0000921738-21-000017 | 10-Q | XBRL Viewer

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Basis of Presentation: The unaudited 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 notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Principles of Consolidation

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

Use of Estimates

Use of Estimates: The preparation of unaudited 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

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 four reportable segments:


	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course(1)	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
1st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino	Bossier City, Louisiana	Margaritaville Lease

West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Tropicana Lease
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease

Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton (3)	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway (4)	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming (2)	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease

(1)Our two Category 4 developments, Hollywood Casino York and Hollywood Casino Morgantown, are included with Hollywood Casino at Penn National Race Course.

(2)VGT route operations

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

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

Revenue Recognition and Customer-related Liabilities

Revenue Recognition: Our revenue from contracts with customers consists primarily of gaming wagers, food and beverage transactions, retail transactions, hotel room sales, racing wagers, and sports betting wagers. See Note 5, “Revenue Disaggregation,” for information on our revenue by type and geographic location.

Complimentaries Associated with Gaming Contracts

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

Customer-related Liabilities

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

Our mychoice program allows members to utilize their reward membership card to earn loyalty points that are redeemable for slot play and complimentaries, such as food and beverage at our restaurants, lodging at our hotels and products offered at our retail stores across the vast majority of our properties. In addition, members of the mychoice program earn credit toward tier status, which entitles them to receive certain other benefits, such as gifts. The obligation associated with our mychoice program, which is included in “Accrued expenses and other current liabilities” within our unaudited Consolidated Balance Sheets, was $39.0 million and $35.8 million as of March 31, 2021 and December 31, 2020, respectively, and consisted principally of the obligation associated with the loyalty points. Our loyalty point obligations are generally settled within six months of issuance; however, as a result of the COVID-19 pandemic and resulting temporary closures, loyalty point obligations may take longer to settle. Changes between the opening and closing balances primarily relate to the timing of our customers’ election to redeem loyalty points as well as the timing of when our customers receive their earned tier status benefits.

The Company’s advance payments on goods and services yet to be provided and for unpaid wagers primarily consist of the following: (i) deposits on rooms and convention space, (ii) money deposited on behalf of a customer in advance of their property visit (referred to as “safekeeping” or “front money”), (iii) money deposited in an online wallet not yet wagered or wagered and not yet withdrawn, (iv) outstanding tickets generated by slot machine play or pari-mutuel wagering, (v) outstanding chip liabilities, (vi) unclaimed jackpots, and (vii) gift cards redeemable at our properties. Unpaid wagers primarily relate to the Company’s obligation to settle outstanding slot tickets, pari-mutuel racing tickets, gaming chips with customers and future withdrawals from online wallets. Unpaid wagers 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 $63.6 million and $47.1 million as of March 31, 2021 and December 31, 2020, respectively, of which $0.5 million was classified as long-term as of both March 31, 2021 and December 31, 2020. The current portion and long-term portion of our advance payments on goods and services yet to be provided and for unpaid wagers are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities” within our unaudited Consolidated Balance Sheets, respectively.

Gaming and Racing Taxes

Earnings Per Share

Earnings Per Share: Basic earnings per share (“EPS”) is computed by dividing net income (loss) applicable to common stock by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the additional dilution, if any, for all potentially-dilutive securities such as stock options, unvested restricted stock awards (“RSAs”), outstanding convertible preferred stock and convertible debt.Holders of the Company’s Series D Preferred Stock (as defined in Note 10, “Investments in and Advances to Unconsolidated Affiliates”) are entitled to participate equally and ratably in all dividends and distributions paid to holders of Penn Common Stock irrespective of any vesting requirement. Accordingly, the Series D Preferred Stock shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the preferred shares on the calculation of basic and diluted EPS. The holders of the Company’s Series D Preferred Stock are not obligated to absorb losses; therefore, in reporting periods where the Company is in a net loss position, it does not apply the two-class method. In reporting periods where the Company is in a net income position, the two-class method is applied by allocating all earnings during the period to common shares and preferred shares.

New Accounting Pronouncements

Accounting Pronouncements to be Implemented

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides an optional expedient and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of the London Interbank Offered Rate (referred to as “LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 also provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. ASU 2020-04 can be adopted no later than December 1, 2022 with early adoption permitted. The interest rates associated with the Company’s borrowings under its Senior Secured Credit Facilities (as defined in Note 8, “Long-term Debt”) are tied to LIBOR. The Company is currently evaluating the impact of the adoption of ASU 2020-04 on our Consolidated Financial Statements.

In August 2020, The FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 eliminates the number of accounting models used to account for convertible debt instruments and convertible preferred stock. The update also amends the disclosure requirements for convertible instruments and EPS in an effort to increase financial reporting transparency. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-06 on our Consolidated Financial Statements.

A variety of proposed or otherwise potential accounting standards are currently being studied by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our Consolidated Financial Statements.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

+ Details

- Definition

Disclosure of accounting policy for segment reporting.

+ References + Details

Long-term Debt - Senior Secured Credit Facilities, Senior Unsecured Notes, Unsecured Convertible Notes, and Covenants (Details) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended
	Apr. 14, 2020 USD ($) business_day	May 31, 2020 USD ($) $ / shares	Jan. 31, 2017 USD ($)	Mar. 31, 2021 USD ($) shares	Feb. 28, 2021	Dec. 31, 2020 USD ($)	Oct. 15, 2018 USD ($)	Jan. 19, 2017 USD ($)
Debt Instrument [Line Items]
Interest rate				5.625%
Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Threshold percentage of stock price		130.00%
Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Threshold percentage of stock price		98.00%
Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Threshold percentage of stock price		100.00%
Senior Secured Credit Facility
Debt Instrument [Line Items]
Number of business days \| business_day	2
Covenant relief period, consolidated total net leverage ratio thereafter	4.25
Covenant relief period, maximum senior secured net leverage ratio thereafter	3.00
Covenant relief period, minimum interest coverage ratio	2.50
Commitment fee on unused capacity	0.50%
Basis spread on variable rate, floor	0.75%
Senior Secured Credit Facility \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Senior Secured Credit Facility \| LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Senior Secured Credit Facility \| Maximum
Debt Instrument [Line Items]
Covenant relief period, maximum consolidated total net leverage ratio in 2021	5.50
Covenant relief period, maximum consolidated total net leverage ratio in June 30, 2021	5.00
Covenant relief period, maximum consolidated total net leverage ratio in September 30, 2021	4.75
Covenant relief period, maximum consolidated total net leverage ratio in December 30, 2021	4.50
Covenant relief period, maximum senior secured net leverage ratio in March 31, 2021	4.50
Covenant relief period, maximum senior secured net leverage ratio in June 30, 2021	4.00
Covenant relief period, maximum senior secured net leverage ratio in September 30, 2021	3.75
Covenant relief period, maximum senior secured net leverage ratio in December 31, 2021	3.50
Senior Secured Credit Facility \| Through April 30, 2020
Debt Instrument [Line Items]
Covenant relief period, minimum liquidity covenant	$ 400.0
Senior Secured Credit Facility \| May 1, 2020 through May 31, 2020
Debt Instrument [Line Items]
Covenant relief period, minimum liquidity covenant	350.0
Senior Secured Credit Facility \| June 1, 2020 through June 30, 2020
Debt Instrument [Line Items]
Covenant relief period, minimum liquidity covenant	300.0
Senior Secured Credit Facility \| July 1, 2020 through March 31, 2021
Debt Instrument [Line Items]
Covenant relief period, minimum liquidity covenant	$ 225.0
Senior Secured Credit Facilities \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, term			5 years
Maximum borrowing capacity			$ 700.0
Letters of credit outstanding				$ 28.0		$ 28.2
Available borrowing capacity				$ 672.0		$ 671.8
Senior Secured Credit Facilities \| Term Loan A Facility
Debt Instrument [Line Items]
Debt instrument, term			5 years
Maximum borrowing capacity			$ 300.0
Senior Secured Credit Facilities \| Term Loan B Facility
Debt Instrument [Line Items]
Debt instrument, term			7 years
Maximum borrowing capacity			$ 500.0
Senior Secured Credit Facilities \| Term Loan A Facility due 2023, incremental loans
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 430.2
Senior Secured Credit Facilities \| Term Loan B-1 Facility due 2025
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 1,128.8
Basis spread on variable rate, floor				0.75%
Senior Secured Credit Facilities \| Term Loan B-1 Facility due 2025 \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				1.25%
Senior Secured Credit Facilities \| Term Loan B-1 Facility due 2025 \| LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable rate				2.25%
Senior Secured Credit Facilities \| Term Loan A Facility due 2023 \| Minimum \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				0.25%
Senior Secured Credit Facilities \| Term Loan A Facility due 2023 \| Minimum \| LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable rate				1.25%
Senior Secured Credit Facilities \| Term Loan A Facility due 2023 \| Maximum \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				2.00%
Senior Secured Credit Facilities \| Term Loan A Facility due 2023 \| Maximum \| LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable rate				3.00%
Senior Secured Credit Facilities \| Revolving Credit Facility due 2023 \| Minimum
Debt Instrument [Line Items]
Commitment fee on unused capacity				0.20%
Senior Secured Credit Facilities \| Revolving Credit Facility due 2023 \| Maximum
Debt Instrument [Line Items]
Commitment fee on unused capacity				0.50%
Senior Notes \| 5.625% Notes due 2027
Debt Instrument [Line Items]
Interest rate				5.625%		5.625%		5.625%
Debt principal amount								$ 400.0
Senior Notes \| 2.75% Convertible Notes due 2026 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt Instrument, convertible, conversion ratio		0.042735
Senior Notes \| 2.75% Convertible Notes due 2026 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Debt Instrument, convertible, conversion ratio		0.0555555
Convertible Notes \| 2.75% Convertible Notes due 2026
Debt Instrument [Line Items]
Interest rate		2.75%		2.75%
Debt principal amount		$ 330.5
Proceeds from issuance of long-term debt, net of discounts		$ 322.2
Conversion price (in dollars per share) \| $ / shares		$ 23.40
Number of shares issued upon conversion (in shares) \| shares				18,360,815
Amount if-converted value exceeds its principal amount				$ 1,594.4
Carrying amount of equity component		$ 91.8		$ 88.2
Debt issuance costs		10.2
Effective yield				9.23%
Remaining period over which unamortized discount will be amortized				5 years 1 month 6 days
Convertible Notes \| Convertible Notes Due 2026, Liability Component
Debt Instrument [Line Items]
Debt issuance costs		6.6
Convertible Notes \| Convertible Notes Due 2026, Equity Component
Debt Instrument [Line Items]
Debt issuance costs		$ 3.6
Other long-term obligations
Debt Instrument [Line Items]
Effective yield					25.00%

