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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2019	Oct. 31, 2019
Cover page.
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	0-24206
Entity Registrant Name	PENN NATIONAL GAMING, INC.
Entity Central Index Key	0000921738
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-2234473
Entity Address, Address Line One	825 Berkshire Blvd., Suite 200
Entity Address, City or Town	Wyomissing,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19610
City Area Code	610
Local Phone Number	373-2400
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	PENN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		115,912,626

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 406.9	$ 479.6
Receivables, net of allowance for doubtful accounts of $5.6 and $3.2	91.6	106.8
Prepaid expenses	72.8	63.0
Other current assets	56.9	28.2
Total current assets	628.2	677.6
Property and equipment, net	5,155.2	6,868.8
Investment in and advances to unconsolidated affiliates	128.5	128.5
Goodwill	1,350.4	1,228.4
Other intangible assets, net	2,104.5	1,856.9
Deferred income taxes	0.0	80.6
Operating lease right-of-use assets	4,592.0	0.0
Finance lease right-of-use assets	222.7	0.0
Other assets	136.5	120.2
Total assets	14,318.0	10,961.0
Current liabilities
Accounts payable	39.5	30.5
Current maturities of long-term debt	62.9	62.1
Current portion of financing obligations	45.3	67.8
Current portion of operating lease liabilities	124.4	0.0
Current portion of finance lease liabilities	6.3	0.0
Accrued expenses and other current liabilities	598.9	578.0
Total current liabilities	877.3	738.4
Long-term debt, net of current maturities and debt issuance costs	2,392.0	2,350.1
Long-term portion of financing obligations	4,110.8	7,080.6
Long-term portion of operating lease liabilities	4,439.1	0.0
Long-term portion of finance lease liabilities	217.8	0.0
Deferred income taxes	252.8	0.0
Other noncurrent liabilities	88.8	60.7
Total liabilities	12,378.6	10,229.8
Commitments and contingencies (Note 12)
Stockholders’ equity
Common stock ($0.01 par value, 200,000,000 shares authorized, 118,044,658 and 118,855,201 shares issued, and 115,877,265 and 116,687,808 shares outstanding)	1.2	1.2
Treasury stock, at cost, (2,167,393 shares held in both periods)	(28.4)	(28.4)
Additional paid-in capital	1,712.9	1,726.4
Retained earnings (accumulated deficit)	254.1	(968.0)
Total Penn stockholders’ equity	1,939.8	731.2
Non-controlling interest	(0.4)	0.0
Total stockholders’ equity	1,939.4	731.2
Total liabilities and stockholders’ equity	14,318.0	10,961.0
Series B Preferred stock ($0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding)
Stockholders’ equity
Preferred stock	0.0	0.0
Series C Preferred stock ($0.01 par value, 18,500 shares authorized, no shares issued and outstanding)
Stockholders’ equity
Preferred stock	$ 0.0	$ 0.0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 5.6	$ 3.2
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	118,044,658	118,855,201
Common stock, shares outstanding (in shares)	115,877,265	116,687,808
Treasury stock (in shares)	2,167,393	2,167,393
Series B Preferred stock ($0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding)
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series C Preferred stock ($0.01 par value, 18,500 shares authorized, no shares issued and outstanding)
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	18,500	18,500
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Revenues	$ 1,354.5	$ 789.7	$ 3,960.2	$ 2,432.6
Operating expenses
General and administrative	309.7	125.1	883.6	378.9
Depreciation and amortization	106.3	56.9	316.4	175.8
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	0.0	0.0	0.0	(16.4)
Total operating expenses	1,174.7	633.9	3,399.6	1,922.9
Operating income	179.8	155.8	560.6	509.7
Other income (expenses)
Interest expense, net	(133.5)	(114.6)	(400.5)	(345.7)
Income from unconsolidated affiliates	9.8	5.7	21.7	16.8
Loss on early extinguishment of debt	0.0	(0.3)	0.0	(3.8)
Other	7.2	(1.4)	7.2	(1.5)
Total other expenses	(116.5)	(110.6)	(371.6)	(334.2)
Income before income taxes	63.3	45.2	189.0	175.5
Income tax expense	(19.6)	(9.1)	(53.0)	(40.0)
Net income	43.7	36.1	136.0	135.5
Less: Net loss attributable to non-controlling interest	0.2	0.0	0.4	0.0
Net income attributable to Penn	$ 43.9	$ 36.1	$ 136.4	$ 135.5
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 0.38	$ 0.39	$ 1.18	$ 1.48
Diluted earnings per common share (in dollars per share)	$ 0.38	$ 0.38	$ 1.16	$ 1.43
Weighted average basic shares outstanding (in shares)	115.2	91.9	115.8	91.5
Weighted average diluted shares outstanding (in shares)	116.7	95.3	117.7	95.0
Gaming
Revenues
Revenues	$ 1,088.5	$ 646.3	$ 3,185.2	$ 1,965.9
Operating expenses
Cost of revenue	587.5	352.0	1,699.1	1,043.2
Food, beverage, hotel and other
Revenues
Revenues	266.0	138.8	775.0	403.4
Operating expenses
Cost of revenue	171.2	96.0	500.5	284.1
Management service and license fees
Revenues
Revenues	0.0	0.7	0.0	6.0
Reimbursable management costs
Revenues
Revenues	0.0	3.9	0.0	57.3
Operating expenses
Cost of revenue	$ 0.0	$ 3.9	$ 0.0	$ 57.3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 43.7	$ 36.1	$ 136.0	$ 135.5
Total comprehensive income	43.7	36.1	136.0	135.5
Less: Comprehensive loss attributable to non-controlling interest	0.2	0.0	0.4	0.0
Comprehensive income attributable to Penn	$ 43.9	$ 36.1	$ 136.4	$ 135.5

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions	Total	Preferred Stock	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss	Total Penn National Gaming, Inc. Stockholders’ Equity (Deficit)	Non-Controlling Interest
Beginning balance (in shares) at Dec. 31, 2017		0	91,225,242
Beginning balance at Dec. 31, 2017	$ (73.2)	$ 0.0	$ 0.9	$ (28.4)	$ 1,007.6	$ (1,051.8)	$ (1.5)	$ (73.2)	$ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements (in shares)			1,202,384
Share-based compensation arrangements	16.3				16.3			16.3
Reclassification of accumulated other comprehensive loss to earnings upon termination of management contract	1.5						1.5	1.5
Net income	135.5					135.5		135.5
Ending balance (in shares) at Sep. 30, 2018		0	92,427,626
Ending balance at Sep. 30, 2018	70.5	$ 0.0	$ 0.9	(28.4)	1,023.9	(925.9)	0.0	70.5	0.0
Beginning balance (in shares) at Jun. 30, 2018		0	92,196,285
Beginning balance at Jun. 30, 2018	27.7	$ 0.0	$ 0.9	(28.4)	1,018.7	(962.0)	(1.5)	27.7	0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements	5.2				5.2			5.2
Reclassification of accumulated other comprehensive loss to earnings upon termination of management contract	1.5						1.5	1.5
Net income	36.1					36.1		36.1
Ending balance (in shares) at Sep. 30, 2018		0	92,427,626
Ending balance at Sep. 30, 2018	70.5	$ 0.0	$ 0.9	(28.4)	1,023.9	(925.9)	0.0	70.5	0.0
Beginning balance (in shares) at Dec. 31, 2018		0	116,687,808
Beginning balance at Dec. 31, 2018	731.2	$ 0.0	$ 1.2	(28.4)	1,726.4	(968.0)	0.0	731.2	0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements (in shares)			461,280
Share-based compensation arrangements	11.4				11.4			11.4
Share repurchases (in shares)			(1,271,823)
Share repurchases	(24.9)				(24.9)			(24.9)
Net income	136.0					136.4		136.4	(0.4)
Ending balance (in shares) at Sep. 30, 2019		0	115,877,265
Ending balance at Sep. 30, 2019	1,939.4	$ 0.0	$ 1.2	(28.4)	1,712.9	254.1	0.0	1,939.8	(0.4)
Beginning balance (in shares) at Jun. 30, 2019		0	115,869,769
Beginning balance at Jun. 30, 2019	1,891.7	$ 0.0	$ 1.2	(28.4)	1,708.9	210.2	0.0	1,891.9	(0.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements (in shares)			7,496
Share-based compensation arrangements	4.0				4.0			4.0
Net income	43.7					43.9		43.9	(0.2)
Ending balance (in shares) at Sep. 30, 2019		0	115,877,265
Ending balance at Sep. 30, 2019	$ 1,939.4	$ 0.0	$ 1.2	$ (28.4)	$ 1,712.9	$ 254.1	$ 0.0	$ 1,939.8	$ (0.4)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income	$ 136.0	$ 135.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	316.4	175.8
Amortization of items charged to interest expense	5.7	4.6
Noncash operating lease expense	79.0	0.0
Change in fair value of contingent purchase price	7.0	1.7
Holding gain on equity securities	(7.1)	0.0
Loss on sale or disposal of property and equipment	8.3	3.2
Income from unconsolidated affiliates	(21.7)	(16.8)
Return on investment from unconsolidated affiliates	22.0	21.6
Deferred income taxes	28.8	7.9
Stock-based compensation	10.4	8.8
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	0.0	(16.4)
Reclassification of accumulated other comprehensive loss to earnings upon termination of management contract	0.0	1.5
Loss on early extinguishment of debt	0.0	3.8
Changes in operating assets and liabilities, net of businesses acquired
Accounts receivable	23.6	11.2
Prepaid expenses and other current assets	12.5	(2.2)
Other assets	(1.5)	(8.7)
Accounts payable	8.1	(5.1)
Accrued expenses	(20.3)	(36.5)
Income taxes	(4.5)	5.6
Operating lease liabilities	(107.6)	0.0
Other current and noncurrent liabilities	24.1	4.7
Net cash provided by operating activities	519.2	300.2
Investing activities
Project capital expenditures	(18.2)	(2.2)
Maintenance capital expenditures	(118.5)	(54.8)
Proceeds from sale of loan	0.0	15.2
Consideration paid for acquisitions of businesses, net of cash acquired	(1,359.4)	(2.9)
Proceeds from sale-and-leaseback transactions in conjunction with acquisitions	961.1	0.0
Acquisition of equity securities	(5.1)	0.0
Additional contributions from joint venture	0.0	18.9
Consideration paid for gaming licenses and other intangible assets	(1.5)	(58.7)
Other	(0.5)	0.4
Net cash used in investing activities	(542.1)	(84.1)
Financing activities
Proceeds from revolving credit facility	395.0	89.0
Principal payments on long-term debt	(35.0)	(190.9)
Repayments on revolving credit facility	(307.0)	(89.0)
Payments of other long-term obligations	(15.4)	(14.8)
Principal payments on financing obligations	(38.4)	(48.3)
Principal payments on finance leases	(4.6)	0.0
Proceeds from exercise of options	1.0	7.4
Repurchase of common stock	(24.9)	0.0
Payments of contingent purchase price	(3.8)	(4.2)
Proceeds from insurance financing	14.3	8.6
Payments on insurance financing	(14.8)	(8.1)
Other	(0.3)	0.0
Net cash used in financing activities	(33.9)	(250.3)
Change in cash, cash equivalents, and restricted cash	(56.8)	(34.2)
Cash, cash equivalents and restricted cash at the beginning of the year	481.2	279.4
Cash, cash equivalents and restricted cash at the end of the period	424.4	245.2
Reconciliation of cash, cash equivalents and restricted cash:
Total cash, cash equivalents and restricted cash	481.2	279.4
Supplemental disclosure:
Cash paid for interest, net of amounts capitalized	404.4	350.2
Cash payments related to income taxes, net	20.9	23.8
Non-cash investing and financing activities:
Commencement of operating leases	713.3	0.0
Commencement of finance leases	4.3	0.0
Accrued capital expenditures	8.3	4.9
Acquisition of equity securities	$ 16.1	$ 0.0

Organization and Basis of Presentation	9 Months Ended
Organization and Basis of Presentation	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Organization: Penn National Gaming, Inc., together with its subsidiaries, is a leading, diversified, multi-jurisdictional owner and manager of gaming and racing facilities and video gaming terminal (“VGT”) operations with a focus on slot machine entertainment. We also offer live sports betting at our facilities in Indiana, Iowa, Mississippi, Pennsylvania and West Virginia. In addition, the Company operates an interactive gaming division through its subsidiary, Penn Interactive Ventures, LLC (“PIV”), which recently launched iGaming in Pennsylvania. Our MYCHOICE^®customer loyalty program (the “mychoice program”) provides its members with various benefits, including earning reward points redeemable for complimentary goods and/or services and credit toward tier status, which entitles our guests to receive certain other benefits. References in these footnotes to “Penn,” the “Company,” “we,” “our,” or “us” refer to Penn National Gaming, Inc. and its subsidiaries, except where stated or the context otherwise indicates. As of September 30, 2019, we owned, managed, or had ownership interests in 41 facilities in 19 jurisdictions. The majority of the gaming facilities used in the Company’s operations are subject to triple net master leases; the most significant of which are the Penn Master Lease and the Pinnacle Master Lease (as such terms are defined in Note 4, “Leases,” and collectively referred to as the “Master Leases”), with Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI”), a real estate investment trust (“REIT”), as the landlord under the Master Leases. The Company has four reportable segments: Northeast, South, West and Midwest. See Note 2, “Significant Accounting Policies” and Note 16, “Segment Information” for further information. Basis of Presentation: The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). 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. Results of operations and cash flows for the interim periods presented herein are not necessarily indicative of the results that would be achieved during a full year of operations or in future periods. These unaudited Condensed Consolidated Financial Statements and notes thereto should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

Principles of Consolidation: The unaudited Condensed Consolidated Financial Statements include the accounts of Penn National Gaming, Inc. and its subsidiaries. Investments in and advances to unconsolidated affiliates that do not meet the consolidation criteria of the authoritative guidance for voting interest, controlling interest or variable interest entities (“VIEs”), are accounted for under the equity method. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates: The preparation of unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

Segment Information: We view each of our gaming and racing properties as an operating segment with the exception of our two properties in Jackpot, Nevada, which we view as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments. See Note 16, “Segment Information,” for further information. For financial reporting purposes, we aggregate our operating segments into the following reportable segments:



	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel ⁽¹⁾	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course	Grantville, Pennsylvania	Penn Master Lease
Hollywood Casino Toledo	Toledo, Ohio	Penn Master Lease
Hollywood Gaming at Dayton Raceway	Dayton, Ohio	Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course	Youngstown, Ohio	Penn Master Lease
Marquee by Penn⁽²⁾	Pennsylvania	N/A
Meadows Racetrack and Casino	Washington, Pennsylvania	Meadows Lease
Plainridge Park Casino	Plainville, Massachusetts	Pinnacle Master Lease
South segment⁽³⁾
1^st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino ⁽⁴⁾	Bossier City, Louisiana	Margaritaville Lease
West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Owned
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease
Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton ⁽⁵⁾	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway ⁽⁶⁾	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming⁽²⁾	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease


(1)	Acquired on May 23, 2019


(2)	VGT route operations


(3)	Resorts Casino Tunica closed on June 30, 2019, but remains subject to the Penn Master Lease.


(4)	Acquired on January 1, 2019


(5)	The riverboat is owned by us and not subject to the Penn Master Lease.


(6)	Pursuant to a joint venture with International Speedway Corporation (“International Speedway”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns Hollywood Casino at Kansas Speedway.

Revenue Recognition: The Company’s revenue from contracts with customers consists of gaming wagers, food and beverage transactions, retail transactions, hotel room sales, racing wagers, sports betting wagers, and management services related to the management of external casinos and reimbursable costs associated with management contracts. During the second quarter of 2018, our management contract was terminated for Hollywood Casino-Jamul San Diego, which is located on the Jamul Tribe’s trust land in San Diego, California. In addition, our management contract was terminated for Casino Rama, which is located in Ontario, Canada, during the third quarter of 2018.

Complimentaries associated with Gaming Contracts

Food and beverage, hotel, and other services furnished to patrons for free as an inducement to gamble or through the redemption of our customers’ loyalty points are recorded as food and beverage, hotel, and other revenues, at their estimated standalone selling prices with an offset recorded as a reduction to gaming revenues. The cost of providing complimentary goods and services to patrons as an inducement to gamble as well as for the fulfillment of our loyalty point obligation is included in food, beverage, hotel, and other expenses. Revenues recorded to food and beverage, hotel, and other and offset to gaming revenues were as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Food and beverage	$	66.7	$	30.5	$	195.3	$	77.3
Hotel	44.1		10.5		121.5		30.8
Other	4.2		1.7		13.0		3.7
Total complimentaries associated with gaming contracts	$	115.0	$	42.7	$	329.8	$	111.8

Revenue Disaggregation

We generate revenues at our owned, managed, or operated properties principally by providing the following types of services: (i) gaming, (ii) food and beverage, (iii) hotel, (iv) racing, (v) reimbursable management costs and (vi) other. In addition, we assess our revenues based on geographic location of the related properties, which is consistent with our reportable segments (see Note 16, “Segment Information,” for further information). Our revenue disaggregation by type of revenue and geographic location was as follows:



	For the three months ended September 30, 2019
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations⁽¹⁾			Total
Revenues:
Gaming	$	555.2	$	201.2	$	93.3	$	236.1	$	3.3	$	(0.6	)	$	1,088.5
Food and beverage	39.4		39.0		29.5		21.0		0.5		—			129.4
Hotel	13.7		27.5		32.4		11.7		—		—			85.3
Racing	5.6		—		0.1		—		1.3		—			7.0
Other	15.0		8.9		6.2		7.0		7.3		(0.1		)	44.3
Total revenues	$	628.9	$	276.6	$	161.5	$	275.8	$	12.4	$	(0.7	)	$	1,354.5


(1)	Represents the elimination of intersegment operations associated with our internally-branded retail sportsbooks, which are operated by PIV, and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour (“HPT”).



	For the three months ended September 30, 2018
(in millions)	Northeast		South		West		Midwest		Other		Total
Revenues:
Gaming	$	391.1	$	46.1	$	47.5	$	161.6	$	—	$	646.3
Food and beverage	25.7		9.7		20.8		13.1		0.2		69.5
Hotel	5.9		2.9		20.4		5.8		—		35.0
Racing	3.8		—		0.1		—		1.4		5.3
Reimbursable management costs	3.9		—		—		—		—		3.9
Other	11.0		1.7		3.8		4.9		8.3		29.7
Total revenues	$	441.4	$	60.4	$	92.6	$	185.4	$	9.9	$	789.7



	For the nine months ended September 30, 2019
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations⁽¹⁾			Total
Revenues:
Gaming	$	1,571.9	$	628.1	$	282.6	$	699.8	$	3.4	$	(0.6	)	$	3,185.2
Food and beverage	112.8		118.7		86.9		61.7		1.2		—			381.3
Hotel	31.3		77.0		95.7		32.9		—		—			236.9
Racing	19.1		—		0.2		—		4.4		—			23.7
Other	43.5		26.9		19.0		20.9		22.9		(0.1		)	133.1
Total revenues	$	1,778.6	$	850.7	$	484.4	$	815.3	$	31.9	$	(0.7	)	$	3,960.2


(1)	Represents the elimination of intersegment operations associated with our internally-branded retail sportsbooks, which are operated by PIV, and our live and televised poker tournament series that operates under the trade name, HPT.



	For the nine months ended September 30, 2018
(in millions)	Northeast		South		West		Midwest		Other		Total
Revenues:
Gaming	$	1,182.1	$	146.3	$	144.6	$	492.9	$	—	$	1,965.9
Food and beverage	72.3		26.8		61.6		36.3		0.8		197.8
Hotel	16.0		8.5		62.4		16.9		—		103.8
Racing	14.0		—		0.2		—		4.7		18.9
Reimbursable management costs	46.8		—		10.5		—		—		57.3
Other	34.2		4.8		11.9		12.9		25.1		88.9
Total revenues	$	1,365.4	$	186.4	$	291.2	$	559.0	$	30.6	$	2,432.6

Customer-related Liabilities

The Company has three general types of liabilities related to contracts with customers: (i) the obligation associated with our mychoice program (loyalty points and tier status benefits), (ii) advance payments on goods and services yet to be provided and for unpaid wagers, and (iii) deferred revenue associated with third-party sports betting operators for online sports betting and related iGaming market access.

The Company’s mychoice program allows members to utilize their reward membership cards to earn loyalty points that are redeemable for slot play and complimentaries, such as food and beverage at our restaurants, lodging at our hotels and products offered at our retail stores across the vast majority of the Company’s properties. In addition, members of the mychoice program earn credit toward tier status, which entitles them to receive certain other benefits, such as gifts. The Company accounts for the obligation associated with our mychoice program utilizing a deferred revenue model, which defers revenue at the point in time when the loyalty points and tier status benefits are earned by our customers. Deferred revenue associated with the mychoice program is recognized at the point in time when the loyalty points are redeemed by our customers or at the point in time when our customers receive the tier status benefits. The obligation associated with our mychoice program is based on the estimated standalone selling price of the loyalty points and the tier status benefits earned after factoring in the likelihood of redemption. The obligation associated with our mychoice program, which is included in “Accrued expenses and other current liabilities” within our unaudited Condensed Consolidated Balance Sheets, was $37.0 million and $39.9 million as of September 30, 2019 and December 31, 2018, respectively, and consisted principally of the obligation associated with the loyalty points. Our loyalty point obligations are generally settled within six months of issuance. Changes between the opening and closing balances primarily relate to the timing of our customers’ election to redeem loyalty points as well as the timing of when our customers receive their earned tier status benefits.

The Company’s advance payments on goods and services yet to be provided and for unpaid wagers primarily consist of the following: (i) deposits on rooms and convention space, (ii) money deposited on behalf of a customer in advance of their property visit (referred to as “safekeeping” or “front money”), (iii) outstanding tickets generated by slot machine play or pari-mutuel wagering, (iv) outstanding chip liabilities, (v) unclaimed jackpots, and (vi) gift cards redeemable at our properties. 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 chips with customers and generally represent obligations stemming from prior wagering events, of which revenue was previously recognized. The Company’s advance payments on goods and services yet to be provided and for unpaid wagers were

$33.8 million and $34.3 million as of September 30, 2019 and December 31, 2018, respectively, of which $0.7 million were classified as long-term in both periods. The current portion and long-term portion of our advance payments on goods and services yet to be provided and for unpaid wagers are included in “Accrued expenses and other current liabilities” and “Other noncurrent liabilities” within our unaudited Condensed Consolidated Balance Sheets, respectively.

