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Document and Entity Information - shares	3 Months Ended
Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information
Entity Registrant Name	PENN NATIONAL GAMING INC
Entity Central Index Key	0000921738
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		91,859,333
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 217,997	$ 277,953
Receivables, net of allowance for doubtful accounts of $3,097 and $2,983 at March 31, 2018 and December 31, 2017, respectively	56,563	62,805
Prepaid expenses	44,252	43,780
Other current assets	15,871	16,494
Total current assets	334,683	401,032
Property and equipment, net	2,710,652	2,756,669
Other assets
Investment in and advances to unconsolidated affiliates	147,658	148,912
Goodwill	1,008,097	1,008,097
Other intangible assets, net	469,578	422,606
Deferred income taxes	388,058	390,943
Loans to the JIVDC, net of allowance for loan losses of $64,052 at March 31, 2018 and December 31, 2017	20,613	20,900
Other assets	86,194	85,653
Total other assets	2,120,198	2,077,111
Total assets	5,165,533	5,234,812
Current liabilities
Current portion of financing obligation to GLPI	45,386	56,248
Current maturities of long-term debt	35,498	35,612
Accounts payable	18,782	26,048
Accrued expenses	134,312	125,688
Accrued interest	6,223	13,528
Accrued salaries and wages	76,982	111,252
Gaming, pari-mutuel, property, and other taxes	63,153	69,645
Insurance financing	7,038	2,404
Other current liabilities	87,945	89,584
Total current liabilities	475,319	530,009
Long-term liabilities
Long-term financing obligation to GLPI, net of current portion	3,476,785	3,482,573
Long-term debt, net of current maturities and debt issuance costs	1,164,147	1,214,625
Noncurrent tax liabilities	35,101	34,099
Other noncurrent liabilities	47,820	46,652
Total long-term liabilities	4,723,853	4,777,949
Shareholders' deficit
Common stock ($.01 par value, 200,000,000 shares authorized, 93,822,683 and 93,392,635 shares issued, and 91,655,290 and 91,225,242 shares outstanding at March 31, 2018 and December 31, 2017, respectively)	937	933
Treasury stock, at cost (2,167,393 shares held at March 31, 2018 and December 31, 2017)	(28,414)	(28,414)
Additional paid-in capital	1,011,322	1,007,606
Retained deficit	(1,016,031)	(1,051,818)
Accumulated other comprehensive loss	(1,453)	(1,453)
Total shareholders' deficit	(33,639)	(73,146)
Total liabilities and shareholders' deficit	5,165,533	5,234,812
Series B Preferred Stock
Shareholders' deficit
Preferred stock
Series C Preferred Stock
Shareholders' deficit
Preferred stock

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Receivables, allowance for doubtful accounts (in dollars)	$ 3,097	$ 2,983
Loans to the JIVDC, allowance for loan losses	$ 64,052	$ 64,052
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	93,822,683	93,392,635
Common stock, shares outstanding	91,655,290	91,225,242
Treasury stock, shares held	2,167,393	2,167,393
Series B Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series C Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	18,500	18,500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Revenues	$ 816,085	$ 818,082
Less promotional allowances		(41,858)
Net revenues	816,085	776,224
Operating expenses
General and administrative	121,263	125,815
Depreciation and amortization	60,390	70,236
Impairment losses	618
Total operating expenses	643,951	635,937
Income from operations	172,134	140,287
Other income (expenses)
Interest expense	(115,740)	(114,996)
Interest income	249	2,646
Income from unconsolidated affiliates	5,361	4,548
Loss on early extinguishment of debt and modification costs	(882)	(23,390)
Other	4	(1,793)
Total other expenses	(111,008)	(132,985)
Income from operations before income taxes	61,126	7,302
Income tax provision	15,689	2,198
Net income	$ 45,437	$ 5,104
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 0.50	$ 0.06
Diluted earnings per common share (in dollars per share)	$ 0.48	$ 0.06
Gaming
Revenues
Revenues	$ 654,494	$ 661,256
Operating expenses
Operating expenses	340,516	332,053
Food, beverage, hotel and other
Revenues
Revenues	130,969	147,741
Operating expenses
Operating expenses	92,980	101,075
Management service fees
Revenues
Revenues	2,438	2,327
Reimbursable management costs
Revenues
Revenues	28,184	6,758
Operating expenses
Operating expenses	$ 28,184	$ 6,758

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net income	$ 45,437	$ 5,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	60,390	70,236
Amortization of items charged to interest expense and interest income	1,603	1,675
Change in fair value of contingent purchase price	1,134	2,560
Loss (gain) on sale of property and equipment	55	(45)
Income from unconsolidated affiliates	(5,361)	(4,548)
Distributions from unconsolidated affiliates	6,500	5,750
Deferred income taxes	5,926	652
Charge for stock-based compensation	2,929	2,173
Impairment losses	618
Write off of debt issuance costs and discounts	882	5,377
Loss on early extinguishment and modification of debt		18,012
Decrease (increase), net of businesses acquired
Accounts receivable	3,973	6,533
Prepaid expenses and other current assets	(7,248)	(8,432)
Other assets	(555)	(1,746)
(Decrease) increase, net of businesses acquired
Accounts payable	(4,142)	(2,470)
Accrued expenses	(2,567)	5,351
Accrued interest	(7,305)	(919)
Accrued salaries and wages	(34,270)	(19,547)
Gaming, pari-mutuel, property and other taxes	(6,492)	(6,544)
Income taxes	6,072	10,090
Other current and noncurrent liabilities	(642)	(4,430)
Net cash provided by operating activities	66,937	84,832
Investing activities
Project capital expenditures	(1,211)	(6,178)
Maintenance capital expenditures	(10,602)	(10,978)
Insurance remediation proceeds		577
Loans to the JIVDC	(339)	(168)
Receipts applied against nonaccrual loan to JIVDC	512
Proceeds from sale of property and equipment	49	309
Additional contributions to joint ventures	(500)
Increase in cash in escrow		(4,432)
Consideration paid for acquisitions of businesses, gaming licenses, and other intangibles	(50,379)	(2,441)
Net cash used in investing activities	(62,470)	(23,311)
Financing activities
Proceeds from exercise of options	791	612
Repurchase of common stock		(5,794)
Principal payments on financing obligation with GLPI	(16,650)	(14,785)
Proceeds from issuance of long-term debt, net of issuance costs		1,175,275
Proceeds from revolving credit facility draws	30,000	184,435
Repayments on long-term debt	(45,441)	(1,086,284)
Prepayment penalties and modification payments incurred with debt refinancing		(18,012)
Repayments on revolving credit facility	(30,000)	(244,435)
Payments of other long-term obligations	(7,636)	(28,033)
Payments of contingent purchase price	(121)	(21)
Proceeds from insurance financing	8,541	8,768
Payments on insurance financing	(3,907)	(3,269)
Net cash used in financing activities	(64,423)	(31,543)
Net increase (decrease) in cash and cash equivalents	(59,956)	29,978
Cash and cash equivalents at beginning of year	277,953	229,510
Cash and cash equivalents at end of year	217,997	259,488
Supplemental disclosure
Interest expense paid, net of amounts capitalized	120,229	113,825
Income tax paid (refunds received)	2,233	(9,303)
Non-cash investing and financing activities
Accrued capital expenditures	786	9,279
Accrued advances to Jamul Tribe	$ 82	1,103
Accrued debt issuance costs		$ 828

New Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements

New Accounting Pronouncements

2. New Accounting Pronouncements

Accounting Pronouncements Implemented in 2018

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” - On January 1, 2018, the Company adopted the new revenue standard ASC 606, “Revenue from Contracts with Customers (Topic 606),” and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. As part of the adoption, the Company utilized a practical expedient that permits the evaluation of incomplete contracts (such as our loyalty point obligations) as completed contracts. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the adoption of the new revenue standard to have a material impact to its net income on a continuing basis and did not have a material effect for the three months ended March 31, 2018.

In accordance with the new revenue standard requirement, the disclosure of the impact of adoption on our condensed consolidated statements of income and condensed consolidated balance sheets at and for the period ended March 31, 2018 are as follows (in thousands):


	Three Months Ended March 31, 2018 As Reported		Loyalty Point Impact (1)		Promotional Allowance (Discretionary Comps) Impact (2)		Promotional Allowance (Point Redemptions) Impact (2)		Reimbursable Expense - Casino Rama Impact (3)		Racing Revenue Impact (4)		Balances Without Adoption of ASC 606		Effect of Change Higher / (Lower)
Income Statement

Revenues
Gaming	$	654,494	$	(1,419)	$	33,639	$	-	$	-	$	-	$	686,714	$	(32,220)
Food, beverage, hotel and other		130,969		(69)		-		6,624		-		8,960		146,484		(15,515)
Management service fees		2,438		-		-		-		-		-		2,438		-
Reimbursable management costs		28,184		-		-		-		(21,844)		-		6,340		21,844
Revenues		816,085		(1,488)		33,639		6,624		(21,844)		8,960		841,976		(25,891)
Less: promotional allowances		-		-		(33,639)		(6,624)		-		-		(40,263)		40,263
Net Revenue		816,085		(1,488)		-		-		(21,844)		8,960		801,713		14,372

Operating expenses
Gaming		340,516		(1,027)		-		-		-		-		339,489		1,027
Food, beverage, hotel and other		92,980		-		-		-		-		8,960		101,940		(8,960)
General and administrative		121,263		-		-		-		-		-		121,263		-
Reimbursable management costs		28,184		-		-		-		(21,844)		-		6,340		21,844
Depreciation and amortization		60,390		-		-		-		-		-		60,390		-
Impairment losses		618		-		-		-		-		-		618		-
Insurance recoveries		-		-		-		-		-				-		-
Total operating expenses		643,951		(1,027)		-		-		(21,844)		8,960		630,040		13,911
Income from operations		172,134		(461)		-		-		-		-		171,673		461

Income from operations before income taxes		61,126		(461)		-		-		-		-		60,665		461
Income tax (benefit) provision		15,689		(118)		-		-		-		-		15,571		118
Net income	$	45,437	$	(343)	$	-	$	-	$	-	$	-	$	45,094	$	343

As a result of the adoption of the new revenue standard, the following areas resulted in significant changes to the Company’s accounting:

(1)

The new revenue standard changed the accounting for loyalty points earned by our customers. The Company’s loyalty reward programs allow 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 the Company’s casino properties. Under the new revenue standard, the Company is required to utilize a deferred revenue model and defer revenue at the estimated fair value when the loyalty points are earned by our customers and recognize revenue when the loyalty points are redeemed. The deferred revenue liability is based on the estimated standalone selling price of the loyalty points earned after factoring in the likelihood of redemption. Prior to the adoption of the new revenue standard, the estimated liability for unredeemed points was accrued based on expected redemption rates and the estimated costs of the service or merchandise to be provided.

(2)

The new revenue standard changed the accounting for promotional allowances. Under the new revenue standard, the Company will no longer be permitted to report revenue for goods and services provided to customers for free as an inducement to gamble as gross revenue with a corresponding reduction in promotional allowances to arrive at net revenues. The new revenue standard requires complimentaries related to an inducement to gamble to be recorded as a reduction to gaming revenues, and as such promotional allowances provided to customer’s as an inducement to gamble is no longer netted on our condensed consolidated statements of income.