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment charges	$ 0	$ 113,000,000.0
Intangible asset amortization expense	$ 2,200,000	6,100,000
Operating Segments \| Northeast
Schedule Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment charges		43,500,000
Operating Segments \| South
Schedule Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment charges		9,000,000.0
Operating Segments \| Midwest
Schedule Of Goodwill And Intangible Assets [Line Items]
Goodwill impairment charges		60,500,000
Gaming licenses
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		437,000,000.0
Gaming licenses \| Northeast
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		177,000,000.0
Gaming licenses \| South
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		166,000,000.0
Gaming licenses \| Midwest
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		94,000,000.0
Trademarks
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		61,500,000
Trademarks \| Northeast
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		17,000,000.0
Trademarks \| South
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		17,000,000.0
Trademarks \| Midwest
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		15,000,000.0
Trademarks \| West
Schedule Of Goodwill And Intangible Assets [Line Items]
Impairment charges on other intangible assets		$ 12,500,000

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020, we held $169.3 million and $143.1 million in equity securities, respectively, including ordinary shares and warrants, which are reported as “Other assets” in our unaudited Consolidated Balance Sheets. These equity securities are the result of Penn Interactive 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 three months ended March 31, 2021, we recognized a holding gain of $26.1 million related to these equity securities, compared to a loss of $21.8 million for the three months ended March 31, 2020, which is included in “Other,” as reported in “Other income (expenses)” within our unaudited Consolidated Statements of Operations and Comprehensive Income (Loss).

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 March 31, 2021 and December 31, 2020, PRP held $15.1 million in promissory notes issued by RDC and $6.7 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 March 31, 2021 and December 31, 2020, the promissory notes and the local government corporation bonds, which have long-term contractual maturities, were included in “Other assets” within our unaudited Consolidated Balance Sheets.

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 our Term Loan A Facility, Term Loan B-1 Facility, 5.625% Notes, and 2.75% Convertible Notes is estimated based on quoted prices in active markets and is classified as a Level 1 measurement. The fair value of our Revolving Credit Facility approximates its carrying amount as it is revolving, variable-rate debt, which we also classify as a Level 1 measurement.

Other long-term obligations as of March 31, 2021 and December 31, 2020 included a financing arrangement entered in February of 2021, the relocation fees for Dayton and Mahoning Valley, and the repayment obligation of the hotel and event center located near Hollywood Casino Lawrenceburg. See Note 8, “Long-term Debt” for details. The fair values of the Dayton and Mahoning Valley relocations fees and the Lawrenceburg repayment obligation 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 March 31, 2021 and December 31, 2020 consisted of a contingent purchase price related to Plainridge Park Casino. The Plainridge Park Casino contingent purchase price is calculated based on earnings of the gaming operations over the first ten years of operations, which commenced on June 24, 2015. As of March 31, 2021, we were contractually obligated to make five additional annual payments. The fair value of this liability, which is estimated based on an income approach using a discounted cash flow model and has been classified as a Level 3 measurement, is included within our unaudited Consolidated Balance Sheets in “Accrued expenses and other current liabilities” or “Other long-term 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:


	March 31, 2021
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	2,062.2	$	2,062.2	$	2,062.2	$	—	$	—
Equity securities	$	169.3	$	169.3	$	—	$	169.3	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	15.1	$	15.1	$	—	$	15.1	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,586.4	$	1,603.9	$	1,603.9	$	—	$	—
5.625% Notes	$	399.5	$	415.5	$	415.5	$	—	$	—
Convertible Notes	$	243.1	$	1,488.9	$	1,488.9	$	—	$	—
Other long-term obligations	$	146.3	$	146.3	$	—	$	72.3	$	74.0
Other liabilities	$	10.2	$	10.0	$	—	$	2.6	$	7.4
Puts and calls related to certain Barstool Sports shares	$	3.1	$	3.1	$	—	$	3.1	$	—


	December 31, 2020
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	1,853.8	$	1,853.8	$	1,853.8	$	—	$	—
Equity securities	$	143.1	$	143.1	$	—	$	143.1	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	15.1	$	15.1	$	—	$	15.1	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,600.3	$	1,609.3	$	1,609.3	$	—	$	—
5.625% Notes	$	399.5	$	418.0	$	418.0	$	—	$	—
Convertible notes	$	239.8	$	1,274.5	$	1,274.5	$	—	$	—
Other long-term obligations	$	73.0	$	72.8	$	—	$	72.8	$	—
Other liabilities	$	10.1	$	10.1	$	—	$	2.8	$	7.3
Puts and calls related to certain Barstool Sports shares	$	0.3	$	0.3	$	—	$	0.3	$	—

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


(in millions)	Other Liabilities
Balance as of January 1, 2021	$	7.3
Additions	72.5
Interest	1.5

Included in earnings (1)	0.1
Balance as of March 31, 2021	$	81.4

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

The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 liabilities on a recurring basis as of March 31, 2021:

Valuation Technique

Unobservable Input

Discount Rate

Other long-term obligation

Discounted cash flow

Discount rate

25.00%

Contingent purchase price - Plainridge Park Casino

Discounted cash flow

Discount rate

5.28%

- 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

Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Lease Costs
Total	$ 128.7	$ 114.7
Finance Lease Costs
Total	5.6	5.9
General and administrative
Operating Lease Costs
Rent expense associated with triple net operating leases	110.4	97.5
General and administrative \| Penn Master Lease
Operating Lease Costs
Variable lease cost	3.2	3.1
Cost of Revenue
Operating Lease Costs
Operating lease cost	3.9	4.3
Cost of Revenue \| Primarily Gaming expense
Operating Lease Costs
Short-term lease cost	13.3	12.1
Variable lease cost	1.1	0.8
Interest expense, net
Finance Lease Costs
Interest on lease liabilities	3.7	3.9
Financing Obligation Costs
Interest on financing obligations	102.6	97.4
Interest expense, net \| Penn Master Lease
Operating Lease Costs
Variable lease cost	3.0	3.4
Depreciation and amortization
Finance Lease Costs
Amortization of ROU assets	$ 1.9	$ 2.0

Significant Accounting Policies - Gaming and Racing Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Gaming taxes	$ 417.9	$ 336.3

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
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, are reported in the interim period in which they occur. The effective tax rate (income taxes as a percentage of income or loss before income taxes) including discrete items was 18.5% for the three months ended March 31, 2021, as compared to 14.1% for the three months ended March 31, 2020. Our 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 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 of each reporting date, the Company considers all available positive and negative evidence that could affect its view of the future realization of deferred tax assets pursuant to ASC Topic 740, “Income Taxes.” As of March 31, 2021, we intend to continue maintaining a valuation allowance on our deferred tax assets until there is sufficient positive evidence to support the reversal of all or some portion of these allowances. A reduction in the valuation allowance would result in a significant decrease to income tax expense in the period the release is recorded. However, the exact timing and amount of the reduction in our valuation allowance are unknown at this time and will be subject to the earnings level we achieve in 2021 as well as our projected income levels in future periods. During the three months ended March 31, 2021, the Company increased the valuation allowance in the amount of $5.3 million on certain federal and state deferred tax assets that are not more likely than not to be realized. As of March 31, 2021 and December 31, 2020, prepaid income taxes of $32.5 million and $52.7 million, respectively, were included in “Prepaid expenses” within our unaudited Consolidated Balance Sheets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Significant Accounting Policies - Revenue Recognition and Complimentaries (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	$ 64.4	$ 88.1
Food and beverage
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	36.1	54.0
Hotel
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	26.4	30.9
Other
Revenue from External Customer [Line Items]
Total complimentaries associated with gaming contracts	$ 1.9	$ 3.2

Long-term Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Long-term Debt

The table below presents long-term debt, net of current maturities:


(in millions)	March 31, 2021		December 31, 2020
Senior Secured Credit Facilities:
Revolving Credit Facility due 2023	$	—	$	—
Term Loan A Facility due 2023	623.6		636.9
Term Loan B-1 Facility due 2025	988.4		991.2
5.625% Notes due 2027	400.0		400.0
2.75% Convertible Notes due 2026	330.5		330.5
Other long-term obligations	146.3		73.0
	2,488.8		2,431.6
Less: Current maturities of long-term debt	(85.8)		(81.4)
Less: Debt discount	(83.1)		(86.2)
Less: Debt issuance costs	(30.4)		(32.8)
	$	2,289.5	$	2,231.2

Senior Secured Credit Facilities

In January 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 $700.0 million revolving credit facility (the “Revolving Credit Facility”), (ii) a five-year $300.0 million term loan A facility (the “Term Loan A Facility”), and (iii) a seven-year $500.0 million Term Loan B facility (the “Term Loan B Facility” and collectively with the Revolving Credit Facility and the Term Loan A Facility, the “Senior Secured Credit Facilities”).

On October 15, 2018, in connection with the acquisition of Pinnacle Entertainment, Inc. (the “Pinnacle Acquisition”), we entered into an incremental joinder agreement (the “Incremental Joinder”), which amended the Credit Agreement (the “Amended 2017 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”). With the exception of extending the maturity date, the Incremental Joinder did not impact the Revolving Credit Facility.