During the third quarter of 2019, we entered into multi-year agreements with sports betting operators for online sports betting and related iGaming market access across the Company’s portfolio, of which we received cash and equity securities, including ordinary shares and warrants, specific to three operator agreements. Since the operations contemplated by these agreements had not yet commenced, as of September 30, 2019, the Company has yet to recognize revenue associated with these agreements. Deferred revenue associated with third-party sports betting operators for online sports betting and related iGaming market access as of September 30, 2019, was $33.7 million, which is included in “Other noncurrent liabilities” within our unaudited Condensed Consolidated Balance Sheets.

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. For the three and nine months ended September 30, 2019, these expenses, which were recorded primarily in gaming expense within the unaudited Condensed Consolidated Statements of Operations, were $403.1 million and $1,189.4 million, respectively, as compared to $250.1 million and $750.5 million, respectively, for the three and nine months ended September 30, 2018.

Equity Securities: The Company’s equity securities (including warrants) are measured at fair value each reporting period with unrealized holding gains and losses included in current period earnings. During the three and nine months ended September 30, 2019, the Company recognized a holding gain of $7.1 million related to equity securities held as of September 30, 2019, which is included in “Other,” as reported in “Other income (expenses)” within our unaudited Condensed Consolidated Statements of Operations.

New Accounting Pronouncements

9 Months Ended

Sep. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements

Accounting Pronouncements Implemented in 2019

On January 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, “Leases” (“ASC 842”), and all the related amendments (the “new lease standard”) using the modified retrospective method with an effective date of January 1, 2019 (the “adoption date”) and a cumulative-effect adjustment to equity. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As part of the adoption, the Company elected to utilize the package of practical expedients included in this guidance, which permitted the Company to not reassess (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) the initial direct costs for existing leases. In conjunction with the adoption of the new lease standard, the Company elected the following policies: (i) to account for lease and non-lease components as a single component for all classes of underlying assets and (ii) to not recognize short-term leases (i.e., a lease that is less than 12 months and does not contain a purchase option) within the unaudited Condensed Consolidated Balance Sheets, with the expense related to these short-term leases recorded in total operating expenses within the unaudited Condensed Consolidated Statements of Operations.

Penn Master Lease and Pinnacle Master Lease

The most significant impact of the adoption of the new lease standard relates to the accounting for our Master Leases with GLPI. Under previous GAAP, as contained within ASC Topic 840, “Leases” (“ASC 840”), the Company concluded that (i) the Penn Master Lease and (ii) the Pinnacle Master Lease to each be a failed sale-leaseback transaction resulting in (a) the land and building assets associated with the Master Leases to be recognized in “Property and equipment, net” within the unaudited Condensed Consolidated Balance Sheets, (b) the recognition of a financing obligation, with the associated interest recorded to “Interest expense, net” within the unaudited Condensed Consolidated Statements of Operations, and (c) the contingent rentals to be recorded as additional interest expense. Under the provisions of the new lease standard, the Company was required to evaluate its existing sale-leaseback transactions with GLPI to determine whether a sale had occurred, and if a sale had occurred, to determine the classification (operating or finance) of each component contained within each of the Master Leases.

Lease components contained within each of the Master Leases that were determined to be operating leases (consisting primarily of the land components) at the adoption date resulted in (i) the derecognition of the existing financing obligation and the carrying amount of the property and equipment with an adjustment to the opening balance of retained earnings and (ii) the recognition of an operating lease liability and an operating lease right-of-use (“ROU”) asset. Operating lease expenses are recorded as rent expense, as opposed to interest expense and depreciation and amortization expense, within the unaudited

Condensed Consolidated Statements of Operations and recorded as operating cash outflows within the unaudited Condensed Consolidated Statements of Cash Flows.

Lease components contained within each of the Master Leases that were determined to continue to be financing obligations (consisting primarily of the building components) at the adoption date resulted in (i) the continued recognition of the leased assets in “Property and equipment, net” within our unaudited Condensed Consolidated Balance Sheets and (ii) the continued recognition of the financing obligation utilizing assumptions as determined (a) at the lease commencement date with respect to the Penn Master Lease or (b) at the acquisition date with respect to the Pinnacle Master Lease.

Our Hollywood Casino at Dayton Raceway and Hollywood Casino at Mahoning Valley Race Course (“Dayton and Mahoning Valley”) properties included within the Penn Master Lease were previously accounted for under build-to-suit guidance pursuant to ASC 840. The Company was required to evaluate the components contained within the build-to-suit arrangements and determine the classification (operating or finance) under the provisions of the new lease standard at the adoption date. The Dayton and Mahoning Valley lease components were determined to be finance leases, which resulted in (i) the recognition of a finance lease ROU asset (recorded to depreciation and amortization expense over the lease term), (ii) a corresponding finance lease liability (recorded to interest expense over the lease term), and (iii) a write-off of the previous (a) carrying amount of the property and equipment and (b) financing obligation recorded with an adjustment to the opening balance of retained earnings at the adoption date. Principal payments associated with finance leases are recorded as financing cash outflows and interest payments associated with finance leases are recorded as operating cash outflows within our unaudited Condensed Consolidated Statements of Cash Flows.

Operating Leases, inclusive of the Meadows Lease with GLPI

The adoption of the new lease standard required us to recognize ROU assets and lease liabilities that had not previously been recorded within the unaudited Condensed Consolidated Balance Sheets. The lease liability for operating leases is based on the present value of future lease payments. The ROU asset for operating leases is based on the lease liability adjusted for the reclassification of certain balance sheet amounts, such as deferred rent. Deferred and prepaid rent are no longer presented separately. Leases that are short-term in nature are not recognized as ROU assets within the unaudited Condensed Consolidated Balance Sheets, but are recognized as an expense (recorded within total operating expenses) within the unaudited Condensed Consolidated Statements of Operations.

The impact of the adoption of the new lease standard on our unaudited Condensed Consolidated Balance Sheets at January 1, 2019 was as follows (only financial statement line items impacted are presented):



				Impacts of:
(in millions)	As Reported as of December 31, 2018			Financing Obligations - Master Leases ⁽¹⁾		Finance Leases - Dayton and Mahoning Valley			Operating Leases - Master Leases⁽²⁾			Operating Lease - Meadows ⁽³⁾		Other Operating Leases - Non-Master Leases			As Adjusted for ASC 842		Increase/(Decrease)
Assets
Current assets
Prepaid expenses	$	63.0		$	—	$	—		$	—		$	—	$	(1.0	)	$	62.0	$	(1.0	)
Total current assets	$	677.6		$	—	$	—		$	—		$	—	$	(1.0	)	$	676.6	$	(1.0	)
Property and equipment, net ⁽⁴⁾	$	6,868.8		$	—	$	(164.3	)	$	(1,407.4	)	$	—	$	—		$	5,297.1	$	(1,571.7	)
Goodwill	$	1,228.4		$	5.5	$	—		$	—		$	—	$	—		$	1,233.9	$	5.5
Operating lease right-of-use assets ⁽⁵⁾	$	—		$	—	$	—		$	3,541.2		$	112.8	$	152.5		$	3,806.5	$	3,806.5
Finance lease right-of-use assets ⁽⁶⁾	$	—		$	—	$	224.5		$	—		$	—	$	—		$	224.5	$	224.5
Total assets	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8

Liabilities
Current liabilities
Current portion of financing obligations ⁽⁷⁾	$	67.8		$	—	$	(1.5	)	$	(16.2	)	$	—	$	—		$	50.1	$	(17.7	)
Current portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	72.9		$	20.5	$	8.9		$	102.3	$	102.3
Current portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	5.8		$	—		$	—	$	—		$	5.8	$	5.8
Accrued expenses and other current liabilities	$	578.0		$	—	$	—		$	—		$	—	$	(0.5	)	$	577.5	$	(0.5	)
Total current liabilities	$	738.4		$	—	$	4.3		$	56.7		$	20.5	$	8.4		$	828.3	$	89.9
Long-term portion of financing obligations ⁽⁷⁾	$	7,080.6		$	5.5	$	(181.3	)	$	(2,760.6	)	$	—	$	—		$	4,144.2	$	(2,936.4	)
Long-term portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	3,467.1		$	92.3	$	145.0		$	3,704.4	$	3,704.4
Long-term portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	218.3		$	—		$	—	$	—		$	218.3	$	218.3
Deferred income taxes ⁽⁸⁾	$	—		$	—	$	4.3		$	299.5		$	—	$	—		$	303.8	$	303.8
Other noncurrent liabilities	$	60.7		$	—	$	—		$	—		$	—	$	(1.9	)	$	58.8	$	(1.9	)
Total liabilities	$	10,229.8		$	5.5	$	45.6		$	1,062.7		$	112.8	$	151.5		$	11,607.9	$	1,378.1
Stockholders’ equity
Retained earnings (accumulated deficit)	$	(968.0	)	$	—	$	14.6		$	1,071.1		$	—	$	—		$	117.7	$	1,085.7
Total Penn stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total liabilities and stockholders’ equity	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8


(1)	During the first quarter of 2019, the Company identified an adjustment to the purchase price allocation associated with its October 2018 acquisition of Pinnacle Entertainment, Inc. (“Pinnacle”). The purchase price adjustment increased the financing obligation upon the adoption of the new lease standard, resulting in an increase to goodwill (see Note 5, “Acquisitions”).


(2)	Represents components contained within each of the Master Leases determined to be operating leases (primarily land).


(3)	Represents the triple net lease with GLPI for the real estate assets used in the operations of Meadows Racetrack and Casino (the “Meadows Lease”).

(4)

Represents the (i) derecognition of the carrying amount of the property and equipment, net, associated with land components contained within our Master Leases determined to be operating leases upon the adoption of the new lease standard; and (ii) derecognition of the carrying amount of the property and equipment, net, associated with land and building components associated with Dayton and Mahoning Valley determined to be finance leases upon the adoption of the new lease standard.

(5)

Operating lease ROU assets represent (i) the land components contained within the Master Leases determined to be operating leases upon the adoption of the new lease standard; and (ii) with respect to other Operating Leases, represent (a) the Meadows Lease, which was acquired by the Company in conjunction with the acquisition of Pinnacle; (b) ground and levee leases with landlords, which were not assumed by GLPI and remain an obligation of the Company; and (c) buildings and equipment not associated with our Master Leases. For leases where the rate implicit in the lease was not readily determinable, we used our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We utilized the incremental borrowing rate on the adoption date for operating leases that commenced prior to that date. The operating lease liability is based on the net present value of future lease payments.

(6)

Amounts primarily represent finance leases associated with Dayton and Mahoning Valley, which are included in the Penn Master Lease, that under ASC 840 utilized specific build-to-suit guidance. The adoption of the new lease standard required the Company to evaluate the components under current guidance contained within the new lease standard, which resulted in all components being classified as finance leases. Finance leases result in (i) the recognition of a finance lease ROU asset amortized over the lease term and (ii) a corresponding finance lease liability (recorded to interest expense over the lease term). We utilized our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The finance lease liability is based on the net present value of future lease payments.


(7)	Represents components associated with our Master Leases that remain financing obligations (primarily buildings). The financing obligation at the adoption date was calculated utilizing previous assumptions as determined (a) at the lease commencement date with respect to the Penn Master Lease and (b) at the acquisition date with respect to the Pinnacle Master Lease.


(8)	Represents the tax impacts related to the adoption of the new lease standard. See Note 11, “Income Taxes.”

Accounting Pronouncements to be Implemented in 2020

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments” (“ASU 2016-13”), which sets forth a “current expected credit loss” (referred to as “CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and must be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently assessing the impact of the adoption of ASU 2016-13 on its unaudited Condensed Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This will result in certain implementation costs being capitalized; the associated amortization charge will, however, be recorded as an operating expense. Under the previous guidance, costs incurred when implementing a cloud computing arrangement deemed to be a service contract are recorded as an operating expense when incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities can choose to adopt the new guidance prospectively to eligible costs incurred on or after the date the guidance is first applied or retrospectively. The Company is currently assessing the impact of the adoption of ASU 2018-15 on its unaudited Condensed Consolidated Financial Statements.

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

The Company determines if a contract is or contains a leasing element at contract inception or the date in which a modification of an existing contract occurs. In order for a contract to be considered a lease, the contract must transfer the right to control the use of an identified asset for a period of time in exchange for consideration. Control is determined to have occurred if the lessee has the right to (i) obtain substantially all of the economic benefits from the use of the identified asset throughout the period of use and (ii) direct the use of the identified asset.

The Company has leasing arrangements that contain both (i) lease and (ii) non-lease components. We account for both the lease and non-lease components as a single component for all classes of underlying assets. In determining the present value of lease payments at lease commencement date, the Company utilizes its incremental borrowing rate based on the information available, unless the rate implicit in the lease is readily determinable. Upon adoption of the new lease standard, which is discussed in Note 3, “New Accounting Pronouncements,” the Company utilized its incremental borrowing rate on January 1, 2019, for operating and finance leases that commenced prior to that date.

Lessee

Master Leases

Upon adoption of the new lease standard, components associated with the Master Leases were determined to be either (i) operating leases, (ii) finance leases, or (iii) financing obligations. Changes to future lease payments under both our Penn Master Lease and Pinnacle Master Lease (i.e., when future escalators become known or future variable rent resets occur), which are discussed below, require the Company to (i) increase both the ROU assets and corresponding lease liabilities with respect to operating and finance leases and (ii) record the incremental variable payment associated with the financing obligation to interest expense.

Penn Master Lease

Pursuant to a triple net master lease with GLPI, which became effective November 1, 2013 (the “Penn Master Lease”), the Company leases real estate assets associated with 19 of the gaming facilities used in its operations. The Penn Master Lease has an initial term of 15 years with four subsequent, five-year renewal periods on the same terms and conditions, exercisable at the Company’s option. The Company has determined that the lease term is 35 years.

The payment structure under the Penn Master Lease includes a fixed component, a portion of which is subject to an annual escalator of up to 2%, depending on the Adjusted Revenue to Rent Ratio (as defined in the Penn Master Lease) of 1.8:1, and a component that is based on the performance of the facilities, which is prospectively adjusted (i) every five years by an amount equal to 4% of the average change in net revenues of all facilities under the Penn Master Lease (other than Hollywood Casino

Columbus (“Columbus”) and Hollywood Casino Toledo (“Toledo”)) compared to a contractual baseline during the preceding five years (“Penn Percentage Rent”) and (ii) monthly by an amount equal to 20% of the net revenues of Columbus and Toledo in excess of a contractual baseline and subject to a rent floor specific to Toledo (see below). The next annual escalator test date is scheduled to occur effective November 1, 2019 and the next Penn Percentage Rent reset is scheduled to occur on November 1, 2023.

On May 23, 2019, the Company acquired all of the membership interests of Greektown Holdings, L.L.C. (as discussed in Note 5, “Acquisitions”), activating a competition clause within the Penn Master Lease, which introduced a rent floor specific to Toledo. As a result, an additional ROU asset and corresponding lease liability of $151.2 million was recognized associated with the operating lease component (the land). Lease payments resulting from the rent floor associated with components determined to continue to be the financing obligations (the building) are included in “Interest expense, net” within our unaudited Condensed Consolidated Statements of Operations.

Monthly rent in excess of the rent floor for Toledo and monthly rent associated with Columbus are variable and considered contingent rent. Expense related to the operating lease components (the land) associated with Columbus and Toledo are included in “General and administrative” within our unaudited Condensed Consolidated Statements of Operations and the variable expense related to the financing obligation component (the buildings) is included in “Interest expense, net” within our unaudited Condensed Consolidated Statements of Operations. The entire variable expense related to prior year periods was included in “Interest expense, net” pursuant to the failed sale-leaseback accounting treatment under ASC 840. Total monthly variable expenses were as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Variable expenses included in “General and administrative”	$	2.3	$	—	$	15.4	$	—
Variable expenses included in “Interest expense, net”	2.1		11.8		14.1		36.8
Total variable expenses	$	4.4	$	11.8	$	29.5	$	36.8

Pinnacle Master Lease

In connection with the Pinnacle Acquisition (as defined in Note 5, “Acquisitions,”), the Company assumed a triple net master lease with GLPI, originally effective April 28, 2016 (the “Pinnacle Master Lease”), pursuant to which the Company leases real estate assets associated with 12 of the gaming facilities used in its operations. Upon assumption of the Pinnacle Master Lease, as amended, there were 7.5 years remaining of the initial 10-year term, with five subsequent, five-year renewal periods, on the same terms and conditions, exercisable at the Company’s option. The Company has determined that the lease term is 32.5 years.

The payment structure under the Pinnacle Master Lease includes a fixed component, a portion of which is subject to an annual escalator of up to 2%, depending on the Adjusted Revenue to Rent Ratio (as defined in the Pinnacle Master Lease) of 1.8:1, and a component that is based on the performance of the facilities, which is prospectively adjusted every two years by an amount equal to 4% of the average change in net revenues compared to a contractual baseline during the preceding two years (“Pinnacle Percentage Rent”). The next annual escalator test date and the next Pinnacle Percentage Rent reset are scheduled to occur on May 1, 2020.

Operating Leases

The Company’s operating leases consist mainly of (i) the Meadows Lease with GLPI, (ii) a triple net lease with VICI Properties Inc. (NYSE: VICI) (“VICI”) for the real estate assets used in the operation of Margaritaville Resort Casino (“Margaritaville”) (the “Margaritaville Lease”), (iii) a triple net lease with VICI for the real estate assets used in the operation of Greektown Casino-Hotel (“Greektown”) (the “Greektown Lease” and collectively with the Master Leases, the Meadows Lease, and the Margaritaville Lease, the “Triple Net Leases”), (iv) ground and levee leases to landlords which were not assumed by our REIT Landlords and remain an obligation of the Company, and (v) building and equipment not associated with our Master Leases. Certain of our lease agreements include rental payments based on a percentage of sales over specified contractual amounts, rental payments adjusted periodically for inflation, and rental payments based on usage. The Company’s leases include options to extend the lease terms. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Information related to lease term and discount rate was as follows:



	September 30, 2019
Weighted Average Remaining Lease Term
Operating leases ⁽¹⁾	27.8 years
Finance leases ⁽²⁾	28.8 years
Financing obligations ⁽³⁾	30.6 years

Weighted Average Discount Rate⁽⁴⁾
Operating leases	6.7	%
Finance leases	6.8	%
Financing obligations	8.1	%


(1)	Amount consists principally of (i) land components associated with our Master Leases; (ii) our Meadows Lease; (iii) our Margaritaville Lease; (iv) our Greektown Lease; (v) ground and levee leases with landlords which were not assumed by our REIT landlords; and (vi) building and equipment not associated with our Master Leases.


(2)	Amount consists primarily of the Dayton and Mahoning Valley finance leases.


(3)	Amount consists of the components contained within each of the Master Leases determined to continue to be financing obligations (primarily buildings) at the adoption date of the new lease standard.


(4)	For leases where the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The components of lease expense were as follows:



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the three months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	96.3	$	—	$	—	$	96.3
Operating lease cost⁽²⁾	—		0.1		4.1		—		—		4.2
Short-term lease cost	13.7		0.4		0.3		—		—		14.4
Variable lease cost⁽²⁾	0.8		—		0.2		—		—		1.0
Total	$	14.5	$	0.5	$	100.9	$	—	$	—	$	115.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.8	$	—	$	3.8
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.8	$	2.0	$	5.8

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.6	$	—	$	97.6



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the nine months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	271.0	$	—	$	—	$	271.0
Operating lease cost⁽²⁾	0.3		0.4		12.5		—		—		13.2
Short-term lease cost	40.9		0.9		1.1		—		—		42.9
Variable lease cost⁽²⁾	2.0		—		0.8		—		—		2.8
Total	$	43.2	$	1.3	$	285.4	$	—	$	—	$	329.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	11.5	$	—	$	11.5
Amortization expense ⁽³⁾	—		—		—		—		5.9		5.9
Total	$	—	$	—	$	—	$	11.5	$	5.9	$	17.4

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	293.6	$	—	$	293.6


(1)	Pertains to the components contained within the Master Leases (primarily land) determined to be operating leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.


(4)	Pertains to the components contained within the Master Leases (primarily buildings) determined to continue to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

During the three and nine months ended September 30, 2019, total payments made under our Triple Net Leases were $222.6 million and $645.4 million, respectively. During the three and nine months ended September 30, 2018, total payments made under our Penn Master Lease were $115.2 million and $347.0 million, respectively.

Supplemental cash flow information related to leases was as follows:



(in millions)	For the nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	11.5
Operating cash flows from operating leases	$	296.0
Financing cash flows from finance leases	$	4.6

Lessor

The Company leases its hotel rooms to patrons and records the corresponding lessor revenue in “Food, beverage, hotel and other revenues” within our unaudited Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2019, the Company recognized $85.3 million and $236.9 million of lessor revenues related to the rental of hotel rooms, respectively. Hotel leasing arrangements vary in duration, but are short-term in nature. The cost and accumulated depreciation of property and equipment associated with hotel rooms is included in “Property and equipment, net” within our unaudited Condensed Consolidated Balance Sheets.

Leases

Lessee

Master Leases

Penn Master Lease



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Variable expenses included in “General and administrative”	$	2.3	$	—	$	15.4	$	—
Variable expenses included in “Interest expense, net”	2.1		11.8		14.1		36.8
Total variable expenses	$	4.4	$	11.8	$	29.5	$	36.8

Pinnacle Master Lease

Operating Leases

Information related to lease term and discount rate was as follows:



	September 30, 2019
Weighted Average Remaining Lease Term
Operating leases ⁽¹⁾	27.8 years
Finance leases ⁽²⁾	28.8 years
Financing obligations ⁽³⁾	30.6 years

Weighted Average Discount Rate⁽⁴⁾
Operating leases	6.7	%
Finance leases	6.8	%
Financing obligations	8.1	%


(1)	Amount consists principally of (i) land components associated with our Master Leases; (ii) our Meadows Lease; (iii) our Margaritaville Lease; (iv) our Greektown Lease; (v) ground and levee leases with landlords which were not assumed by our REIT landlords; and (vi) building and equipment not associated with our Master Leases.


(2)	Amount consists primarily of the Dayton and Mahoning Valley finance leases.


(3)	Amount consists of the components contained within each of the Master Leases determined to continue to be financing obligations (primarily buildings) at the adoption date of the new lease standard.