In addition, the new revenue standard changed the accounting for promotional allowances with respect to non-discretionary complimentaries (i.e. a customer’s redemption of loyalty points). Under the new revenue standard, the Company is no longer permitted to report revenue for goods and services provided to a customer resulting from loyalty point redemption with a corresponding reduction in promotional allowances to arrive at net revenue, as the new revenue standard requires the utilization of a deferred revenue model in which previously deferred revenue is recognized as revenue when the loyalty points are redeemed. As such, promotional allowances related to a customer’s redemption of loyalty points is no longer netted on our condensed consolidated statements of income.

(3)

The Company revised its accounting for reimbursable costs associated with our management service contract for Casino Rama. Under the new revenue standard, reimbursable costs, which primarily consist of payroll costs, must be recognized as revenue on a gross basis, with an offsetting amount charged to reimbursable management costs within operating expenses, as we are the controlling entity to the arrangement. Prior to this revision, the Company recorded these reimbursable amounts on a net basis.

(4)

The new revenue standard changed the accounting for racing revenues. Under the new revenue standard, we concluded that the Company is not the controlling entity to the arrangement(s), but rather functions as an agent to the pari-mutuel pool. As such, fees and obligations related to the Company’s share of purse funding requirements, simulcasting fees, tote fees, certain pari-mutuel taxes and other fees directly related to the Company’s racing operations must be reported on a net basis and included as a deduction to food, beverage, hotel and other revenue. Prior to the adoption of the new revenue standard, the Company recorded these fees and obligations in food, beverage, hotel and other expense.


	As Reported At March 31, 2018	Balances Without the Adoption of ASC 606	Effect of Change Higher (Lower)
Balance Sheet

Other assets
Deferred income taxes	388,058	386,271	1,787

Current liabilities
Accrued expenses	134,312	123,078	11,234

Shareholders' (deficit)
Retained deficit	(1,016,031)	(1,007,175)	(8,856)

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” were as follows (in thousands):


	Balance at December 31, 2017	Adjustment Due to ASU 2014-09	Balance at January 1, 2018

Balance Sheet

Other assets
Deferred income taxes	390,943	2,044	392,987

Current liabilities
Accrued expenses	125,688	11,694	137,382

Shareholders' (deficit)
Retained deficit	(1,051,818)	(9,650)	(1,061,468)

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments.” The amendments are intended to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following specific cash flow issues: (a) debt prepayment or debt extinguishment costs; (b) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (c) contingent consideration payments made after a business combination; (d) proceeds from the settlement of insurance claims; (e) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (f) distributions received from equity method investees; (g) beneficial interest in securitization transactions; and (h) separately identifiable cash flows and application of the predominance principle. The new guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this new guidance on January 1, 2018 on a retrospective basis. As a result of adopting this new guidance, the impact to the comparative period ended March 31, 2017 was an increase to net cash provided by operating activities and an increase to net cash used in financing activities of $18.0 million, respectively, within the Company’s Condensed Consolidated Statement of Cash Flows.

New Accounting Pronouncements to be Implemented in fiscal year 2019

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of expenses recognized and expected to be recognized from existing contracts. The accounting applied by a lessor is largely unchanged from that applied under the current standard. The standard must be adopted using a modified retrospective transition approach and provides for certain practical expedients. In January 2018, the FASB issued ASU No. 2018-1, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842,” that provides an optional transitional practical expedient regarding land easements. The new guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements, however, the Company has numerous operating leases which, under the new standard, will need to be reported as an asset and a liability on our consolidated balance sheet. The precise amount of this asset and liability will be determined based on the leases that exist at the Company on the date of adoption. The adoption of this standard is expected to have a material impact on our consolidated financial statements as the Company has significant operating lease commitments that are off-balance sheet in accordance with current U.S. GAAP.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

Revenue Recognition and Promotional Allowances

The Company’s revenue from contracts with customers consists of gaming wagers, food and beverage transactions, retail transactions, hotel room sales, racing wagers, management services related to our management of external casino’s, and reimbursable costs associated with our management contracts.

The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. The transaction price for food and beverage, hotel and retail contracts is the net amount collected from the customer for such goods and services. Sales tax and other taxes collected on behalf of governmental authorities are accounted for on the net basis and are not included in revenues or expenses. The transaction price for our racing operations, inclusive of live racing events conducted at our racing facilities and our import and export arrangements, is the commission received from the pari-mutuel pool less contractual fees and obligations primarily consisting of purse funding requirements, simulcasting fees, tote fees and certain pari-mutuel taxes that are directly related to the racing operations. The transaction price for our management service contracts is the amount collected for services rendered in accordance with the contractual terms. The transaction price for our reimbursable costs associated with our management contracts is the gross amount of the reimbursable expenditure, which primarily consists of payroll costs, incurred by the Company for the benefit of the managed entity.

Gaming revenue contracts involve two performance obligations for those customers earning points under the Company’s loyalty reward programs and a single performance obligation for customers that do not participate in the programs. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the effects on the condensed consolidated financial statements of applying the revenue recognition guidance to the portfolio to not differ materially from that which would result if applying the guidance to an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with the loyalty points earned, the Company allocates an amount to the loyalty point contract liability based on the stand-alone selling price of the points earned, which is determined by the value of a point that can be redeemed for slot play and complimentaries such as food and beverage at our restaurants, lodging at our hotels and products offered at our retail stores, less estimated breakage. The allocated revenue for gaming wagers is recognized when the wagering occurs as all such wagers settle immediately. The loyalty reward contract liability amount is deferred and recognized as revenue when the customer redeems the loyalty points for slot play and complimentaries and such goods and services are delivered to the customer.

Food and beverage, hotel and retail services have been determined to be separate, standalone performance obligations and the transaction price for such contracts is recorded as revenue as the good or service is transferred to the customer over their stay at the hotel or when the delivery is made for the food and beverage or retail product. Cancellation fees for hotel and meeting space services are recognized upon cancellation by the customer and are included in food, beverage, hotel and other revenue.

Racing revenue contracts, inclusive of the Company’s (i) host racing facilities, (ii) import arrangements that permit the Company to simulcast in live racing events occurring at other racetracks and (iii) export arrangements that permit the Company’s live racing event to be simulcast at other racetracks, provide access to and the processing of wagers into the pari-mutuel pool. The Company has concluded it is not the controlling entity to the arrangement, but rather functions as an agent to the pari-mutuel pool. Commissions earned from the pari-mutuel pool less contractual fees and obligations are recognized on a net basis which is included within food, beverage, hotel and other revenue.

Management services have been determined to be separate, standalone performance obligations and the transaction price for such contracts is recorded as services are performed. The Company records revenues on a monthly basis calculated by applying the contractual rate called for in the contract.

Penn Interactive Ventures generates in-app purchase and advertising revenues from free-to-play social casino games which can be downloaded to mobile phones and tablets from digital storefronts. Players can purchase virtual playing credits within our social casino games which allows for increased playing opportunities and functionality. Penn Interactive Ventures records deferred revenue from the sale of virtual playing credits and recognizes this revenue over the average redemption period of the credits which is approximately three days. Advertising revenues are recognized in the period when the advertising impression, click or install delivery occurs. Penn Interactive Ventures also generates revenue from revenue sharing arrangements with third party content providers whereby revenues are recognized on a net basis since Penn Interactive Ventures is not the controlling entity in the arrangement.

Reimbursable management costs associated with the Company’s management contracts represent amounts received or due pursuant to the Company’s management agreement for the reimbursement of expenses, primarily payroll costs, incurred by the Company on the managed facility’s behalf. The Company is the controlling entity to the arrangement, therefore the reimbursement is recorded on a gross basis with an offsetting amount charged to operating expense.

Promotional Allowances

The retail value of accommodations, food and beverage, and other services furnished to guests for free as an inducement to gamble is included in food, beverage, hotel and other revenue and offset as a deduction to gaming revenue in accordance with the new revenue standard and consists of the following for the period ended March 31, 2018:


Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	9,687
Food and beverage		22,976
Other		976
Total amount recorded in food, beverage, hotel and other revenues and offset to gaming revenues	$	33,639

The estimated cost of providing such complimentary services to guests for free as an inducement to gamble is included in food, beverage, hotel and other expenses and consists of the following for the period ended March 31, 2018:



Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	1,291
Food and beverage		8,619
Other		293
Total cost of complimentary services included in food, beverage, hotel and other expense	$	10,203

Revenue Disaggregation

The Company is a geographically diversified, multi-jurisdictional owner and manager of gaming and racing facilities and video gaming terminal operations. Our operations are focused in regional gaming markets located within the Northeastern, South/Western and Midwestern United States. We also manage casinos for other entities in the United States and Canada. We generate revenues at our owned and operated properties by providing the following types of services: (i) gaming, (ii) food and beverage, (iii) lodging, (iv) racing, (v) reimbursable management costs and, (vi) other. Our revenue disaggregation by type of revenue and geographic location is as follows (in thousands):


Three Months Ended March 31, 2018	Northeast		South/West		Midwest		Other		Total

Gaming	$	355,785	$	97,547	$	201,162	$	-	$	654,494
Food and beverage		19,180		28,279		15,921		263		63,643
Lodging		1,967		23,601		7,953		-		33,521
Racing		5,276		7		-		1,527		6,810
Reimbursable management costs		21,844		6,340		-		-		28,184
Other		10,115		5,522		5,050		8,746		29,433
Total net revenues	$	414,167	$	161,296	$	230,086	$	10,536	$	816,085

Customer-related Liabilities

The Company has two general types of liabilities related to contracts with customers: (i) our loyalty credit obligation and (ii) advance payments on goods and services yet to be provided or for unpaid wagers.

The Company’s loyalty reward programs allow members to utilize their reward membership cards to earn loyalty points that are redeemable for slot play and complimentaries such as food and beverages at our restaurants, lodging at our hotels and products offered at our retail stores across the vast majority of the Company’s casino properties. The Company accounts for the loyalty credit obligation utilizing a deferred revenue model, which defers revenue at the estimated fair value when the loyalty points are earned by our customers. Revenue associated with the loyalty credit obligation is subsequently recognized into revenue when the loyalty points are redeemed. The deferred revenue liability is based on the estimated standalone selling price of the loyalty points earned after factoring in the likelihood of redemption.

The Company’s loyalty credit obligation was $22.4 million at March 31, 2018 compared to $24.7 million upon the adoption of the new revenue standard at January 1, 2018. Our loyalty credit obligations are generally settled within six months of issuance. Changes between the opening and closing balances primarily relate to the timing of the customer’s election to redeem loyalty points for complimentaries and products offered at our food and beverage outlets, hotels and retail stores.

The Company’s advance payments on goods and services yet to be provided or 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 visitation (i.e. 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.

