Tunica Tunica, Mississippi 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 Henderson, Nevada Penn Master Lease
Tropicana Las Vegas Las Vegas, Nevada Tropicana Lease
Zia Park Casino Hobbs, New Mexico Penn Master Lease
Midwest segment
Ameristar Council Bluffs Council Bluffs, Iowa Pinnacle Master Lease
Argosy Casino Alton (3)
Alton, Illinois Penn Master Lease
Argosy Casino Riverside Riverside, Missouri Penn Master Lease
Hollywood Casino Aurora Aurora, Illinois Penn Master Lease
Hollywood Casino Joliet Joliet, Illinois Penn Master Lease
Hollywood Casino at Kansas Speedway (4)
Kansas City, Kansas Owned - JV
Hollywood Casino St. Louis Maryland Heights, Missouri Penn Master Lease
Prairie State Gaming (1)
Illinois N/A
River City Casino St. Louis, Missouri Pinnacle Master Lease
(1)VGT route operations
(2)Resorts Casino Tunica ceased operations on June 30, 2019, but remains subject to the Penn Master Lease.
(3)The riverboat is owned by us and not subject to the Penn Master Lease.
(4)Pursuant to a joint venture (“JV”) with International Speedway Corporation (“International Speedway”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns Hollywood Casino at Kansas Speedway.
Revenue Recognition: Our revenue from contracts with customers consists primarily of gaming wagers, food and beverage transactions, retail transactions, hotel room sales, racing wagers, and sports betting wagers. See Note 4, “Revenue Disaggregation,” for information on our revenue by type and geographic location.
8

Complimentaries associated with Gaming Contracts
Food and beverage, hotel, and other services furnished to patrons for free as an inducement to gamble or through the redemption of our customers’ loyalty points are recorded as food, beverage, hotel and other revenues, at their estimated standalone selling prices with an offset recorded as a reduction to gaming revenues. The cost of providing complimentary goods and services to patrons as an inducement to gamble as well as for the fulfillment of our loyalty point obligation is included in food, beverage, hotel and other expenses. Revenues recorded to food, beverage, hotel and other and offset to gaming revenues were as follows:
For the three months ended June 30, For the six months ended June 30,
(in millions) 2020 2019 2020 2019
Food and beverage $ 7.3    $ 64.1    $ 61.3    $ 128.6   
Hotel 5.8    40.8    36.7    77.4   
Other 0.3    4.5    3.5    8.8   
Total complimentaries associated with gaming contracts $ 13.4    $ 109.4    $ 101.5    $ 214.8   
Customer-related Liabilities
The Company has three general types of liabilities related to contracts with customers: (i) the obligation associated with its mychoice program (loyalty points and tier status benefits), (ii) advance payments on goods and services yet to be provided and for unpaid wagers, and (iii) deferred revenue associated with third-party sports betting operators for online sports betting and related iGaming market access.
Our mychoice program allows members to utilize their reward membership cards to earn loyalty points that are redeemable for slot play and complimentaries, such as food and beverage at our restaurants, lodging at our hotels and products offered at our retail stores across the vast majority of our properties. In addition, members of the mychoice program earn credit toward tier status, which entitles them to receive certain other benefits, such as gifts. The obligation associated with our mychoice program, which is included in “Accrued expenses and other current liabilities” within our unaudited Condensed Consolidated Balance Sheets, was $40.5 million and $36.2 million as of June 30, 2020 and December 31, 2019, respectively, and consisted principally of the obligation associated with the loyalty points. Our loyalty point obligations are generally settled within six months of issuance; however, as a result of the COVID-19 pandemic and resulting temporary closures, loyalty point obligations may take longer to settle. Changes between the opening and closing balances primarily relate to the timing of our customers’ election to redeem loyalty points as well as the timing of when our customers receive their earned tier status benefits.
The Company’s advance payments on goods and services yet to be provided and for unpaid wagers primarily consist of the following: (i) deposits on rooms and convention space, (ii) money deposited on behalf of a customer in advance of their property visit (referred to as “safekeeping” or “front money”), (iii) outstanding tickets generated by slot machine play or pari-mutuel wagering, (iv) outstanding chip liabilities, (v) unclaimed jackpots, and (vi) gift cards redeemable at our properties. Unpaid wagers primarily relate to the Company’s obligation to settle outstanding slot tickets, pari-mutuel racing tickets and gaming chips with customers and generally represent obligations stemming from prior wagering events, of which revenue was previously recognized. The Company’s advance payments on goods and services yet to be provided and for unpaid wagers were $31.8 million and $42.2 million as of June 30, 2020 and December 31, 2019, respectively, of which $0.6 million were classified as long-term in both periods. The current portion and long-term portion of our advance payments on goods and services yet to be provided and for unpaid wagers are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities” within our unaudited Condensed Consolidated Balance Sheets, respectively.
During the third quarter of 2019, Penn Interactive entered into multi-year agreements with sports betting operators for online sports betting and related iGaming market access across our portfolio of properties, of which we received cash and equity securities, including ordinary shares and warrants, specific to two operator agreements. Deferred revenue associated with third-party sports betting operators for online sports betting and related iGaming market access, which is included in “Other long-term liabilities” within our unaudited Condensed Consolidated Balance Sheets, was $46.3 million and $43.6 million as of June 30, 2020 and December 31, 2019, respectively.
Gaming and Racing Taxes: We are subject to gaming and pari-mutuel taxes based on gross gaming revenue and pari-mutuel revenue in the jurisdictions in which we operate. The Company primarily recognizes gaming and pari-mutuel tax expense based on the statutorily required percentage of revenue that is required to be paid to state and local jurisdictions in the states where or in which wagering occurs. For the three and six months ended June 30, 2020, these expenses, which were recorded primarily in gaming expense within the unaudited Condensed Consolidated Statements of Operations and
9