(4)	For leases where the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The components of lease expense were as follows:



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the three months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	96.3	$	—	$	—	$	96.3
Operating lease cost⁽²⁾	—		0.1		4.1		—		—		4.2
Short-term lease cost	13.7		0.4		0.3		—		—		14.4
Variable lease cost⁽²⁾	0.8		—		0.2		—		—		1.0
Total	$	14.5	$	0.5	$	100.9	$	—	$	—	$	115.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.8	$	—	$	3.8
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.8	$	2.0	$	5.8

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.6	$	—	$	97.6



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the nine months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	271.0	$	—	$	—	$	271.0
Operating lease cost⁽²⁾	0.3		0.4		12.5		—		—		13.2
Short-term lease cost	40.9		0.9		1.1		—		—		42.9
Variable lease cost⁽²⁾	2.0		—		0.8		—		—		2.8
Total	$	43.2	$	1.3	$	285.4	$	—	$	—	$	329.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	11.5	$	—	$	11.5
Amortization expense ⁽³⁾	—		—		—		—		5.9		5.9
Total	$	—	$	—	$	—	$	11.5	$	5.9	$	17.4

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	293.6	$	—	$	293.6


(1)	Pertains to the components contained within the Master Leases (primarily land) determined to be operating leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.


(4)	Pertains to the components contained within the Master Leases (primarily buildings) determined to continue to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

Supplemental cash flow information related to leases was as follows:



(in millions)	For the nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	11.5
Operating cash flows from operating leases	$	296.0
Financing cash flows from finance leases	$	4.6

Lessor

Leases

Lessee

Master Leases

Penn Master Lease



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Variable expenses included in “General and administrative”	$	2.3	$	—	$	15.4	$	—
Variable expenses included in “Interest expense, net”	2.1		11.8		14.1		36.8
Total variable expenses	$	4.4	$	11.8	$	29.5	$	36.8

Pinnacle Master Lease

Operating Leases

Information related to lease term and discount rate was as follows:



	September 30, 2019
Weighted Average Remaining Lease Term
Operating leases ⁽¹⁾	27.8 years
Finance leases ⁽²⁾	28.8 years
Financing obligations ⁽³⁾	30.6 years

Weighted Average Discount Rate⁽⁴⁾
Operating leases	6.7	%
Finance leases	6.8	%
Financing obligations	8.1	%


(1)	Amount consists principally of (i) land components associated with our Master Leases; (ii) our Meadows Lease; (iii) our Margaritaville Lease; (iv) our Greektown Lease; (v) ground and levee leases with landlords which were not assumed by our REIT landlords; and (vi) building and equipment not associated with our Master Leases.


(2)	Amount consists primarily of the Dayton and Mahoning Valley finance leases.


(3)	Amount consists of the components contained within each of the Master Leases determined to continue to be financing obligations (primarily buildings) at the adoption date of the new lease standard.


(4)	For leases where the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The components of lease expense were as follows:



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the three months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	96.3	$	—	$	—	$	96.3
Operating lease cost⁽²⁾	—		0.1		4.1		—		—		4.2
Short-term lease cost	13.7		0.4		0.3		—		—		14.4
Variable lease cost⁽²⁾	0.8		—		0.2		—		—		1.0
Total	$	14.5	$	0.5	$	100.9	$	—	$	—	$	115.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.8	$	—	$	3.8
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.8	$	2.0	$	5.8

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.6	$	—	$	97.6



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the nine months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	271.0	$	—	$	—	$	271.0
Operating lease cost⁽²⁾	0.3		0.4		12.5		—		—		13.2
Short-term lease cost	40.9		0.9		1.1		—		—		42.9
Variable lease cost⁽²⁾	2.0		—		0.8		—		—		2.8
Total	$	43.2	$	1.3	$	285.4	$	—	$	—	$	329.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	11.5	$	—	$	11.5
Amortization expense ⁽³⁾	—		—		—		—		5.9		5.9
Total	$	—	$	—	$	—	$	11.5	$	5.9	$	17.4

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	293.6	$	—	$	293.6


(1)	Pertains to the components contained within the Master Leases (primarily land) determined to be operating leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.


(4)	Pertains to the components contained within the Master Leases (primarily buildings) determined to continue to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

Supplemental cash flow information related to leases was as follows:



(in millions)	For the nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	11.5
Operating cash flows from operating leases	$	296.0
Financing cash flows from finance leases	$	4.6

Lessor

Acquisitions

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisitions

Greektown Casino-Hotel

On May 23, 2019, the Company acquired all of the membership interests of Greektown Holdings, L.L.C., for a net purchase price of $320.3 million, after working capital and other adjustments, pursuant to a transaction agreement among the Company, VICI Properties L.P., a wholly-owned subsidiary of VICI, and Greektown Mothership LLC. In connection with the acquisition, the real estate assets relating to Greektown were acquired by a subsidiary of VICI for an aggregate sales price of $700.0 million and the Company entered into the Greektown Lease, which has an initial annual rent of $55.6 million and an initial term of 15 years, with four five-year renewal options. The acquisition of the operations was financed through a combination of cash on hand and incremental borrowings under the Company’s Revolving Credit Facility (as defined in Note 9, “Long-term Debt”).

The Company is in the process of finalizing the assumptions that derive the fair value of certain assets acquired and liabilities assumed. Therefore, the allocation of the purchase price is preliminary and subject to change. During the three months ended September 30, 2019, we made the following adjustments to the preliminary purchase price:



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Estimated fair value, as adjusted
Cash and cash equivalents	$	31.1	$	—		$	31.1
Receivables, prepaid expenses, and other current assets	15.6		(1.1		)	14.5
Property and equipment	32.3		—			32.3
Goodwill⁽²⁾	61.7		1.1			62.8
Other intangible assets
Gaming license	166.4		—			166.4
Trademark	24.4		—			24.4
Customer relationships	3.3		—			3.3
Operating lease right-of-use assets	516.1		—			516.1
Finance lease right-of-use assets	4.2		—			4.2
Other assets	0.2		—			0.2
Total assets	$	855.3	$	—		$	855.3

Accounts payable, accrued expenses and other current liabilities	$	14.8	$	—		14.8
Operating lease liabilities	516.0		—			516.0
Finance lease liabilities	4.2		—			4.2
Total liabilities	535.0		—			535.0
Net assets acquired	$	320.3	$	—		$	320.3


(1)	Amounts were initially reported within the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2019, filed with the SEC on August 8, 2019.


(2)	The goodwill has been assigned to our Northeast segment. The entire $62.8 million goodwill amount is deductible for tax purposes.

The Company utilizes the acquisition method of accounting in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”), which requires us to allocate the purchase price to tangible and identifiable intangible assets based on their fair values. The excess of the purchase price over the fair value ascribed to tangible and identifiable intangible assets is recorded as goodwill. The Company used the income, market, or cost approach (or a combination thereof) for the valuation, as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability. Property and equipment acquired consists of non-REIT assets (e.g., equipment for use in gaming operations and furniture and equipment). We determined that the land and buildings subject to the Greektown Lease, which was entered into at the time of the acquisition, represent operating lease ROU assets with a corresponding operating lease liability calculated based on the present value of the future lease payments at the acquisition date in accordance with GAAP. Management determined the fair value of its office equipment, computer equipment and slot machine gaming devices based on the market approach and other property based on the cost approach, supported where available by observable market data, which includes consideration of obsolescence.

Acquired identifiable intangible assets consist of a gaming license and a trademark, which are both indefinite-lived intangible assets, and a customer relationship, which is an amortizing intangible asset with an assigned useful life of 2 years. Management valued (i) the gaming license using the Greenfield Method under the income approach, which estimates the fair value of the gaming license using a discounted cash flow model assuming the Company built a casino with similar utility to that of the existing facility and assumes a theoretical start-up company going into business without any assets other than the intangible asset being valued; (ii) the trademark using the relief-from-royalty method under the income approach; and (iii) customer relationships (rated player databases) using the with-and-without method of the income approach. All valuation methods are forms of the income approach supported by observable market data for peer casino operator companies.

The following table includes the financial results of Greektown since the acquisition date, which are included within our unaudited Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2019:



(in millions)	For the three months ended September 30, 2019		Period from May 23, 2019 through September 30, 2019
Revenues	$	78.2	$	112.4
Net income	$	3.9	$	4.8

Margaritaville Resort Casino

On January 1, 2019, the Company acquired the operations of Margaritaville Resort Casino (“Margaritaville”) for a net purchase price of $119.9 million, after working capital and other adjustments, pursuant to (i) an agreement and plan of merger (the “Margaritaville Merger Agreement”) among the Company, VICI, Bossier Casino Venture (HoldCo), Inc. (“Holdco”), and Silver Slipper Gaming, LLC, and (ii) a membership interest purchase agreement (the “MIPA”) among VICI and the Company.

Pursuant to the Margaritaville Merger Agreement, a subsidiary of VICI merged with and into Holdco with Holdco surviving the merger as a wholly-owned subsidiary of VICI (the “Merger”) and owner of the real estate assets relating to Margaritaville. Pursuant to the MIPA, immediately following the consummation of the Merger, HoldCo sold its interests in its sole direct subsidiary and owner of the Margaritaville operating assets, to the Company. In connection with the acquisition, the real estate assets used in the operations of Margaritaville were acquired by VICI for $261.1 million and the Company entered into the Margaritaville Lease, which has an initial annual rent of $23.2 million and an initial term of 15 years, with four five-year renewal options. The acquisition of the operations was financed through incremental borrowings under the Company’s Revolving Credit Facility.



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Estimated fair value, as adjusted
Cash and cash equivalents	$	10.7	$	—		$	10.7
Receivables, prepaid expenses, and other current assets	7.1		—			7.1
Property and equipment	21.7		(1.0		)	20.7
Goodwill⁽²⁾	39.5		1.0			40.5
Other intangible assets
Gaming license	48.1		—			48.1
Customer relationships	2.3		—			2.3
Operating lease right-of-use assets	196.2		—			196.2
Total assets	$	325.6	$	—		$	325.6

Accounts payable, accrued expenses and other current liabilities	$	9.5	$	—		$	9.5
Operating lease liabilities	196.2		—			196.2
Total liabilities	205.7		—			205.7
Net assets acquired	$	119.9	$	—		$	119.9


(1)	Amounts were initially reported within the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, filed with the SEC on May 8, 2019.


(2)	The goodwill has been assigned to our South segment. The entire $40.5 million goodwill amount is deductible for tax purposes.

The Company utilizes the acquisition method of accounting in accordance with ASC 805, which requires us to allocate the purchase price to tangible and identifiable intangible assets based on their fair values. The excess of the purchase price over the fair value ascribed to tangible and identifiable intangible assets is recorded as goodwill. The Company used the income, market, or cost approach (or a combination thereof) for the valuation, as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Property and equipment acquired consists of non-REIT assets (e.g., equipment for use in gaming operations and furniture and equipment). We determined that the land and buildings subject to the Margaritaville Lease, which was entered into at the time of the acquisition, represent operating lease ROU assets with a corresponding operating lease liability calculated based on the present value of the future lease payments at the acquisition date in accordance with GAAP. Management determined the fair value of its office equipment, computer equipment and slot machine gaming devices based on the market approach and other property based on the cost approach, supported where available by observable market data, which includes consideration of obsolescence.

Acquired identifiable intangible assets consist of a gaming license, which is an indefinite-lived intangible asset, and a customer relationship, which is an amortizing intangible asset with an assigned useful life of 2 years. Management valued (i) the gaming license using the Greenfield Method under the income approach and (ii) the customer relationships using the with-and-without method of the income approach. All valuation methods are forms of the income approach supported by observable market data for peer casino operator companies.

The following table includes the financial results of Margaritaville since the acquisition date, which are included within our unaudited Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2019:



(in millions)	For the three months ended September 30, 2019		For the nine months ended September 30, 2019
Revenues	$	39.6	$	120.7
Net income	$	2.6	$	10.8

Pinnacle Acquisition

On October 15, 2018, the Company acquired all of the outstanding shares of Pinnacle, for a total purchase price of $2,816.2 million, which consisted of (i) a cash payment of $20.00 per share of Pinnacle common stock, totaling $1,252.2 million; (ii) issuance of Penn common stock in the amount of $749.7 million; and (iii) the retirement of $814.3 million of Pinnacle debt obligations (the “Pinnacle Acquisition”). In conjunction with the Pinnacle Acquisition, the Company divested the membership interests of certain Pinnacle subsidiaries, which operated the casinos known as Ameristar St. Charles, Ameristar Kansas City, Belterra Resort and Belterra Park, to Boyd Gaming Corporation (NYSE: BYD), and GLPI acquired the real estate assets associated with Plainridge Park Casino and concurrently leased back such assets to the Company. Additionally, as a part

of the transaction, the Pinnacle Master Lease was assumed and amended by the Company. For more information on the Pinnacle Master Lease and related amendment, see Note 4, “Leases.”

During the third quarter of 2019, the Company finalized the allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed, with the excess recorded as goodwill. During the nine months ended September 30, 2019, prior to its finalization, we made the following adjustments to the preliminary purchase price allocation:



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Fair value, as finalized
Cash and restricted cash	$	124.2	$	—		$	124.2
Assets held for sale	667.0		0.5			667.5
Other current assets	80.6		0.5			81.1
Property and equipment - non-Pinnacle Master Lease	318.9		(0.3		)	318.6
Property and equipment - Pinnacle Master Lease⁽²⁾	3,984.1		(29.2		)	3,954.9
Goodwill⁽³⁾	219.5		18.7			238.2
Other intangible assets
Gaming licenses	1,046.0		21.6			1,067.6
Trademarks	298.0		—			298.0
Customer relationships	22.4		—			22.4
Other long-term assets	38.9		—			38.9
Total assets	$	6,799.6	$	11.8		$	6,811.4

Long-term financing obligation, including current portion⁽⁴⁾	$	3,427.0	$	5.5		$	3,432.5
Other current liabilities	200.6		5.5			206.1
Deferred tax liabilities	339.2		0.8			340.0
Other long-term liabilities	16.6		—			16.6
Total liabilities	3,983.4		11.8			3,995.2
Net assets acquired	$	2,816.2	$	—		$	2,816.2


(1)	Amounts were initially reported within the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019.


(2)	Includes buildings, boats, vessels, barges, and implied land and land use rights. Land use rights represent the intangible value of the Company’s ability to utilize and access land associated with long term ground lease agreements that give the Company the exclusive rights to operate the casino gaming facilities associated with such agreements.


(3)	See Note 7, “Goodwill and Other Intangible Assets,” for details on the impact to each reportable segment.


(4)	Long-term financing obligation, including current portion represents the financing obligation associated with Pinnacle Master Lease, as amended.

Pro Forma Financial Information - Greektown, Margaritaville, and Pinnacle

The following table includes unaudited pro forma consolidated financial information assuming our acquisitions of Greektown and Margaritaville had occurred as of January 1, 2018 and Pinnacle had occurred as of January 1, 2017. The pro forma financial information does not represent the anticipated future results of the combined company. The pro forma amounts include the historical operating results of Penn, Greektown, Margaritaville, and Pinnacle, prior to the acquisition, with adjustments directly attributable to the acquisitions, inclusive of adjustments for acquisition costs. The below pro forma results do not include any adjustments related to synergies.



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Revenues	$	1,354.5	$	1,391.7	$	4,093.8	$	4,240.7
Net income attributable to Penn	$	46.1	$	36.1	$	157.3	$	153.2

Property and Equipment

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net, consisted of the following:



(in millions)	September 30, 2019			December 31, 2018
Property and equipment - non-Master Leases
Land and improvements	$	353.3		$	344.0
Building, vessels and improvements	410.7			343.0
Furniture, fixtures and equipment	1,585.2			1,565.8
Leasehold improvements	178.4			152.9
Construction in progress	58.3			25.5
	2,585.9			2,431.2
Less: Accumulated depreciation	(1,524.8		)	(1,400.2		)
	1,061.1			1,031.0
Property and equipment - Master Leases
Land and improvements⁽¹⁾	1,525.9			2,971.0
Building, vessels and improvements⁽¹⁾	3,659.1			3,845.0
	5,185.0			6,816.0
Less: Accumulated depreciation	(1,090.9		)	(978.2		)
	4,094.1			5,837.8
Property and equipment, net	$	5,155.2		$	6,868.8


(1)	Upon adoption of ASC 842, approximately $1.4 billion of land was derecognized and replaced with operating lease ROU assets based on the present value of future lease payments and $180.4 million of building and improvements, gross, was derecognized and replaced with finance lease ROU assets based on the present value of future lease payments. See Note 3, “New Accounting Pronouncements.”

Depreciation expense was as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Depreciation expense⁽¹⁾	$	97.9	$	53.6	$	291.8	$	163.9

(1)

Of such amounts, $26.5 million, $22.7 million, $119.4 million, and $68.9 million, respectively, pertain to real estate assets subject to either of our Master Leases.

Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:



(in millions)	Northeast			South			West			Midwest			Other			Total
Balance as of December 31, 2018
Goodwill, gross	$	848.4		$	185.2		$	210.4		$	1,110.1		$	156.1		$	2,510.2
Accumulated goodwill impairment losses	(707.6		)	(34.6		)	(16.6		)	(435.3		)	(87.7		)	(1,281.8		)
Goodwill, net	140.8			150.6			193.8			674.8			68.4			1,228.4
Goodwill acquired during year	62.8			40.5			—			—			—			103.3
Other ⁽¹⁾	(1.5		)	7.2			6.4			6.6			—			18.7
Balance as of September 30, 2019
Goodwill, gross	909.7			232.9			216.8			1,116.7			156.1			2,632.2
Accumulated goodwill impairment losses	(707.6		)	(34.6		)	(16.6		)	(435.3		)	(87.7		)	(1,281.8		)
Goodwill, net	$	202.1		$	198.3		$	200.2		$	681.4		$	68.4		$	1,350.4


(1)	Amounts relate to adjustments made to the preliminary purchase price allocation of Pinnacle during the nine months ended September 30, 2019, prior to it being finalized, as described in Note 5, “Acquisitions.”

The table below presents the gross carrying amount, accumulated amortization, and net carrying amount of each major class of other intangible assets:



	September 30, 2019							December 31, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,734.6	$	—		$	1,734.6	$	1,498.3	$	—		$	1,498.3
Trademarks	322.4		—			322.4		298.0		—			298.0
Other	0.7		—			0.7		0.7		—			0.7
Amortizing intangible assets
Customer relationships	104.3		(64.6		)	39.7		98.8		(51.5		)	47.3
Other	62.0		(54.9		)	7.1		61.9		(49.3		)	12.6
Total other intangible assets	$	2,224.0	$	(119.5	)	$	2,104.5	$	1,957.7	$	(100.8	)	$	1,856.9

There were no impairment charges recorded on other intangible assets during the three and nine months ended September 30, 2019 and 2018.

Amortization expense related to our amortizing intangible assets was $6.4 million and $18.7 million, for the three and nine months ended September 30, 2019, respectively, as compared to $3.3 million and $11.9 million, for the three and nine months ended September 30, 2018, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of September 30, 2019 (in millions):



Remaining 2019	$	5.9
2020	19.5
2021	5.6
2022	3.8
2023	3.6
Thereafter	8.4
Total	$	46.8

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:



(in millions)	September 30, 2019		December 31, 2018
Accrued salaries and wages	$	125.3	$	139.2
Accrued gaming, pari-mutuel, property, and other taxes	117.6		105.8
Accrued interest	5.8		15.8
Other accrued expenses⁽¹⁾	218.0		204.6
Other current liabilities⁽²⁾	132.2		112.6
	$	598.9	$	578.0


(1)	Amounts include the obligation associated with our mychoice program and the current portion of advance payments on goods and services yet to be provided and for unpaid wagers, which are discussed in Note 2, “Significant Accounting Policies.”

(2)

Amounts include $74.1 million and $64.1 million, respectively, pertaining to the Company’s non-qualified deferred compensation plan that covers most management and other highly-compensated employees.

Long-term Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-term Debt

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



(in millions)	September 30, 2019			December 31, 2018
Senior Secured Credit Facilities:
Revolving Credit Facility due 2023	$	200.0		$	112.0
Term Loan A Facility due 2023	681.1			707.7
Term Loan B-1 Facility due 2025	1,120.3			1,128.7
5.625% Notes due 2027	400.0			400.0
Other long-term obligations	89.2			104.6
Capital leases⁽¹⁾	—			0.4
	2,490.6			2,453.4
Less: Current maturities of long-term debt	(62.9		)	(62.1		)
Less: Debt discount	(2.5		)	(2.8		)
Less: Debt issuance costs	(33.2		)	(38.4		)
	$	2,392.0		$	2,350.1


(1)	Reclassified to finance lease liabilities upon the adoption of ASC 842.

Senior Secured Credit Facilities

On January 19, 2017, the Company entered into an agreement to amend and restate its previous credit agreement, dated October 30, 2013, as amended, (the “Credit Agreement”), which provided for: (i) a five-year $700 million revolving credit facility (the “Revolving Credit Facility”), (ii) a five-year $300 million term loan A facility (the “Term Loan A Facility”), and (iii) a seven-year $500 million term loan B facility (the “Term Loan B Facility”). As of September 30, 2019, the Company had conditional obligations under letters of credit issued pursuant to the Senior Secured Credit Facilities with face amounts aggregating $30.0 million.

On October 15, 2018, in connection with the Pinnacle Acquisition, the Company entered into an incremental joinder agreement (the “Incremental Joinder”), which amended the Credit Agreement (the “Amended Credit Agreement”). The Incremental Joinder provided for an additional $430.2 million of incremental loans having the same terms as the existing Term Loan A Facility, with the exception of extending the maturity date, and an additional $1,128.8 million of loans as a new tranche having new terms (the “Term Loan B-1 Facility” and collectively with the Revolving Credit Facility and the Term Loan A Facility, the “Senior Secured Credit Facilities”). With the exception of extending the maturity date, the Incremental Joinder did not impact the Revolving Credit Facility.

The payment and performance of obligations under the Senior Secured Credit Facilities are guaranteed by a lien on and security interest in substantially all of the assets (other than excluded property such as gaming licenses) of the Company and its subsidiaries.

5.625% Senior Unsecured Notes

On January 19, 2017, the Company completed an offering of $400 million aggregate principal amount of 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 15^th and July 15^th of each year.

Loss on Early Extinguishment of Debt

In connection with voluntary principal repayments on the Term Loan B Facility, the Company recorded losses on early extinguishment of debt of $0.3 million and $3.8 million during the three and nine months ended September 30, 2018.