Advance payments on goods and services are recognized as revenue when the good or service is transferred to the customer. Unpaid wagers primarily relate to the Company’s obligation to settle outstanding slot tickets, pari-mutuel racing tickets and gaming tokens with customers and generally represents 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 or for unpaid wagers were $21.1 million and $21.2 million at March 31, 2018 and December 31, 2017, respectively, of which $1.2 million and $1.3 million are classified as long-term.

Gaming and Racing Taxes

The Company is subject to gaming and pari-mutuel taxes based on gross gaming revenue and pari-mutuel revenue in the jurisdictions in which it operates. 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. In certain states in which the Company operates, gaming taxes are based on graduated rates. The Company records gaming tax expense at the Company’s estimated effective gaming tax rate for the year, considering estimated taxable gaming revenue and the applicable rates. Such estimates are adjusted each interim period. If gaming tax rates change during the year, such changes are applied prospectively in the determination of gaming tax expense in future interim periods. For the three months ended March 31, 2018, these expenses, which are recorded primarily within gaming expense in the condensed consolidated statements of income, were $247.4 million, as compared to $244.4 million for the three months ended March 31, 2017.

Long-term asset related to the Jamul Indian Village

The unpaid principal balance of the loan to the Jamul Indian Village Development Corporation (“JIVDC”) at March 31, 2018 and December 31, 2017 was $98.5 million and $98.3 million, respectively. The net carrying value of the loan to the JIVDC totaled $20.6 million and $20.9 million at March 31, 2018 and December 31, 2017, respectively. The Company’s remaining exposure at March 31, 2018 was $27.6 million inclusive of future unfunded commitments on the loan.

Earnings Per Share

The Company calculates earnings per share (“EPS”) in accordance with ASC 260, “Earnings Per Share” (“ASC 260”). Basic EPS is computed by dividing net income applicable to common stock by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the additional dilution for all potentially-dilutive securities such as stock options and unvested restricted shares.

The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the three months ended March 31, 2018 and 2017:


	Three Months Ended March 31,	Three Months Ended March 31,
	2018	2017
	(in thousands)
Determination of shares:
Weighted-average common shares outstanding	91,191	90,751
Assumed conversion of dilutive employee stock-based awards	3,260	1,105
Assumed conversion of restricted stock	199	61
Diluted weighted-average common shares outstanding	94,650	91,917

Options to purchase 646,307 and 4,545,585 shares were outstanding during the three months ended March 31, 2018 and 2017, respectively, but were not included in the computation of diluted EPS because they were antidilutive.

The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three months ended March 31, 2018 and 2017 (in thousands, except per share data):


	Three Months Ended March 31,		Three Months Ended March 31,
	2018		2017
Calculation of basic EPS:
Net income applicable to common stock	$	45,437	$	5,104
Weighted-average common shares outstanding		91,191		90,751
Basic EPS	$	0.50	$	0.06

Calculation of diluted EPS using two-class method:
Net income applicable to common stock	$	45,437	$	5,104
Diluted weighted-average common shares outstanding		94,650		91,917
Diluted EPS	$	0.48	$	0.06

Stock-Based Compensation

The Company accounts for stock compensation under ASC 718, “Compensation-Stock Compensation,” which requires the Company to expense the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. This expense is recognized ratably over the requisite service period following the date of grant.

The fair value for stock options is estimated at the date of grant using the Black-Scholes option-pricing model, which requires management to make certain assumptions. The risk-free interest rate was based on the U.S. Treasury spot rate with a term equal to the expected life assumed at the date of grant. Expected volatility was estimated based on the historical volatility of the Company’s stock price over a period of 5.30 years, in order to match the expected life of the options at the grant date. Historically, at the grant date, there has been no expected dividend yield assumption since the Company has not paid any cash dividends on its common stock since its initial public offering in May 1994 and since the Company intends to retain all of its earnings to finance the development of its business for the foreseeable future. The weighted-average expected life was based on the contractual term of the stock option and expected employee exercise dates, which was based on the historical and expected exercise behavior of the Company’s employees. The Company granted 661,175 and 1,446,353 stock options during the three months ended March 31, 2018 and 2017, respectively.

Stock-based compensation expense for the three months ended March 31, 2018 was $2.9 million as compared to $2.2 million for the three months ended March 31, 2017, and is included within the condensed consolidated statements of income under general and administrative expense.

The Company’s cash-settled phantom stock unit awards (“PSUs”), which vest over a period of four years, entitle employees and directors to receive cash based on the fair value of the Company’s common stock on the vesting date. The PSUs are accounted for as liability awards and are re-measured at fair value each reporting period until they become vested with compensation expense being recognized over the requisite service period in accordance with ASC 718-30, “Compensation—Stock Compensation, Awards Classified as Liabilities.” The Company had a liability, which is included in accrued salaries and wages within the condensed consolidated balance sheets, associated with its PSUs of $0.8 million and $4.8 million at March 31, 2018 and December 31, 2017, respectively, primarily due to payouts on the awards. For PSUs held by Penn employees, there was $5.9 million of total unrecognized compensation cost at March 31, 2018 that will be recognized over the grants remaining weighted average vesting period of 2.63 years. For the three months ended March 31, 2018, the Company recognized $0.1 million of compensation expense associated with these awards, as compared to $4.3 million for the three months ended March 31, 2017. The changes are primarily due to the final vesting of the Company’s Transition Award Program on July 23, 2017 as well as changes in Penn’s stock prices at March 31 compared to December 31 in both years. Amounts paid by the Company for the three months ended March 31, 2018 on these cash-settled awards totaled $4.1 million as compared to $3.5 million for the three months ended March 31, 2017.

For the Company’s cash-settled stock appreciation rights (“SARs”), the fair value of the SARs is calculated during each reporting period and estimated using the Black-Scholes option pricing model based on the various inputs discussed below. The Company’s SARs, which vest over a period of four years, are accounted for as liability awards since they will be settled in cash. The Company had a liability, which is included in accrued salaries and wages within the condensed consolidated balance sheets, associated with its SARs of $16.8 million and $24.0 million at March 31, 2018 and December 31, 2017, respectively. For SARs held by Penn employees, there was $12.9 million of total unrecognized compensation cost at March 31, 2018 that will be recognized over the awards remaining weighted average vesting period of 2.55 years. For the three months ended March 31, 2018, the Company recognized a benefit to compensation expense of $4.0 million associated with these awards, as compared to compensation expense of $4.0 million for the three months ended March 31, 2017. The changes are primarily due to changes in Penn’s stock prices at March 31 compared to December 31 in both years. Amounts paid by the Company for the three months ended March 31, 2018 on these cash-settled awards totaled $3.0 million as compared to $1.1 million for the three months ended March 31, 2017.

In addition to the variances in cash-settled awards explained above, accrued salaries and wages decreased during the three months ended March 31, 2018 due to the payment of 2017 bonuses, which was $6.6 million higher compared to the prior year.

The following are the weighted-average assumptions used in the Black-Scholes option-pricing model for stock option awards granted during the March 31, 2018 and 2017, respectively:


Three months ended March 31,	2018		2017
Risk-free interest rate	2.26	%	1.97	%
Expected volatility	30.80	%	30.67	%
Dividend yield	—		—
Weighted-average expected life (years)	5.30		5.30

Segment Information

The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), as that term is defined in ASC 280 “Segment Reporting”, measures and assesses the Company’s business performance based on regional operations of various properties grouped together based primarily on their geographic locations.

The Northeast reportable segment consists of the following properties: Hollywood Casino at Charles Town Races, Hollywood Casino Bangor, Hollywood Casino at Penn National Race Course, Hollywood Casino Toledo, Hollywood Casino Columbus, Hollywood Gaming at Dayton Raceway, Hollywood Gaming at Mahoning Valley Race Course, and Plainridge Park Casino. It also includes the Company’s Casino Rama management service contract.

The South/West reportable segment consists of the following properties: Zia Park Casino, Hollywood Casino Tunica, Hollywood Casino Gulf Coast, Boomtown Biloxi, M Resort, Tropicana Las Vegas, 1st Jackpot and Resorts which were acquired on May 1, 2017, as well as our management contract with Hollywood Casino Jamul-San Diego. In late February 2018, the Company and the Jamul Tribe mutually agreed that Penn would no longer manage the facility or provide branding and development services on May 28, 2018. The Company will provide a transition that it anticipates will last through approximately late May.

The Midwest reportable segment consists of the following properties: Hollywood Casino Aurora, Hollywood Casino Joliet, Argosy Casino Alton, Argosy Casino Riverside, Hollywood Casino Lawrenceburg, Hollywood Casino St. Louis, and Prairie State Gaming, and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns the Hollywood Casino at Kansas Speedway.

The Other category consists of the Company’s standalone racing operations, namely Sanford-Orlando Kennel Club, the Company’s joint venture interests in Sam Houston Race Park, Valley Race Park, and Freehold Raceway. If the Company is successful in obtaining gaming operations at these locations, they would be assigned to one of the Company’s regional executives and reported in their respective reportable segment. The Other category also includes the Company’s corporate overhead operations, which does not meet the definition of an operating segment under ASC 280. Additionally, the Other category includes Penn Interactive Ventures, the Company’s wholly-owned subsidiary that represents its social online gaming initiatives, including Rocket Speed. Penn Interactive Ventures meets the definition of an operating segment under ASC 280, but is quantitatively not significant to the Company’s operations as it represents less than 2% of net revenues and income from operations for the three months ended March 31, 2018, and its total assets represent less than 2% of the Company’s total assets at March 31, 2018.

Management uses adjusted EBITDA as an important measure of the operating performance of its segments, including the evaluation of operating personnel and believes it is especially relevant in evaluation large, long-lived casino projects because it provides a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. The Company defines adjusted EBITDA as earnings before interest, taxes, stock compensation, debt extinguishment and financing charges, impairment charges, insurance recoveries and deductible charges, depreciation and amortization, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, preopening and significant transaction costs and other income or expenses. Adjusted EBITDA is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our joint venture in Kansas Entertainment. Adjusted EBITDA excludes payments associated with our Master Lease agreement with GLPI as the transaction was accounted for as a financing obligation.

In the first quarter of 2018, we changed the definition of adjusted EBITDA to exclude preopening costs, significant transaction costs and the variance between our budgeted and actual costs incurred on cash-settled stock based awards which are required to be marked to market each reporting period. We determined to exclude preopening costs and significant transaction costs to more closely align the Company’s calculation of adjusted EBITDA with our competitors. Preopening costs and significant transaction costs are also excluded from adjusted EBITDA for bonus calculation purposes. We have excluded the favorable or unfavorable difference between the budgeted expense and actual expense for our cash-settled stock-based awards as it is non-operational in nature. Additionally, this variance is excluded from adjusted EBITDA for bonus calculation purposes. In connection with the change to the definition of adjusted EBITDA, we reclassified our prior period results to conform to the current period presentation.

Adjusted EBITDA should not be construed as an alternative to operating income, as an indicator of the Company’s operating performance, as an alternative to cash flows from operating activities, as a measure of liquidity, or as any other measure of performance determined in accordance with GAAP. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in adjusted EBITDA.

See Note 7: “Segment Information” for further information with respect to the Company’s segments.