Comprehensive Income (Loss), were $97.6 million and $433.9 million, respectively, as compared to $399.8 million and $786.3 million, respectively, for the three and six months ended June 30, 2019.
Convertible Debt: Under Accounting Standards Codification (“ASC”) 470-20, “Debt with Conversion and Other Options” (“ASC 470-20”), an entity must separately account for the liability and equity components of convertible debt instruments that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer’s economic interest. The effect of ASC 470-20 on the accounting for our Convertible Notes is that the equity component is required to be included in “Additional paid-in capital” within our unaudited Condensed Consolidated Balance Sheets at the issuance date and the value of the equity component is treated as a debt discount. See Note 9, “Long-term Debt,” for more information.
Earnings Per Share: Basic earnings per share (“EPS”) is computed by dividing net income (loss) applicable to common stock by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the additional dilution, if any, for all potentially-dilutive securities such as stock options, unvested restricted stock awards (“RSAs”), and outstanding convertible preferred stock and convertible debt.
Holders of the Company’s Series D Preferred Stock (as defined in Note 11, “Investments in and Advances to Unconsolidated Affiliates”) are entitled to participate equally and ratably in all dividends and distributions paid to holders of Penn Common Stock irrespective of any vesting requirement. Accordingly, the Series D Preferred Stock shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the preferred shares on the calculation of basic and diluted EPS. Since the Company is currently in a net loss position and the holders of the Company’s Series D Preferred Stock are not obligated to absorb losses, the Company is not required to present the two-class method. However, in the event the Company is in a net income position, the two-class method must be applied by allocating all earnings during the period to common shares and preferred shares. See Note 15, “Earnings (Loss) per Share,” for more information.