On April 14, 2020, the Company entered into a second amendment to its Credit Agreement with its various lenders (the “Second Amendment”) to provide for certain modifications. During the period beginning on April 14, 2020 and ending on the earlier of (x) the date that is two business days after the date on which the Company delivered a covenant relief period termination notice to the administrative agent and (y) the date on which the administrative agent received a compliance certificate for the quarter ended March 31, 2021 (the “Covenant Relief Period”), the Company does not have to comply with any Maximum Leverage Ratio or Minimum Interest Coverage Ratio (as such terms are defined in the Amended 2017 Credit Agreement). During the Covenant Relief Period, the Company would be subject to a minimum liquidity covenant that required

cash and cash equivalents and availability under its Revolving Credit Facility to be (i) at least $400.0 million through April 30, 2020; (ii) $350.0 million during the period from May 1, 2020 through May 31, 2020; (iii) $300.0 million during the period from June 1, 2020 through June 30, 2020; and (iv) $225.0 million during the period from July 1, 2020 through March 31, 2021.

The Second Amendment also amended the financial covenants that are applicable after the Covenant Relief Period to permit the Company to (i) maintain a maximum consolidated total net leverage ratio of 5.50:1.00 for the quarter ended March 31, 2021, 5.00:1.00 for the quarter ended June 30, 2021, 4.75:1.00 for the quarter ended September 30, 2021, 4.50:1.00 for the quarter ended December 31, 2021, and 4.25:1.00 thereafter, tested quarterly on a pro forma trailing twelve month (“PF TTM”) basis; (ii) maintain a maximum senior secured net leverage ratio of 4.50:1.00 for the quarter ended March 31, 2021, 4.00:1.00 for the quarter ended June 30, 2021, 3.75:1.00 for the quarter ended September 30, 2021, 3.50:1.00 for the quarter ended December 31, 2021, and 3.00:1.00 thereafter, tested quarterly on a PF TTM basis; and (iii) maintain an interest coverage ratio of 2.50:1.00, tested quarterly on a PF TTM basis.

In addition, the Second Amendment (i) provided that, during the Covenant Relief Period, loans under the Revolving Credit Facility and the Term Loan A Facility shall bear interest at either a base rate or an adjusted LIBOR rate, in each case, plus an applicable margin, in the case of base rate loans, of 2.00%, and in the case of adjusted LIBOR rate loans, of 3.00%; (ii) provided that, during the Covenant Relief Period, the Company shall pay a commitment fee on the unused portion of the commitments under the Revolving Credit Facility at a rate of 0.50% per annum; (iii) provided for a 0.75% LIBOR floor applicable to all LIBOR loans under the Senior Secured Credit Facilities; (iv) carved out COVID-19 related effects from certain terms of the Senior Secured Credit Facilities during the Covenant Relief Period; and (v) made certain other changes to the covenants and other provisions of the Credit Agreement. Interest on the Term Loan B-1 Facility was not affected by the Second Amendment.

Upon conclusion of the Covenant Relief Period, loans under the Senior Secured Credit Facilities bear interest at either a base rate or an adjusted LIBOR rate, plus an applicable margin. The applicable margins for the Revolving Credit Facility and Term Loan A Facility range from 1.25% to 3.00% per annum for LIBOR loans and 0.25% to 2.00% per annum for base rate loans, in each case depending on the Consolidated Total Net Leverage Ratio (as defined in the Amended 2017 Credit Agreement) as of the most recent fiscal quarter. The Term Loan B-1 Facility continues to bear interest at 2.25% per annum for LIBOR loans and 1.25% per annum for base rate loans. All loans under the Senior Secured Credit Facilities are subject to a LIBOR “floor” of 0.75%. In addition, a commitment fee is paid on the unused portion of the commitments under the Revolving Credit Facility at a rate that ranges from 0.20% to 0.50% per annum, depending on the Consolidated Total Net Leverage Ratio as of the most recent fiscal quarter.

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.

As of March 31, 2021, and December 31, 2020, the Company had conditional obligations under letters of credit issued pursuant to the Senior Secured Credit Facilities with face amounts aggregating to $28.0 million and $28.2 million, respectively, resulting in $672.0 million and $671.8 million, respectively, of available borrowing capacity under the Revolving Credit Facility.

5.625% Senior Unsecured Notes

On January 19, 2017, the Company completed an offering of $400.0 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 15th and July 15th of each year. The 5.625% Notes are not guaranteed by any of the Company’s subsidiaries except in the event that the Company in the future issues certain subsidiary-guaranteed debt securities. The Company may redeem the 5.625% Notes at any time on or after January 15, 2022, at the declining redemption premiums set forth in the indenture governing the 5.625% Notes, and, prior to January 15, 2022, at a “make-whole” redemption premium set forth in the indenture governing the 5.625% Notes.

2.75% Unsecured Convertible Notes

In May 2020, the Company completed an offering of $330.5 million aggregate principal amount of 2.75% unsecured convertible notes that mature, unless earlier converted, redeemed or repurchased, on May 15, 2026 (the “Convertible Notes”) at a price of par. After lender fees and discounts, net proceeds received by the Company were $322.2 million. Interest on the Convertible Notes is payable on May 15th and November 15th of each year, commencing November 15, 2020.

The Convertible Notes are convertible into shares of the Company’s common stock at an initial conversion price of $23.40 per share, or 42.7350 shares, per $1,000 principal amount of notes, subject to adjustment if certain corporate events occur.

However, in no event will the conversion exceed 55.5555 shares of common stock per $1,000 principal amount of notes. As of March 31, 2021, the maximum number of shares that could be issued to satisfy the conversion feature of the Convertible Notes is 18,360,815 and the amount by which the Convertible Notes if-converted value exceeded its principal amount was $1,594.4 million.

Starting in the fourth quarter of 2020 and prior to February 15, 2026, at their election, holders of the Convertible Notes may convert outstanding notes if the trading price of the Company’s common stock exceeds 130% of the initial conversion price or, starting shortly after the issuance of the Convertible Notes, if the trading price per $1,000 principal amount of notes is less than 98% of the product of the trading price of the Company’s common stock and the conversion rate then in effect. The Convertible Notes may, at the Company’s election, be settled in cash, shares of common stock of the Company, or a combination thereof. The Company has the option to redeem the Convertible Notes, in whole or in part, beginning November 20, 2023.

In addition, the Convertible Notes convert into shares of the Company’s common stock upon the occurrence of certain corporate events that constitute a fundamental change under the indenture governing the Convertible Notes at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase. In connection with certain corporate events or if the Company issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their Convertible Notes in connection with such corporate events or during the relevant redemption period for such Convertible Notes.

As of March 31, 2021 and December 31, 2020, no Convertible Notes have been converted into the Company's common stock.

The Convertible Notes contain a cash conversion feature, and as a result, the Company has separated it into liability and equity components. The Company valued the liability component based on its borrowing rate for a similar debt instrument that does not contain a conversion feature. The equity component, which is recognized as debt discount, was valued as the difference between the face value of the Convertible Notes and the fair value of the liability component. The equity component was valued at $91.8 million upon issuance of the Convertible Notes.

In connection with the Convertible Notes issuance, the Company incurred debt issuance costs of $10.2 million, which were allocated on a pro rata basis to the liability component and the equity component in the amounts of $6.6 million and $3.6 million, respectively.

The Convertible Notes consisted of the following components:


(in millions)	March 31, 2021
Liability component:
Principal	$	330.5
Unamortized debt discount	(81.4)
Unamortized debt issuance costs	(6.0)
Net carrying amount	$	243.1

Carrying amount of equity component	$	88.2

Interest expense, net

The table below presents interest expense, net:


	For the three months ended March 31,
(in millions)	2021		2020
Interest expense	$	(136.6)	$	(130.4)
Interest income	0.2		0.2
Capitalized interest	0.7		0.4
Interest expense, net	$	(135.7)	$	(129.8)

The table below presents interest expense related to the Convertible Notes:


	For the three months ended March 31,
(in millions)	2021
Coupon interest	$	2.3
Amortization of debt discount	3.1
Amortization of debt issuance costs	0.2
Convertible Notes interest expense	$	5.6

The debt discount and the debt issuance costs attributable to the liability component are being amortized to interest expense over the term of the Convertible Notes at an effective interest rate of 9.23%. The remaining term of the Convertible Notes was 5.1 years as of March 31, 2021.

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, our 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. Our debt agreements also contain customary events of default, including cross-default provisions that require us to meet certain requirements under the Penn Master Lease and the Pinnacle Master Lease, each with GLPI. If we are unable to meet our financial covenants or in the event of a cross-default, it could trigger an acceleration of payment terms.

As of March 31, 2021, the Company was in compliance with all required financial covenants. The Company believes that it will remain in compliance with all of its required financial covenants for at least the next twelve months following the date of filing this Quarterly Report on Form 10-Q with the SEC.

Other Long-Term Obligations

Other Long-term Obligation

In February 2021, we entered into a financing arrangement providing the Company with upfront cash proceeds while permitting us to participate in future proceeds on certain claims. The financing obligation has been classified as a non-current liability, which is expected to be settled in a future period of which the principal is contingent and predicated on other events. Consistent with an obligor’s accounting under a debt instrument, period interest will be accreted using an effective interest rate of 25% and until such time that the claims and related obligation is settled. The amount included in interest expense related to this obligation was $1.5 million for the three months ended March 31, 2021.

Ohio Relocation Fees

Other long-term obligations included $60.9 million as of March 31, 2021 and December 31, 2020, related to the relocation fees for Hollywood Gaming at Dayton Raceway (“Dayton”) and Hollywood Gaming at Mahoning Valley Race Course (“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 facilities 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 $0.7 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively.

Event Center

As of March 31, 2021 and December 31, 2020, other long-term obligations included $11.4 million and $12.0 million, respectively, related to the repayment obligation of a hotel and event center located less than a mile away from Hollywood Casino Lawrenceburg, which was constructed by the City of Lawrenceburg Department of Redevelopment. Effective in January 2015, by contractual agreement, we assumed a repayment obligation for the hotel and event center in the amount of $15.3 million, which was financed through a loan with the City of Lawrenceburg Department of Redevelopment, in exchange for conveyance of the property. Beginning in January 2016, the Company was obligated to make annual payments on the loan

of $1.0 million for 20 years. This obligation is accreted to interest expense at its effective yield of 3.0%. The amount included in interest expense related to this obligation was $0.1 million for each of the three months ended March 31, 2021 and 2020.