Interest expense, net

Interest expense, net, was as follows:



	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019			2018			2019			2018
Interest expense	$	(134.2	)	$	(114.8	)	$	(401.8	)	$	(346.4	)
Interest income	0.6			0.2			1.2			0.7
Capitalized interest	0.1			—			0.1			—
	$	(133.5	)	$	(114.6	)	$	(400.5	)	$	(345.7	)

Covenants

Our Senior Secured Credit Facilities and 5.625% Notes require us, among other obligations, to maintain specified financial ratios and to satisfy certain financial tests. In addition, the Company’s Senior Secured Credit Facilities and 5.625% Notes restrict, among other things, our 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. As of September 30, 2019, the Company was in compliance with all required financial covenants.

Other Long-Term Obligations

Ohio Relocation Fees

As of September 30, 2019 and December 31, 2018, other long-term obligations included $76.4 million and $91.3 million, respectively, related to the relocation fees for Dayton and Mahoning Valley, which opened in August 2014 and September 2014, respectively. The relocation fee for each facility is payable as follows: $7.5 million upon the opening of the facility and eighteen semi-annual payments of $4.8 million beginning one year after the commencement of operations. This obligation is accreted to interest expense at an effective yield of 5.0%. The amount included in interest expense related to this obligation was $1.0 million and $3.2 million for the three and nine months ended September 30, 2019, respectively, as compared to $1.2 million and $3.7 million for the three and nine months ended September 30, 2018, respectively.

Investments in and Advances to Unconsolidated Affiliates

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Affiliates

As of September 30, 2019, investment in and advances to unconsolidated affiliates primarily included the Company’s 50% investment in Kansas Entertainment, which is a joint venture with International Speedway, its 50% interest in Freehold Raceway, and its 50% joint venture with MAXXAM, Inc. (“MAXXAM”) that owns and operates racetracks in Texas.

Kansas Joint Venture

The Company has a 50% investment in Kansas Entertainment, which owns Hollywood Casino at Kansas Speedway. As of September 30, 2019 and December 31, 2018, the Company’s investment balance was $90.6 million and $89.4 million, respectively.

The Company has determined that Kansas Entertainment is a VIE that should not be consolidated since the Company does not qualify as the primary beneficiary. In making this determination, the Company concluded that it does not have the ability to direct the activities of Kansas Entertainment that most significantly impact Kansas Entertainment’s economic performance without the approval of International Speedway. Furthermore, International Speedway has substantive participating rights in Kansas Entertainment.

The following table provides summary income statement information of Kansas Entertainment for the comparative periods that are included within the Company’s unaudited Condensed Consolidated Statements of Operations:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Revenues	$	40.6	$	39.8	$	120.2	$	119.3
Operating expenses	19.6		27.4		73.8		83.0
Operating income	21.0		12.4		46.4		36.3
Net income	$	21.0	$	12.4	$	46.4	$	36.3

Net income attributable to Penn	$	10.5	$	6.2	$	23.2	$	18.1

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company calculates the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate to its year-to-date pretax book income or loss. The tax effects of discrete items, including but not limited to, excess tax benefits associated with stock-based compensation, changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. The effective tax rate (income taxes as a percentage of income before income taxes) including discrete items was 31.0% and 28.0% for the three and nine months ended September 30, 2019, respectively, as compared to 20.1% and 22.8% for the three and nine months ended September 30, 2018, respectively. The Company’s effective income tax rate can vary from period to period depending on, among other factors, the geographic and business mix of our earnings, changes to our state valuation allowance and the level of our tax credits. Certain of these and other factors, including our history and projections of pretax earnings, are considered in assessing our ability to realize our net deferred tax assets. As discussed in Note 5, “Acquisitions,” the Company finalized its allocation of the purchase price pertaining to the Pinnacle Acquisition during the third quarter of 2019. During the nine months ended September 30, 2019, the effect of measurement period adjustments were an increase of $0.8 million to deferred tax liabilities. The adoption of ASC 842, which is described fully in Note 3, “New Accounting Pronouncements,” required us to adjust the deferred income taxes associated with our Master Leases through retained earnings as of January 1, 2019. Upon adoption, the Company recorded a reduction to our net deferred tax asset of $80.6 million, an increase to our net deferred tax liability of $223.2 million, and a decrease to retained earnings of $303.8 million.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company is subject to various legal and administrative proceedings relating to personal injuries, employment matters, commercial transactions, development agreements and other matters arising in the ordinary course of business. Although the Company maintains what it believes to be adequate insurance coverage to mitigate the risk of loss pertaining to covered matters, legal and administrative proceedings can be costly, time-consuming and unpredictable. The Company does not believe that the final outcome of these matters will have a material adverse effect on its financial position, cash flows or results of operations.

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Long Term Incentive Compensation Plans The Company’s 2018 Long Term Incentive Compensation Plan (the “2018 Plan”) permits it to issue stock options (incentive and/or non-qualified), stock appreciation rights (“SARs”), restricted stock, phantom stock units (“PSUs”) and other equity and cash awards to employees. Non-employee directors are eligible to receive all such awards, other than incentive stock options. Prior to the 2018 Plan, the Company had the 2008 Long Term Incentive Compensation Plan (the “2008 Plan”), which expired in June 2018. Although awards can no longer be granted under the 2008 Plan, it remains in place until all of the awards previously granted thereunder have been paid, forfeited or expired. As of September 30, 2019, there were 8,442,068 shares available for future grants under the 2018 Plan. Share Repurchase Program On January 9, 2019, the Company announced a share repurchase program pursuant to which the Board of Directors authorized to repurchase up to $200 million of the Company’s common stock, which expires on December 31, 2020. During the nine months ended September 30, 2019, the Company repurchased 1,271,823 shares of its common stock in open market transactions for $24.9 million at an average price of $19.55 per share. All repurchased shares were retired. Performance Share Program On February 14, 2019, the Company’s Compensation Committee of the Board of Directors adopted a performance share program (the “Performance Share Program II”) pursuant to the 2018 Plan, which provides for the issuance of restricted stock awards and phantom stock units with performance-based vesting conditions. An aggregate of 278,780 performance shares, at target, was granted on February 14, 2019, with the grant having a three-year award period consisting of three one-year performance periods and a three-year service period. The performance threshold for vesting of these awards is 50% of target and, based on the level of achievement, up to 150% of target. Stock Options The Company granted 2,353,599 and 663,343 stock options during the nine months ended September 30, 2019 and 2018, respectively. Stock-based Compensation Expense Stock-based compensation expense, which pertains to our stock options, restricted stock, and other equity awards, for the three and nine months ended September 30, 2019 was $3.7 million and $10.4 million, respectively, as compared to $2.9 million and $8.8 million for the three and nine months ended September 30, 2018, respectively, and is included within the unaudited Condensed Consolidated Statements of Operations under “General and administrative.” Stock Appreciation Rights The fair value of SARs is calculated each reporting period and estimated using the Black-Scholes option pricing model. 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. Accordingly, the Company has a liability, which is included in “Accrued expenses and other current liabilities” within the unaudited Condensed Consolidated Balance Sheets, associated with its SARs of $6.6 million and $6.8 million as of September 30, 2019 and December 31, 2018, respectively. For SARs held by employees of the Company, there was $5.5 million of total unrecognized compensation cost as of September 30, 2019 that will be recognized over the awards remaining weighted average vesting period of 2.62 years. For the three and nine months ended September 30, 2019, the Company recognized a reduction to compensation expense of $0.5 million and compensation expense of $2.0 million, respectively, as compared to compensation expense of $1.1 million and $6.9 million for the three and nine months ended September 30, 2018, respectively, associated with these awards. Compensation expense associated with our SARs is recorded in “General and administrative” within the unaudited Condensed Consolidated Statements of Operations. We paid $2.2 million and $9.8 million during the nine months ended September 30, 2019 and 2018, respectively, pertaining to the Company’s cash-settled SARs. Phantom Stock Units The Company’s PSUs, which vest over a period of three to 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. The Company has a liability, which is included in “Accrued expenses and other current liabilities” within the unaudited Condensed Consolidated Balance Sheets, associated with its PSUs of $1.3 million and $1.7 million as of September 30, 2019 and December 31, 2018, respectively. For PSUs held by employees and directors of the Company, there was $3.1 million of total unrecognized compensation cost as of September 30, 2019 that will be recognized over the awards remaining weighted average vesting period of 1.85 years. For the three and nine months ended September 30, 2019, the Company recognized $0.5 million and $2.1 million, respectively, of compensation expense associated with these awards, as compared to $0.7 million and $2.2 million, for the three and nine months ended September 30, 2018, respectively. Compensation expense associated with our PSUs is recorded in “General and administrative” within the unaudited Condensed Consolidated Statements of Operations. We paid $2.5 million and $4.2 million during the nine months ended September 30, 2019 and 2018, respectively, pertaining to the Company’s cash-settled PSUs.

Earnings per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings per Share

The following table reconciles the weighted average common shares outstanding used in the calculation of basic earnings per share (“EPS”) to the weighted average common shares outstanding used in the calculation of diluted EPS for the three and nine months ended September 30, 2019 and 2018:



	For the three months ended September 30,		For the nine months ended September 30,
(in millions)	2019	2018	2019	2018
Determination of shares:
Weighted average common shares outstanding	115.2	91.9	115.8	91.5
Assumed conversion of dilutive employee stock-based awards	1.4	3.2	1.7	3.3
Assumed conversion of restricted stock	0.1	0.2	0.2	0.2
Diluted weighted average common shares outstanding	116.7	95.3	117.7	95.0

Options to purchase 2,519,816 and 2,139,874 shares and 660,436 and 655,952 shares were outstanding during the three and nine months ended September 30, 2019 and 2018, 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 and nine months ended September 30, 2019 and 2018:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions, except per share data)	2019		2018		2019		2018
Calculation of basic EPS:
Net income applicable to common stock	$	43.9	$	36.1	$	136.4	$	135.5
Weighted average common shares outstanding	115.2		91.9		115.8		91.5
Basic EPS	$	0.38	$	0.39	$	1.18	$	1.48
Calculation of diluted EPS:
Net income applicable to common stock	$	43.9	$	36.1	$	136.4	$	135.5
Diluted weighted average common shares outstanding	116.7		95.3		117.7		95.0
Diluted EPS	$	0.38	$	0.38	$	1.16	$	1.43

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

ASC Topic 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. The fair value of the Company’s trade accounts receivable and payables approximates the carrying amounts.

Cash and Cash Equivalents

The fair value of the Company’s cash and cash equivalents approximates their carrying amount, due to the short maturity of the cash equivalents.

Equity Securities

As of September 30, 2019, we held $28.3 million in equity securities, including ordinary shares and warrants, which are reported as “Other assets” in our unaudited Condensed Consolidated Balance Sheet. As discussed in Note 2, “Significant Accounting Policies,” these equity securities are the result of entering into multi-year agreements with third-party sports betting operators for online sports betting and related iGaming market access across our portfolio during the third quarter of 2019.

The fair value of the equity securities was determined using Level 2 inputs, which use market approach valuation techniques. The primary inputs to those techniques include the quoted market price of the equity securities, foreign currency exchange rates, a discount for lack of marketability (“DLOM”) with respect to the ordinary shares, and a Black-Scholes option pricing model with respect to the warrants. The DLOM is based on the remaining term of the relevant lock-up periods and the volatility associated with the underlying equity securities. The Black-Scholes option pricing model utilizes the exercise price of the warrants, a risk-free rate, volatility associated with the underlying equity securities and the expected life of the warrants.

Held-to-maturity Securities and Promissory Notes

We have a management contract with Retama Development Corporation (“RDC”), a local government corporation of the City of Selma, Texas, to manage the day-to-day operations of Retama Park Racetrack, located outside of San Antonio, Texas. In addition, we own 1.0% of the equity of Retama Nominal Holder, LLC, which holds a nominal interest in the racing license used to operate Retama Park Racetrack, and a 75.5% interest in Pinnacle Retama Partners, LLC (“PRP”), which owns the contingent gaming rights that may arise if gaming under the existing racing license becomes legal in Texas in the future.

As of September 30, 2019 and December 31, 2018, PRP held $16.9 million in promissory notes issued by RDC and $7.5 million in local government corporation bonds issued by RDC, at amortized cost. The promissory notes and the local government corporation bonds are collateralized by the assets of Retama Park Racetrack. As of September 30, 2019, the promissory notes are included in “Other current assets” within our unaudited Condensed Consolidated Balance Sheet and the local government corporation bonds, which have long-term contractual maturities, are included in “Other assets” within our unaudited Condensed Consolidated Balance Sheet.

The contractual terms of these promissory notes include interest payments due at maturity; however, we have not recorded accrued interest on these promissory notes because uncertainty exists as to RDC’s ability to make interest payments. We have the positive intent and ability to hold the local government corporation bonds to maturity and until the amortized cost is recovered. The estimated fair values of such investments are principally based on appraised values of the land associated with Retama Park Racetrack, which are classified as Level 2 inputs.

Long-term Debt

The fair value of the Company’s Term Loan A Facility, Term Loan B-1 Facility and 5.625% Notes is estimated based on quoted prices in active markets and is classified as a Level 1 measurement. The fair value of the Company’s Revolving Credit Facility approximates its carrying amount as it is revolving, variable rate debt, which we classify as a Level 2 measurement.

Other long-term obligations as of September 30, 2019 and December 31, 2018 included the relocation fees for Dayton and Mahoning Valley, which are discussed in Note 9, “Long-term Debt,” and a repayment obligation of a hotel and event center located near Hollywood Casino Lawrenceburg. The fair values of these long-term obligations are estimated based on rates consistent with the Company’s credit rating for comparable terms and debt instruments and are classified as Level 2 measurements.

Other Liabilities

Other liabilities as of September 30, 2019 and December 31, 2018 principally consists of contingent consideration related to Plainridge Park Casino and Absolute Bingo, which was acquired by PIV during the second quarter of 2018. The Plainridge Park Casino contingent consideration is calculated based on earnings of the gaming operations over the first 10 years of operations, which commenced on June 24, 2015. As of September 30, 2019 and December 31, 2018, we were contractually obligated to make six and seven additional annual payments, respectively. The Absolute Bingo contingent consideration is calculated based on earnings over the first two years of operations after the acquisition. As of September 30, 2019, we are contractually obligated to make one additional payment, which corresponds to the second year of operations after the

acquisition, which will become payable in the third quarter of 2020. The fair value of these liabilities, which are both estimated based on an income approach using a discounted cash flow model and have been classified as Level 3 measurements, are included within our unaudited Condensed Consolidated Balance Sheets in “Accrued expenses and other current liabilities” or “Other noncurrent liabilities,” depending on the timing of the next payment.

The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows:



	September 30, 2019
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	406.9	$	406.9	$	406.9	$	—	$	—
Equity securities	$	28.3	$	28.3	$	—	$	28.3	$	—
Held-to-maturity securities	$	7.5	$	7.8	$	—	$	7.8	$	—
Promissory notes	$	16.9	$	17.3	$	—	$	17.3	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,966.3	$	2,000.5	$	2,000.5	$	—	$	—
5.625% Notes	$	399.4	$	411.0	$	411.0	$	—	$	—
Other long-term obligations	$	89.2	$	82.5	$	—	$	82.5	$	—
Other liabilities	$	20.3	$	20.3	$	—	$	2.8	$	17.5



	December 31, 2018
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	479.6	$	479.6	$	479.6	$	—	$	—
Held-to-maturity securities	$	7.5	$	7.9	$	—	$	7.9	$	—
Promissory notes	$	16.9	$	17.4	$	—	$	17.4	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,907.9	$	1,886.3	$	1,886.3	$	—	$	—
5.625% Notes	$	399.3	$	360.0	$	360.0	$	—	$	—
Other long-term obligations	$	104.6	$	96.3	$	—	$	96.3	$	—
Other liabilities	$	21.9	$	21.8	$	—	$	2.8	$	19.0

The following table summarizes the changes in fair value of our Level 3 liabilities measured on a recurring basis:



	Other Liabilities
(in millions)	Contingent Consideration
Balance as of January 1, 2019	$	19.0
Payments	(8.5		)
Included in earnings⁽¹⁾	7.0
Balance as of September 30, 2019	$	17.5


(1)	The expense is included in “General and administrative” within our unaudited Condensed Consolidated Statements of Operations.

The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 liabilities on a recurring basis as of September 30, 2019:



	Valuation Technique	Unobservable Input	Discount Rate
Contingent consideration - Plainridge Park Casino	Discounted cash flow	Discount rate	6.33%

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Segment Information

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information

We have aggregated our operating segments into four reportable segments based on the similar characteristics of the operating segments within the regions in which they operate: Northeast, South, West and Midwest. The Other category is included in the following tables in order to reconcile the segment information to the consolidated information. During the fourth quarter of 2018, the Company made revisions to its reportable segments upon the consummation of the Pinnacle Acquisition. Apart from the addition of the new properties, the most significant change was dividing the South/West segment into two separate reportable segments. The financial information presented below reflects such changes, including restating the prior period comparative financial information.

The Company utilizes Adjusted EBITDAR (as defined below) as its measure of segment profit or loss. The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to Net income.



	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019			2018			2019			2018
Revenues:
Northeast segment	$	628.9		$	441.4		$	1,778.6		$	1,365.4
South segment	276.6			60.4			850.7			186.4
West segment	161.5			92.6			484.4			291.2
Midwest segment	275.8			185.4			815.3			559.0
Other ⁽¹⁾	12.4			9.9			31.9			30.6
Intersegment eliminations ⁽²⁾	(0.7		)	—			(0.7		)	—
Total	$	1,354.5		$	789.7		$	3,960.2		$	2,432.6

Adjusted EBITDAR ⁽³⁾:
Northeast segment	$	189.1		$	141.3		$	540.1		$	434.6
South segment	89.0			17.1			279.6			58.8
West segment	50.6			21.8			151.0			71.8
Midwest segment	104.3			65.4			301.3			201.1
Other ⁽¹⁾	(25.0		)	(15.9		)	(66.1		)	(47.0		)
Intersegment eliminations ⁽²⁾	(0.1		)	—			(0.1		)	—
Total ⁽³⁾	407.9			229.7			1,205.8			719.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases⁽⁴⁾	(96.3		)	—			(271.0		)	—
Stock-based compensation	(3.7		)	(2.9		)	(10.4		)	(8.8		)
Cash-settled stock-based awards variance	3.4			1.7			6.4			1.3
Loss on disposal of assets	(7.4		)	(3.2		)	(8.3		)	(3.2		)
Contingent purchase price	(1.2		)	(0.4		)	(7.0		)	(1.7		)
Pre-opening and acquisition costs	(7.4		)	(5.2		)	(15.5		)	(17.2		)
Depreciation and amortization	(106.3		)	(56.9		)	(316.4		)	(175.8		)
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	—			—			—			16.4
Insurance recoveries, net of deductible charges	1.5			—			1.5			0.1
Non-operating items for Kansas JV	(0.9		)	(1.3		)	(2.8		)	(3.9		)
Interest expense, net	(133.5		)	(114.6		)	(400.5		)	(345.7		)
Loss on early extinguishment of debt	—			(0.3		)	—			(3.8		)
Other	7.2			(1.4		)	7.2			(1.5		)
Income before income taxes	63.3			45.2			189.0			175.5
Income tax expense	(19.6		)	(9.1		)	(53.0		)	(40.0		)
Net income	$	43.7		$	36.1		$	136.0		$	135.5

(1)

The Other category consists of the Company's standalone racing operations, namely Sanford-Orlando Kennel Club, located in Longwood, Florida, and the Company’s joint venture interests in Texas and New Jersey. The Other category also includes PIV; which operates social gaming, our internally-branded retail sportsbooks, and iGaming; our management contract for Retama Park Racetrack; and HPT. Expenses incurred for corporate and shared services activities that are directly attributable to a property or are otherwise incurred to support a property are allocated to each property.

The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate to or have otherwise been allocated to a property.


(2)	Represents the elimination of intersegment operations associated with PIV and HPT.

(3)

We define Adjusted EBITDAR as earnings before interest expense, net; income taxes; depreciation and amortization; rent expense associated with triple net operating leases (see footnote (4) below); stock-based compensation; debt extinguishment and financing charges; impairment charges; insurance recoveries and deductible charges; 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; pre-opening and acquisition costs; and other income or expenses. Adjusted EBITDAR 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.


(4)	The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Capital expenditures:
Northeast segment	$	22.8	$	11.0	$	67.3	$	23.7
South segment	5.0		2.3		21.5		5.8
West segment	3.7		2.4		17.8		7.6
Midwest segment	6.2		7.4		22.6		15.6
Other	4.0		0.9		7.5		4.3
Total capital expenditures	$	41.7	$	24.0	$	136.7	$	57.0



(in millions)	Northeast		South		West		Midwest		Other		Total
As of September 30, 2019
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	90.6	$	37.8	$	128.5
Total assets ⁽¹⁾	$	2,298.9	$	1,423.8	$	750.5	$	1,475.9	$	8,368.9	$	14,318.0

As of December 31, 2018
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	89.4	$	39.0	$	128.5
Total assets ⁽²⁾	$	1,330.2	$	1,082.3	$	755.7	$	1,411.5	$	6,381.3	$	10,961.0

(1)

As of September 30, 2019, total assets of the Other category includes the real estate assets subject to the Master Leases, which are either classified as property and equipment, operating lease ROU assets, or finance lease ROU assets, depending on whether the underlying component of the Master Leases was determined to be an operating lease, a finance lease, or continue to be financing obligations, upon adoption of ASC 842.

(2)

As of December 31, 2018, total assets of the Other category includes the real estate assets subject to the Master Leases, which are classified as property and equipment.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Principles of Consolidation

Use of Estimates

Segment Information



	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel ⁽¹⁾	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course	Grantville, Pennsylvania	Penn Master Lease
Hollywood Casino Toledo	Toledo, Ohio	Penn Master Lease
Hollywood Gaming at Dayton Raceway	Dayton, Ohio	Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course	Youngstown, Ohio	Penn Master Lease
Marquee by Penn⁽²⁾	Pennsylvania	N/A
Meadows Racetrack and Casino	Washington, Pennsylvania	Meadows Lease
Plainridge Park Casino	Plainville, Massachusetts	Pinnacle Master Lease
South segment⁽³⁾
1^st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino ⁽⁴⁾	Bossier City, Louisiana	Margaritaville Lease
West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Owned
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease
Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton ⁽⁵⁾	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway ⁽⁶⁾	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming⁽²⁾	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease


(1)	Acquired on May 23, 2019


(2)	VGT route operations


(3)	Resorts Casino Tunica closed on June 30, 2019, but remains subject to the Penn Master Lease.


(4)	Acquired on January 1, 2019


(5)	The riverboat is owned by us and not subject to the Penn Master Lease.

(6)

Pursuant to a joint venture with International Speedway Corporation (“International Speedway”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns Hollywood Casino at Kansas Speedway.