Note 3—New Accounting Pronouncements
Accounting Pronouncements Implemented in 2020
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments” (“ASU 2016-13”), which sets forth a “current expected credit loss” (referred to as “CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. We adopted ASU 2016-13 during the first quarter of 2020 using a modified retrospective approach, which resulted in a cumulative-effect adjustment to retained earnings as of January 1, 2020 of $0.6 million.
In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This will result in certain implementation costs being capitalized; the associated amortization charge will, however, be recorded as an operating expense. Under the previous guidance, costs incurred when implementing a cloud computing arrangement deemed to be a service contract were recorded as an operating expense when incurred. We adopted ASU 2018-15 during the first quarter of 2020 using a prospective approach, which did not have a material impact on our unaudited Condensed Consolidated Financial Statements.
Accounting Pronouncements to be Implemented
In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which intends to simplify the guidance by removing certain exceptions to the general principles and clarifying or amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial statements.
In January 2020, the FASB issued ASU No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-01”), which made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a
10

similar investment of the same issuer. Among other topics, ASU 2020-01 clarifies that an entity should consider observable transactions that requires it to either apply or discontinue the equity method of accounting. For public business entities, ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-01 on its consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of the London Interbank Offered Rate (referred to as “LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 also provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. ASU 2020-04 can be adopted no later than December 1, 2022 with early adoption permitted. The interest rates associated with the Company’s borrowings under its Senior Secured Credit Facilities (as defined in Note 9, “Long-term Debt”) are tied to LIBOR. The Company is currently evaluating the impact of the adoption of ASU 2020-04 on its consolidated financial statements.
A variety of proposed or otherwise potential accounting standards are currently being studied by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our consolidated financial statements.


11

Note 4—Revenue Disaggregation
We generate revenues at our owned, managed or operated properties principally by providing the following types of services: (i) gaming, including iCasino; (ii) food and beverage; (iii) hotel; and (iv) other. Other revenues are principally comprised of ancillary gaming-related activities, such as commissions received on ATM transactions, racing, and Penn Interactive’s social gaming. In addition, we assess our revenues based on geographic location of the related properties, which is consistent with our reportable segments (see Note 17, “Segment Information,” for further information). Our revenue disaggregation by type of revenue and geographic location was as follows:
For the three months ended June 30, 2020
(in millions) Northeast South West Midwest Other
Intersegment Eliminations (1)
Total
Revenues:
Gaming $ 94.1    $ 103.7    $ 12.8    $ 33.5    $ 15.1    $ —    $ 259.2   
Food and beverage 2.2    7.6    2.2    1.0    0.1    —    13.1   
Hotel 0.2    6.8    1.5    0.6    —    —    9.1   
Other 6.2    3.4    1.2    0.9    12.4    —    24.1   
Total revenues $ 102.7    $ 121.5    $ 17.7    $ 36.0    $ 27.6    $ —    $ 305.5   
For the three months ended June 30, 2019
(in millions) Northeast South West Midwest Other
Intersegment Eliminations (1)
Total
Revenues:
Gaming $ 528.9    $ 206.8    $ 96.5    $ 229.9    $ —    $ —    $ 1,062.1   
Food and beverage 37.6    39.6    29.5    19.6    0.4    —    126.7   
Hotel 10.5    26.5    31.6    11.6    —    —    80.2   
Other 22.1    9.3    6.6    7.1    9.0    —    54.1   
Total revenues $ 599.1    $ 282.2    $ 164.2    $ 268.2    $ 9.4    $ —    $ 1,323.1   
For the six months ended June 30, 2020
(in millions) Northeast South West Midwest Other
Intersegment Eliminations (1)
Total
Revenues:
Gaming $ 552.8    $ 272.3    $ 84.7    $ 229.7    $ 22.7    $ (0.1)   $ 1,162.1   
Food and beverage 36.1    37.3    25.7    18.8    0.3    —    118.2   
Hotel 9.0    24.6    27.3    8.8    —    —    69.7   
Other 25.5    10.6    6.6    6.8    24.9    (2.8)   71.6   
Total revenues $ 623.4    $ 344.8    $ 144.3    $ 264.1    $ 47.9    $ (2.9)   $ 1,421.6   
For the six months ended June 30, 2019
(in millions) Northeast South West Midwest Other
Intersegment Eliminations (1)
Total
Revenues:
Gaming $ 1,016.7    $ 426.9    $ 189.3    $ 463.7    $ 0.1    $ —    $ 2,096.7   
Food and beverage 73.4    79.7    57.4    40.7    0.7    —    251.9   
Hotel 17.6    49.5    63.3    21.2    —    —    151.6   
Other 42.0    18.0    12.9    13.9    18.7    —    105.5   
Total revenues $ 1,149.7    $ 574.1    $ 322.9    $ 539.5    $ 19.5    $ —    $ 2,605.7   
(1)  Represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive, and our live and televised poker tournament series that operates under the trademark, Heartland Poker Tour (“HPT”).