Property and Equipment

3 Months Ended

Mar. 31, 2018

Property and Equipment

Property and Equipment

4. Property and Equipment

Property and equipment, net, consists of the following:


	March 31,		December 31,
	2018		2017
	(in thousands)

Property and equipment - non-Master Lease
Land and improvements	$	294,716	$	294,695
Building and improvements		430,440		429,015
Furniture, fixtures and equipment		1,381,443		1,385,889
Leasehold improvements		131,257		130,801
Construction in progress		17,345		15,617
		2,255,201		2,256,017
Less Accumulated depreciation		(1,367,370)		(1,345,147)
		887,831		910,870
Property and equipment - Master Lease
Land and improvements		424,700		424,700
Building and improvements		2,258,577		2,258,577
		2,683,277		2,683,277
Less accumulated depreciation		(860,456)		(837,478)
		1,822,821		1,845,799
Property and equipment, net	$	2,710,652	$	2,756,669

Property and equipment, net decreased by $46.0 million for the three months ended March 31, 2018 primarily due to depreciation expense, which is partially offset by maintenance capital expenditures, as well as improvements to food and beverage offerings at Tropicana Las Vegas.

Depreciation expense, for property and equipment including assets under capital leases, totaled $55.9 million and $65.0 million for the three months ended March 31, 2018 and 2017, respectively, of which $23.3 million and $22.7 million related to assets under the Master Lease, respectively. No interest was capitalized in connection with major construction projects for the three months ended March 31, 2018 and 2017.

Intangible Assets

3 Months Ended

Mar. 31, 2018

Intangible Assets

Intangible Assets Disclosure [Text Block]

5. Intangible Assets

Indefinite‑life intangible assets consist primarily of gaming licenses. The table below presents the gross carrying value, accumulated amortization, and net book value of each major class of other intangible assets at March 31, 2018 and December 31, 2017:


	March 31, 2018						December 31, 2017
	(in thousands)
	Gross						Gross
	Carrying		Accumulated		Net Book		Carrying		Accumulated		Net Book
	Value		Amortization		Value		Value		Amortization		Value
Indefinite-life intangible assets	$	425,505	$	—	$	425,505	$	375,405	$	—	$	375,405
Other intangible assets		132,831		88,758		44,073		131,483		84,282		47,201
Total	$	558,336	$	88,758	$	469,578	$	506,888	$	84,282	$	422,606

Total other intangible assets increased by $47 million for the three months ended March 31, 2018 primarily due to the purchase of a Category 4 gaming license to operate up to 750 slot machines and initially up to 30 table games in York County, Pennsylvania for $50.1 million, along with the capitalization of computer software intangibles of $1.4 million, partially offset by $4.5 million in amortization of definite-lived intangible assets. Other intangible assets have a weighted average remaining amortization period of approximately 4.6 years.

The Company’s intangible asset amortization expense was $4.5 million and $5.2 million, for the three months ended March 31, 2018 and 2017, respectively.

The following table presents expected intangible asset amortization expense based on existing intangible assets as of March 31, 2018 (in thousands):


Remaining 2018	$	9,554
2019		8,949
2020		6,287
2021		3,644
2022		3,596
Thereafter		12,043
Total	$	44,073

Long-term Debt

3 Months Ended

Mar. 31, 2018

Long-term Debt

Long-term Debt

6. Long-term Debt

Long-term debt, net of current maturities, is as follows:


	March 31,		December 31,
	2018		2017
	(in thousands)

Senior secured credit facility	$	715,000	$	760,000
$400 million 5.625% senior unsecured notes due January 15, 2027		400,000		400,000
Other long-term obligations		111,674		119,310
Capital leases		449		891
		1,227,123		1,280,201
Less current maturities of long-term debt		(35,498)		(35,612)
Less discount on senior secured credit facility Term Loan B		(2,251)		(2,558)
Less debt issuance costs		(25,227)		(27,406)
	$	1,164,147	$	1,214,625

The following is a schedule of future minimum repayments of long-term debt as of March 31, 2018 (in thousands):


Within one year	$	35,498
1-3 years		94,963
3-5 years		263,187
Over 5 years		833,475
Total minimum payments	$	1,227,123

Senior Secured Credit Facility

On January 19, 2017, the Company entered into a new senior secured credit facility. The new senior secured credit facility consists of a five year $700 million revolver, a five year $300 million Term Loan A facility, and a seven year $500 million Term Loan B facility (the “Amended Credit Facilities”). The Term Loan A facility was priced at LIBOR plus a spread (ranging from 3.00% to 1.25%) based on the Company’s consolidated total net leverage ratio as defined in the new senior secured credit facility. The Term Loan B facility was priced at LIBOR plus 2.50%, with a 0.75% LIBOR floor. At March 31, 2018, the Company’s senior secured credit facility had a gross outstanding balance of $715.0 million, consisting of a $285.0 million Term Loan A facility and a $430.0 million Term Loan B facility. No amounts were outstanding on the revolving credit facility at March 31, 2018. Additionally, the Company had conditional obligations under letters of credit issued pursuant to the senior secured credit facility with face amounts aggregating $22.4 million, resulting in $677.6 million of available borrowing capacity as of March 31, 2018 under the revolving credit facility. In connection with the repayment of the previous senior secured credit facility, the Company recorded $1.7 million in refinancing costs and a $2.3 million loss on the early extinguishment of debt for the three months ended March 31, 2017 related to the write-off of deferred debt issuance costs and the discount on the Term Loan B facility of the previous senior secured credit facility. In connection with Term Loan B principal prepayments, the Company recorded a $0.9 million loss on the early extinguishment of debt for the three months ended March 31, 2018.

Redemption of 5.875% Senior Subordinated Notes

In the first quarter of 2017, the Company redeemed all of its $300 million 5.875% senior subordinated notes, which were due in 2021 (“5.875% Notes”). In connection with this redemption, the Company recorded a $21.1 million loss on the early extinguishment of debt for the three months ended March 31, 2017 related to the difference between the reacquisition price of the 5.875% Notes compared to its carrying value.

5.625% Senior Unsecured Notes

On January 19, 2017, the Company completed an offering of $400 million 5.625% senior unsecured notes that mature on January 15, 2027 (the “5.625% Notes”) at a price of par. Interest on the 5.625% Notes is payable on January 15th and July 15th of each year. The 5.625% Notes are senior unsecured obligations of the Company. The 5.625% Notes will not be guaranteed by any of the Company’s subsidiaries except in the event that the Company in the future issues certain subsidiary‑guaranteed debt securities. The Company may redeem the 5.625% Notes at any time on or after January 15, 2022, at the declining redemption premiums set forth in the indenture governing the 5.625% Notes, and, prior to January 15, 2022, at a “make-whole” redemption premium set forth in the indenture governing the 5.625% Notes. In addition, prior to January 15, 2020, the Company may redeem the 5.625% Notes with an amount equal to the net proceeds from one or more equity offerings, at a redemption price equal to 105.625% of the principal amount of the 5.625% Notes redeemed, together with accrued and unpaid interest to, but not including, the redemption date, so long as at least 60% of the aggregate principal amount of the notes originally issued under the indenture remains outstanding and such redemption occurs within 180 days of closing of the related equity offering.

The Company used a portion of the proceeds from the issuance of the 5.625% Notes to retire its existing 5.875% Notes and to fund related transaction fees and expenses.

The Company used loans funded under the Amended Credit Facilities and a portion of the proceeds of the 5.625% Notes to repay amounts outstanding under its then existing Credit Agreement and to fund related transaction fees and expenses and for general corporate purposes.

Covenants

The Company’s senior secured credit facility and $400 million 5.625% senior unsecured notes require it, among other obligations, to maintain specified financial ratios and to satisfy certain financial tests, including fixed charge coverage, interest coverage, senior leverage and total leverage ratios. In addition, the Company’s senior secured credit facility and $400 million 5.625% senior unsecured notes restrict, among other things, its ability to incur additional indebtedness, incur guarantee obligations, amend debt instruments, pay dividends, create liens on assets, make investments, engage in mergers or consolidations, and otherwise restrict corporate activities.

At March 31, 2018, the Company was in compliance with all required financial covenants.

Segment Information

3 Months Ended

Mar. 31, 2018

Segment Information

Segment Information

7. Segment Information

The following tables (in thousands) present certain information with respect to the Company’s segments. Intersegment revenues between the Company’s segments were not material in any of the periods presented below.


Three months ended March 31,		2018		2017

Net Revenues
Northeast	$	414,167	$	393,465
South/West		161,296		139,820
Midwest		230,086		228,338
Other (1)		10,536		14,601
Total Reportable Segment Net Revenues		816,085		776,224


Adjusted EBITDA
Northeast		132,007		126,574
South/West		45,049		36,341
Midwest		81,155		78,106
Other (1)		(15,665)		(13,576)
Total Reportable Segment Adjusted EBITDA		242,546		227,445

Other operating costs and other expenses (income)
Depreciation and amortization		60,390		70,236
Unconsolidated non-operating costs - Kansas JV		1,294		1,951
Interest expense		115,740		114,996
Interest income		(249)		(2,646)
Loss (gain) on disposal of assets		55		(45)
Impairment losses		618		—
Cash-settled stock award variance		(7,462)		5,164
Pre-opening and significant transaction costs		6,093		571
Loss on early extinguishment of debt and modification costs		882		23,390
Other		(4)		1,793
Contingent purchase price		1,134		2,560
Charge for stock compensation		2,929		2,173
Income before income taxes		61,126		7,302
Income taxes		15,689		2,198
Net income	$	45,437	$	5,104


		Northeast		South/West		Midwest		Other (1)		Total

Three months ended March 31, 2018
Capital expenditures	$	3,487	$	3,412	$	3,732	$	1,182	$	11,813

Three months ended March 31, 2017
Capital expenditures	$	3,990	$	8,622	$	4,331	$	213	$	17,156

Balance sheet at March 31, 2018
Total assets (1)	$	813,232	$	783,634	$	1,081,046	$	2,487,621	$	5,165,533
Investment in and advances to unconsolidated affiliates		105		—		87,610		59,943		147,658
Goodwill		21,242		244,695		674,558		67,602		1,008,097
Other intangible assets, net		353,143		978		100,798		14,659		469,578

Balance sheet at December 31, 2017
Total assets (1)	$	821,649	$	794,274	$	1,070,204	$	2,548,685	$	5,234,812
Investment in and advances to unconsolidated affiliates		102		—		88,296		60,514		148,912
Goodwill		21,242		244,695		674,558		67,602		1,008,097
Other intangible assets, net		303,043		1,623		101,698		16,242		422,606

(1) Total assets include the real property assets under the Master Lease with GLPI. Net revenues and adjusted EBITDA relate to the Company’s stand-alone racing operations, namely Sanford Orlando Kennel Club and the Company’s joint venture interests in Texas and New Jersey which do not have gaming operations. Other also includes corporate overhead operations as well as Penn Interactive Ventures, which is a wholly-owned subsidiary that is focused on the Company’s interactive gaming strategy.

Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Measurements

Fair Value Measurements

8. Fair Value Measurements

ASC 820, “Fair Value Measurements and Disclosures,” establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below:

Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions, as there is little, if any, related market activity.