Revenue Recognition

Revenue Disaggregation

Complimentaries associated with Gaming Contracts

Customer-related Liabilities

Gaming and Racing Taxes

Equity Securities including Warrants

New Accounting Pronouncements

Accounting Pronouncements Implemented in 2019

Penn Master Lease and Pinnacle Master Lease

Condensed Consolidated Statements of Operations and recorded as operating cash outflows within the unaudited Condensed Consolidated Statements of Cash Flows.

Operating Leases, inclusive of the Meadows Lease with GLPI



				Impacts of:
(in millions)	As Reported as of December 31, 2018			Financing Obligations - Master Leases ⁽¹⁾		Finance Leases - Dayton and Mahoning Valley			Operating Leases - Master Leases⁽²⁾			Operating Lease - Meadows ⁽³⁾		Other Operating Leases - Non-Master Leases			As Adjusted for ASC 842		Increase/(Decrease)
Assets
Current assets
Prepaid expenses	$	63.0		$	—	$	—		$	—		$	—	$	(1.0	)	$	62.0	$	(1.0	)
Total current assets	$	677.6		$	—	$	—		$	—		$	—	$	(1.0	)	$	676.6	$	(1.0	)
Property and equipment, net ⁽⁴⁾	$	6,868.8		$	—	$	(164.3	)	$	(1,407.4	)	$	—	$	—		$	5,297.1	$	(1,571.7	)
Goodwill	$	1,228.4		$	5.5	$	—		$	—		$	—	$	—		$	1,233.9	$	5.5
Operating lease right-of-use assets ⁽⁵⁾	$	—		$	—	$	—		$	3,541.2		$	112.8	$	152.5		$	3,806.5	$	3,806.5
Finance lease right-of-use assets ⁽⁶⁾	$	—		$	—	$	224.5		$	—		$	—	$	—		$	224.5	$	224.5
Total assets	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8

Liabilities
Current liabilities
Current portion of financing obligations ⁽⁷⁾	$	67.8		$	—	$	(1.5	)	$	(16.2	)	$	—	$	—		$	50.1	$	(17.7	)
Current portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	72.9		$	20.5	$	8.9		$	102.3	$	102.3
Current portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	5.8		$	—		$	—	$	—		$	5.8	$	5.8
Accrued expenses and other current liabilities	$	578.0		$	—	$	—		$	—		$	—	$	(0.5	)	$	577.5	$	(0.5	)
Total current liabilities	$	738.4		$	—	$	4.3		$	56.7		$	20.5	$	8.4		$	828.3	$	89.9
Long-term portion of financing obligations ⁽⁷⁾	$	7,080.6		$	5.5	$	(181.3	)	$	(2,760.6	)	$	—	$	—		$	4,144.2	$	(2,936.4	)
Long-term portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	3,467.1		$	92.3	$	145.0		$	3,704.4	$	3,704.4
Long-term portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	218.3		$	—		$	—	$	—		$	218.3	$	218.3
Deferred income taxes ⁽⁸⁾	$	—		$	—	$	4.3		$	299.5		$	—	$	—		$	303.8	$	303.8
Other noncurrent liabilities	$	60.7		$	—	$	—		$	—		$	—	$	(1.9	)	$	58.8	$	(1.9	)
Total liabilities	$	10,229.8		$	5.5	$	45.6		$	1,062.7		$	112.8	$	151.5		$	11,607.9	$	1,378.1
Stockholders’ equity
Retained earnings (accumulated deficit)	$	(968.0	)	$	—	$	14.6		$	1,071.1		$	—	$	—		$	117.7	$	1,085.7
Total Penn stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total liabilities and stockholders’ equity	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8


(1)	During the first quarter of 2019, the Company identified an adjustment to the purchase price allocation associated with its October 2018 acquisition of Pinnacle Entertainment, Inc. (“Pinnacle”). The purchase price adjustment increased the financing obligation upon the adoption of the new lease standard, resulting in an increase to goodwill (see Note 5, “Acquisitions”).


(2)	Represents components contained within each of the Master Leases determined to be operating leases (primarily land).


(3)	Represents the triple net lease with GLPI for the real estate assets used in the operations of Meadows Racetrack and Casino (the “Meadows Lease”).

(4)

(5)

(6)


(7)	Represents components associated with our Master Leases that remain financing obligations (primarily buildings). The financing obligation at the adoption date was calculated utilizing previous assumptions as determined (a) at the lease commencement date with respect to the Penn Master Lease and (b) at the acquisition date with respect to the Pinnacle Master Lease.


(8)	Represents the tax impacts related to the adoption of the new lease standard. See Note 11, “Income Taxes.”

Accounting Pronouncements to be Implemented in 2020

Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of operating and reportable segments

For financial reporting purposes, we aggregate our operating segments into the following reportable segments:



	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel ⁽¹⁾	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course	Grantville, Pennsylvania	Penn Master Lease
Hollywood Casino Toledo	Toledo, Ohio	Penn Master Lease
Hollywood Gaming at Dayton Raceway	Dayton, Ohio	Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course	Youngstown, Ohio	Penn Master Lease
Marquee by Penn⁽²⁾	Pennsylvania	N/A
Meadows Racetrack and Casino	Washington, Pennsylvania	Meadows Lease
Plainridge Park Casino	Plainville, Massachusetts	Pinnacle Master Lease
South segment⁽³⁾
1^st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino ⁽⁴⁾	Bossier City, Louisiana	Margaritaville Lease
West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Owned
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease
Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton ⁽⁵⁾	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway ⁽⁶⁾	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming⁽²⁾	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease


(1)	Acquired on May 23, 2019


(2)	VGT route operations


(3)	Resorts Casino Tunica closed on June 30, 2019, but remains subject to the Penn Master Lease.


(4)	Acquired on January 1, 2019


(5)	The riverboat is owned by us and not subject to the Penn Master Lease.

(6)

The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to Net income.



	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019			2018			2019			2018
Revenues:
Northeast segment	$	628.9		$	441.4		$	1,778.6		$	1,365.4
South segment	276.6			60.4			850.7			186.4
West segment	161.5			92.6			484.4			291.2
Midwest segment	275.8			185.4			815.3			559.0
Other ⁽¹⁾	12.4			9.9			31.9			30.6
Intersegment eliminations ⁽²⁾	(0.7		)	—			(0.7		)	—
Total	$	1,354.5		$	789.7		$	3,960.2		$	2,432.6

Adjusted EBITDAR ⁽³⁾:
Northeast segment	$	189.1		$	141.3		$	540.1		$	434.6
South segment	89.0			17.1			279.6			58.8
West segment	50.6			21.8			151.0			71.8
Midwest segment	104.3			65.4			301.3			201.1
Other ⁽¹⁾	(25.0		)	(15.9		)	(66.1		)	(47.0		)
Intersegment eliminations ⁽²⁾	(0.1		)	—			(0.1		)	—
Total ⁽³⁾	407.9			229.7			1,205.8			719.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases⁽⁴⁾	(96.3		)	—			(271.0		)	—
Stock-based compensation	(3.7		)	(2.9		)	(10.4		)	(8.8		)
Cash-settled stock-based awards variance	3.4			1.7			6.4			1.3
Loss on disposal of assets	(7.4		)	(3.2		)	(8.3		)	(3.2		)
Contingent purchase price	(1.2		)	(0.4		)	(7.0		)	(1.7		)
Pre-opening and acquisition costs	(7.4		)	(5.2		)	(15.5		)	(17.2		)
Depreciation and amortization	(106.3		)	(56.9		)	(316.4		)	(175.8		)
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	—			—			—			16.4
Insurance recoveries, net of deductible charges	1.5			—			1.5			0.1
Non-operating items for Kansas JV	(0.9		)	(1.3		)	(2.8		)	(3.9		)
Interest expense, net	(133.5		)	(114.6		)	(400.5		)	(345.7		)
Loss on early extinguishment of debt	—			(0.3		)	—			(3.8		)
Other	7.2			(1.4		)	7.2			(1.5		)
Income before income taxes	63.3			45.2			189.0			175.5
Income tax expense	(19.6		)	(9.1		)	(53.0		)	(40.0		)
Net income	$	43.7		$	36.1		$	136.0		$	135.5

(1)


(2)	Represents the elimination of intersegment operations associated with PIV and HPT.

(3)


(4)	The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Capital expenditures:
Northeast segment	$	22.8	$	11.0	$	67.3	$	23.7
South segment	5.0		2.3		21.5		5.8
West segment	3.7		2.4		17.8		7.6
Midwest segment	6.2		7.4		22.6		15.6
Other	4.0		0.9		7.5		4.3
Total capital expenditures	$	41.7	$	24.0	$	136.7	$	57.0



(in millions)	Northeast		South		West		Midwest		Other		Total
As of September 30, 2019
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	90.6	$	37.8	$	128.5
Total assets ⁽¹⁾	$	2,298.9	$	1,423.8	$	750.5	$	1,475.9	$	8,368.9	$	14,318.0

As of December 31, 2018
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	89.4	$	39.0	$	128.5
Total assets ⁽²⁾	$	1,330.2	$	1,082.3	$	755.7	$	1,411.5	$	6,381.3	$	10,961.0

(1)

(2)

As of December 31, 2018, total assets of the Other category includes the real estate assets subject to the Master Leases, which are classified as property and equipment

Schedule of complimentaries

Revenues recorded to food and beverage, hotel, and other and offset to gaming revenues were as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Food and beverage	$	66.7	$	30.5	$	195.3	$	77.3
Hotel	44.1		10.5		121.5		30.8
Other	4.2		1.7		13.0		3.7
Total complimentaries associated with gaming contracts	$	115.0	$	42.7	$	329.8	$	111.8

Schedule of disaggregation of revenue

Our revenue disaggregation by type of revenue and geographic location was as follows:



	For the three months ended September 30, 2019
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations⁽¹⁾			Total
Revenues:
Gaming	$	555.2	$	201.2	$	93.3	$	236.1	$	3.3	$	(0.6	)	$	1,088.5
Food and beverage	39.4		39.0		29.5		21.0		0.5		—			129.4
Hotel	13.7		27.5		32.4		11.7		—		—			85.3
Racing	5.6		—		0.1		—		1.3		—			7.0
Other	15.0		8.9		6.2		7.0		7.3		(0.1		)	44.3
Total revenues	$	628.9	$	276.6	$	161.5	$	275.8	$	12.4	$	(0.7	)	$	1,354.5


(1)	Represents the elimination of intersegment operations associated with our internally-branded retail sportsbooks, which are operated by PIV, and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour (“HPT”).



	For the three months ended September 30, 2018
(in millions)	Northeast		South		West		Midwest		Other		Total
Revenues:
Gaming	$	391.1	$	46.1	$	47.5	$	161.6	$	—	$	646.3
Food and beverage	25.7		9.7		20.8		13.1		0.2		69.5
Hotel	5.9		2.9		20.4		5.8		—		35.0
Racing	3.8		—		0.1		—		1.4		5.3
Reimbursable management costs	3.9		—		—		—		—		3.9
Other	11.0		1.7		3.8		4.9		8.3		29.7
Total revenues	$	441.4	$	60.4	$	92.6	$	185.4	$	9.9	$	789.7



	For the nine months ended September 30, 2019
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations⁽¹⁾			Total
Revenues:
Gaming	$	1,571.9	$	628.1	$	282.6	$	699.8	$	3.4	$	(0.6	)	$	3,185.2
Food and beverage	112.8		118.7		86.9		61.7		1.2		—			381.3
Hotel	31.3		77.0		95.7		32.9		—		—			236.9
Racing	19.1		—		0.2		—		4.4		—			23.7
Other	43.5		26.9		19.0		20.9		22.9		(0.1		)	133.1
Total revenues	$	1,778.6	$	850.7	$	484.4	$	815.3	$	31.9	$	(0.7	)	$	3,960.2


(1)	Represents the elimination of intersegment operations associated with our internally-branded retail sportsbooks, which are operated by PIV, and our live and televised poker tournament series that operates under the trade name, HPT.



	For the nine months ended September 30, 2018
(in millions)	Northeast		South		West		Midwest		Other		Total
Revenues:
Gaming	$	1,182.1	$	146.3	$	144.6	$	492.9	$	—	$	1,965.9
Food and beverage	72.3		26.8		61.6		36.3		0.8		197.8
Hotel	16.0		8.5		62.4		16.9		—		103.8
Racing	14.0		—		0.2		—		4.7		18.9
Reimbursable management costs	46.8		—		10.5		—		—		57.3
Other	34.2		4.8		11.9		12.9		25.1		88.9
Total revenues	$	1,365.4	$	186.4	$	291.2	$	559.0	$	30.6	$	2,432.6

New Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Schedule of impact of adoption of ASU-2014-09



				Impacts of:
(in millions)	As Reported as of December 31, 2018			Financing Obligations - Master Leases ⁽¹⁾		Finance Leases - Dayton and Mahoning Valley			Operating Leases - Master Leases⁽²⁾			Operating Lease - Meadows ⁽³⁾		Other Operating Leases - Non-Master Leases			As Adjusted for ASC 842		Increase/(Decrease)
Assets
Current assets
Prepaid expenses	$	63.0		$	—	$	—		$	—		$	—	$	(1.0	)	$	62.0	$	(1.0	)
Total current assets	$	677.6		$	—	$	—		$	—		$	—	$	(1.0	)	$	676.6	$	(1.0	)
Property and equipment, net ⁽⁴⁾	$	6,868.8		$	—	$	(164.3	)	$	(1,407.4	)	$	—	$	—		$	5,297.1	$	(1,571.7	)
Goodwill	$	1,228.4		$	5.5	$	—		$	—		$	—	$	—		$	1,233.9	$	5.5
Operating lease right-of-use assets ⁽⁵⁾	$	—		$	—	$	—		$	3,541.2		$	112.8	$	152.5		$	3,806.5	$	3,806.5
Finance lease right-of-use assets ⁽⁶⁾	$	—		$	—	$	224.5		$	—		$	—	$	—		$	224.5	$	224.5
Total assets	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8

Liabilities
Current liabilities
Current portion of financing obligations ⁽⁷⁾	$	67.8		$	—	$	(1.5	)	$	(16.2	)	$	—	$	—		$	50.1	$	(17.7	)
Current portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	72.9		$	20.5	$	8.9		$	102.3	$	102.3
Current portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	5.8		$	—		$	—	$	—		$	5.8	$	5.8
Accrued expenses and other current liabilities	$	578.0		$	—	$	—		$	—		$	—	$	(0.5	)	$	577.5	$	(0.5	)
Total current liabilities	$	738.4		$	—	$	4.3		$	56.7		$	20.5	$	8.4		$	828.3	$	89.9
Long-term portion of financing obligations ⁽⁷⁾	$	7,080.6		$	5.5	$	(181.3	)	$	(2,760.6	)	$	—	$	—		$	4,144.2	$	(2,936.4	)
Long-term portion of operating lease liabilities ⁽⁵⁾	$	—		$	—	$	—		$	3,467.1		$	92.3	$	145.0		$	3,704.4	$	3,704.4
Long-term portion of finance lease liabilities ⁽⁶⁾	$	—		$	—	$	218.3		$	—		$	—	$	—		$	218.3	$	218.3
Deferred income taxes ⁽⁸⁾	$	—		$	—	$	4.3		$	299.5		$	—	$	—		$	303.8	$	303.8
Other noncurrent liabilities	$	60.7		$	—	$	—		$	—		$	—	$	(1.9	)	$	58.8	$	(1.9	)
Total liabilities	$	10,229.8		$	5.5	$	45.6		$	1,062.7		$	112.8	$	151.5		$	11,607.9	$	1,378.1
Stockholders’ equity
Retained earnings (accumulated deficit)	$	(968.0	)	$	—	$	14.6		$	1,071.1		$	—	$	—		$	117.7	$	1,085.7
Total Penn stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total stockholders’ equity	$	731.2		$	—	$	14.6		$	1,071.1		$	—	$	—		$	1,816.9	$	1,085.7
Total liabilities and stockholders’ equity	$	10,961.0		$	5.5	$	60.2		$	2,133.8		$	112.8	$	151.5		$	13,424.8	$	2,463.8


(1)	During the first quarter of 2019, the Company identified an adjustment to the purchase price allocation associated with its October 2018 acquisition of Pinnacle Entertainment, Inc. (“Pinnacle”). The purchase price adjustment increased the financing obligation upon the adoption of the new lease standard, resulting in an increase to goodwill (see Note 5, “Acquisitions”).


(2)	Represents components contained within each of the Master Leases determined to be operating leases (primarily land).


(3)	Represents the triple net lease with GLPI for the real estate assets used in the operations of Meadows Racetrack and Casino (the “Meadows Lease”).

(4)

(5)

(6)


(7)	Represents components associated with our Master Leases that remain financing obligations (primarily buildings). The financing obligation at the adoption date was calculated utilizing previous assumptions as determined (a) at the lease commencement date with respect to the Penn Master Lease and (b) at the acquisition date with respect to the Pinnacle Master Lease.

(8)

Represents the tax impacts related to the adoption of the new lease standard. See Note 11, “Income Taxes.”

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Expense, other information and supplemental cash flow information related to leases

Information related to lease term and discount rate was as follows:



	September 30, 2019
Weighted Average Remaining Lease Term
Operating leases ⁽¹⁾	27.8 years
Finance leases ⁽²⁾	28.8 years
Financing obligations ⁽³⁾	30.6 years

Weighted Average Discount Rate⁽⁴⁾
Operating leases	6.7	%
Finance leases	6.8	%
Financing obligations	8.1	%


(1)	Amount consists principally of (i) land components associated with our Master Leases; (ii) our Meadows Lease; (iii) our Margaritaville Lease; (iv) our Greektown Lease; (v) ground and levee leases with landlords which were not assumed by our REIT landlords; and (vi) building and equipment not associated with our Master Leases.


(2)	Amount consists primarily of the Dayton and Mahoning Valley finance leases.


(3)	Amount consists of the components contained within each of the Master Leases determined to continue to be financing obligations (primarily buildings) at the adoption date of the new lease standard.


(4)	For leases where the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The components of lease expense were as follows:



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the three months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	96.3	$	—	$	—	$	96.3
Operating lease cost⁽²⁾	—		0.1		4.1		—		—		4.2
Short-term lease cost	13.7		0.4		0.3		—		—		14.4
Variable lease cost⁽²⁾	0.8		—		0.2		—		—		1.0
Total	$	14.5	$	0.5	$	100.9	$	—	$	—	$	115.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.8	$	—	$	3.8
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.8	$	2.0	$	5.8

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.6	$	—	$	97.6



	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total for the nine months ended September 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	271.0	$	—	$	—	$	271.0
Operating lease cost⁽²⁾	0.3		0.4		12.5		—		—		13.2
Short-term lease cost	40.9		0.9		1.1		—		—		42.9
Variable lease cost⁽²⁾	2.0		—		0.8		—		—		2.8
Total	$	43.2	$	1.3	$	285.4	$	—	$	—	$	329.9

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	11.5	$	—	$	11.5
Amortization expense ⁽³⁾	—		—		—		—		5.9		5.9
Total	$	—	$	—	$	—	$	11.5	$	5.9	$	17.4

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	293.6	$	—	$	293.6


(1)	Pertains to the components contained within the Master Leases (primarily land) determined to be operating leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.

(4)

Pertains to the components contained within the Master Leases (primarily buildings) determined to continue to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

Total monthly variable expenses were as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Variable expenses included in “General and administrative”	$	2.3	$	—	$	15.4	$	—
Variable expenses included in “Interest expense, net”	2.1		11.8		14.1		36.8
Total variable expenses	$	4.4	$	11.8	$	29.5	$	36.8

Supplemental cash flow information related to leases was as follows:



(in millions)	For the nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	11.5
Operating cash flows from operating leases	$	296.0
Financing cash flows from finance leases	$	4.6

Schedule of future minimum lease commitments, operating leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

Schedule of future minimum lease commitments, finance leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

Schedule of future minimum lease commitments, financing obligations

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2019:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	106.7		$	5.4		$	97.4
2020	420.1			21.4			374.7
2021	399.9			21.4			367.3
2022	396.9			21.4			367.3
2023	393.7			20.5			367.3
Thereafter	8,457.0			403.8			9,638.0
Total lease payments	10,174.3			493.9			11,212.0
Less: Imputed interest	(5,610.8		)	(269.8		)	(7,055.9		)
Present value of future lease payments	4,563.5			224.1			4,156.1
Less: Current portion of lease obligations	(124.4		)	(6.3		)	(45.3		)
Long-term portion of lease obligations	$	4,439.1		$	217.8		$	4,110.8

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Allocation of purchase price and adjustments

During the nine months ended September 30, 2019, prior to its finalization, we made the following adjustments to the preliminary purchase price allocation:



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Fair value, as finalized
Cash and restricted cash	$	124.2	$	—		$	124.2
Assets held for sale	667.0		0.5			667.5
Other current assets	80.6		0.5			81.1
Property and equipment - non-Pinnacle Master Lease	318.9		(0.3		)	318.6
Property and equipment - Pinnacle Master Lease⁽²⁾	3,984.1		(29.2		)	3,954.9
Goodwill⁽³⁾	219.5		18.7			238.2
Other intangible assets
Gaming licenses	1,046.0		21.6			1,067.6
Trademarks	298.0		—			298.0
Customer relationships	22.4		—			22.4
Other long-term assets	38.9		—			38.9
Total assets	$	6,799.6	$	11.8		$	6,811.4

Long-term financing obligation, including current portion⁽⁴⁾	$	3,427.0	$	5.5		$	3,432.5
Other current liabilities	200.6		5.5			206.1
Deferred tax liabilities	339.2		0.8			340.0
Other long-term liabilities	16.6		—			16.6
Total liabilities	3,983.4		11.8			3,995.2
Net assets acquired	$	2,816.2	$	—		$	2,816.2


(1)	Amounts were initially reported within the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019.


(2)	Includes buildings, boats, vessels, barges, and implied land and land use rights. Land use rights represent the intangible value of the Company’s ability to utilize and access land associated with long term ground lease agreements that give the Company the exclusive rights to operate the casino gaming facilities associated with such agreements.


(3)	See Note 7, “Goodwill and Other Intangible Assets,” for details on the impact to each reportable segment.

(4)

Long-term financing obligation, including current portion represents the financing obligation associated with Pinnacle Master Lease, as amended.