12

Note 5—Acquisitions and Dispositions
Greektown Casino-Hotel
On May 23, 2019, the Company acquired all of the membership interests of Greektown Holdings, L.L.C., for a net purchase price of $320.3 million, after working capital and other adjustments, pursuant to a transaction agreement among the Company, VICI Properties L.P., a wholly-owned subsidiary of VICI, and Greektown Mothership LLC. In connection with the acquisition, the real estate assets relating to Greektown Casino-Hotel (“Greektown”) were acquired by a subsidiary of VICI for an aggregate sales price of $700.0 million, and the Company entered into the Greektown Lease, which has an initial annual rent of $55.6 million and an initial term of 15 years, with four five-year renewal options. The acquisition of the operations was financed through a combination of cash on hand and incremental borrowings under the Company’s Revolving Credit Facility.
During the first quarter of 2020, the Company finalized the allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed, with the excess recorded as goodwill, as follows:
(in millions) Fair value
Cash and cash equivalents $ 31.1   
Receivables, prepaid expenses, and other current assets 14.5   
Property and equipment 28.4   
Goodwill (1)
67.4   
Other intangible assets
Gaming license 166.4   
Trademark 24.4   
Customer relationships 3.3   
Operating lease right-of-use assets 516.1   
Finance lease right-of-use assets 4.1   
Total assets $ 855.7   
   
Accounts payable, accrued expenses and other current liabilities $ 15.2   
Operating lease liabilities 516.1   
Finance lease liabilities 4.1   
Total liabilities 535.4   
Net assets acquired $ 320.3   
(1)The goodwill has been assigned to our Northeast segment. The entire $67.4 million goodwill amount is deductible for tax purposes.
The Company used the income, market, or cost approach (or a combination thereof) for the valuation, as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability. Property and equipment acquired consists of non-REIT assets (e.g., equipment for use in gaming operations, furniture and other equipment). We determined that the land and buildings subject to the Greektown Lease, which was entered into at the time of the acquisition, represented operating lease right-of-use (“ROU”) assets with a corresponding operating lease liability calculated based on the present value of the future lease payments at the acquisition date in accordance with GAAP. Management determined the fair value of its office equipment, computer equipment and slot machine gaming devices based on the market approach and other personal property based on the cost approach, supported where available by observable market data, which includes consideration of obsolescence.
Acquired identifiable intangible assets consist of a gaming license and a trademark, which are both indefinite-lived intangible assets, and customer relationships, which is an amortizing intangible asset with an assigned useful life of 2 years. Management valued (i) the gaming license using the Greenfield Method under the income approach; (ii) the trademark using the relief-from-royalty method under the income approach; and (iii) customer relationships (rated player databases) using the with-and-without method of the income approach. All valuation methods are forms of the income approach supported by observable market data for peer casino operator companies.
13