The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate:

Cash and cash equivalents

The fair value of the Company’s cash and cash equivalents approximates the carrying value of the Company’s cash and cash equivalents, due to the short maturity of the cash equivalents and as such is a Level 1 measurement.

Loan to the JIVDC

The fair value of the Company’s loan to the JIVDC was based on the present value of the projected future cash flows discounted at 14%, which we believe approximates the return a market participant would require. Since the projections are based on management’s internal projections, the Company concluded that this instrument should be classified as a Level 3 measurement.

Long-term debt

The fair value of the Company’s Term Loan A and Term Loan B components of its senior secured credit facility and senior unsecured notes are estimated based on quoted prices in active markets and as such is a Level 1 measurement. The fair value of the remainder of the Company’s senior secured credit facility approximates its carrying value as it is revolving, variable rate debt and as such is a Level 2 measurement.

Other long-term obligations at March 31, 2018 and December 31, 2017 included the relocation fees for Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course and the repayment obligation of a hotel and event center located near Hollywood Casino Lawrenceburg. The fair value of the relocation fees for Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course and the repayment obligation for the hotel and event center are estimated based on rates consistent with the Company’s credit rating for comparable terms and debt instruments and as such are Level 2 measurements.

Other liabilities

Other liabilities at March 31, 2018 and December 31, 2017 are primarily comprised of the contingent purchase price consideration related to the purchases of Plainridge Racecourse. The fair value of the Company’s contingent purchase price consideration related to its Plainridge Racecourse acquisition is estimated based on a discounted cash flow model and as such is a Level 3 measurement. At each reporting period, the Company assesses the fair value of these liabilities and changes in their fair values are recorded in earnings. The amount related to the change in fair value of these obligations resulted in a charge to general and administrative expense of $1.1 million and $2.6 million for the three months ended March 31, 2018 and 2017, respectively.

The carrying amounts and estimated fair values by input level of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands):


	March 31, 2018
	Carrying
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	217,997	$	217,997	$	217,997	$	—	$	—
Loan to the JIVDC		20,613		16,677		—		—		16,677
Financial liabilities:
Long-term debt
Senior secured credit facility		688,251		716,634		716,634		—		—
Senior unsecured notes		399,270		385,000		385,000		—		—
Other long-term obligations		111,674		106,402		—		106,402		—
Other liabilities		23,810		23,810		—		—		23,810


	December 31, 2017
	Carrying
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	277,953	$	277,953	$	277,953	$	—	$	—
Loan to the JIVDC		20,900		16,533		—		—		16,533
Financial liabilities:
Long-term debt
Senior secured credit facility		730,787		760,456		760,456		—		—
Senior unsecured notes		399,249		412,000		412,000		—		—
Other long-term obligations		119,310		113,460		—		113,460		—
Other liabilities		22,696		22,696		—		—		22,696

The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities (in thousands):


	Three Months Ended
	March 31, 2018
	Liabilities
	Contingent
	Purchase Price
Balance at January 1, 2018	$	22,696
Additions		—
Payments		(20)
Included in earnings		1,134
Balance at March 31, 2018	$	23,810

The following table summarizes the significant unobservable inputs used in calculating fair value for the Company’s Level 3 liabilities:


	Valuation	Unobservable
	Technique	Input	Discount Rate
Contingent purchase price - Plainridge	Discounted cash flow	Discount rate	7.60	%

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Revenue Recognition and Promotional Allowances

Promotional Allowances


Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	9,687
Food and beverage		22,976
Other		976
Total amount recorded in food, beverage, hotel and other revenues and offset to gaming revenues	$	33,639



Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	1,291
Food and beverage		8,619
Other		293
Total cost of complimentary services included in food, beverage, hotel and other expense	$	10,203

Revenue Disaggregation


Three Months Ended March 31, 2018	Northeast		South/West		Midwest		Other		Total

Gaming	$	355,785	$	97,547	$	201,162	$	-	$	654,494
Food and beverage		19,180		28,279		15,921		263		63,643
Lodging		1,967		23,601		7,953		-		33,521
Racing		5,276		7		-		1,527		6,810
Reimbursable management costs		21,844		6,340		-		-		28,184
Other		10,115		5,522		5,050		8,746		29,433
Total net revenues	$	414,167	$	161,296	$	230,086	$	10,536	$	816,085

Customer-related Liabilities

Gaming and Racing Taxes

Long-term asset related to the Jamul Tribe

Long-term asset related to the Jamul Indian Village

Earnings Per Share


	Three Months Ended March 31,	Three Months Ended March 31,
	2018	2017
	(in thousands)
Determination of shares:
Weighted-average common shares outstanding	91,191	90,751
Assumed conversion of dilutive employee stock-based awards	3,260	1,105
Assumed conversion of restricted stock	199	61
Diluted weighted-average common shares outstanding	94,650	91,917

The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three months ended March 31, 2018 and 2017 (in thousands, except per share data):


	Three Months Ended March 31,		Three Months Ended March 31,
	2018		2017
Calculation of basic EPS:
Net income applicable to common stock	$	45,437	$	5,104
Weighted-average common shares outstanding		91,191		90,751
Basic EPS	$	0.50	$	0.06

Calculation of diluted EPS using two-class method:
Net income applicable to common stock	$	45,437	$	5,104
Diluted weighted-average common shares outstanding		94,650		91,917
Diluted EPS	$	0.48	$	0.06

Stock-Based Compensation

In addition to the variances in cash-settled awards explained above, accrued salaries and wages decreased during the three months ended March 31, 2018 due to the payment of 2017 bonuses.

The following are the weighted-average assumptions used in the Black-Scholes option-pricing model for stock option awards granted during the March 31, 2018 and 2017, respectively:


Three months ended March 31,	2018		2017
Risk-free interest rate	2.26	%	1.97	%
Expected volatility	30.80	%	30.67	%
Dividend yield	—		—
Weighted-average expected life (years)	5.30		5.30

Segment Information

See Note 7: “Segment Information” for further information with respect to the Company’s segments.

New Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2018

ASU 2014-09

Schedule of impact of adoption of ASU-2014-09 on condensed statements of income and condensed consolidated balance sheets


	Three Months Ended March 31, 2018 As Reported		Loyalty Point Impact (1)		Promotional Allowance (Discretionary Comps) Impact (2)		Promotional Allowance (Point Redemptions) Impact (2)		Reimbursable Expense - Casino Rama Impact (3)		Racing Revenue Impact (4)		Balances Without Adoption of ASC 606		Effect of Change Higher / (Lower)
Income Statement

Revenues
Gaming	$	654,494	$	(1,419)	$	33,639	$	-	$	-	$	-	$	686,714	$	(32,220)
Food, beverage, hotel and other		130,969		(69)		-		6,624		-		8,960		146,484		(15,515)
Management service fees		2,438		-		-		-		-		-		2,438		-
Reimbursable management costs		28,184		-		-		-		(21,844)		-		6,340		21,844
Revenues		816,085		(1,488)		33,639		6,624		(21,844)		8,960		841,976		(25,891)
Less: promotional allowances		-		-		(33,639)		(6,624)		-		-		(40,263)		40,263
Net Revenue		816,085		(1,488)		-		-		(21,844)		8,960		801,713		14,372

Operating expenses
Gaming		340,516		(1,027)		-		-		-		-		339,489		1,027
Food, beverage, hotel and other		92,980		-		-		-		-		8,960		101,940		(8,960)
General and administrative		121,263		-		-		-		-		-		121,263		-
Reimbursable management costs		28,184		-		-		-		(21,844)		-		6,340		21,844
Depreciation and amortization		60,390		-		-		-		-		-		60,390		-
Impairment losses		618		-		-		-		-		-		618		-
Insurance recoveries		-		-		-		-		-				-		-
Total operating expenses		643,951		(1,027)		-		-		(21,844)		8,960		630,040		13,911
Income from operations		172,134		(461)		-		-		-		-		171,673		461

Income from operations before income taxes		61,126		(461)		-		-		-		-		60,665		461
Income tax (benefit) provision		15,689		(118)		-		-		-		-		15,571		118
Net income	$	45,437	$	(343)	$	-	$	-	$	-	$	-	$	45,094	$	343

As a result of the adoption of the new revenue standard, the following areas resulted in significant changes to the Company’s accounting:

(1)

(2)

(3)

(4)


	As Reported At March 31, 2018	Balances Without the Adoption of ASC 606	Effect of Change Higher (Lower)
Balance Sheet

Other assets
Deferred income taxes	388,058	386,271	1,787

Current liabilities
Accrued expenses	134,312	123,078	11,234

Shareholders' (deficit)
Retained deficit	(1,016,031)	(1,007,175)	(8,856)


	Balance at December 31, 2017	Adjustment Due to ASU 2014-09	Balance at January 1, 2018

Balance Sheet

Other assets
Deferred income taxes	390,943	2,044	392,987

Current liabilities
Accrued expenses	125,688	11,694	137,382

Shareholders' (deficit)
Retained deficit	(1,051,818)	(9,650)	(1,061,468)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Schedule of promotional allowances


Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	9,687
Food and beverage		22,976
Other		976
Total amount recorded in food, beverage, hotel and other revenues and offset to gaming revenues	$	33,639

Schedule of estimated cost of providing complimentary services



Three Months Ended March 31,	2018
	(in thousands)
Lodging	$	1,291
Food and beverage		8,619
Other		293
Total cost of complimentary services included in food, beverage, hotel and other expense	$	10,203

Schedule of disaggregation of revenue

Our revenue disaggregation by type of revenue and geographic location is as follows (in thousands):


Three Months Ended March 31, 2018	Northeast		South/West		Midwest		Other		Total

Gaming	$	355,785	$	97,547	$	201,162	$	-	$	654,494
Food and beverage		19,180		28,279		15,921		263		63,643
Lodging		1,967		23,601		7,953		-		33,521
Racing		5,276		7		-		1,527		6,810
Reimbursable management costs		21,844		6,340		-		-		28,184
Other		10,115		5,522		5,050		8,746		29,433
Total net revenues	$	414,167	$	161,296	$	230,086	$	10,536	$	816,085

Schedule of reconciliation of the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS


	Three Months Ended March 31,	Three Months Ended March 31,
	2018	2017
	(in thousands)
Determination of shares:
Weighted-average common shares outstanding	91,191	90,751
Assumed conversion of dilutive employee stock-based awards	3,260	1,105
Assumed conversion of restricted stock	199	61
Diluted weighted-average common shares outstanding	94,650	91,917

Schedule of calculation of basic and diluted EPS for the entity's common stock

The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three months ended March 31, 2018 and 2017 (in thousands, except per share data):


	Three Months Ended March 31,		Three Months Ended March 31,
	2018		2017
Calculation of basic EPS:
Net income applicable to common stock	$	45,437	$	5,104
Weighted-average common shares outstanding		91,191		90,751
Basic EPS	$	0.50	$	0.06

Calculation of diluted EPS using two-class method:
Net income applicable to common stock	$	45,437	$	5,104
Diluted weighted-average common shares outstanding		94,650		91,917
Diluted EPS	$	0.48	$	0.06