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

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 March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

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 March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

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 March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

Schedule of Other Information and Supplemental Cash Flow Information Related to Leases

Total payments made under the Triple Net Leases were as follows:


	For the three months ended March 31,
(in millions)	2021		2020
Penn Master Lease	$	117.9	$	114.8
Pinnacle Master Lease	81.3		82.5
Meadows Lease	6.2		6.7
Margaritaville Lease	5.9		5.9
Greektown Lease	13.9		13.9
Morgantown Lease	0.8		—
Total (1)	$	226.0	$	223.8

(1)Rent payable under the Tropicana Lease is nominal. Therefore, it has been excluded from the table above.

The components of lease expense were as follows:


	Location on unaudited Consolidated Statements of Operations and Comprehensive Income (Loss)	For the three months ended March 31,
(in millions)		2021		2020
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	110.4	$	97.5
Operating lease cost (2)	Primarily General and administrative	3.9		4.3
Short-term lease cost	Primarily Gaming expense	13.3		12.1
Variable lease cost (2)	Primarily Gaming expense	1.1		0.8
Total		$	128.7	$	114.7

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	3.7	$	3.9
Amortization of ROU assets (3)	Depreciation and amortization	1.9		2.0
Total		$	5.6	$	5.9

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	102.6	$	97.4

(1)Pertains to the operating lease components contained within the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, the Greektown Lease, and the Tropicana Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land), which was $3.2 million and $3.1 million for the three months ended March 31, 2021 and 2020, respectively.

(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)Pertains to the Dayton and Mahoning Valley finance leases.

(4)Pertains to the components contained within the Master Leases (primarily buildings) and Morgantown Lease determined to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings), which was $3.0 million and $3.4 million for the three months ended March 31, 2021 and 2020, respectively.

Long-term Debt - Debt Summary (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	May 31, 2020	Jan. 19, 2017
Debt Instrument [Line Items]
Interest rate	5.625%
Principal	$ 2,488.8	$ 2,431.6
Less: Current maturities of long-term debt	(85.8)	(81.4)
Less: Debt discount	(83.1)	(86.2)
Less: Debt issuance costs	(30.4)	(32.8)
Long-term debt, net of current maturities, debt discount and debt issuance costs	2,289.5	2,231.2
Senior Secured Credit Facilities \| Revolving Credit Facility due 2023
Debt Instrument [Line Items]
Principal	0.0	0.0
Senior Secured Credit Facilities \| Term Loan A Facility due 2023
Debt Instrument [Line Items]
Principal	623.6	636.9
Senior Secured Credit Facilities \| Term Loan B-1 Facility due 2025
Debt Instrument [Line Items]
Principal	$ 988.4	$ 991.2
Senior Notes \| 5.625% Notes due 2027
Debt Instrument [Line Items]
Interest rate	5.625%	5.625%		5.625%
Principal	$ 400.0	$ 400.0
Convertible Notes \| 2.75% Convertible Notes due 2026
Debt Instrument [Line Items]
Interest rate	2.75%		2.75%
Principal	$ 330.5	330.5
Other long-term obligations
Debt Instrument [Line Items]
Principal	$ 146.3	$ 73.0

Revenue Disaggregation

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Disaggregation

We generate revenues at our owned, managed or operated properties principally by providing the following types of services: (i) gaming, including iGaming; (ii) food and beverage; (iii) hotel; and (iv) other. Other revenues are principally comprised of ancillary gaming-related activities, such as commissions received on ATM transactions, racing, and Penn Interactive’s social gaming. In addition, we assess our revenues based on geographic location of the related properties, which is consistent with our reportable segments (see Note 16, “Segment Information,” for further information). Our revenue disaggregation by type of revenue and geographic location was as follows:


	For the three months ended March 31, 2021
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations (1)		Total
Revenues:
Gaming	$	527.0	$	245.4	$	69.1	$	216.9	$	23.6	$	—	$	1,082.0
Food and beverage	20.9		23.1		11.9		7.0		0.1		—		63.0
Hotel	5.8		19.6		12.5		5.9		—		—		43.8
Other	17.2		7.8		3.1		4.9		64.2		(11.1)		86.1
Total revenues	$	570.9	$	295.9	$	96.6	$	234.7	$	87.9	$	(11.1)	$	1,274.9


	For the three months ended March 31, 2020
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations (1)		Total
Revenues:
Gaming	$	458.7	$	168.6	$	71.9	$	196.2	$	7.6	$	(0.1)	$	902.9
Food and beverage	33.9		29.7		23.5		17.8		0.2		—		105.1
Hotel	8.8		17.8		25.8		8.2		—		—		60.6
Other	19.3		7.2		5.4		5.9		12.5		(2.8)		47.5
Total revenues	$	520.7	$	223.3	$	126.6	$	228.1	$	20.3	$	(2.9)	$	1,116.1

(1) Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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:


	March 31, 2021
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	2,062.2	$	2,062.2	$	2,062.2	$	—	$	—
Equity securities	$	169.3	$	169.3	$	—	$	169.3	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	15.1	$	15.1	$	—	$	15.1	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,586.4	$	1,603.9	$	1,603.9	$	—	$	—
5.625% Notes	$	399.5	$	415.5	$	415.5	$	—	$	—
Convertible Notes	$	243.1	$	1,488.9	$	1,488.9	$	—	$	—
Other long-term obligations	$	146.3	$	146.3	$	—	$	72.3	$	74.0
Other liabilities	$	10.2	$	10.0	$	—	$	2.6	$	7.4
Puts and calls related to certain Barstool Sports shares	$	3.1	$	3.1	$	—	$	3.1	$	—


	December 31, 2020
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	1,853.8	$	1,853.8	$	1,853.8	$	—	$	—
Equity securities	$	143.1	$	143.1	$	—	$	143.1	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	15.1	$	15.1	$	—	$	15.1	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,600.3	$	1,609.3	$	1,609.3	$	—	$	—
5.625% Notes	$	399.5	$	418.0	$	418.0	$	—	$	—
Convertible notes	$	239.8	$	1,274.5	$	1,274.5	$	—	$	—
Other long-term obligations	$	73.0	$	72.8	$	—	$	72.8	$	—
Other liabilities	$	10.1	$	10.1	$	—	$	2.8	$	7.3
Puts and calls related to certain Barstool Sports shares	$	0.3	$	0.3	$	—	$	0.3	$	—

Schedule 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:


(in millions)	Other Liabilities
Balance as of January 1, 2021	$	7.3
Additions	72.5
Interest	1.5

Included in earnings (1)	0.1
Balance as of March 31, 2021	$	81.4

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

Schedule 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 March 31, 2021:

Valuation Technique

Unobservable Input

Discount Rate

Other long-term obligation

Discounted cash flow

Discount rate

25.00%

Contingent purchase price - Plainridge Park Casino

Discounted cash flow

Discount rate

5.28%

Significant Accounting Policies - Segment Information (Details)	3 Months Ended
	Mar. 31, 2021 facility segment
Segment Reporting Information [Line Items]
Number of reportable segments	4
Kansas Entertainment
Segment Reporting Information [Line Items]
Ownership interest	50.00%
Jackpot, Nevada
Segment Reporting Information [Line Items]
Number of facilities the entity owned, managed, or had ownership interests in \| facility	2
Number of operating segments	1

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule 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, 2020
Goodwill, gross	$	914.3	$	236.6	$	216.8	$	1,116.7	$	155.5	$	2,639.9
Accumulated goodwill impairment losses	(761.4)		(61.0)		(16.6)		(556.1)		(87.7)		(1,482.8)
Goodwill, net	$	152.9	$	175.6	$	200.2	$	560.6	$	67.8	$	1,157.1

Balance as of March 31, 2021
Goodwill, gross	$	914.3	$	236.6	$	216.8	$	1,116.7	$	155.5	$	2,639.9
Accumulated goodwill impairment losses	(761.4)		(61.0)		(16.6)		(556.1)		(87.7)		(1,482.8)
Goodwill, net	$	152.9	$	175.6	$	200.2	$	560.6	$	67.8	$	1,157.1

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:


	March 31, 2021						December 31, 2020
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,246.4	$	—	$	1,246.4	$	1,246.1	$	—	$	1,246.1
Trademarks	240.9		—		240.9		240.9		—		240.9
Other	0.7		—		0.7		0.7		—		0.7
Amortizing intangible assets
Customer relationships	106.9		(86.7)		20.2		106.9		(85.2)		21.7
Other	39.9		(36.2)		3.7		39.6		(35.5)		4.1
Total other intangible assets	$	1,634.8	$	(122.9)	$	1,511.9	$	1,634.2	$	(120.7)	$	1,513.5

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:


	March 31, 2021						December 31, 2020
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,246.4	$	—	$	1,246.4	$	1,246.1	$	—	$	1,246.1
Trademarks	240.9		—		240.9		240.9		—		240.9
Other	0.7		—		0.7		0.7		—		0.7
Amortizing intangible assets
Customer relationships	106.9		(86.7)		20.2		106.9		(85.2)		21.7
Other	39.9		(36.2)		3.7		39.6		(35.5)		4.1
Total other intangible assets	$	1,634.8	$	(122.9)	$	1,511.9	$	1,634.2	$	(120.7)	$	1,513.5

Schedule of Expected Intangible Asset Amortization Expense

The following table presents the estimated amortization expense based on our amortizing intangible assets as of March 31, 2021 (in millions):


Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	5.4
2022	5.6
2023	4.2
2024	3.7
2025	3.0
Thereafter	2.0
Total	$	23.9

Fair Value Measurements - Significant Unobservable Inputs For Level 3 Assets and Liabilities (Details) - Level 3 - Discount rate - Discounted cash flow	Mar. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.2500
Plainridge Park Casino
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration, measurement input	0.0528

Hurricane Laura

3 Months Ended

Mar. 31, 2021

Unusual or Infrequent Items, or Both [Abstract]

Hurricane Laura

On August 27, 2020, Hurricane Laura made landfall in Lake Charles, Louisiana, which caused significant damage to our L’Auberge Lake Charles property and closure of the property for approximately two weeks. The Company maintains insurance, subject to certain deductibles and coinsurance, for the repair or replacement of assets that suffered loss and provides coverage for interruption to our business, including lost profits.