Margaritaville Resort Casino
On January 1, 2019, the Company acquired the operations of Margaritaville for a net purchase price of $122.9 million, after working capital and other adjustments (of which $3.0 million was paid during the first quarter of 2020), pursuant to (i) an agreement and plan of merger (the “Margaritaville Merger Agreement”) among the Company, VICI, Bossier Casino Venture (HoldCo), Inc. (“Holdco”), and Silver Slipper Gaming, LLC, and (ii) a membership interest purchase agreement (the “MIPA”) among VICI and the Company.
Pursuant to the Margaritaville Merger Agreement, a subsidiary of VICI merged with and into Holdco with Holdco surviving the merger as a wholly-owned subsidiary of VICI (the “Merger”) and owner of the real estate assets relating to Margaritaville. Pursuant to the MIPA, immediately following the consummation of the Merger, HoldCo sold its interests in its sole direct subsidiary and owner of the Margaritaville operating assets, to the Company. In connection with the acquisition, the real estate assets used in the operations of Margaritaville were acquired by VICI for $261.1 million and the Company entered into the Margaritaville Lease (as defined in Note 10, “Leases”).

Hollywood Casino Perryville Purchase Option

The Term Sheet discussed in Note 1, “Organization and Basis of Presentation” provides that the Company and GLPI will enter into an option agreement whereby GLPI will grant the Company the exclusive right until December 31, 2020 to purchase the operations of Hollywood Casino Perryville for $31.1 million, with the closing of such purchase to occur on a date selected by the Company during 2021. If the option is exercised and the transaction is completed, we would lease the real estate assets associated with Hollywood Casino Perryville from GLPI with initial rent of $7.8 million per year subject to escalation. The option agreement is expected to be formalized in the third quarter of 2020.

Tropicana Las Vegas
On April 16, 2020, we closed on a purchase agreement with GLPI pursuant to which GLPI acquired the real estate assets associated with our Tropicana property in exchange for rent credits of $307.5 million that we began utilizing to pay rent under our existing Master Leases and the Meadows Lease in May 2020. Contemporaneous with the sale, the Company entered into the Tropicana Lease (as defined and discussed in Note 10, “Leases”). Pursuant to the purchase agreement, GLPI will conduct a sale process with respect to both the real estate assets and the operations of Tropicana for up to 24 months (the “Sale Period”), with the Company receiving (i) 75% of the proceeds above $307.5 million plus certain taxes, expenses and costs if an agreement for such sale is signed in the first 12 months of the Sale Period or (ii) 50% of the proceeds above $307.5 million plus certain taxes, expenses and costs if an agreement for such sale is signed in the remainder of the Sale Period. As noted above, Tropicana is scheduled to reopen on September 1, 2020.
As of June 30, 2020, we had $176.7 million of rent credits that will be utilized in future periods. The rent credits are included in “Other current assets” within our unaudited Condensed Consolidated Balance Sheets. We recognized a gain on this transaction of $28.5 million during the three and six months ended June 30, 2020, which is included in “General and administrative” within our unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

14

Note 6—Property and Equipment
Property and equipment, net, consisted of the following:
(in millions) June 30,
2020
December 31,
2019
Property and equipment - Not Subject to Master Leases
Land and improvements $ 113.0    $ 353.2   
Buildings, vessels and improvements 220.7    420.4   
Furniture, fixtures and equipment 1,681.3    1,598.3   
Leasehold improvements 188.0    183.6   
Construction in progress 96.8    59.3   
  2,299.8    2,614.8   
Less: Accumulated depreciation (1,585.2)   (1,548.3)  
  714.6    1,066.5   
Property and equipment - Subject to Master Leases
Land and improvements 1,525.9    1,525.9   
Buildings, vessels and improvements 3,664.6    3,664.6   
  5,190.5    5,190.5   
Less: Accumulated depreciation (1,228.1)   (1,136.8)  
  3,962.4    4,053.7   
Property and equipment, net $ 4,677.0    $ 5,120.2   
Depreciation expense was as follows:
For the three months ended June 30, For the six months ended June 30,
(in millions) 2020