During the three months ended September 30, 2019, we made the following adjustments to the preliminary purchase price:



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Estimated fair value, as adjusted
Cash and cash equivalents	$	31.1	$	—		$	31.1
Receivables, prepaid expenses, and other current assets	15.6		(1.1		)	14.5
Property and equipment	32.3		—			32.3
Goodwill⁽²⁾	61.7		1.1			62.8
Other intangible assets
Gaming license	166.4		—			166.4
Trademark	24.4		—			24.4
Customer relationships	3.3		—			3.3
Operating lease right-of-use assets	516.1		—			516.1
Finance lease right-of-use assets	4.2		—			4.2
Other assets	0.2		—			0.2
Total assets	$	855.3	$	—		$	855.3

Accounts payable, accrued expenses and other current liabilities	$	14.8	$	—		14.8
Operating lease liabilities	516.0		—			516.0
Finance lease liabilities	4.2		—			4.2
Total liabilities	535.0		—			535.0
Net assets acquired	$	320.3	$	—		$	320.3


(1)	Amounts were initially reported within the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2019, filed with the SEC on August 8, 2019.

(2)

The goodwill has been assigned to our Northeast segment. The entire $62.8 million goodwill amount is deductible for tax purposes.

During the three months ended September 30, 2019, we made the following adjustments to the preliminary purchase price:



(in millions)	Estimated fair value, as previously reported⁽¹⁾		Measurement period adjustments			Estimated fair value, as adjusted
Cash and cash equivalents	$	10.7	$	—		$	10.7
Receivables, prepaid expenses, and other current assets	7.1		—			7.1
Property and equipment	21.7		(1.0		)	20.7
Goodwill⁽²⁾	39.5		1.0			40.5
Other intangible assets
Gaming license	48.1		—			48.1
Customer relationships	2.3		—			2.3
Operating lease right-of-use assets	196.2		—			196.2
Total assets	$	325.6	$	—		$	325.6

Accounts payable, accrued expenses and other current liabilities	$	9.5	$	—		$	9.5
Operating lease liabilities	196.2		—			196.2
Total liabilities	205.7		—			205.7
Net assets acquired	$	119.9	$	—		$	119.9


(1)	Amounts were initially reported within the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, filed with the SEC on May 8, 2019.

(2)

The goodwill has been assigned to our South segment. The entire $40.5 million goodwill amount is deductible for tax purposes.

Actual and pro forma financial results



(in millions)	For the three months ended September 30, 2019		For the nine months ended September 30, 2019
Revenues	$	39.6	$	120.7
Net income	$	2.6	$	10.8



(in millions)	For the three months ended September 30, 2019		Period from May 23, 2019 through September 30, 2019
Revenues	$	78.2	$	112.4
Net income	$	3.9	$	4.8



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Revenues	$	1,354.5	$	1,391.7	$	4,093.8	$	4,240.7
Net income attributable to Penn	$	46.1	$	36.1	$	157.3	$	153.2

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net and depreciation expense

Property and equipment, net, consisted of the following:



(in millions)	September 30, 2019			December 31, 2018
Property and equipment - non-Master Leases
Land and improvements	$	353.3		$	344.0
Building, vessels and improvements	410.7			343.0
Furniture, fixtures and equipment	1,585.2			1,565.8
Leasehold improvements	178.4			152.9
Construction in progress	58.3			25.5
	2,585.9			2,431.2
Less: Accumulated depreciation	(1,524.8		)	(1,400.2		)
	1,061.1			1,031.0
Property and equipment - Master Leases
Land and improvements⁽¹⁾	1,525.9			2,971.0
Building, vessels and improvements⁽¹⁾	3,659.1			3,845.0
	5,185.0			6,816.0
Less: Accumulated depreciation	(1,090.9		)	(978.2		)
	4,094.1			5,837.8
Property and equipment, net	$	5,155.2		$	6,868.8


(1)	Upon adoption of ASC 842, approximately $1.4 billion of land was derecognized and replaced with operating lease ROU assets based on the present value of future lease payments and $180.4 million of building and improvements, gross, was derecognized and replaced with finance lease ROU assets based on the present value of future lease payments. See Note 3, “New Accounting Pronouncements.”

Depreciation expense was as follows:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Depreciation expense⁽¹⁾	$	97.9	$	53.6	$	291.8	$	163.9

(1)

Of such amounts, $26.5 million, $22.7 million, $119.4 million, and $68.9 million, respectively, pertain to real estate assets subject to either of our Master Leases.

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Details of goodwill

A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:



(in millions)	Northeast			South			West			Midwest			Other			Total
Balance as of December 31, 2018
Goodwill, gross	$	848.4		$	185.2		$	210.4		$	1,110.1		$	156.1		$	2,510.2
Accumulated goodwill impairment losses	(707.6		)	(34.6		)	(16.6		)	(435.3		)	(87.7		)	(1,281.8		)
Goodwill, net	140.8			150.6			193.8			674.8			68.4			1,228.4
Goodwill acquired during year	62.8			40.5			—			—			—			103.3
Other ⁽¹⁾	(1.5		)	7.2			6.4			6.6			—			18.7
Balance as of September 30, 2019
Goodwill, gross	909.7			232.9			216.8			1,116.7			156.1			2,632.2
Accumulated goodwill impairment losses	(707.6		)	(34.6		)	(16.6		)	(435.3		)	(87.7		)	(1,281.8		)
Goodwill, net	$	202.1		$	198.3		$	200.2		$	681.4		$	68.4		$	1,350.4

(1)

Amounts relate to adjustments made to the preliminary purchase price allocation of Pinnacle during the nine months ended September 30, 2019, prior to it being finalized, as described in Note 5, “Acquisitions.”

Schedule of indefinite-lived intangible assets

The table below presents the gross carrying amount, accumulated amortization, and net carrying amount of each major class of other intangible assets:



	September 30, 2019							December 31, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,734.6	$	—		$	1,734.6	$	1,498.3	$	—		$	1,498.3
Trademarks	322.4		—			322.4		298.0		—			298.0
Other	0.7		—			0.7		0.7		—			0.7
Amortizing intangible assets
Customer relationships	104.3		(64.6		)	39.7		98.8		(51.5		)	47.3
Other	62.0		(54.9		)	7.1		61.9		(49.3		)	12.6
Total other intangible assets	$	2,224.0	$	(119.5	)	$	2,104.5	$	1,957.7	$	(100.8	)	$	1,856.9

Schedule of finite-lived intangible assets

The table below presents the gross carrying amount, accumulated amortization, and net carrying amount of each major class of other intangible assets:



	September 30, 2019							December 31, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,734.6	$	—		$	1,734.6	$	1,498.3	$	—		$	1,498.3
Trademarks	322.4		—			322.4		298.0		—			298.0
Other	0.7		—			0.7		0.7		—			0.7
Amortizing intangible assets
Customer relationships	104.3		(64.6		)	39.7		98.8		(51.5		)	47.3
Other	62.0		(54.9		)	7.1		61.9		(49.3		)	12.6
Total other intangible assets	$	2,224.0	$	(119.5	)	$	2,104.5	$	1,957.7	$	(100.8	)	$	1,856.9

Expected intangible asset amortization expense

The following table presents the estimated amortization expense based on our amortizing intangible assets as of September 30, 2019 (in millions):



Remaining 2019	$	5.9
2020	19.5
2021	5.6
2022	3.8
2023	3.6
Thereafter	8.4
Total	$	46.8

Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:



(in millions)	September 30, 2019		December 31, 2018
Accrued salaries and wages	$	125.3	$	139.2
Accrued gaming, pari-mutuel, property, and other taxes	117.6		105.8
Accrued interest	5.8		15.8
Other accrued expenses⁽¹⁾	218.0		204.6
Other current liabilities⁽²⁾	132.2		112.6
	$	598.9	$	578.0


(1)	Amounts include the obligation associated with our mychoice program and the current portion of advance payments on goods and services yet to be provided and for unpaid wagers, which are discussed in Note 2, “Significant Accounting Policies.”

(2)

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt, net of current maturities

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



(in millions)	September 30, 2019			December 31, 2018
Senior Secured Credit Facilities:
Revolving Credit Facility due 2023	$	200.0		$	112.0
Term Loan A Facility due 2023	681.1			707.7
Term Loan B-1 Facility due 2025	1,120.3			1,128.7
5.625% Notes due 2027	400.0			400.0
Other long-term obligations	89.2			104.6
Capital leases⁽¹⁾	—			0.4
	2,490.6			2,453.4
Less: Current maturities of long-term debt	(62.9		)	(62.1		)
Less: Debt discount	(2.5		)	(2.8		)
Less: Debt issuance costs	(33.2		)	(38.4		)
	$	2,392.0		$	2,350.1

(1)

Reclassified to finance lease liabilities upon the adoption of ASC 842.

Schedule of interest expense, net

Interest expense, net, was as follows:



	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019			2018			2019			2018
Interest expense	$	(134.2	)	$	(114.8	)	$	(401.8	)	$	(346.4	)
Interest income	0.6			0.2			1.2			0.7
Capitalized interest	0.1			—			0.1			—
	$	(133.5	)	$	(114.6	)	$	(400.5	)	$	(345.7	)

- 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

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+ Details

Investments in and Advances to Unconsolidated Affiliates (Tables)

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Schedule of summary financial information for Kansas Entertainment



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Revenues	$	40.6	$	39.8	$	120.2	$	119.3
Operating expenses	19.6		27.4		73.8		83.0
Operating income	21.0		12.4		46.4		36.3
Net income	$	21.0	$	12.4	$	46.4	$	36.3

Net income attributable to Penn	$	10.5	$	6.2	$	23.2	$	18.1

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of reconciliation of the weighted-average common shares outstanding



	For the three months ended September 30,		For the nine months ended September 30,
(in millions)	2019	2018	2019	2018
Determination of shares:
Weighted average common shares outstanding	115.2	91.9	115.8	91.5
Assumed conversion of dilutive employee stock-based awards	1.4	3.2	1.7	3.3
Assumed conversion of restricted stock	0.1	0.2	0.2	0.2
Diluted weighted average common shares outstanding	116.7	95.3	117.7	95.0

Schedule of calculation of basic and diluted EPS

The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three and nine months ended September 30, 2019 and 2018:



	For the three months ended September 30,				For the nine months ended September 30,
(in millions, except per share data)	2019		2018		2019		2018
Calculation of basic EPS:
Net income applicable to common stock	$	43.9	$	36.1	$	136.4	$	135.5
Weighted average common shares outstanding	115.2		91.9		115.8		91.5
Basic EPS	$	0.38	$	0.39	$	1.18	$	1.48
Calculation of diluted EPS:
Net income applicable to common stock	$	43.9	$	36.1	$	136.4	$	135.5
Diluted weighted average common shares outstanding	116.7		95.3		117.7		95.0
Diluted EPS	$	0.38	$	0.38	$	1.16	$	1.43

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of carrying amounts and estimated fair values by input level

The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows:



	September 30, 2019
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	406.9	$	406.9	$	406.9	$	—	$	—
Equity securities	$	28.3	$	28.3	$	—	$	28.3	$	—
Held-to-maturity securities	$	7.5	$	7.8	$	—	$	7.8	$	—
Promissory notes	$	16.9	$	17.3	$	—	$	17.3	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,966.3	$	2,000.5	$	2,000.5	$	—	$	—
5.625% Notes	$	399.4	$	411.0	$	411.0	$	—	$	—
Other long-term obligations	$	89.2	$	82.5	$	—	$	82.5	$	—
Other liabilities	$	20.3	$	20.3	$	—	$	2.8	$	17.5



	December 31, 2018
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	479.6	$	479.6	$	479.6	$	—	$	—
Held-to-maturity securities	$	7.5	$	7.9	$	—	$	7.9	$	—
Promissory notes	$	16.9	$	17.4	$	—	$	17.4	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,907.9	$	1,886.3	$	1,886.3	$	—	$	—
5.625% Notes	$	399.3	$	360.0	$	360.0	$	—	$	—
Other long-term obligations	$	104.6	$	96.3	$	—	$	96.3	$	—
Other liabilities	$	21.9	$	21.8	$	—	$	2.8	$	19.0

Summary of the changes in fair value of Level 3 liabilities

The following table summarizes the changes in fair value of our Level 3 liabilities measured on a recurring basis:



	Other Liabilities
(in millions)	Contingent Consideration
Balance as of January 1, 2019	$	19.0
Payments	(8.5		)
Included in earnings⁽¹⁾	7.0
Balance as of September 30, 2019	$	17.5

(1)

The expense is included in “General and administrative” within our unaudited Condensed Consolidated Statements of Operations.

Summary of significant unobservable inputs used in calculating Level 3 assets and liabilities

The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 liabilities on a recurring basis as of September 30, 2019:



	Valuation Technique	Unobservable Input	Discount Rate
Contingent consideration - Plainridge Park Casino	Discounted cash flow	Discount rate	6.33%

Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of segment information

For financial reporting purposes, we aggregate our operating segments into the following reportable segments:



	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel ⁽¹⁾	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course	Grantville, Pennsylvania	Penn Master Lease
Hollywood Casino Toledo	Toledo, Ohio	Penn Master Lease
Hollywood Gaming at Dayton Raceway	Dayton, Ohio	Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course	Youngstown, Ohio	Penn Master Lease
Marquee by Penn⁽²⁾	Pennsylvania	N/A
Meadows Racetrack and Casino	Washington, Pennsylvania	Meadows Lease
Plainridge Park Casino	Plainville, Massachusetts	Pinnacle Master Lease
South segment⁽³⁾
1^st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino ⁽⁴⁾	Bossier City, Louisiana	Margaritaville Lease
West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Owned
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease
Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton ⁽⁵⁾	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway ⁽⁶⁾	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming⁽²⁾	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease


(1)	Acquired on May 23, 2019


(2)	VGT route operations


(3)	Resorts Casino Tunica closed on June 30, 2019, but remains subject to the Penn Master Lease.


(4)	Acquired on January 1, 2019


(5)	The riverboat is owned by us and not subject to the Penn Master Lease.

(6)

The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to Net income.



	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019			2018			2019			2018
Revenues:
Northeast segment	$	628.9		$	441.4		$	1,778.6		$	1,365.4
South segment	276.6			60.4			850.7			186.4
West segment	161.5			92.6			484.4			291.2
Midwest segment	275.8			185.4			815.3			559.0
Other ⁽¹⁾	12.4			9.9			31.9			30.6
Intersegment eliminations ⁽²⁾	(0.7		)	—			(0.7		)	—
Total	$	1,354.5		$	789.7		$	3,960.2		$	2,432.6

Adjusted EBITDAR ⁽³⁾:
Northeast segment	$	189.1		$	141.3		$	540.1		$	434.6
South segment	89.0			17.1			279.6			58.8
West segment	50.6			21.8			151.0			71.8
Midwest segment	104.3			65.4			301.3			201.1
Other ⁽¹⁾	(25.0		)	(15.9		)	(66.1		)	(47.0		)
Intersegment eliminations ⁽²⁾	(0.1		)	—			(0.1		)	—
Total ⁽³⁾	407.9			229.7			1,205.8			719.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases⁽⁴⁾	(96.3		)	—			(271.0		)	—
Stock-based compensation	(3.7		)	(2.9		)	(10.4		)	(8.8		)
Cash-settled stock-based awards variance	3.4			1.7			6.4			1.3
Loss on disposal of assets	(7.4		)	(3.2		)	(8.3		)	(3.2		)
Contingent purchase price	(1.2		)	(0.4		)	(7.0		)	(1.7		)
Pre-opening and acquisition costs	(7.4		)	(5.2		)	(15.5		)	(17.2		)
Depreciation and amortization	(106.3		)	(56.9		)	(316.4		)	(175.8		)
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	—			—			—			16.4
Insurance recoveries, net of deductible charges	1.5			—			1.5			0.1
Non-operating items for Kansas JV	(0.9		)	(1.3		)	(2.8		)	(3.9		)
Interest expense, net	(133.5		)	(114.6		)	(400.5		)	(345.7		)
Loss on early extinguishment of debt	—			(0.3		)	—			(3.8		)
Other	7.2			(1.4		)	7.2			(1.5		)
Income before income taxes	63.3			45.2			189.0			175.5
Income tax expense	(19.6		)	(9.1		)	(53.0		)	(40.0		)
Net income	$	43.7		$	36.1		$	136.0		$	135.5

(1)


(2)	Represents the elimination of intersegment operations associated with PIV and HPT.

(3)


(4)	The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.



	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Capital expenditures:
Northeast segment	$	22.8	$	11.0	$	67.3	$	23.7
South segment	5.0		2.3		21.5		5.8
West segment	3.7		2.4		17.8		7.6
Midwest segment	6.2		7.4		22.6		15.6
Other	4.0		0.9		7.5		4.3
Total capital expenditures	$	41.7	$	24.0	$	136.7	$	57.0



(in millions)	Northeast		South		West		Midwest		Other		Total
As of September 30, 2019
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	90.6	$	37.8	$	128.5
Total assets ⁽¹⁾	$	2,298.9	$	1,423.8	$	750.5	$	1,475.9	$	8,368.9	$	14,318.0

As of December 31, 2018
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	89.4	$	39.0	$	128.5
Total assets ⁽²⁾	$	1,330.2	$	1,082.3	$	755.7	$	1,411.5	$	6,381.3	$	10,961.0

(1)

(2)

As of December 31, 2018, total assets of the Other category includes the real estate assets subject to the Master Leases, which are classified as property and equipment

Organization and Basis of Presentation (Details)	9 Months Ended
Organization and Basis of Presentation (Details)	Sep. 30, 2019 jurisdiction facility segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of facilities the entity owned, managed, or had ownership interests in \| facility	41
Number of jurisdictions in which the entity operates \| jurisdiction	19
Number of reportable segments \| segment	4

Significant Accounting Policies - Segment Information (Details)	9 Months Ended
	Sep. 30, 2019 facility segment
Segment Information
Number of facilities the entity owned, managed, or had ownership interests in	41
Kansas Entertainment
Segment Information
Ownership interest	50.00%
Jackpot, Nevada
Segment Information
Number of facilities the entity owned, managed, or had ownership interests in	2
Number of operating segments \| segment	1

Significant Accounting Policies - Revenue Recognition and Complimentaries (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	$ 115.0	$ 42.7	$ 329.8	$ 111.8
Food and beverage
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	66.7	30.5	195.3	77.3
Hotel
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	44.1	10.5	121.5	30.8
Other
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	$ 4.2	$ 1.7	$ 13.0	$ 3.7

Significant Accounting Policies - Revenue Disaggregation and Customer-Related Liabilities (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) agreement	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) agreement	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Disaggregation of Revenue [Line Items]
Revenues	$ 1,354.5	$ 789.7	$ 3,960.2	$ 2,432.6
Loyalty credit obligation
Disaggregation of Revenue [Line Items]
Customer-related liabilities	37.0		$ 37.0		$ 39.9
Customer-related liabilities, term			6 months
Advance payments on goods and services yet to be provided and unpaid wagers
Disaggregation of Revenue [Line Items]
Customer-related liabilities	33.8		$ 33.8		34.3
Customer-related liabilities, long-term	0.7		0.7		$ 0.7
Gaming
Disaggregation of Revenue [Line Items]
Revenues	1,088.5	646.3	3,185.2	1,965.9
Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	129.4	69.5	381.3	197.8
Hotel
Disaggregation of Revenue [Line Items]
Revenues	85.3	35.0	236.9	103.8
Racing
Disaggregation of Revenue [Line Items]
Revenues	7.0	5.3	23.7	18.9
Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		3.9		57.3
Other
Disaggregation of Revenue [Line Items]
Revenues	44.3	29.7	133.1	88.9
Online sports betting and iGaming market access
Disaggregation of Revenue [Line Items]
Customer-related liabilities	$ 33.7		$ 33.7
Number of operator agreements containing ordinary shares and warrants \| agreement	3		3
Operating segments \| Northeast segment
Disaggregation of Revenue [Line Items]
Revenues	$ 628.9	441.4	$ 1,778.6	1,365.4
Operating segments \| Northeast segment \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	555.2	391.1	1,571.9	1,182.1
Operating segments \| Northeast segment \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	39.4	25.7	112.8	72.3
Operating segments \| Northeast segment \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	13.7	5.9	31.3	16.0
Operating segments \| Northeast segment \| Racing
Disaggregation of Revenue [Line Items]
Revenues	5.6	3.8	19.1	14.0
Operating segments \| Northeast segment \| Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		3.9		46.8
Operating segments \| Northeast segment \| Other
Disaggregation of Revenue [Line Items]
Revenues	15.0	11.0	43.5	34.2
Operating segments \| South segment
Disaggregation of Revenue [Line Items]
Revenues	276.6	60.4	850.7	186.4
Operating segments \| South segment \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	201.2	46.1	628.1	146.3
Operating segments \| South segment \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	39.0	9.7	118.7	26.8
Operating segments \| South segment \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	27.5	2.9	77.0	8.5
Operating segments \| South segment \| Racing
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating segments \| South segment \| Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		0.0		0.0
Operating segments \| South segment \| Other
Disaggregation of Revenue [Line Items]
Revenues	8.9	1.7	26.9	4.8
Operating segments \| West segment
Disaggregation of Revenue [Line Items]
Revenues	161.5	92.6	484.4	291.2
Operating segments \| West segment \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	93.3	47.5	282.6	144.6
Operating segments \| West segment \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	29.5	20.8	86.9	61.6
Operating segments \| West segment \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	32.4	20.4	95.7	62.4
Operating segments \| West segment \| Racing
Disaggregation of Revenue [Line Items]
Revenues	0.1	0.1	0.2	0.2
Operating segments \| West segment \| Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		0.0		10.5
Operating segments \| West segment \| Other
Disaggregation of Revenue [Line Items]
Revenues	6.2	3.8	19.0	11.9
Operating segments \| Midwest segment
Disaggregation of Revenue [Line Items]
Revenues	275.8	185.4	815.3	559.0
Operating segments \| Midwest segment \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	236.1	161.6	699.8	492.9
Operating segments \| Midwest segment \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	21.0	13.1	61.7	36.3
Operating segments \| Midwest segment \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	11.7	5.8	32.9	16.9
Operating segments \| Midwest segment \| Racing
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating segments \| Midwest segment \| Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		0.0		0.0
Operating segments \| Midwest segment \| Other
Disaggregation of Revenue [Line Items]
Revenues	7.0	4.9	20.9	12.9
Other
Disaggregation of Revenue [Line Items]
Revenues	12.4	9.9	31.9	30.6
Other \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	3.3	0.0	3.4	0.0
Other \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	0.5	0.2	1.2	0.8
Other \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0
Other \| Racing
Disaggregation of Revenue [Line Items]
Revenues	1.3	1.4	4.4	4.7
Other \| Reimbursable management costs
Disaggregation of Revenue [Line Items]
Revenues		0.0		0.0
Other \| Other
Disaggregation of Revenue [Line Items]
Revenues	7.3	$ 8.3	22.9	$ 25.1
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenues	(0.7)		(0.7)
Intersegment Eliminations \| Gaming
Disaggregation of Revenue [Line Items]
Revenues	(0.6)		(0.6)
Intersegment Eliminations \| Food and beverage
Disaggregation of Revenue [Line Items]
Revenues	0.0		0.0
Intersegment Eliminations \| Hotel
Disaggregation of Revenue [Line Items]
Revenues	0.0		0.0
Intersegment Eliminations \| Racing
Disaggregation of Revenue [Line Items]
Revenues	0.0		0.0
Intersegment Eliminations \| Other
Disaggregation of Revenue [Line Items]
Revenues	$ (0.1)		$ (0.1)