The Company recorded a receivable relating to our estimate of repairs and maintenance costs which have been incurred and property and equipment which have been written off, and for which we deem the recovery of such costs and property and

equipment from our insurers to be probable. The insurance recovery receivable is included in “Receivables” within the unaudited Consolidated Balance Sheets. As we deem it is probable that the proceeds to be recovered from our insurers exceeds the total of our insurance recovery recorded and our insurers’ deductible and coinsurance, we did not record any loss associated with the impact of this natural disaster. Timing differences are likely to exist between the recognition of (i) impairment losses and capital expenditures made to repair or restore the assets and (ii) the receipt of insurance proceeds within the unaudited Consolidated Financial Statements.

As of March 31, 2021 and December 31, 2020, the amount of the receivable was $27.0 million and $23.0 million, respectively. During the three months ended March 31, 2021, no proceeds were received from our insurers and we identified an additional $4.0 million of costs related to our policy claim. We continue to be in the process of quantifying the claim amount under the policies to be submitted to our insurers.

We will record proceeds in excess of the recognized losses and lost profits under our business interruption insurance as a gain contingency in accordance with ASC 450, “Contingencies,” which we expect to recognize at the time of final settlement or when nonrefundable cash advances are made in a period subsequent to March 31, 2021.

The following table summarizes the financial impact of Hurricane Laura related matters:


(in millions)	March 31, 2021		December 31, 2020
Insurance Proceeds	$	47.5	$	47.5
Deductible	$	15.0	$	15.0
Coinsurance	$	2.5	$	2.5
Clean-up and Restoration Costs	$	51.1	$	47.1
Fixed Asset Write-off	$	23.2	$	23.2
Inventory Write-off	$	0.2	$	0.2
Insurance Receivable	$	27.0	$	23.0

Segment Information

3 Months Ended

Mar. 31, 2021

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.

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 (loss).


	For the three months ended March 31,
(in millions)	2021		2020
Revenues:
Northeast segment	$	570.9	$	520.7
South segment	295.9		223.3
West segment	96.6		126.6
Midwest segment	234.7		228.1
Other (1)	87.9		20.3
Intersegment eliminations (2)	(11.1)		(2.9)
Total	$	1,274.9	$	1,116.1

Adjusted EBITDAR (3):
Northeast segment	$	193.2	$	124.5
South segment	133.9		52.6
West segment	35.2		24.6
Midwest segment	106.0		69.5
Other (1)	(21.3)		(18.9)

Total (3)	447.0		252.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)	(110.4)		(97.5)
Stock-based compensation	(4.2)		(6.0)
Cash-settled stock-based awards variance	(21.5)		8.9
Gain (loss) on disposal of assets	0.1		(0.6)
Contingent purchase price	(0.1)		2.2
Pre-opening and acquisition costs	(1.6)		(3.2)
Depreciation and amortization	(81.3)		(95.7)
Impairment losses	—		(616.1)
Insurance recoveries, net of deductible charges	—		0.1
Non-operating items of equity method investments (5)	(1.6)		(0.9)
Interest expense, net	(135.7)		(129.8)

Other (6)	20.8		(21.8)


Income (loss) before income taxes	111.5		(708.1)
Income tax benefit (expense)	(20.6)		99.5
Net income (loss)	$	90.9	$	(608.6)

(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club and the Company’s JV interests in Sam Houston Race Park, Valley Race Park, and Freehold Raceway; our management contract for Retama Park Racetrack and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour (“HPT”). The Other category also includes Penn Interactive, which operates social gaming, our internally-branded retail sportsbooks, iGaming and our Barstool Sports online sports betting app. 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 not otherwise been allocated to a property. In addition, the Other category includes our proportionate share of the Adjusted EBITDAR of Barstool Sports (as determined and discussed in footnotes (3) and (5) below).

(2)Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

(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 losses; insurance recoveries, net of 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 (see footnote (5) below) added back for Barstool Sports and our Kansas Entertainment JV.

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

(5)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment JV.

(6)Principally includes holding gains on our equity securities, which are discussed in Note 15, “Fair Value Measurements.” Additionally, includes non-recurring restructuring charges (primarily severance) associated with a company-wide initiative, triggered by the COVID-19 pandemic, designed to (i) improve the operational effectiveness across our property portfolio; and (ii) improve the effectiveness and efficiency of our Corporate functional support areas.


	For the three months ended March 31,
(in millions)	2021		2020
Capital expenditures:
Northeast segment	$	15.4	$	30.3
South segment	1.8		4.0
West segment	3.2		2.5
Midwest segment	1.9		3.4
Other	3.4		2.6
Total capital expenditures	$	25.7	$	42.8


(in millions)	Northeast		South		West		Midwest		Other (1)		Total
As of March 31, 2021
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.9	$	189.8	$	275.8
Total assets	$	2,040.3	$	1,184.8	$	402.6	$	1,213.7	$	10,046.8	$	14,888.2

As of December 31, 2020
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.2	$	181.5	$	266.8
Total assets	$	1,958.4	$	1,165.4	$	401.5	$	1,161.1	$	9,980.9	$	14,667.3

(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.

(2)Our investment in Barstool Sports is included within the Other category.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Segment Information (Details) $ in Millions	3 Months Ended
Segment Information (Details) $ in Millions	Mar. 31, 2021 USD ($) segment	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
Revenues:
Revenues	$ 1,274.9	$ 1,116.1
Adjusted EBITDAR:
Adjusted EBITDAR	447.0	252.3
Rent expense associated with triple net operating leases	(110.4)	(97.5)
Stock-based compensation	(4.2)	(6.0)
Cash-settled stock-based awards variance	(21.5)	8.9
Gain (loss) on disposal of assets	0.1	(0.6)
Contingent purchase price	(0.1)	2.2
Pre-opening and acquisition costs	(1.6)	(3.2)
Depreciation and amortization	(81.3)	(95.7)
Impairment losses	0.0	(616.1)
Insurance recoveries, net of deductible charges	0.0	0.1
Non-operating items of equity method investments	(1.6)	(0.9)
Interest expense, net	(135.7)	(129.8)
Other	20.8	(21.8)
Income (loss) before income taxes	111.5	(708.1)
Income tax benefit (expense)	(20.6)	99.5
Net income (loss)	90.9	(608.6)
Capital expenditures:
Capital expenditures	25.7	42.8
Assets:
Investment in and advances to unconsolidated affiliates	275.8		$ 266.8
Total assets	14,888.2		14,667.3
Operating Segments \| Northeast
Revenues:
Revenues	570.9	520.7
Adjusted EBITDAR:
Adjusted EBITDAR	193.2	124.5
Capital expenditures:
Capital expenditures	15.4	30.3
Assets:
Investment in and advances to unconsolidated affiliates	0.1		0.1
Total assets	2,040.3		1,958.4
Operating Segments \| South
Revenues:
Revenues	295.9	223.3
Adjusted EBITDAR:
Adjusted EBITDAR	133.9	52.6
Capital expenditures:
Capital expenditures	1.8	4.0
Assets:
Investment in and advances to unconsolidated affiliates	0.0		0.0
Total assets	1,184.8		1,165.4
Operating Segments \| West
Revenues:
Revenues	96.6	126.6
Adjusted EBITDAR:
Adjusted EBITDAR	35.2	24.6
Capital expenditures:
Capital expenditures	3.2	2.5
Assets:
Investment in and advances to unconsolidated affiliates	0.0		0.0
Total assets	402.6		401.5
Operating Segments \| Midwest
Revenues:
Revenues	234.7	228.1
Adjusted EBITDAR:
Adjusted EBITDAR	106.0	69.5
Capital expenditures:
Capital expenditures	1.9	3.4
Assets:
Investment in and advances to unconsolidated affiliates	85.9		85.2
Total assets	1,213.7		1,161.1
Other
Revenues:
Revenues	87.9	20.3
Adjusted EBITDAR:
Adjusted EBITDAR	(21.3)	(18.9)
Capital expenditures:
Capital expenditures	3.4	2.6
Assets:
Investment in and advances to unconsolidated affiliates	189.8		181.5
Total assets	10,046.8		$ 9,980.9
Intersegment eliminations
Revenues:
Revenues	$ (11.1)	$ (2.9)

Stockholders’ Equity and Stock-Based Compensation (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Feb. 20, 2020 $ / shares shares	Feb. 28, 2019 shares	Mar. 31, 2021 USD ($) performance_period $ / shares shares	Mar. 31, 2020 USD ($) shares	Dec. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issuance (in shares) \| shares			151,200
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.01
Stock-based compensation expense (reduction to expense) \| $			$ 4.2	$ 6.0
Stock options granted (in shares) \| shares			200,000	600,000
Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (reduction to expense) \| $			$ 4.7	$ 0.1
Liability for cash-settled awards \| $			8.9		$ 10.1
Unrecognized compensation cost, other awards \| $			$ 20.2
Unamortized compensation costs, weighted average period of recognition			2 years
Amounts paid on cash-settled awards \| $			$ 5.9	2.8
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]
Vesting period			4 years
Stock-based compensation expense (reduction to expense) \| $			$ 20.3	(5.5)
Liability for cash-settled awards \| $			38.7		$ 54.6
Unrecognized compensation cost, other awards \| $			$ 79.9
Unamortized compensation costs, weighted average period of recognition			2 years 6 months
Amounts paid on cash-settled awards \| $			$ 37.2	$ 6.6
2018 Long Term Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for awards, up to (in shares) \| shares			12,700,000
Common stock counted against the maximum shares available for grant for each share awarded under the plan (in shares)			1
Shares available for future grants (in shares) \| shares			7,404,918
2018 Long Term Incentive Compensation Plan \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock counted against the maximum shares available for grant for each share awarded under the plan (in shares)			2.30
Performance Share Program II \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares) \| shares		107,297	0
Award period			3 years
Number of annual award performance periods \| performance_period			3
Service period			1 year
Vesting period			3 years
Performance Share Program II \| 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 II \| Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award which can potentially be earned			150.00%
Series D Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issuance (in shares) \| shares	883		43
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.01		$ 0.01		$ 0.01
Convertible debt issuance (in shares) \| shares			151.2
Preferred stock, shares authorized (in shares) \| shares			5,000		5,000
Preferred stock, shares outstanding (in shares) \| shares			775		883