Weighted-average assumptions used in Black-Scholes option pricing model


Three months ended March 31,	2018		2017
Risk-free interest rate	2.26	%	1.97	%
Expected volatility	30.80	%	30.67	%
Dividend yield	—		—
Weighted-average expected life (years)	5.30		5.30

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2018

Property and Equipment

Schedule of property and equipment, net


	March 31,		December 31,
	2018		2017
	(in thousands)

Property and equipment - non-Master Lease
Land and improvements	$	294,716	$	294,695
Building and improvements		430,440		429,015
Furniture, fixtures and equipment		1,381,443		1,385,889
Leasehold improvements		131,257		130,801
Construction in progress		17,345		15,617
		2,255,201		2,256,017
Less Accumulated depreciation		(1,367,370)		(1,345,147)
		887,831		910,870
Property and equipment - Master Lease
Land and improvements		424,700		424,700
Building and improvements		2,258,577		2,258,577
		2,683,277		2,683,277
Less accumulated depreciation		(860,456)		(837,478)
		1,822,821		1,845,799
Property and equipment, net	$	2,710,652	$	2,756,669

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2018

Long-term Debt

Schedule of long-term debt, net of current maturities


	March 31,		December 31,
	2018		2017
	(in thousands)

Senior secured credit facility	$	715,000	$	760,000
$400 million 5.625% senior unsecured notes due January 15, 2027		400,000		400,000
Other long-term obligations		111,674		119,310
Capital leases		449		891
		1,227,123		1,280,201
Less current maturities of long-term debt		(35,498)		(35,612)
Less discount on senior secured credit facility Term Loan B		(2,251)		(2,558)
Less debt issuance costs		(25,227)		(27,406)
	$	1,164,147	$	1,214,625

Schedule of future minimum repayments of long-term debt

The following is a schedule of future minimum repayments of long-term debt as of March 31, 2018 (in thousands):


Within one year	$	35,498
1-3 years		94,963
3-5 years		263,187
Over 5 years		833,475
Total minimum payments	$	1,227,123

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Information

Schedule of information with respect to the Company's segments


Three months ended March 31,		2018		2017

Net Revenues
Northeast	$	414,167	$	393,465
South/West		161,296		139,820
Midwest		230,086		228,338
Other (1)		10,536		14,601
Total Reportable Segment Net Revenues		816,085		776,224


Adjusted EBITDA
Northeast		132,007		126,574
South/West		45,049		36,341
Midwest		81,155		78,106
Other (1)		(15,665)		(13,576)
Total Reportable Segment Adjusted EBITDA		242,546		227,445

Other operating costs and other expenses (income)
Depreciation and amortization		60,390		70,236
Unconsolidated non-operating costs - Kansas JV		1,294		1,951
Interest expense		115,740		114,996
Interest income		(249)		(2,646)
Loss (gain) on disposal of assets		55		(45)
Impairment losses		618		—
Cash-settled stock award variance		(7,462)		5,164
Pre-opening and significant transaction costs		6,093		571
Loss on early extinguishment of debt and modification costs		882		23,390
Other		(4)		1,793
Contingent purchase price		1,134		2,560
Charge for stock compensation		2,929		2,173
Income before income taxes		61,126		7,302
Income taxes		15,689		2,198
Net income	$	45,437	$	5,104


		Northeast		South/West		Midwest		Other (1)		Total

Three months ended March 31, 2018
Capital expenditures	$	3,487	$	3,412	$	3,732	$	1,182	$	11,813

Three months ended March 31, 2017
Capital expenditures	$	3,990	$	8,622	$	4,331	$	213	$	17,156

Balance sheet at March 31, 2018
Total assets (1)	$	813,232	$	783,634	$	1,081,046	$	2,487,621	$	5,165,533
Investment in and advances to unconsolidated affiliates		105		—		87,610		59,943		147,658
Goodwill		21,242		244,695		674,558		67,602		1,008,097
Other intangible assets, net		353,143		978		100,798		14,659		469,578

Balance sheet at December 31, 2017
Total assets (1)	$	821,649	$	794,274	$	1,070,204	$	2,548,685	$	5,234,812
Investment in and advances to unconsolidated affiliates		102		—		88,296		60,514		148,912
Goodwill		21,242		244,695		674,558		67,602		1,008,097
Other intangible assets, net		303,043		1,623		101,698		16,242		422,606

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurements

Schedule of carrying amount and estimated fair values of financial instruments

The carrying amounts and estimated fair values by input level of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands):


	March 31, 2018
	Carrying
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	217,997	$	217,997	$	217,997	$	—	$	—
Loan to the JIVDC		20,613		16,677		—		—		16,677
Financial liabilities:
Long-term debt
Senior secured credit facility		688,251		716,634		716,634		—		—
Senior unsecured notes		399,270		385,000		385,000		—		—
Other long-term obligations		111,674		106,402		—		106,402		—
Other liabilities		23,810		23,810		—		—		23,810


	December 31, 2017
	Carrying
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	277,953	$	277,953	$	277,953	$	—	$	—
Loan to the JIVDC		20,900		16,533		—		—		16,533
Financial liabilities:
Long-term debt
Senior secured credit facility		730,787		760,456		760,456		—		—
Senior unsecured notes		399,249		412,000		412,000		—		—
Other long-term obligations		119,310		113,460		—		113,460		—
Other liabilities		22,696		22,696		—		—		22,696

Summary of the changes in fair value of Level 3 liabilities

The following table summarizes the changes in the fair value of the Company’s Level 3 liabilities (in thousands):


	Three Months Ended
	March 31, 2018
	Liabilities
	Contingent
	Purchase Price
Balance at January 1, 2018	$	22,696
Additions		—
Payments		(20)
Included in earnings		1,134
Balance at March 31, 2018	$	23,810

Summary of significant unobservable inputs used in calculating fair value Level 3 liabilities


	Valuation	Unobservable
	Technique	Input	Discount Rate
Contingent purchase price - Plainridge	Discounted cash flow	Discount rate	7.60	%

New Accounting Pronouncements - Cumulative Effect on Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cumulative effect of adoption
Revenues	$ 816,085
Less promotional allowances		$ (41,858)
Net revenues	816,085	776,224
Operating expenses
General and administrative	121,263	125,815
Depreciation and amortization	60,390	70,236
Impairment losses	618
Total operating expenses	643,951	635,937
Income from operations	172,134	140,287
Income from operations before income taxes	61,126	7,302
Income tax provision	15,689	2,198
Net income	45,437	5,104
Gaming
Cumulative effect of adoption
Revenues	654,494
Operating expenses
Operating expenses	340,516	332,053
Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	130,969
Operating expenses
Operating expenses	92,980	101,075
Management service fees
Cumulative effect of adoption
Revenues	2,438
Reimbursable management costs
Cumulative effect of adoption
Revenues	28,184
Operating expenses
Operating expenses	28,184	$ 6,758
Balances Without Adoption of ASC 606
Cumulative effect of adoption
Revenues	841,976
Less promotional allowances	(40,263)
Net revenues	801,713
Operating expenses
General and administrative	121,263
Depreciation and amortization	60,390
Impairment losses	618
Total operating expenses	630,040
Income from operations	171,673
Income from operations before income taxes	60,665
Income tax provision	15,571
Net income	45,094
Balances Without Adoption of ASC 606 \| Gaming
Cumulative effect of adoption
Revenues	686,714
Operating expenses
Operating expenses	339,489
Balances Without Adoption of ASC 606 \| Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	146,484
Operating expenses
Operating expenses	101,940
Balances Without Adoption of ASC 606 \| Management service fees
Cumulative effect of adoption
Revenues	2,438
Balances Without Adoption of ASC 606 \| Reimbursable management costs
Cumulative effect of adoption
Revenues	6,340
Operating expenses
Operating expenses	6,340
ASU 2014-09 \| Effect of Change Higher / (Lower)
Cumulative effect of adoption
Revenues	(25,891)
Less promotional allowances	40,263
Net revenues	14,372
Operating expenses
Total operating expenses	13,911
Income from operations	461
Income from operations before income taxes	461
Income tax provision	118
Net income	343
ASU 2014-09 \| Effect of Change Higher / (Lower) \| Gaming
Cumulative effect of adoption
Revenues	(32,220)
Operating expenses
Operating expenses	1,027
ASU 2014-09 \| Effect of Change Higher / (Lower) \| Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	(15,515)
Operating expenses
Operating expenses	(8,960)
ASU 2014-09 \| Effect of Change Higher / (Lower) \| Reimbursable management costs
Cumulative effect of adoption
Revenues	21,844
Operating expenses
Operating expenses	21,844
ASU 2014-09 \| Loyalty Point Impact
Cumulative effect of adoption
Revenues	(1,488)
Net revenues	(1,488)
Operating expenses
Total operating expenses	(1,027)
Income from operations	(461)
Income from operations before income taxes	(461)
Income tax provision	(118)
Net income	(343)
ASU 2014-09 \| Loyalty Point Impact \| Gaming
Cumulative effect of adoption
Revenues	(1,419)
Operating expenses
Operating expenses	(1,027)
ASU 2014-09 \| Loyalty Point Impact \| Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	(69)
ASU 2014-09 \| Promotional Allowance Discretionary Complimentaries Impact
Cumulative effect of adoption
Revenues	33,639
Less promotional allowances	(33,639)
ASU 2014-09 \| Promotional Allowance Discretionary Complimentaries Impact \| Gaming
Cumulative effect of adoption
Revenues	33,639
ASU 2014-09 \| Promotional Allowance Point Redemption Impact
Cumulative effect of adoption
Revenues	6,624
Less promotional allowances	(6,624)
ASU 2014-09 \| Promotional Allowance Point Redemption Impact \| Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	6,624
ASU 2014-09 \| Reimbursable Expense - Casino Rama Impact
Cumulative effect of adoption
Revenues	(21,844)
Net revenues	(21,844)
Operating expenses
Total operating expenses	(21,844)
ASU 2014-09 \| Reimbursable Expense - Casino Rama Impact \| Reimbursable management costs
Cumulative effect of adoption
Revenues	(21,844)
Operating expenses
Operating expenses	(21,844)
ASU 2014-09 \| Racing Revenue Impact
Cumulative effect of adoption
Revenues	8,960
Net revenues	8,960
Operating expenses
Total operating expenses	8,960
ASU 2014-09 \| Racing Revenue Impact \| Food, beverage, hotel and other
Cumulative effect of adoption
Revenues	8,960
Operating expenses
Operating expenses	$ 8,960