Significant Accounting Policies - Gaming and Racing Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Gaming taxes	$ 403.1	$ 250.1	$ 1,189.4	$ 750.5

Significant Accounting Policies - Equity Securities including Warrants (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Accounting Policies [Abstract]
Unrealized gains	$ 7.1	$ 7.1

New Accounting Pronouncements (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Current assets
Prepaid expenses	$ 72.8		$ 62.0	$ 63.0
Total current assets	628.2		676.6	677.6
Property and equipment, net	5,155.2		5,297.1	6,868.8
Other assets
Goodwill	1,350.4		1,233.9	1,228.4
Operating lease right-of-use assets	4,592.0		3,806.5	0.0
Finance lease right-of-use assets	222.7		224.5	0.0
Total assets	14,318.0		13,424.8	10,961.0
Current liabilities
Current portion of financing obligations	45.3		50.1	67.8
Current portion of operating lease liabilities	124.4		102.3	0.0
Current portion of finance lease liabilities	6.3		5.8	0.0
Accrued expenses and other current liabilities	598.9		577.5	578.0
Total current liabilities	877.3		828.3	738.4
Long-term portion of financing obligations	4,110.8		4,144.2	7,080.6
Long-term portion of operating lease liabilities	4,439.1		3,704.4	0.0
Long-term portion of finance lease liabilities	217.8		218.3	0.0
Deferred income taxes	252.8		303.8	0.0
Other noncurrent liabilities	88.8		58.8	60.7
Total liabilities	12,378.6		11,607.9	10,229.8
Retained earnings (accumulated deficit)	254.1		117.7	(968.0)
Total Penn stockholders’ equity	1,939.8		1,816.9	731.2
Total stockholders’ equity	1,939.4	$ 1,891.7	1,816.9	731.2	$ 70.5	$ 27.7	$ (73.2)
Total liabilities and stockholders’ equity	$ 14,318.0		13,424.8	$ 10,961.0
ASC 842
Current assets
Prepaid expenses			(1.0)
Total current assets			(1.0)
Property and equipment, net			(1,571.7)
Other assets
Goodwill			5.5
Operating lease right-of-use assets			3,806.5
Finance lease right-of-use assets			224.5
Total assets			2,463.8
Current liabilities
Current portion of financing obligations			(17.7)
Current portion of operating lease liabilities			102.3
Current portion of finance lease liabilities			5.8
Accrued expenses and other current liabilities			(0.5)
Total current liabilities			89.9
Long-term portion of financing obligations			(2,936.4)
Long-term portion of operating lease liabilities			3,704.4
Long-term portion of finance lease liabilities			218.3
Deferred income taxes			303.8
Other noncurrent liabilities			(1.9)
Total liabilities			1,378.1
Retained earnings (accumulated deficit)			1,085.7
Total Penn stockholders’ equity			1,085.7
Total stockholders’ equity			1,085.7
Total liabilities and stockholders’ equity			2,463.8
Financing Obligations - Master Leases
Current assets
Prepaid expenses			0.0
Total current assets			0.0
Property and equipment, net			0.0
Other assets
Goodwill			5.5
Operating lease right-of-use assets			0.0
Finance lease right-of-use assets			0.0
Total assets			5.5
Current liabilities
Current portion of financing obligations			0.0
Current portion of operating lease liabilities			0.0
Current portion of finance lease liabilities			0.0
Accrued expenses and other current liabilities			0.0
Total current liabilities			0.0
Long-term portion of financing obligations			5.5
Long-term portion of operating lease liabilities			0.0
Long-term portion of finance lease liabilities			0.0
Deferred income taxes			0.0
Other noncurrent liabilities			0.0
Total liabilities			5.5
Retained earnings (accumulated deficit)			0.0
Total Penn stockholders’ equity			0.0
Total stockholders’ equity			0.0
Total liabilities and stockholders’ equity			5.5
Finance Leases - Dayton and Mahoning Valley
Current assets
Prepaid expenses			0.0
Total current assets			0.0
Property and equipment, net			(164.3)
Other assets
Goodwill			0.0
Operating lease right-of-use assets			0.0
Finance lease right-of-use assets			224.5
Total assets			60.2
Current liabilities
Current portion of financing obligations			(1.5)
Current portion of operating lease liabilities			0.0
Current portion of finance lease liabilities			5.8
Accrued expenses and other current liabilities			0.0
Total current liabilities			4.3
Long-term portion of financing obligations			(181.3)
Long-term portion of operating lease liabilities			0.0
Long-term portion of finance lease liabilities			218.3
Deferred income taxes			4.3
Other noncurrent liabilities			0.0
Total liabilities			45.6
Retained earnings (accumulated deficit)			14.6
Total Penn stockholders’ equity			14.6
Total stockholders’ equity			14.6
Total liabilities and stockholders’ equity			60.2
Operating Leases - Master Leases
Current assets
Prepaid expenses			0.0
Total current assets			0.0
Property and equipment, net			(1,407.4)
Other assets
Goodwill			0.0
Operating lease right-of-use assets			3,541.2
Finance lease right-of-use assets			0.0
Total assets			2,133.8
Current liabilities
Current portion of financing obligations			(16.2)
Current portion of operating lease liabilities			72.9
Current portion of finance lease liabilities			0.0
Accrued expenses and other current liabilities			0.0
Total current liabilities			56.7
Long-term portion of financing obligations			(2,760.6)
Long-term portion of operating lease liabilities			3,467.1
Long-term portion of finance lease liabilities			0.0
Deferred income taxes			299.5
Other noncurrent liabilities			0.0
Total liabilities			1,062.7
Retained earnings (accumulated deficit)			1,071.1
Total Penn stockholders’ equity			1,071.1
Total stockholders’ equity			1,071.1
Total liabilities and stockholders’ equity			2,133.8
Operating Lease - Meadows
Current assets
Prepaid expenses			0.0
Total current assets			0.0
Property and equipment, net			0.0
Other assets
Goodwill			0.0
Operating lease right-of-use assets			112.8
Finance lease right-of-use assets			0.0
Total assets			112.8
Current liabilities
Current portion of financing obligations			0.0
Current portion of operating lease liabilities			20.5
Current portion of finance lease liabilities			0.0
Accrued expenses and other current liabilities			0.0
Total current liabilities			20.5
Long-term portion of financing obligations			0.0
Long-term portion of operating lease liabilities			92.3
Long-term portion of finance lease liabilities			0.0
Deferred income taxes			0.0
Other noncurrent liabilities			0.0
Total liabilities			112.8
Retained earnings (accumulated deficit)			0.0
Total Penn stockholders’ equity			0.0
Total stockholders’ equity			0.0
Total liabilities and stockholders’ equity			112.8
Other Operating Leases - Non-Master Leases
Current assets
Prepaid expenses			(1.0)
Total current assets			(1.0)
Property and equipment, net			0.0
Other assets
Goodwill			0.0
Operating lease right-of-use assets			152.5
Finance lease right-of-use assets			0.0
Total assets			151.5
Current liabilities
Current portion of financing obligations			0.0
Current portion of operating lease liabilities			8.9
Current portion of finance lease liabilities			0.0
Accrued expenses and other current liabilities			(0.5)
Total current liabilities			8.4
Long-term portion of financing obligations			0.0
Long-term portion of operating lease liabilities			145.0
Long-term portion of finance lease liabilities			0.0
Deferred income taxes			0.0
Other noncurrent liabilities			(1.9)
Total liabilities			151.5
Retained earnings (accumulated deficit)			0.0
Total Penn stockholders’ equity			0.0
Total stockholders’ equity			0.0
Total liabilities and stockholders’ equity			$ 151.5

Leases - Variable Lease Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Lessee, Lease, Cost [Line Items]
Total variable expenses	$ 1.0		$ 2.8
General and administrative
Lessee, Lease, Cost [Line Items]
Total variable expenses	0.2		0.8
Interest expense, net
Lessee, Lease, Cost [Line Items]
Total variable expenses	0.0		0.0
Penn Master Lease
Lessee, Lease, Cost [Line Items]
Total variable expenses	4.4	$ 11.8	29.5	$ 36.8
Penn Master Lease \| General and administrative
Lessee, Lease, Cost [Line Items]
Total variable expenses	2.3	0.0	15.4	0.0
Penn Master Lease \| Interest expense, net
Lessee, Lease, Cost [Line Items]
Total variable expenses	$ 2.1	$ 11.8	$ 14.1	$ 36.8

Leases - Other Information Related to Lease Term and Discount Rate (Details)	9 Months Ended
	Sep. 30, 2019
Weighted Average Remaining Lease Term
Operating leases	27 years 9 months 18 days
Finance leases	28 years 9 months 18 days
Financing obligations	30 years 7 months 6 days
Weighted Average Discount Rate
Operating leases	6.70%
Finance leases	6.80%
Financing obligations	8.10%

Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	$ 96.3	$ 271.0
Operating lease cost	4.2	13.2
Short-term lease cost	14.4	42.9
Variable lease cost	1.0	2.8
Total	115.9	329.9
Finance Lease Costs
Interest expense	3.8	11.5
Amortization expense	2.0	5.9
Total	5.8	17.4
Financing Obligation Costs
Interest expense	97.6	293.6
Cost of revenue \| Gaming
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	0.0	0.0
Operating lease cost	0.0	0.3
Short-term lease cost	13.7	40.9
Variable lease cost	0.8	2.0
Total	14.5	43.2
Finance Lease Costs
Interest expense	0.0	0.0
Amortization expense	0.0	0.0
Total	0.0	0.0
Financing Obligation Costs
Interest expense	0.0	0.0
Cost of revenue \| Food, beverage, hotel and other
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	0.0	0.0
Operating lease cost	0.1	0.4
Short-term lease cost	0.4	0.9
Variable lease cost	0.0	0.0
Total	0.5	1.3
Finance Lease Costs
Interest expense	0.0	0.0
Amortization expense	0.0	0.0
Total	0.0	0.0
Financing Obligation Costs
Interest expense	0.0	0.0
General and administrative
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	96.3	271.0
Operating lease cost	4.1	12.5
Short-term lease cost	0.3	1.1
Variable lease cost	0.2	0.8
Total	100.9	285.4
Finance Lease Costs
Interest expense	0.0	0.0
Amortization expense	0.0	0.0
Total	0.0	0.0
Financing Obligation Costs
Interest expense	0.0	0.0
Interest expense, net
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	0.0	0.0
Operating lease cost	0.0	0.0
Short-term lease cost	0.0	0.0
Variable lease cost	0.0	0.0
Total	0.0	0.0
Finance Lease Costs
Interest expense	3.8	11.5
Amortization expense	0.0	0.0
Total	3.8	11.5
Financing Obligation Costs
Interest expense	97.6	293.6
Depreciation and amortization
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases	0.0	0.0
Operating lease cost	0.0	0.0
Short-term lease cost	0.0	0.0
Variable lease cost	0.0	0.0
Total	0.0	0.0
Finance Lease Costs
Interest expense	0.0	0.0
Amortization expense	2.0	5.9
Total	2.0	5.9
Financing Obligation Costs
Interest expense	$ 0.0	$ 0.0

Leases - Future Minimum Lease Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Leases
2019 (excluding the nine months ended September 30, 2019)	$ 106.7
2020	420.1
2021	399.9
2022	396.9
2023	393.7
Thereafter	8,457.0
Total lease payments	10,174.3
Less: Imputed interest	(5,610.8)
Present value of future lease payments	4,563.5
Less: Current portion of lease obligations	(124.4)	$ (102.3)	$ 0.0
Long-term portion of lease obligations	4,439.1	3,704.4	0.0
Finance Leases
2019 (excluding the nine months ended September 30, 2019)	5.4
2020	21.4
2021	21.4
2022	21.4
2023	20.5
Thereafter	403.8
Total lease payments	493.9
Less: Imputed interest	(269.8)
Present value of future lease payments	224.1
Less: Current portion of lease obligations	(6.3)	(5.8)	0.0
Long-term portion of lease obligations	217.8	218.3	0.0
Financing Obligations
2019 (excluding the nine months ended September 30, 2019)	97.4
2020	374.7
2021	367.3
2022	367.3
2023	367.3
Thereafter	9,638.0
Total lease payments	11,212.0
Less: Imputed interest	(7,055.9)
Present value of future lease payments	4,156.1
Less: Current portion of lease obligations	(45.3)	(50.1)	(67.8)
Long-term portion of lease obligations	$ 4,110.8	$ 4,144.2	$ 7,080.6

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$ 11.5
Operating cash flows from operating leases	296.0
Financing cash flows from finance leases	$ 4.6	$ 0.0

Leases - Additional Information (Details) $ in Millions			3 Months Ended		9 Months Ended
Leases - Additional Information (Details) $ in Millions	Apr. 28, 2016 facility extension_period	Nov. 01, 2013 facility extension_period	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Schedule of Leased Assets [Line Items]
Additional ROU asset and corresponding lease liability recognized					$ 713.3	$ 0.0
Variable expenses			$ 1.0		2.8
Lease payments			222.6	$ 115.2	645.4	347.0
Lease income			85.3		236.9
General and administrative expense
Schedule of Leased Assets [Line Items]
Variable expenses			0.2		0.8
Interest expense
Schedule of Leased Assets [Line Items]
Variable expenses			0.0		0.0
Penn Master Lease
Schedule of Leased Assets [Line Items]
Number of facilities with leased real estate \| facility		19
Lease term		15 years
Number of options to extend lease \| extension_period		4
Lease renewal term		5 years
Lease - expected term with renewal options		35 years
Adjusted annual escalator percentage		2.00%
Adjusted revenue to rent ratio		1.8
Period over which fixed component is adjusted		5 years
Adjustment to fixed component as percentage of the average change to net revenues during the preceding five years		4.00%
Adjustment to fixed component as percentage of the average change to net revenues during preceding month		20.00%
Percentage rent baseline period		5 years
Variable expenses			4.4	11.8	29.5	36.8
Penn Master Lease \| Greektown Casino-Hotel
Schedule of Leased Assets [Line Items]
Additional ROU asset and corresponding lease liability recognized			151.2
Penn Master Lease \| General and administrative expense
Schedule of Leased Assets [Line Items]
Variable expenses			2.3	0.0	15.4	0.0
Penn Master Lease \| Interest expense
Schedule of Leased Assets [Line Items]
Variable expenses			$ 2.1	$ 11.8	$ 14.1	$ 36.8
Pinnacle Master Lease
Schedule of Leased Assets [Line Items]
Number of facilities with leased real estate \| facility	12
Number of options to extend lease \| extension_period	5
Lease renewal term	5 years
Lease - expected term with renewal options	32 years 6 months
Remaining lease term	7 years 6 months
Initial lease term	10 years
Annual escalator percentage - up to	2.00%
Adjusted Revenue to Rent Ratio, as defined	1.8
Percentage rent escalation interval	2 years
Percentage of average net revenues during preceding two years	4.00%
Percentage rent baseline period	2 years

Acquisitions - Additional Information (Details) $ / shares in Units, $ in Millions				9 Months Ended
	May 23, 2019 USD ($) renewal_option	Jan. 01, 2019 USD ($) renewal_option	Oct. 15, 2018 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Business Acquisition [Line Items]
Proceeds from sale-and-leaseback transactions in conjunction with acquisitions				$ 961.1	$ 0.0
Margaritaville Resort Casino
Business Acquisition [Line Items]
Purchase price		$ 119.9
Annual rent		$ 23.2
Lease term		15 years
Number of lease renewal options \| renewal_option		4
Lease renewal term	5 years
Liabilities incurred on acquisition		$ 261.1
Margaritaville Resort Casino \| Customer relationships
Business Acquisition [Line Items]
Assigned useful life of amortizing intangible asset acquired		2 years
Pinnacle
Business Acquisition [Line Items]
Purchase price			$ 2,816.2
Liabilities incurred on acquisition			$ 814.3
Cash paid per share (in dollars per share) \| $ / shares			$ 20.00
Cash paid			$ 1,252.2
Fair value of Penn common stock issued to former Pinnacle shareholders			$ 749.7
Greektown Casino-Hotel
Business Acquisition [Line Items]
Purchase price	$ 320.3
Proceeds from sale-and-leaseback transactions in conjunction with acquisitions	700.0
Annual rent	$ 55.6
Lease term	15 years
Number of lease renewal options \| renewal_option	4
Lease renewal term	5 years
Assigned useful life of amortizing intangible asset acquired	2 years

Acquisitions - Allocation of Purchase Price and Adjustments (Details) - USD ($) $ in Millions	4 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	May 23, 2019	Jan. 01, 2019	Dec. 31, 2018	Oct. 15, 2018
Business Acquisition [Line Items]
Goodwill	$ 1,350.4	$ 1,350.4		$ 1,233.9	$ 1,228.4
Greektown Casino-Hotel
Business Acquisition [Line Items]
Cash and cash equivalents	31.1	31.1	$ 31.1
Receivables, prepaid expenses, and other current assets	14.5	14.5	15.6
Property and equipment	32.3	32.3	32.3
Goodwill	62.8	62.8	61.7
Customer relationships	3.3	3.3	3.3
Operating lease right-of-use assets	516.1	516.1	516.1
Finance lease right-of-use assets	4.2	4.2	4.2
Other assets	0.2	0.2	0.2
Total assets	855.3	855.3	855.3
Accounts payable, accrued expenses and other current liabilities	14.8	14.8	14.8
Operating lease liabilities	516.0	516.0	516.0
Finance lease liabilities	4.2	4.2	4.2
Total liabilities	535.0	535.0	535.0
Net assets acquired	320.3	320.3	320.3
Goodwill deductible for tax purposes			62.8
Measurement period adjustments
Receivables, prepaid expenses, and other current assets	(1.1)
Goodwill	1.1
Greektown Casino-Hotel \| Gaming licenses
Business Acquisition [Line Items]
Indefinite-lived intangible assets	166.4	166.4	166.4
Greektown Casino-Hotel \| Trade name
Business Acquisition [Line Items]
Indefinite-lived intangible assets	24.4	24.4	$ 24.4
Margaritaville Resort Casino
Business Acquisition [Line Items]
Cash and cash equivalents	10.7	10.7		10.7
Receivables, prepaid expenses, and other current assets	7.1	7.1		7.1
Property and equipment	20.7	20.7		21.7
Goodwill	40.5	40.5		39.5
Operating lease right-of-use assets	196.2	196.2		196.2
Total assets	325.6	325.6		325.6
Accounts payable, accrued expenses and other current liabilities	9.5	9.5		9.5
Operating lease liabilities	196.2	196.2		196.2
Total liabilities	205.7	205.7		205.7
Net assets acquired	119.9	119.9		119.9
Goodwill deductible for tax purposes				40.5
Measurement period adjustments
Property and equipment		(1.0)
Goodwill		1.0
Margaritaville Resort Casino \| Customer relationships
Business Acquisition [Line Items]
Customer relationships	2.3	2.3		2.3
Margaritaville Resort Casino \| Gaming licenses
Business Acquisition [Line Items]
Indefinite-lived intangible assets	48.1	48.1		$ 48.1
Pinnacle
Business Acquisition [Line Items]
Cash and restricted cash	124.2	124.2				$ 124.2
Assets held for sale	667.5	667.5				667.0
Other current assets	81.1	81.1				80.6
Goodwill	238.2	238.2				219.5
Customer relationships	22.4	22.4				22.4
Other assets	38.9	38.9				38.9
Total assets	6,811.4	6,811.4				6,799.6
Long-term financing obligation, including current portion	3,432.5	3,432.5				3,427.0
Other current liabilities	206.1	206.1				200.6
Deferred tax liabilities	340.0	340.0				339.2
Other long-term liabilities	16.6	16.6				16.6
Total liabilities	3,995.2	3,995.2				3,983.4
Net assets acquired	2,816.2	2,816.2				2,816.2
Measurement period adjustments
Receivables, prepaid expenses, and other current assets		0.5
Assets held for sale		0.5
Goodwill		18.7
Total assets		11.8
Long-term financing obligation, including current portion		5.5
Other current liabilities		5.5
Deferred tax liabilities		0.8
Total liabilities		11.8
Pinnacle \| Gaming licenses
Business Acquisition [Line Items]
Indefinite-lived intangible assets	1,067.6	1,067.6				1,046.0
Measurement period adjustments
Indefinite-lived intangible assets		21.6
Pinnacle \| Trademarks
Business Acquisition [Line Items]
Indefinite-lived intangible assets	298.0	298.0				298.0
Property and equipment - non-Master Leases \| Pinnacle
Business Acquisition [Line Items]
Property and equipment	318.6	318.6				318.9
Measurement period adjustments
Property and equipment		(0.3)
Property and equipment - Master Leases \| Pinnacle
Business Acquisition [Line Items]
Property and equipment	$ 3,954.9	3,954.9				$ 3,984.1
Measurement period adjustments
Property and equipment		$ (29.2)

Acquisitions - Actual and Pro Forma Financial Results (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pro forma financial results
Revenues	$ 1,354.5	$ 1,391.7	$ 4,093.8	$ 4,240.7
Net income attributable to Penn	46.1	$ 36.1	157.3	$ 153.2
Greektown Casino-Hotel
Actual financial results of acquiree since acquisition date
Revenues	78.2		112.4
Net income	3.9		4.8
Margaritaville Resort Casino
Actual financial results of acquiree since acquisition date
Revenues	39.6		120.7
Net income	$ 2.6		$ 10.8