Hurricane Laura - Additional Information (Details) - Hurricane Laura		3 Months Ended	12 Months Ended
	Aug. 27, 2020 week	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Number of weeks of property closure \| week	2
Insurance receivable		$ 27,000,000.0	$ 23,000,000.0
Received from our insurers proceeds		0
Costs related to our policy claim		$ 4,000,000.0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 2,062.2	$ 1,853.8
Receivables, net	137.5	96.4
Prepaid expenses	112.2	103.5
Other current assets	35.8	31.3
Total current assets	2,347.7	2,085.0
Property and equipment, net	4,483.2	4,529.3
Investment in and advances to unconsolidated affiliates	275.8	266.8
Goodwill	1,157.1	1,157.1
Other intangible assets, net	1,511.9	1,513.5
Lease right-of-use assets	4,785.9	4,817.7
Other assets	326.6	297.9
Total assets	14,888.2	14,667.3
Current liabilities
Accounts payable	26.7	33.2
Current maturities of long-term debt	85.8	81.4
Current portion of financing obligations	36.7	36.0
Current portion of lease liabilities	137.7	134.3
Accrued expenses and other current liabilities	660.4	575.1
Total current liabilities	947.3	860.0
Long-term debt, net of current maturities, debt discount and debt issuance costs	2,289.5	2,231.2
Long-term portion of financing obligations	4,087.0	4,096.4
Long-term portion of lease liabilities	4,547.7	4,578.2
Deferred income taxes	134.6	126.3
Other long-term liabilities	126.3	119.4
Total liabilities	12,132.4	12,011.5
Commitments and contingencies
Stockholders’ equity
Common stock ($0.01 par value, 200,000,000 shares authorized, 158,497,534 and 157,868,227 shares issued, and 156,330,141 and 155,700,834 shares outstanding)	1.6	1.6
Treasury stock, at cost, (2,167,393 shares held in both periods)	(28.4)	(28.4)
Additional paid-in capital	3,175.2	3,167.2
Retained earnings (accumulated deficit)	(416.3)	(507.3)
Total Penn National stockholders’ equity	2,756.3	2,656.2
Non-controlling interest	(0.5)	(0.4)
Total stockholders’ equity	2,755.8	2,655.8
Total liabilities and stockholders’ equity	14,888.2	14,667.3
Series B Preferred Stock
Stockholders’ equity
Preferred stock	0.0	0.0
Series C Preferred Stock
Stockholders’ equity
Preferred stock	0.0	0.0
Series D Preferred Stock
Stockholders’ equity
Preferred stock	$ 24.2	$ 23.1

Hurricane Laura - Summary of Financial Impact of Hurricane Laura (Details) - Hurricane Laura - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Unusual or Infrequent Item, or Both [Line Items]
Insurance Proceeds	$ 47.5	$ 47.5
Deductible	15.0	15.0
Coinsurance	2.5	2.5
Clean-up and Restoration Costs	51.1	47.1
Fixed Asset Write-off	23.2	23.2
Inventory Write-off	0.2	0.2
Insurance Receivable	$ 27.0	$ 23.0

Organization and Basis of Presentation (Details) member in Millions	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2021 member property state
Subsequent Event [Line Items]
Number of members \| member		20
Number of properties the entity owned, managed, or had ownership interests in \| property		41
Number of states in which the entity operates \| state		19
Barstool Sports, Inc
Subsequent Event [Line Items]
Ownership interest		36.00%
Investment acquired, percent, delayed basis	1.00%	1.00%

Leases - Future Minimum Lease Commitments (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Operating Leases
2021 (excluding the three months ended March 31, 2021)	$ 314.1
2022	410.3
2023	400.2
2024	383.7
2025	380.7
Thereafter	7,791.1
Total lease payments	9,680.1
Less: Imputed interest	(5,212.4)
Present value of future lease payments	4,467.7
Less: Current portion of lease obligations	(130.7)
Long-term portion of lease obligations	4,337.0
Finance Leases
2021 (excluding the three months ended March 31, 2021)	16.5
2022	21.6
2023	20.8
2024	16.7
2025	16.7
Thereafter	376.7
Total lease payments	469.0
Less: Imputed interest	(251.3)
Present value of future lease payments	217.7
Less: Current portion of lease obligations	(7.0)
Long-term portion of lease obligations	210.7
Financing Obligations
2021 (excluding the three months ended March 31, 2021)	277.7
2022	370.3
2023	370.4
2024	370.4
2025	370.5
Thereafter	9,094.5
Total lease payments	10,853.8
Less: Imputed interest	(6,730.1)
Present value of future lease payments	4,123.7
Less: Current portion of lease obligations	(36.7)	$ (36.0)
Long-term portion of lease obligations	$ 4,087.0	$ 4,096.4

Investments in and Advances to Unconsolidated Affiliates (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Feb. 20, 2020 $ / shares shares	Feb. 29, 2020 USD ($) option $ / shares	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2020 USD ($)	Mar. 15, 2021	Dec. 31, 2020 USD ($) $ / shares
Schedule of Equity Method Investments [Line Items]
Common stock, par value (in dollars per share) \| $ / shares			$ 0.01			$ 0.01
Investment purchase price, cash			$ 0.0	$ 135.0
Investment purchase price, equity				23.1
Common stock offerings ( in shares) \| shares			151,200
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.01
Return on investment from unconsolidated affiliates			$ 5.5	8.7
Sam Houston Race Park and Valley Race Park \| PM Texas Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Business acquisition, percentage of voting interests acquired					50.00%
Series D Preferred Stock
Schedule of Equity Method Investments [Line Items]
Common stock offerings ( in shares) \| shares	883		43
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.01		$ 0.01			$ 0.01
Preferred stock, conversion ratio	0.001
Preferred stock, conversion period	4 years
Preferred stock, percent to convert in each tranche	20.00%
Convertible preferred stock, shares issued upon conversion (in shares) \| shares			26
Barstool Sports, Inc
Schedule of Equity Method Investments [Line Items]
Ownership interest			36.00%
Investment acquired, percent		36.00%
Investment acquired, percent, delayed basis		1.00%	1.00%
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001
Investment purchase price		$ 161.2
Investment purchase price, cash		135.0
Investment purchase price, equity		$ 23.1
Investment acquired, period after which ownership will increase		3 years
Investment acquired, ownership percentage following additional investment		50.00%
Investment acquired, expected additional investment		$ 62.0
Investment acquired, valuation of acquiree total common stock outstanding at time of acquisition		$ 450.0
Investment acquired, period after which remaining shares of investment are callable		3 years
Investment acquired, fair market value at time of exercise, cap		$ 650.0
Investment acquired, multiplier of revenue to calculate floor at time of exercise		2.25
Equity Method Investment, Ownership Percentage Acquired			0.30%
Commercial agreement term		10 years
Commercial agreement number of renewals \| option		3
Commercial agreement renewal term		10 years
Commercial agreement term with exercise of renewals		40 years
Customer list intangible asset			$ 1.4			$ 1.6
Prepaid advertising			16.3			16.5
Prepaid advertising, long-term			15.2			15.4
Investment balance			$ 154.6			147.5
Kansas Entertainment
Schedule of Equity Method Investments [Line Items]
Ownership interest			50.00%
Investment balance			$ 85.9			$ 85.2
Return on investment from unconsolidated affiliates			$ 5.5	8.7
Freehold Raceway
Schedule of Equity Method Investments [Line Items]
Ownership interest			50.00%
MAXXAM
Schedule of Equity Method Investments [Line Items]
Ownership interest			50.00%
Other-than-temporary impairment of investment			$ 0.0	$ 4.6

Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings (Loss) per Share

For the three months ended March 31, 2021, we recorded net income attributable to Penn National. As such, we used diluted weighted-average common shares outstanding when calculating diluted income per share for the three months ended March 31, 2021. Stock options, RSAs, convertible preferred shares and convertible debt that could potentially dilute basic EPS in the future are included in the computation of diluted income per share.

For the three months ended March 31, 2020, we recorded a net loss attributable to Penn National. As such, because the dilution from potential common shares was antidilutive, we used basic weighted-average common shares outstanding, rather than diluted weighted-average common shares outstanding when calculating diluted loss per share for the three months ended March 31, 2020. Stock options, RSAs, and convertible preferred shares that could potentially dilute basic EPS in the future that were not included in the computation of diluted loss per share were as follows:


(in millions)			For the three months ended March 31, 2020
Assumed conversion of dilutive stock options			2.2
Assumed conversion of dilutive RSAs			0.3
Assumed conversion of convertible preferred shares			0.4

The following table sets forth the allocation of net income for the three months ended March 31, 2021 under the two-class method. For the three months ended March 31, 2020 we did not utilize the two-class method due to incurring a net loss for the period.


	For the three months ended March 31,
(in millions)	2021		2020
Net income (loss) attributable to Penn National	$	91.0	$	(608.6)
Net income applicable to preferred stock	0.5		—
Net income (loss) applicable to common stock	$	90.5	$	(608.6)

The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the three months ended March 31, 2021 and 2020:


	For the three months ended March 31,
(in millions)	2021	2020
Weighted-average common shares outstanding - Basic	155.7	115.7
Assumed conversion of:
Dilutive stock options	2.6	—
Dilutive RSAs	0.4	—
Convertible debt	14.1	—
Weighted-average common shares outstanding - Diluted	172.8	115.7

In addition, 0.8 million shares from the assumed conversion of convertible preferred shares were excluded from the computation of diluted income per share for the three months ended March 31, 2021 because including them would have been anti-dilutive.