Summary of Significant Accounting Policies - Revenue Disaggregation and Customer-related Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) item	Mar. 31, 2017 USD ($)	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Disaggregation of revenue
Revenues	$ 816,085
Customer-related Liabilities
Number of general types of liabilities related to contracts with customers \| item	2
Other
Disaggregation of revenue
Revenues	$ 10,536
Northeast \| Operating Segments
Disaggregation of revenue
Revenues	414,167
South/West \| Operating Segments
Disaggregation of revenue
Revenues	161,296
Midwest \| Operating Segments
Disaggregation of revenue
Revenues	230,086
Gaming
Disaggregation of revenue
Revenues	654,494
Gaming and Racing Taxes
Gaming and racing taxes	247,400	$ 244,400
Gaming \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	355,785
Gaming \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	97,547
Gaming \| Midwest \| Operating Segments
Disaggregation of revenue
Revenues	201,162
Food And Beverage
Disaggregation of revenue
Revenues	63,643
Food And Beverage \| Other
Disaggregation of revenue
Revenues	263
Food And Beverage \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	19,180
Food And Beverage \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	28,279
Food And Beverage \| Midwest \| Operating Segments
Disaggregation of revenue
Revenues	15,921
Lodging
Disaggregation of revenue
Revenues	33,521
Lodging \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	1,967
Lodging \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	23,601
Lodging \| Midwest \| Operating Segments
Disaggregation of revenue
Revenues	7,953
Racing
Disaggregation of revenue
Revenues	6,810
Racing \| Other
Disaggregation of revenue
Revenues	1,527
Racing \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	5,276
Racing \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	7
Reimbursable management costs
Disaggregation of revenue
Revenues	28,184
Reimbursable management costs \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	21,844
Reimbursable management costs \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	6,340
Other
Disaggregation of revenue
Revenues	29,433
Other \| Other
Disaggregation of revenue
Revenues	8,746
Other \| Northeast \| Operating Segments
Disaggregation of revenue
Revenues	10,115
Other \| South/West \| Operating Segments
Disaggregation of revenue
Revenues	5,522
Other \| Midwest \| Operating Segments
Disaggregation of revenue
Revenues	5,050
Loyalty credit
Customer-related Liabilities
Customer-related liability	$ 22,400		$ 24,700
Performance obligation settlement period	6 months
Advance payments on goods and services yet to be provided and unpaid wagers
Customer-related Liabilities
Customer-related liability	$ 21,100			$ 21,200
Long-term customer-related liability	$ 1,200			$ 1,300

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Determination of shares:
Weighted-average common shares outstanding (in shares)	91,191,000	90,751,000
Assumed conversion of dilutive employee stock-based awards (in shares)	3,260,000	1,105,000
Assumed conversion of restricted stock (in shares)	199,000	61,000
Diluted weighted-average common shares outstanding before participating security	94,650,000	91,917,000
Anti-dilutive securities, options to purchase shares outstanding	646,307	4,545,585
Calculation of basic EPS:
Net income applicable to common stock	$ 45,437	$ 5,104
Weighted-average common shares outstanding (in shares)	91,191,000	90,751,000
Basic EPS (in dollars per share)	$ 0.50	$ 0.06
Calculation of diluted EPS using two class method:
Net income applicable to common stock	$ 45,437	$ 5,104
Diluted weighted-average common shares outstanding before participating security	94,650,000	91,917,000
Diluted EPS (in dollars per share)	$ 0.48	$ 0.06

Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stock-based compensation costs
Time period of historical volatility of stock used to estimate expected volatility	5 years 3 months 18 days
Accrued salaries and wages	$ 76,982		$ 111,252
Dividend yield (as a percent)	0.00%
Granted (in shares)	661,175	1,446,353
Weighted-average assumptions used in the Black-Scholes option-pricing model
Risk-free interest rate (as a percent)	2.26%	1.97%
Expected volatility (as a percent)	30.80%	30.67%
Dividend yield (as a percent)	0.00%
Weighted-average expected life	5 years 3 months 18 days	5 years 3 months 18 days
Employee stock options \| General and administrative expenses
Stock-based compensation costs
Compensation costs related to stock-based compensation	$ 2,900	$ 2,200
Phantom Share Units (PSUs)
Stock-based compensation costs
Accrued salaries and wages	800		4,800
Total compensation cost related to nonvested awards not yet recognized	$ 5,900
Period for recognition of unrecognized compensation cost	2 years 7 months 17 days
Compensation costs related to stock-based compensation	$ 100	4,300
Amounts paid on cash settled awards	$ 4,100	3,500
Vesting period	4 years
Stock appreciation rights (SARs)
Stock-based compensation costs
Accrued salaries and wages	$ 16,800		$ 24,000
Total compensation cost related to nonvested awards not yet recognized	$ 12,900
Period for recognition of unrecognized compensation cost	2 years 6 months 18 days
Compensation costs related to stock-based compensation	$ (4,000)	4,000
Amounts paid on cash settled awards	$ 3,000	$ 1,100
Vesting period	4 years

Long-term Debt - Senior Secured Credit Facility and Senior Notes (Details) - USD ($)		3 Months Ended
	Jan. 19, 2017	Mar. 31, 2018	Mar. 31, 2017
Long-term Debt
Loss on early extinguishment of debt		$ 882,000	$ 23,390,000
Interest expense		115,740,000	114,996,000
Senior Secured Credit Facility
Long-term Debt
Refinancing costs			1,700,000
Loss on early extinguishment of debt			2,300,000
Term loan amount outstanding		715,000,000
Revolving credit facility
Long-term Debt
Term of debt	5 years
Maximum borrowing capacity	$ 700,000,000
Available borrowing capacity		677,600,000
Revolver amount outstanding		0
Letters of credit outstanding		22,400,000
Term Loan A Facility
Long-term Debt
Term of debt	5 years
Maximum borrowing capacity	$ 300,000,000
Variable interest rate	LIBOR
Term loan amount outstanding		285,000,000
Term Loan B Facility
Long-term Debt
Term of debt	7 years
Maximum borrowing capacity	$ 500,000,000
Variable interest rate	LIBOR
Variable interest rate spread (as a percent)	2.50%
Variable interest base rate floor rate (as a percent)	0.75%
Loss on early extinguishment of debt		900,000
Term loan amount outstanding		430,000,000
Senior Subordinated Notes, 5.875 Percent, Due November 2021
Long-term Debt
Loss on early extinguishment of debt			21,100,000
Amount of debt extinguished			$ 300,000,000
Interest rate (as a percent)			5.875%
Senior Unsecured Notes 5.625 Percent Due January 15, 2027
Long-term Debt
Principal amount	$ 400,000,000	$ 400,000,000
Interest rate (as a percent)	5.625%	5.625%
Percentage of principal amount at which the entity may redeem notes from net proceeds raised in connection with an equity offering	105.625%
Percentage of the aggregate principal amount of the notes originally issued which must remain outstanding at redemption under terms of the notes	60.00%
Period from completion of equity offering, during which notes can be redeemed	180 days
Minimum \| Term Loan A Facility
Long-term Debt
Variable interest rate spread (as a percent)	1.25%
Maximum \| Term Loan A Facility
Long-term Debt
Variable interest rate spread (as a percent)	3.00%

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment information
Net revenues	$ 816,085	$ 776,224
Adjusted EBITDA	242,546	227,445
Other operating costs and other expenses (income)
Depreciation and amortization	60,390	70,236
Interest expense	115,740	114,996
Interest income	(249)	(2,646)
Loss (gain) on disposal of assets	55	(45)
Impairment losses	618
Cash-settled stock award variance	(7,462)	5,164
Pre-opening and significant transaction costs	6,093	571
Loss on early extinguishment of debt and modification costs	882	23,390
Other	(4)	1,793
Contingent purchase price	1,134	2,560
Charge for stock compensation	2,929	2,173
Income from operations before income taxes	61,126	7,302
Income taxes	15,689	2,198
Net income	45,437	5,104
Segment information
Capital expenditures	11,813	17,156
Total assets	5,165,533		$ 5,234,812
Investment in and advances to unconsolidated affiliates	147,658		148,912
Goodwill	1,008,097		1,008,097
Other intangible assets, net	469,578		422,606
Kansas Entertainment
Other operating costs and other expenses (income)
Unconsolidated non-operating costs - Kansas JV	1,294	1,951
Operating Segments \| Northeast
Segment information
Net revenues	414,167	393,465
Adjusted EBITDA	132,007	126,574
Segment information
Capital expenditures	3,487	3,990
Total assets	813,232		821,649
Investment in and advances to unconsolidated affiliates	105		102
Goodwill	21,242		21,242
Other intangible assets, net	353,143		303,043
Operating Segments \| South/West
Segment information
Net revenues	161,296	139,820
Adjusted EBITDA	45,049	36,341
Segment information
Capital expenditures	3,412	8,622
Total assets	783,634		794,274
Goodwill	244,695		244,695
Other intangible assets, net	978		1,623
Operating Segments \| Midwest
Segment information
Net revenues	230,086	228,338
Adjusted EBITDA	81,155	78,106
Segment information
Capital expenditures	3,732	4,331
Total assets	1,081,046		1,070,204
Investment in and advances to unconsolidated affiliates	87,610		88,296
Goodwill	674,558		674,558
Other intangible assets, net	100,798		101,698
Other
Segment information
Net revenues	10,536	14,601
Adjusted EBITDA	(15,665)	(13,576)
Segment information
Capital expenditures	1,182	$ 213
Total assets	2,487,621		2,548,685
Investment in and advances to unconsolidated affiliates	59,943		60,514
Goodwill	67,602		67,602
Other intangible assets, net	$ 14,659		$ 16,242

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair value of assets and liabilities
Change in fair value of contingent purchase price	$ 1,134	$ 2,560
Loans to JIVDC
Fair value of assets and liabilities
Discount Rate	14.00%
Level 1
Fair value of assets and liabilities
Cash and cash equivalents	$ 217,997		$ 277,953
Level 3
Fair value of assets and liabilities
Loans to JIVDC	16,677		16,533
Financial liabilities:
Other liabilities	23,810		22,696
Level 3 \| Contingent Purchase Price
Financial liabilities:
Balance at beginning of the period	22,696
Payments	(20)
Included in earnings	1,134
Balance at end of the period	$ 23,810
Level 3 \| Contingent Purchase Price \| Discounted Cash Flow \| Plainridge Racecourse
Fair value of assets and liabilities
Discount Rate	7.60%
Senior Secured Credit Facility \| Level 1
Financial liabilities:
Long-term debt	$ 716,634		760,456
Senior Unsecured Notes \| Level 1
Financial liabilities:
Long-term debt	385,000		412,000
Other long-term obligations \| Level 2
Financial liabilities:
Long-term debt	106,402		113,460
Carrying Amount
Fair value of assets and liabilities
Cash and cash equivalents	217,997		277,953
Loans to JIVDC	20,613		20,900
Financial liabilities:
Other liabilities	23,810		22,696
Carrying Amount \| Senior Secured Credit Facility
Financial liabilities:
Long-term debt	688,251		730,787
Carrying Amount \| Senior Unsecured Notes
Financial liabilities:
Long-term debt	399,270		399,249
Carrying Amount \| Other long-term obligations
Financial liabilities:
Long-term debt	111,674		119,310
Fair Value
Fair value of assets and liabilities
Cash and cash equivalents	217,997		277,953
Loans to JIVDC	16,677		16,533
Financial liabilities:
Other liabilities	23,810		22,696
Fair Value \| Senior Secured Credit Facility
Financial liabilities:
Long-term debt	716,634		760,456
Fair Value \| Senior Unsecured Notes
Financial liabilities:
Long-term debt	385,000		412,000
Fair Value \| Other long-term obligations
Financial liabilities:
Long-term debt	$ 106,402		$ 113,460