Property and Equipment - Property and Equipment, Net (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 5,155.2	$ 5,297.1	$ 6,868.8
Operating Leases - Master Leases
Property, Plant and Equipment [Line Items]
Property and equipment, net		(1,407.4)
Finance Leases - Dayton and Mahoning Valley
Property, Plant and Equipment [Line Items]
Property and equipment, net		(164.3)
Property and equipment - non-Master Leases
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,585.9		2,431.2
Less: Accumulated depreciation	(1,524.8)		(1,400.2)
Property and equipment, net	1,061.1		1,031.0
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	353.3		344.0
Building, vessels and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	410.7		343.0
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,585.2		1,565.8
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	178.4		152.9
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	58.3		25.5
Property and equipment - Master Leases
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,185.0		6,816.0
Less: Accumulated depreciation	(1,090.9)		(978.2)
Property and equipment, net	4,094.1		5,837.8
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,525.9		2,971.0
Land and improvements \| Operating Leases - Master Leases
Property, Plant and Equipment [Line Items]
Property and equipment, gross		(1,400.0)
Building, vessels and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,659.1		$ 3,845.0
Building, vessels and improvements \| Finance Leases - Dayton and Mahoning Valley
Property, Plant and Equipment [Line Items]
Property and equipment, gross		$ (180.4)

Property and Equipment - Depreciation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 97.9	$ 53.6	$ 291.8	$ 163.9
Property and equipment - Master Leases
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 26.5	$ 22.7	$ 119.4	$ 68.9

Goodwill and Other Intangible Assets - Goodwill and Accumulated Goodwill Impairment Losses (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 2,510.2
Accumulated goodwill impairment losses, beginning balance	(1,281.8)
Goodwill, net, beginning balance	1,228.4
Goodwill acquired during year	103.3
Other	18.7
Goodwill, gross, ending balance	2,632.2
Accumulated goodwill impairment losses, ending balance	(1,281.8)
Goodwill, net, ending balance	1,350.4
Operating segments \| Northeast segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	848.4
Accumulated goodwill impairment losses, beginning balance	(707.6)
Goodwill, net, beginning balance	140.8
Goodwill acquired during year	62.8
Other	(1.5)
Goodwill, gross, ending balance	909.7
Accumulated goodwill impairment losses, ending balance	(707.6)
Goodwill, net, ending balance	202.1
Operating segments \| South segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	185.2
Accumulated goodwill impairment losses, beginning balance	(34.6)
Goodwill, net, beginning balance	150.6
Goodwill acquired during year	40.5
Other	7.2
Goodwill, gross, ending balance	232.9
Accumulated goodwill impairment losses, ending balance	(34.6)
Goodwill, net, ending balance	198.3
Operating segments \| West segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	210.4
Accumulated goodwill impairment losses, beginning balance	(16.6)
Goodwill, net, beginning balance	193.8
Goodwill acquired during year	0.0
Other	6.4
Goodwill, gross, ending balance	216.8
Accumulated goodwill impairment losses, ending balance	(16.6)
Goodwill, net, ending balance	200.2
Operating segments \| Midwest segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	1,110.1
Accumulated goodwill impairment losses, beginning balance	(435.3)
Goodwill, net, beginning balance	674.8
Goodwill acquired during year	0.0
Other	6.6
Goodwill, gross, ending balance	1,116.7
Accumulated goodwill impairment losses, ending balance	(435.3)
Goodwill, net, ending balance	681.4
Other
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	156.1
Accumulated goodwill impairment losses, beginning balance	(87.7)
Goodwill, net, beginning balance	68.4
Goodwill acquired during year	0.0
Other	0.0
Goodwill, gross, ending balance	156.1
Accumulated goodwill impairment losses, ending balance	(87.7)
Goodwill, net, ending balance	$ 68.4

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, accumulated amortization	$ (119.5)	$ (100.8)
Amortizing intangible assets, net carrying amount	46.8
Indefinite-lived Intangible Assets [Line Items]
Total other intangible assets, gross carrying amount	2,224.0	1,957.7
Total other intangible assets, net carrying amount	2,104.5	1,856.9
Gaming licenses
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	1,734.6	1,498.3
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	322.4	298.0
Other
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	0.7	0.7
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, gross carrying amount	104.3	98.8
Amortizing intangible assets, accumulated amortization	(64.6)	(51.5)
Amortizing intangible assets, net carrying amount	39.7	47.3
Other
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, gross carrying amount	62.0	61.9
Amortizing intangible assets, accumulated amortization	(54.9)	(49.3)
Amortizing intangible assets, net carrying amount	$ 7.1	$ 12.6

Goodwill and Other Intangible Assets - Expected Intangible Asset Amortization Expense (Details) $ in Millions	Sep. 30, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 5.9
2020	19.5
2021	5.6
2022	3.8
2023	3.6
Thereafter	8.4
Amortizing intangible assets, net carrying amount	$ 46.8

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment charges on other intangible assets	$ 0	$ 0	$ 0	$ 0
Intangible asset amortization expense	$ 6,400,000	$ 3,300,000	$ 18,700,000	$ 11,900,000

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued salaries and wages	$ 125.3		$ 139.2
Accrued gaming, pari-mutuel, property, and other taxes	117.6		105.8
Accrued interest	5.8		15.8
Other accrued expenses (1)	218.0		204.6
Other current liabilities (2)	132.2		112.6
Accrued expenses and other current liabilities	598.9	$ 577.5	578.0
Deferred compensation liability, current	$ 74.1		$ 64.1

Long-term Debt - Debt Summary (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Jan. 19, 2017
Debt Instrument [Line Items]
Long-term debt	$ 2,490.6	$ 2,453.4
Less: Current maturities of long-term debt	(62.9)	(62.1)
Less: Debt discount	(2.5)	(2.8)
Less: Debt issuance costs	(33.2)	(38.4)
Long-term debt, net of current maturities and debt issuance costs	$ 2,392.0	2,350.1
Interest rate	5.625%
Secured credit facility \| Revolving Credit Facility due 2023
Debt Instrument [Line Items]
Long-term debt	$ 200.0	112.0
Secured credit facility \| Term Loan A Facility due 2023
Debt Instrument [Line Items]
Long-term debt	681.1	707.7
Secured credit facility \| Term Loan B-1 Facility due 2025
Debt Instrument [Line Items]
Long-term debt	1,120.3	1,128.7
Senior notes \| 5.625% Notes due 2027
Debt Instrument [Line Items]
Long-term debt	$ 400.0	400.0
Interest rate	5.625%		5.625%
Other long-term obligations
Debt Instrument [Line Items]
Long-term debt	$ 89.2	104.6
Capital leases
Debt Instrument [Line Items]
Long-term debt	$ 0.0	$ 0.4

Long-term Debt - Senior Secured Credit Facilities, Senior Unsecured Notes, Loss on Early Extinguishment of Debt, and Covenants (Details) - USD ($)		3 Months Ended	9 Months Ended
	Jan. 19, 2017	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Oct. 15, 2018
Debt Instrument [Line Items]
Interest rate				5.625%
Secured credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt term	5 years
Maximum borrowing capacity	$ 700,000,000
Letters of credit outstanding				$ 30,000,000.0
Secured credit facility \| Term Loan A Facility
Debt Instrument [Line Items]
Debt term	5 years
Maximum borrowing capacity	$ 300,000,000
Secured credit facility \| Term Loan B Facility
Debt Instrument [Line Items]
Debt term	7 years
Maximum borrowing capacity	$ 500,000,000
Secured credit facility \| Term Loan A Facility due 2023, incremental loans
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 430,200,000
Secured credit facility \| Term Loan B-1 Facility due 2025
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 1,128,800,000
Secured credit facility \| 2013 Senior Secured Credit Facilities
Debt Instrument [Line Items]
Loss on early extinguishment of debt		$ 300,000	$ 3,800,000
Senior notes \| 5.625% Notes due 2027
Debt Instrument [Line Items]
Interest rate	5.625%			5.625%
Debt principal amount	$ 400,000,000

Long-term Debt - Interest Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Disclosure [Abstract]
Interest expense	$ (134.2)	$ (114.8)	$ (401.8)	$ (346.4)
Interest income	0.6	0.2	1.2	0.7
Capitalized interest	0.1	0.0	0.1	0.0
Interest expense, net	$ (133.5)	$ (114.6)	$ (400.5)	$ (345.7)

Long-term Debt - Other Long-term Obligations (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2014 USD ($) payment	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 2,490.6			$ 2,490.6		$ 2,453.4
Other long-term obligations
Debt Instrument [Line Items]
Long-term debt	89.2			89.2		104.6
Other long-term obligations \| Ohio relocation fees debt
Debt Instrument [Line Items]
Long-term debt	76.4			76.4		$ 91.3
Amount payable upon opening of the facility			$ 7.5
Number of semi-annual payments \| payment			18
Amount of semi-annual payments due beginning one year from commencement of operations			$ 4.8
Effective yield			5.00%
Interest expense	$ 1.0	$ 1.2		$ 3.2	$ 3.7

Investments in and Advances to Unconsolidated Affiliates (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Summary financial information
Net income attributable to Penn	$ 9.8	$ 5.7	$ 21.7	$ 16.8
Kansas Entertainment
Schedule of Equity Method Investments [Line Items]
Ownership interest	50.00%		50.00%
Investment balance	$ 90.6		$ 90.6		$ 89.4
Summary financial information
Revenues	40.6	39.8	120.2	119.3
Operating expenses	19.6	27.4	73.8	83.0
Operating income	21.0	12.4	46.4	36.3
Net income	21.0	12.4	46.4	36.3
Net income attributable to Penn	$ 10.5	$ 6.2	$ 23.2	$ 18.1
Freehold Raceway
Schedule of Equity Method Investments [Line Items]
Ownership interest	50.00%		50.00%
MAXXAM
Schedule of Equity Method Investments [Line Items]
Ownership interest	50.00%		50.00%

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	31.00%	20.10%	28.00%	22.80%
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)	$ 254.1		$ 254.1		$ 117.7	$ (968.0)
Pinnacle
Business Acquisition [Line Items]
Increase in deferred tax liabilities, acquisition			$ 0.8
ASC 842 - Master Lease deferred tax adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets, net					(80.6)
Deferred tax liabilities, net					223.2
Retained earnings (accumulated deficit)					$ (303.8)

Stock-Based Compensation (Details)		3 Months Ended		9 Months Ended
Stock-Based Compensation (Details)	Feb. 14, 2019 shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) performance_period $ / shares shares	Sep. 30, 2018 USD ($) shares	Jan. 09, 2019 USD ($)	Dec. 31, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount under share repurchase program						$ 200,000,000
Repurchases of common stock (in shares) \| shares				1,271,823
Repurchases of common stock				$ 24,900,000
Repurchases of common stock, average price (in dollars per share) \| $ / shares				$ 19.55
Stock options granted (in shares) \| shares				2,353,599	663,343
Stock-based compensation expense (reduction to expense)		$ 3,700,000	$ 2,900,000	$ 10,400,000	$ 8,800,000
Phantom share units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (reduction to expense)		500,000	700,000	2,100,000	2,200,000
Liability for cash-settled awards		1,300,000		1,300,000			$ 1,700,000
Unrecognized compensation cost, other awards		3,100,000		$ 3,100,000
Unamortized compensation costs, weighted average period of recognition				1 year 10 months 6 days
Amounts paid on cash-settled awards				$ 2,500,000	4,200,000
Phantom share units (PSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Phantom share units (PSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Stock appreciation rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (reduction to expense)		(500,000)	$ 1,100,000	$ 2,000,000.0	6,900,000
Vesting period				4 years
Liability for cash-settled awards		6,600,000		$ 6,600,000			$ 6,800,000
Unrecognized compensation cost, other awards		$ 5,500,000		$ 5,500,000
Unamortized compensation costs, weighted average period of recognition				2 years 7 months 13 days
Amounts paid on cash-settled awards				$ 2,200,000	$ 9,800,000
2018 Long Term Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (in shares) \| shares		8,442,068		8,442,068
Performance Share Program \| Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares) \| shares	278,780
Award period				3 years
Number of annual award performance periods \| performance_period				3
Service period				1 year
Vesting period				3 years
Performance Share Program \| Performance shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award which can potentially be earned				50.00%
Performance Share Program \| Performance shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award which can potentially be earned				150.00%

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Determination of shares:
Weighted average common shares outstanding (in shares)	115,200,000	91,900,000	115,800,000	91,500,000
Diluted weighted average common shares outstanding (in shares)	116,700,000	95,300,000	117,700,000	95,000,000.0
Anti-dilutive securities, stock options (in shares)	2,519,816	660,436	2,139,874	655,952
Calculation of basic EPS:
Net income applicable to common stock	$ 43.9	$ 36.1	$ 136.4	$ 135.5
Weighted average common shares outstanding (in shares)	115,200,000	91,900,000	115,800,000	91,500,000
Basic EPS (in dollars per share)	$ 0.38	$ 0.39	$ 1.18	$ 1.48
Calculation of diluted EPS using two class method:
Net income applicable to common stock	$ 43.9	$ 36.1	$ 136.4	$ 135.5
Diluted weighted average common shares outstanding (in shares)	116,700,000	95,300,000	117,700,000	95,000,000.0
Diluted EPS (in dollars per share)	$ 0.38	$ 0.38	$ 1.16	$ 1.43
Stock options
Determination of shares:
Assumed conversion of dilutive employee stock-based awards and restricted stock (in shares)	1,400,000	3,200,000	1,700,000	3,300,000
Restricted stock
Determination of shares:
Assumed conversion of dilutive employee stock-based awards and restricted stock (in shares)	100,000	200,000	200,000	200,000

Fair Value Measurements - Carrying Amounts and Estimated Fair Values by Input Level (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Jan. 19, 2017
Financial assets:
Equity securities	$ 28.3
Financial liabilities:
Interest rate	5.625%
Senior notes \| 5.625% Notes
Financial liabilities:
Interest rate	5.625%		5.625%
Carrying Amount \| Recurring
Financial assets:
Cash and cash equivalents	$ 406.9	$ 479.6
Equity securities	28.3
Held-to-maturity securities	7.5	7.5
Promissory notes	16.9	16.9
Financial liabilities:
Other liabilities	20.3	21.9
Carrying Amount \| Recurring \| Secured credit facility
Financial liabilities:
Long-term debt	1,966.3	1,907.9
Carrying Amount \| Recurring \| Senior notes \| 5.625% Notes
Financial liabilities:
Long-term debt	399.4	399.3
Carrying Amount \| Recurring \| Other long-term obligations
Financial liabilities:
Long-term debt	89.2	104.6
Fair Value \| Recurring
Financial assets:
Cash and cash equivalents	406.9	479.6
Equity securities	28.3
Held-to-maturity securities	7.8	7.9
Promissory notes	17.3	17.4
Financial liabilities:
Other liabilities	20.3	21.8
Fair Value \| Recurring \| Secured credit facility
Financial liabilities:
Long-term debt	2,000.5	1,886.3
Fair Value \| Recurring \| Senior notes \| 5.625% Notes
Financial liabilities:
Long-term debt	411.0	360.0
Fair Value \| Recurring \| Other long-term obligations
Financial liabilities:
Long-term debt	82.5	96.3
Level 1 \| Recurring
Financial assets:
Cash and cash equivalents	406.9	479.6
Equity securities	0.0
Held-to-maturity securities	0.0	0.0
Promissory notes	0.0	0.0
Financial liabilities:
Other liabilities	0.0	0.0
Level 1 \| Recurring \| Secured credit facility
Financial liabilities:
Long-term debt	2,000.5	1,886.3
Level 1 \| Recurring \| Senior notes \| 5.625% Notes
Financial liabilities:
Long-term debt	411.0	360.0
Level 1 \| Recurring \| Other long-term obligations
Financial liabilities:
Long-term debt	0.0	0.0
Level 2 \| Recurring
Financial assets:
Cash and cash equivalents	0.0	0.0
Equity securities	28.3
Held-to-maturity securities	7.8	7.9
Promissory notes	17.3	17.4
Financial liabilities:
Other liabilities	2.8	2.8
Level 2 \| Recurring \| Secured credit facility
Financial liabilities:
Long-term debt	0.0	0.0
Level 2 \| Recurring \| Senior notes \| 5.625% Notes
Financial liabilities:
Long-term debt	0.0	0.0
Level 2 \| Recurring \| Other long-term obligations
Financial liabilities:
Long-term debt	82.5	96.3
Level 3 \| Recurring
Financial assets:
Cash and cash equivalents	0.0	0.0
Equity securities	0.0
Held-to-maturity securities	0.0	0.0
Promissory notes	0.0	0.0
Financial liabilities:
Other liabilities	17.5	19.0
Level 3 \| Recurring \| Secured credit facility
Financial liabilities:
Long-term debt	0.0	0.0
Level 3 \| Recurring \| Senior notes \| 5.625% Notes
Financial liabilities:
Long-term debt	0.0	0.0
Level 3 \| Recurring \| Other long-term obligations
Financial liabilities:
Long-term debt	$ 0.0	$ 0.0

Fair Value Measurements - Changes in Fair Value of Level 3 Liabilities (Details) - Recurring $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Contingent Consideration
Balance	$ 19.0
Payments	(8.5)
Included in earnings	7.0
Balance	$ 17.5

Fair Value Measurements - Significant Unobservable Inputs For Level 3 Assets and Liabilities (Details)	Sep. 30, 2019
Plainridge Park Casino \| Discounted cash flow \| Level 3 \| Discount rate
Recurring basis:
Contingent consideration, measurement input	0.0633

Fair Value Measurements - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) payment	Dec. 31, 2018 USD ($) payment	Jan. 19, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	$ 28.3
Interest rate	5.625%
Plainridge Park Casino
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Period of actual earnings used to calculate contingent consideration	10 years
Number of remaining annual payments \| payment	6	7
Absolute Bingo
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Period of actual earnings used to calculate contingent consideration	2 years
Number of remaining annual payments \| payment	1
Senior notes \| 5.625% Notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	5.625%		5.625%
Retama Nominal Holder, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest	1.00%
Pinnacle Retama Partners, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest by parent	75.50%
Other assets \| Pinnacle Retama Partners, LLC \| Retama Development Corporation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Promissory notes	$ 16.9	$ 16.9
Other assets \| Local government bonds \| Pinnacle Retama Partners, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment, at amortized cost	$ 7.5	$ 7.5

Segment Information (Details) $ in Millions	3 Months Ended			9 Months Ended
Segment Information (Details) $ in Millions	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($) segment	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Sep. 30, 2018 USD ($)	Jan. 01, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment				4
Revenues:
Total	$ 1,354.5		$ 789.7	$ 3,960.2	$ 2,432.6
Adjusted EBITDAR:
Adjusted EBITDAR	407.9		229.7	1,205.8	719.3
Rent expense associated with triple net operating lease	(96.3)		0.0	(271.0)	0.0
Stock-based compensation	(3.7)		(2.9)	(10.4)	(8.8)
Cash-settled stock-based awards variance	3.4		1.7	6.4	1.3
Loss on disposal of assets	(7.4)		(3.2)	(8.3)	(3.2)
Contingent purchase price	(1.2)		(0.4)	(7.0)	(1.7)
Pre-opening and acquisition costs	(7.4)		(5.2)	(15.5)	(17.2)
Depreciation and amortization	(106.3)		(56.9)	(316.4)	(175.8)
Recoveries on loan loss and unfunded loan commitments, net of impairment losses	0.0		0.0	0.0	16.4
Insurance recoveries, net of deductible charges	1.5		0.0	1.5	0.1
Non-operating items for Kansas JV	(0.9)		(1.3)	(2.8)	(3.9)
Interest expense, net	(133.5)		(114.6)	(400.5)	(345.7)
Loss on early extinguishment of debt	0.0		(0.3)	0.0	(3.8)
Other	7.2		(1.4)	7.2	(1.5)
Income before income taxes	63.3		45.2	189.0	175.5
Income tax expense	(19.6)		(9.1)	(53.0)	(40.0)
Net income	43.7		36.1	136.0	135.5
Capital expenditures:
Capital expenditures	41.7		24.0	136.7	57.0
Assets:
Investment in and advances to unconsolidated affiliates	128.5	$ 128.5		128.5
Total assets	14,318.0	$ 10,961.0		14,318.0		$ 13,424.8
South/West segment
Segment Reporting Information [Line Items]
Number of new reportable segments from division of segment \| segment		2
Operating segments \| Northeast segment
Revenues:
Total	628.9		441.4	1,778.6	1,365.4
Adjusted EBITDAR:
Adjusted EBITDAR	189.1		141.3	540.1	434.6
Capital expenditures:
Capital expenditures	22.8		11.0	67.3	23.7
Assets:
Investment in and advances to unconsolidated affiliates	0.1	$ 0.1		0.1
Total assets	2,298.9	1,330.2		2,298.9
Operating segments \| South segment
Revenues:
Total	276.6		60.4	850.7	186.4
Adjusted EBITDAR:
Adjusted EBITDAR	89.0		17.1	279.6	58.8
Capital expenditures:
Capital expenditures	5.0		2.3	21.5	5.8
Assets:
Investment in and advances to unconsolidated affiliates	0.0	0.0		0.0
Total assets	1,423.8	1,082.3		1,423.8
Operating segments \| West segment
Revenues:
Total	161.5		92.6	484.4	291.2
Adjusted EBITDAR:
Adjusted EBITDAR	50.6		21.8	151.0	71.8
Capital expenditures:
Capital expenditures	3.7		2.4	17.8	7.6
Assets:
Investment in and advances to unconsolidated affiliates	0.0	0.0		0.0
Total assets	750.5	755.7		750.5
Operating segments \| Midwest segment
Revenues:
Total	275.8		185.4	815.3	559.0
Adjusted EBITDAR:
Adjusted EBITDAR	104.3		65.4	301.3	201.1
Capital expenditures:
Capital expenditures	6.2		7.4	22.6	15.6
Assets:
Investment in and advances to unconsolidated affiliates	90.6	89.4		90.6
Total assets	1,475.9	1,411.5		1,475.9
Other
Revenues:
Total	12.4		9.9	31.9	30.6
Adjusted EBITDAR:
Adjusted EBITDAR	(25.0)		(15.9)	(66.1)	(47.0)
Capital expenditures:
Capital expenditures	4.0		0.9	7.5	4.3
Assets:
Investment in and advances to unconsolidated affiliates	37.8	39.0		37.8
Total assets	8,368.9	$ 6,381.3		8,368.9
Intersegment eliminations
Revenues:
Total	(0.7)		0.0	(0.7)	0.0
Adjusted EBITDAR:
Adjusted EBITDAR	$ (0.1)		$ 0.0	$ (0.1)	$ 0.0

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 15,600,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	0
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	1,900,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	700,000
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,085,700,000
Accounting Standards Update 2016-02 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,085,700,000
Accounting Standards Update 2016-02 [Member] \| Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,085,700,000
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(9,600,000)
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(9,600,000)
Accounting Standards Update 2014-09 [Member] \| Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (9,600,000)