Options to purchase 0.2 million and 1.2 million shares were outstanding during the three months ended March 31, 2021 and 2020, respectively, but were not included in the computation of diluted earnings (loss) per share because they were anti-dilutive.

The following table presents the calculation of basic and diluted earnings (loss) per share for the Company’s common stock for the three months ended March 31, 2021 and 2020:


	For the three months ended March 31,
(in millions, except per share data)	2021		2020
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock	$	90.5	$	(608.6)
Weighted-average common shares outstanding - basic	155.7		115.7
Basic earnings (loss) per share	$	0.58	$	(5.26)

Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock	$	90.5	$	(608.6)
Interest expense, net of tax (1):
Convertible Notes	4.3		—
Diluted income (loss) applicable to common stock	$	94.8	$	(608.6)
Weighted-average common shares outstanding - diluted	172.8		115.7
Diluted earnings (loss) per share	$	0.55	$	(5.26)

(1)The three months ended March 31, 2021 were tax-affected at a rate of 20%.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Treasury Stock	Addi- tional Paid-In Capital	Retained Earnings (Accum- ulated Deficit)	Retained Earnings (Accum- ulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Total Penn National Stock- holders’ Equity	Total Penn National Stock- holders’ Equity Cumulative Effect, Period of Adoption, Adjustment	Non-Control- ling Interest
Beginning balance (in shares) at Dec. 31, 2019			0	115,958,259
Beginning balance at Dec. 31, 2019	$ 1,851.9	$ 0.6	$ 0.0	$ 1.2	$ (28.4)	$ 1,718.3	$ 161.6	$ 0.6	$ 1,852.7	$ 0.6	$ (0.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements (in shares)				835,463
Share-based compensation arrangements	10.6					10.6			10.6
Net income (loss)	(608.6)						(608.6)		(608.6)
Barstool Sports Investment (in shares)			883
Barstool Sports Investment	23.1		$ 23.1						23.1
Ending balance (in shares) at Mar. 31, 2020			883	116,793,722
Ending balance at Mar. 31, 2020	1,277.6		$ 23.1	$ 1.2	(28.4)	1,728.9	(446.4)		1,278.4		(0.8)
Beginning balance (in shares) at Dec. 31, 2020			883	155,700,834
Beginning balance at Dec. 31, 2020	2,655.8		$ 23.1	$ 1.6	(28.4)	3,167.2	(507.3)		2,656.2		(0.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation arrangements (in shares)				478,107
Share-based compensation arrangements	$ 4.0					4.0			4.0
Share issuance (in shares)	151,200		43
Share issuance	$ 5.1		$ 5.1						5.1
Convertible debt issuance (in shares)			(151)	151,200
Conversion of Preferred Stock	0.0		$ (4.0)			4.0
Net income (loss)	90.9						91.0		91.0		(0.1)
Ending balance (in shares) at Mar. 31, 2021			775	156,330,141
Ending balance at Mar. 31, 2021	$ 2,755.8		$ 24.2	$ 1.6	$ (28.4)	$ 3,175.2	$ (416.3)		$ 2,756.3		$ (0.5)

Goodwill and Other Intangible Assets - Goodwill and Accumulated Goodwill Impairment Losses (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill, gross	$ 2,639.9	$ 2,639.9
Accumulated goodwill impairment losses	(1,482.8)	(1,482.8)
Goodwill, net	1,157.1	1,157.1
Operating Segments \| Northeast
Goodwill [Line Items]
Goodwill, gross	914.3	914.3
Accumulated goodwill impairment losses	(761.4)	(761.4)
Goodwill, net	152.9	152.9
Operating Segments \| South
Goodwill [Line Items]
Goodwill, gross	236.6	236.6
Accumulated goodwill impairment losses	(61.0)	(61.0)
Goodwill, net	175.6	175.6
Operating Segments \| West
Goodwill [Line Items]
Goodwill, gross	216.8	216.8
Accumulated goodwill impairment losses	(16.6)	(16.6)
Goodwill, net	200.2	200.2
Operating Segments \| Midwest
Goodwill [Line Items]
Goodwill, gross	1,116.7	1,116.7
Accumulated goodwill impairment losses	(556.1)	(556.1)
Goodwill, net	560.6	560.6
Other
Goodwill [Line Items]
Goodwill, gross	155.5	155.5
Accumulated goodwill impairment losses	(87.7)	(87.7)
Goodwill, net	$ 67.8	$ 67.8

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 0.01
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)	158,497,534	157,868,227
Common stock, shares outstanding (in shares)	156,330,141	155,700,834
Treasury stock (in shares)	2,167,393	2,167,393
Series B Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (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
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
Series D Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000	5,000
Preferred stock, shares issued (in shares)	926	883
Preferred stock, shares outstanding (in shares)	775	883

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	0-24206
Entity Registrant Name	PENN NATIONAL GAMING, INC.
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		156,357,939
Entity Central Index Key	0000921738
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Long-term Debt - Other Long-term Obligations (Details) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2016 USD ($)	Mar. 31, 2021 USD ($) payment	Mar. 31, 2020 USD ($)	Feb. 28, 2021	Dec. 31, 2020 USD ($)	Jan. 31, 2015 USD ($)
Debt Instrument [Line Items]
Interest expense, debt		$ 5.6
Principal		2,488.8			$ 2,431.6
Other Long-Term Obligations
Debt Instrument [Line Items]
Effective yield				25.00%
Interest expense, debt		1.5
Principal		$ 146.3			73.0
Other Long-Term Obligations \| Ohio Relocation Fees Debt
Debt Instrument [Line Items]
Effective yield		5.00%
Interest expense, debt		$ 0.7	$ 0.9
Principal		60.9			60.9
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
Other Long-Term Obligations \| Event Center Debt
Debt Instrument [Line Items]
Effective yield						3.00%
Interest expense, debt		0.1	$ 0.1
Principal		$ 11.4			$ 12.0
Debt principal amount						$ 15.3
Debt instrument, periodic payment	$ 1.0
Debt instrument, term	20 years

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

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, 2020
Goodwill, gross	$	914.3	$	236.6	$	216.8	$	1,116.7	$	155.5	$	2,639.9
Accumulated goodwill impairment losses	(761.4)		(61.0)		(16.6)		(556.1)		(87.7)		(1,482.8)
Goodwill, net	$	152.9	$	175.6	$	200.2	$	560.6	$	67.8	$	1,157.1

Balance as of March 31, 2021
Goodwill, gross	$	914.3	$	236.6	$	216.8	$	1,116.7	$	155.5	$	2,639.9
Accumulated goodwill impairment losses	(761.4)		(61.0)		(16.6)		(556.1)		(87.7)		(1,482.8)
Goodwill, net	$	152.9	$	175.6	$	200.2	$	560.6	$	67.8	$	1,157.1

There were no impairment charges recorded to goodwill during the three months ended March 31, 2021.

2020 Assessment for Impairment

During the first quarter of 2020, we identified an indicator of impairment on our goodwill and other intangible assets due to the COVID-19 pandemic. As a result of the COVID-19 pandemic, we revised our cash flow projections to reflect the current economic environment, including the uncertainty surrounding the nature, timing and extent of reopening our gaming properties. As a result of the interim assessment for impairment, during the first quarter of 2020, we recognized impairments on our goodwill, gaming licenses, and trademarks of $113.0 million, $437.0 million, and $61.5 million, respectively. The estimated fair values of the reporting units were determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs. The estimated fair values of the gaming licenses and trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.

The goodwill impairments pertained to our Northeast, South, and Midwest segments, in the amounts of $43.5 million, $9.0 million and $60.5 million, respectively. The gaming license impairments pertained to our Northeast, South, and Midwest segments in the amounts of $177.0 million, $166.0 million and $94.0 million, respectively. The trademark impairments pertained to our Northeast, South, Midwest, and West segments, in the amounts of $17.0 million, $17.0 million, $15.0 million, and $12.5 million, respectively.

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


	March 31, 2021						December 31, 2020
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets
Gaming licenses	$	1,246.4	$	—	$	1,246.4	$	1,246.1	$	—	$	1,246.1
Trademarks	240.9		—		240.9		240.9		—		240.9
Other	0.7		—		0.7		0.7		—		0.7
Amortizing intangible assets
Customer relationships	106.9		(86.7)		20.2		106.9		(85.2)		21.7
Other	39.9		(36.2)		3.7		39.6		(35.5)		4.1
Total other intangible assets	$	1,634.8	$	(122.9)	$	1,511.9	$	1,634.2	$	(120.7)	$	1,513.5

There were no impairment charges recorded to other intangible assets for the three months ended March 31, 2021.

Amortization expense related to our amortizing intangible assets was $2.2 million and $6.1 million for the three months ended March 31, 2021 and 2020, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of March 31, 2021 (in millions):


Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	5.4
2022	5.6
2023	4.2
2024	3.7
2025	3.0
Thereafter	2.0
Total	$	23.9

Earnings (Loss) per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share

Stock options, RSAs, and convertible preferred shares that could potentially dilute basic EPS in the future that were not included in the computation of diluted loss per share were as follows:


(in millions)			For the three months ended March 31, 2020
Assumed conversion of dilutive stock options			2.2
Assumed conversion of dilutive RSAs			0.3
Assumed conversion of convertible preferred shares			0.4

Schedule of Calculation of Basic and Diluted EPS


	For the three months ended March 31,
(in millions)	2021		2020
Net income (loss) attributable to Penn National	$	91.0	$	(608.6)
Net income applicable to preferred stock	0.5		—
Net income (loss) applicable to common stock	$	90.5	$	(608.6)

The following table presents the calculation of basic and diluted earnings (loss) per share for the Company’s common stock for the three months ended March 31, 2021 and 2020:


	For the three months ended March 31,
(in millions, except per share data)	2021		2020
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock	$	90.5	$	(608.6)
Weighted-average common shares outstanding - basic	155.7		115.7
Basic earnings (loss) per share	$	0.58	$	(5.26)

Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock	$	90.5	$	(608.6)
Interest expense, net of tax (1):
Convertible Notes	4.3		—
Diluted income (loss) applicable to common stock	$	94.8	$	(608.6)
Weighted-average common shares outstanding - diluted	172.8		115.7
Diluted earnings (loss) per share	$	0.55	$	(5.26)

(1)The three months ended March 31, 2021 were tax-affected at a rate of 20%.