Investment In and Advances to Unconsolidated Affiliates (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) ft² item	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Business ventures
Investment in unconsolidated affiliates	$ 147,658		$ 148,912
Distributions from unconsolidated affiliates	6,500	$ 5,750
Summary financial information
Net income attributable to Penn	$ 5,361	4,548
Kansas Entertainment
Business ventures
Ownership interest in joint venture under agreement of sale (as a percent)	50.00%
Area of Casino (in square foot) \| ft²	244,791
Number of slot machines \| item	2,000
Number of table games \| item	41
Number of poker tables \| item	12
Number of space parking \| item	1,253
Summary financial information
Net revenues	$ 39,285	38,846
Operating expenses	27,658	28,838
Income from operations	11,627	10,008
Net income	11,627	10,008
Net income attributable to Penn	$ 5,814	$ 5,004

Condensed Consolidated Statements of Changes in Shareholders' (Deficit) Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2017	$ 933	$ (28,414)	$ 1,007,606	$ (1,051,818)	$ (1,453)	$ (73,146)
Balance (in shares) at Dec. 31, 2017	91,225,242
Increase (Decrease) in Shareholders' Deficit
Share-based compensation arrangements	$ 4		3,716			3,720
Share-based compensation arrangements (in shares)	430,048
Cumulative-effect adjustment upon adoption of ASC 606 "Revenue from Contracts with Customers"				(9,650)		(9,650)
Net income				45,437		45,437
Balance at Mar. 31, 2018	$ 937	$ (28,414)	$ 1,011,322	$ (1,016,031)	$ (1,453)	$ (33,639)
Balance (in shares) at Mar. 31, 2018	91,655,290

Organization and Basis of Presentation	3 Months Ended
Organization and Basis of Presentation	Mar. 31, 2018
Organization and Basis of Presentation
Organization and Basis of Presentation	1. Organization and Basis of Presentation Penn National Gaming, Inc. (“Penn”) and together with its subsidiaries (collectively, the “Company,” “we,” “our,” or “us”) is a diversified, multi-jurisdictional owner and manager of gaming and racing facilities and video gaming terminal operations with a focus on slot machine entertainment. We have also expanded into social online gaming offerings via our Penn Interactive Ventures, LLC (“Penn Interactive Ventures”) division and our acquisition of Rocket Speed, Inc. (“Rocket Speed”) and into retail gaming in Illinois with our Prairie State Gaming subsidiary. On May 1, 2017, we completed our acquisition of 1st Jackpot Casino Tunica (formerly known as Bally’s Casino Tunica, (“1st Jackpot”)) and Resorts Casino Tunica (“Resorts”). As of March 31, 2018, the Company owned, managed, or had ownership interests in twenty-nine facilities in the following seventeen jurisdictions: California, Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia and Ontario, Canada. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes 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. The condensed consolidated financial statements include the accounts of Penn and its subsidiaries. Investment in and advances to unconsolidated affiliates, that do not meet the consolidation criteria of the authoritative guidance for voting interest, controlling interest or variable interest entities (“VIE”), are accounted for under the equity method. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses for the reporting periods. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017 should be read in conjunction with these condensed consolidated financial statements. The December 31, 2017 financial information has been derived from the Company’s audited consolidated financial statements.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2018
Income Taxes
Income Taxes	10. Income Taxes In December 2017, the President of the United States signed into law comprehensive tax reform legislation commonly known as Tax Cuts and Jobs Act (the “Tax Act”), which introduced significant changes to the previous tax law. This new legislation reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. In December 2017, the Company recorded an increase to deferred tax expense of approximately $261.3 million on the date of enactment primarily relating to a reduction of our net deferred tax asset because of the rate change. The adjustments related to the application of the Tax Act continue to be provisional amounts to the extent that they are reasonably estimable and the Company will refine them as more information becomes available. The Company has not made any material measurement period adjustments related to these items in the three month period ended March 31, 2018. In accordance with Staff Accounting Bulletin No. 118, any adjustments to the provisional changes will be included in income tax expense or benefit in the appropriate period. The Company calculates the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate to the full year projected pretax book income or loss excluding certain discrete items. The effective tax rate (income taxes as a percentage of income from operations before income taxes) including discrete items was 25.67% for the three months ended March 31, 2018, as compared to 30.10% for the three months ended March 31, 2017, primarily due to the reduced federal income tax rate as a result of the Tax Act and higher earnings before income taxes.

Organization and Basis of Presentation (Details)	Mar. 31, 2018 jurisdiction facility
Organization and Basis of Presentation
Number of facilities the entity owned, managed, or had ownership interests in \| facility	29
Number of jurisdictions in which the entity operates \| jurisdiction	17

Summary of Significant Accounting Policies - Promotional Allowances (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Promotional allowances
Promotion value excluded from revenue	$ 33,639
Cost of complimentary services	10,203
Lodging
Promotional allowances
Promotion value excluded from revenue	9,687
Cost of complimentary services	1,291
Food And Beverage
Promotional allowances
Promotion value excluded from revenue	22,976
Cost of complimentary services	8,619
Other
Promotional allowances
Promotion value excluded from revenue	976
Cost of complimentary services	$ 293

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 45,437	$ 5,104
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment during the period		437
Other comprehensive income (loss)		437
Comprehensive income	$ 45,437	$ 5,541

New Accounting Pronouncements - Cumulative Effect on Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 02, 2018	Jan. 01, 2018	Dec. 31, 2017
Other assets
Deferred income taxes	$ 388,058		$ 392,987		$ 390,943
Current liabilities
Accrued expenses	134,312		137,382		125,688
Shareholders' deficit
Retained deficit	(1,016,031)		$ (1,061,468)		$ (1,051,818)
Retrospective adjustments
Net cash provided by operating activities	66,937	$ 84,832
Net cash used in financing activities	64,423	31,543
Balances Without Adoption of ASC 606
Other assets
Deferred income taxes	386,271
Current liabilities
Accrued expenses	123,078
Shareholders' deficit
Retained deficit	(1,007,175)
ASU 2014-09 \| Effect of Change Higher / (Lower)
Other assets
Deferred income taxes	1,787			$ 2,044
Current liabilities
Accrued expenses	11,234			11,694
Shareholders' deficit
Retained deficit	$ (8,856)			$ (9,650)
ASU 2016-15 \| Adjustment
Retrospective adjustments
Net cash provided by operating activities		18,000
Net cash used in financing activities		$ 18,000

Summary of Significant Accounting Policies - Long-term Asset Related to Jamul Tribe (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Loan to JIVDC
Loans to the JIVDC	$ 20,613	$ 20,900
JIVDC
Loan to JIVDC
Financing loan receivable, unpaid principal balance	98,500	98,300
Loans to the JIVDC	20,600	$ 20,900
Loans to JIVDC \| Concentration of Risk, Maximum Amount of Loss
Loan to JIVDC
Remaining exposure inclusive of future unfunded commitments	$ 27,600

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Plant and equipment
Property and equipment, net	$ 2,710,652		$ 2,756,669
Decrease in property and equipment	46,000
Depreciation expense	55,900	$ 65,000
Interest capitalized in connection with major construction projects	0	0
Master Lease Agreement
Plant and equipment
Depreciation expense	23,300	$ 22,700
Land and improvements - non-leased
Plant and equipment
Property and equipment	294,716		294,695
Land and improvements - master lease
Plant and equipment
Property and equipment	424,700		424,700
Building and improvements - non-leased
Plant and equipment
Property and equipment	430,440		429,015
Buildings and improvements - master lease
Plant and equipment
Property and equipment	2,258,577		2,258,577
Furniture, Fixtures and Equipment
Plant and equipment
Property and equipment	1,381,443		1,385,889
Leasehold Improvements
Plant and equipment
Property and equipment	131,257		130,801
Construction in progress - non-leased
Plant and equipment
Property and equipment	17,345		15,617
Non-leased assets
Plant and equipment
Property and equipment	2,255,201		2,256,017
Less Accumulated depreciation	(1,367,370)		(1,345,147)
Property and equipment, net	887,831		910,870
Master lease assets
Plant and equipment
Property and equipment	2,683,277		2,683,277
Less Accumulated depreciation	(860,456)		(837,478)
Property and equipment, net	$ 1,822,821		$ 1,845,799

Intangible Assets (Details) $ in Thousands	3 Months Ended
Intangible Assets (Details) $ in Thousands	Mar. 31, 2018 USD ($) item	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Intangible assets
Indefinite-life intangible assets	$ 425,505		$ 375,405
Other intangible assets, Gross Carrying Value	132,831		131,483
Other intangible assets, Accumulated Amortization	88,758		84,282
Finite-lived intangible assets, Net Book Value	44,073		47,201
Total intangible assets, Gross Carrying Value	558,336		506,888
Total intangible assets, Net Book Value	469,578		$ 422,606
Increase in other intangible assets during the period	47,000
Payment for Category 4 license	50,100
Computer software capitalized	1,400
Intangible asset amortization expense	$ 4,500	$ 5,200
Weighted average remaining amortization period	4 years 7 months 6 days
Maximum
Intangible assets
Number of slot machines in Category 4 facility \| item	750
Number of table games in Category 4 facility \| item	30

Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Expected intangible asset amortization expense
Remainder of 2018	$ 9,554
2019	8,949
2020	6,287
2021	3,644
2022	3,596
Thereafter	12,043
Finite-lived intangible assets, Net Book Value	$ 44,073	$ 47,201

Long-term Debt - Debt Summary (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Jan. 19, 2017
Long-term Debt
Long-term debt	$ 1,227,123,000	$ 1,280,201,000
Less current maturities of long-term debt	(35,498,000)	(35,612,000)
Less discount on senior secured credit facility Term Loan B	(2,251,000)	(2,558,000)
Less debt issuance costs	(25,227,000)	(27,406,000)
Long-term debt, net of current maturities and debt issuance costs	1,164,147,000	1,214,625,000
Senior Secured Credit Facility
Long-term Debt
Long-term debt	715,000,000	760,000,000
Senior Unsecured Notes 5.625 Percent Due January 15, 2027
Long-term Debt
Long-term debt	400,000,000	400,000,000
Principal amount	$ 400,000,000		$ 400,000,000
Interest rate (as a percent)	5.625%		5.625%
Other long-term obligations
Long-term Debt
Long-term debt	$ 111,674,000	119,310,000
Capital leases
Long-term Debt
Long-term debt	$ 449,000	$ 891,000

Long-term Debt - Future Minimum Repayments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Future minimum repayments of long-term debt
Within one year	$ 35,498
1-3 years	94,963
3-5 years	263,187
Over 5 years	833,475
Long-term debt	$ 1,227,123	$ 1,280,201

Income Taxes (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Effective tax rate
Effective income tax rate (as a percent)		25.67%	30.10%
Effect of Tax Cuts and Jobs Act of 2017
Federal statutory tax rate		21.00%		35.00%
Provisional increase to deferred tax expense	$ 261.3