PENN Entertainment reported a stronger second quarter of 2026, with record results from its land-based casino business and a significant reduction in losses from its online operations as the company continued to focus on profitability, cash generation and debt reduction.
The US gaming group generated approximately $1.5 billion in revenue from its retail operations during the quarter. Segment adjusted EBITDAR reached $517.2 million, producing a margin of 34.4%, while nine properties recorded their strongest second-quarter performance to date.
The figures underline the continued importance of PENN’s regional casino portfolio at a time when the company has been working to improve returns from its digital division.
PENN’s Interactive segment generated $349.4 million in revenue during Q2, including the impact of gaming-tax gross-ups. More importantly for the company’s longer-term online strategy, adjusted EBITDA losses narrowed to $9.5 million.
That represents further progress toward PENN’s goal of making its digital operations sustainably profitable following a major strategic reset. The company ended its ESPN BET partnership in late 2025 and subsequently repositioned its US sportsbook under theScore Bet brand.
Online casino continued to provide a particularly important source of growth. PENN has been increasing the connection between its sportsbook and iCasino products, using major sporting events to attract users before introducing eligible customers to its casino offering.
The 2026 FIFA World Cup provided additional sportsbook activity during the quarter, while PENN also expanded geographically through the launch of theScore Bet Sportsbook & Casino, theScore Casino and Hollywood Casino standalone applications in Alberta in July. PENN said the launch expanded its existing Canadian presence beyond Ontario.
At the end of June, PENN held approximately $1.9 billion in total liquidity, including close to $900 million in cash and cash equivalents. Traditional net debt stood at around $1.9 billion, with reducing leverage remaining one of management’s main priorities alongside lower corporate costs and stronger free cash flow.
The company has simultaneously continued investing heavily in its physical casino estate.
In June, PENN opened a new hotel at Hollywood Casino Columbus in Ohio. The $100 million development added 203 rooms and became the third of four major retail projects completed by the company in less than a year.
Later that month, PENN opened its new Hollywood Casino and Hotel Aurora in Illinois, replacing the previous riverboat casino. The $360 million development includes more than 1,200 gaming positions, a hotel, sportsbook, spa, restaurants and bars, an outdoor entertainment area and a 12,000-square-foot event center.
Those projects follow the opening of the new land-based Hollywood Casino Joliet in 2025 and an additional hotel tower at M Resort Spa Casino in Nevada.
Despite the operational improvements, PENN continues to face pressure from investors after years of expensive attempts to build a larger US online sports betting presence.
Executive compensation has also faced increased scrutiny. PENN disclosed earlier this year that chief executive Jay Snowden’s 2026 target compensation had been reduced to approximately 2023 levels. The company cut the target value of his equity awards by $7.87 million, equivalent to a 41% reduction in long-term incentive opportunity and a 31% reduction in total target direct compensation compared with 2025.
At PENN’s annual shareholder meeting on June 16, investors nevertheless approved the advisory resolution covering executive compensation, with approximately 90.1 million votes in favour and 12.8 million against.
PENN’s Q2 performance therefore presents a considerably stronger operational picture than during the most difficult stages of its digital expansion. Retail casinos remain the company’s principal earnings engine, but the sharp decline in Interactive losses suggests its revised online strategy is moving closer to becoming a contributor rather than a major drag on group profitability.
The next challenge will be maintaining that improvement while extracting returns from its newly opened properties, expanding iCasino activity and continuing to reduce leverage.