Schedule of Reconciliation of the Weighted-average Common Shares Outstanding


	For the three months ended March 31,
(in millions)	2021	2020
Weighted-average common shares outstanding - Basic	155.7	115.7
Assumed conversion of:
Dilutive stock options	2.6	—
Dilutive RSAs	0.4	—
Convertible debt	14.1	—
Weighted-average common shares outstanding - Diluted	172.8	115.7

Investments in and Advances to Unconsolidated Affiliates	3 Months Ended
	Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investments in and Advances to Unconsolidated Affiliates	Investments in and Advances to Unconsolidated Affiliates As of March 31, 2021, investments in and advances to unconsolidated affiliates primarily consisted of the Company’s 36% interest in Barstool Sports; its 50% investment in Kansas Entertainment, the JV with NASCAR that owns Hollywood Casino at Kansas Speedway; its 50% interest in Freehold Raceway; and its 50% JV with MAXXAM, Inc. (“MAXXAM”) that owns and operates racetracks in Texas. Investment in Barstool Sports In February 2020, we closed on our investment in Barstool Sports pursuant to a stock purchase agreement with Barstool Sports and certain stockholders of Barstool Sports, in which we purchased 36% (inclusive of 1% on a delayed basis) of the common stock, par value $0.0001 per share, of Barstool Sports for a purchase price of $161.2 million. The purchase price consisted of $135.0 million in cash and $23.1 million in shares of a new class of non-voting convertible preferred stock of the Company (as discussed below). Within the three years after the closing of the transaction or earlier at our election, we will increase our ownership in Barstool Sports to approximately 50% by purchasing approximately $62.0 million worth of additional shares of Barstool Sports common stock, consistent with the implied valuation at the time of the initial investment, which was $450.0 million. With respect to the remaining Barstool Sports shares, we have immediately exercisable call rights, and the existing Barstool Sports stockholders have put rights exercisable beginning three years after closing, all based on a fair market value calculation at the time of exercise (subject to a cap of $650.0 million and, subject to such cap, a floor of 2.25 times the annualized revenue of Barstool Sports, all subject to various adjustments). On February 20, 2020, the Company issued 883 shares of Series D Preferred Stock, par value $0.01 (the "Series D Preferred Stock") to certain individual stockholders affiliated with Barstool Sports. 1/1,000th of a share of Series D Preferred Stock is convertible into one share of Penn Common Stock. The Series D Preferred Stock will be entitled to participate equally and ratably in all dividends and distributions paid to holders of Penn Common Stock based on the number of shares of Penn Common Stock into which such Series D Preferred Stock could convert. Series D Preferred Stock is nonvoting stock. The Series D Preferred Stock issued to certain individual stockholders affiliated with Barstool Sports will be available for conversion into Penn Common Stock in tranches over four years as stipulated in the stock purchase agreement, with the first 20% tranche being available for conversion into Penn Common Stock in the first quarter of 2021. As of March 31, 2021, 26 shares of the Series D Preferred Stock can be converted into Penn Common Stock. During the quarter ended March 31, 2021, the Company acquired 0.3% of Barstool Sports common stock, par value $0.0001 per share, as contemplated within the February 2020 stock purchase agreement which represents a partial settlement of the 1% purchase on a delayed basis as noted above. The acquisition of the acquired Barstool Sports common stock was settled through a predetermined number of Series D Preferred Stock as contained within the stock purchase agreement (see Note 13, "Stockholders’ Equity and Stock-Based Compensation," for further information). As a part of the stock purchase agreement, we entered into a commercial agreement that provides us with access to Barstool Sports’ customer list and exclusive advertising on the Barstool Sports platform over the term of the agreement. The initial term of the commercial agreement is ten years and, unless earlier terminated and subject to certain exceptions, will automatically renew for three additional ten-year terms (a total of 40 years assuming all renewals are exercised). As of March 31, 2021 and December 31, 2020, we have an amortizing intangible asset pertaining to the customer list of $1.4 million and $1.6 million, respectively. As of March 31, 2021 and December 31, 2020, we have a prepaid expense pertaining to the advertising in the amount of $16.3 million, and $16.5 million respectively, of which $15.2 million and $15.4 million was classified as long-term, respectively. The long-term portion of the prepaid advertising expense is included in “Other assets” within our unaudited Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, our investment in Barstool Sports was $154.6 million and $147.5 million, respectively. We record our proportionate share of Barstool Sports’ net income or loss one quarter in arrears. The Company determined that Barstool Sports qualified as a VIE as of March 31, 2021 and December 31, 2020. The Company did not consolidate the financial position of Barstool Sports as of March 31, 2021 and December 31, 2020, nor the results of operations for the three months ended March 31, 2021 and 2020, as the Company determined that it did not qualify as the primary beneficiary of Barstool Sports either at the commencement date of its investment or for subsequent periods, primarily as a result of the Company not having the power to direct the activities of the VIE that most significantly affect Barstool Sports’ economic performance. Kansas Joint Venture As of March 31, 2021 and December 31, 2020, our investment in Kansas Entertainment was $85.9 million and $85.2 million, respectively. During the three months ended March 31, 2021 and 2020, the Company received distributions from Kansas Entertainment totaling $5.5 million and $8.7 million, respectively, which the Company deemed to be returns on its investment based on the source of those cash flows from the normal business operations of Kansas Entertainment. The Company has determined that Kansas Entertainment does not qualify as a VIE. Using the guidance for entities that are not VIEs, the Company determined that it did not have a controlling financial interest in the JV, primarily as it did not have the ability to direct the activities of the JV that most significantly impacted the JV’s economic performance without the input of NASCAR. Therefore, the Company did not consolidate the financial position of Kansas Entertainment as of March 31, 2021 and December 31, 2020, nor the results of operations for the three months ended March 31, 2021 and 2020. Texas Joint Venture The Company has a 50% interest in a JV with MAXXAM, which owns and operates the Sam Houston Race Park in Houston, Texas and the Valley Race Park in Harlingen, Texas, and holds a license for a racetrack in Austin, Texas. On March 15, 2021, the Company entered into a purchase agreement to purchase the remaining 50% ownership interest in the Sam Houston Race Park and the Valley Race Park located in Texas as well as a license to operate a racetrack in Austin, Texas. See Note 6, "Acquisitions and Dispositions" for further information. During the three months ended March 31, 2020, we recorded an other-than-temporary impairment on our investment in the JV of $4.6 million, which is included in “Impairment losses” within our unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). No impairment was recorded for the three months ended March 31, 2021.

Leases - Additional Information (Details) $ in Millions	Feb. 01, 2021 USD ($)	Apr. 28, 2016 facility extension_period	Nov. 01, 2013 facility extension_period
Penn Master Lease
Schedule of Leased Assets [Line Items]
Lease renewal term			5 years
Number of facilities with leased real estate \| facility			19
Lease term			15 years
Number of options to extend lease \| extension_period			4
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%
Percentage rent baseline period			5 years
Adjustment to fixed component as percentage of the average change to net revenues during preceding month			20.00%
Pinnacle Master Lease
Schedule of Leased Assets [Line Items]
Lease renewal term		5 years
Number of facilities with leased real estate \| facility		12
Number of options to extend lease \| extension_period		5
Lease - expected term with renewal options		32 years 6 months
Percentage rent baseline period		2 years
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%
Margaritaville Lease
Schedule of Leased Assets [Line Items]
Increase in fixed component of rent resulting from annual escalator \| $	$ 0.1
Operating lease, annual escalator, additional ROU asset recognized \| $	$ 5.5

Fair Value Measurements - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) payment	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	May 31, 2020	Jan. 19, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	$ 169.3		$ 143.1
Unrealized gains (losses)	$ 26.1	$ (21.8)
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	5
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%		5.625%
Convertible Notes \| 2.75% Convertible Notes due 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	2.75%			2.75%
Pinnacle Retama Partners, LLC \| Other Assets \| Retama Development Corporation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Promissory notes	$ 15.1		$ 15.1
Pinnacle Retama Partners, LLC \| Other Assets \| Local Government Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment, at amortized cost	$ 6.7
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%

Revenue Disaggregation (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	For the three months ended March 31, 2021
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations (1)		Total
Revenues:
Gaming	$	527.0	$	245.4	$	69.1	$	216.9	$	23.6	$	—	$	1,082.0
Food and beverage	20.9		23.1		11.9		7.0		0.1		—		63.0
Hotel	5.8		19.6		12.5		5.9		—		—		43.8
Other	17.2		7.8		3.1		4.9		64.2		(11.1)		86.1
Total revenues	$	570.9	$	295.9	$	96.6	$	234.7	$	87.9	$	(11.1)	$	1,274.9


	For the three months ended March 31, 2020
(in millions)	Northeast		South		West		Midwest		Other		Intersegment Eliminations (1)		Total
Revenues:
Gaming	$	458.7	$	168.6	$	71.9	$	196.2	$	7.6	$	(0.1)	$	902.9
Food and beverage	33.9		29.7		23.5		17.8		0.2		—		105.1
Hotel	8.8		17.8		25.8		8.2		—		—		60.6
Other	19.3		7.2		5.4		5.9		12.5		(2.8)		47.5
Total revenues	$	520.7	$	223.3	$	126.6	$	228.1	$	20.3	$	(2.9)	$	1,116.1

(1) Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

Stockholders’ Equity and Stock-Based Compensation	3 Months Ended
Stockholders’ Equity and Stock-Based Compensation	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stockholders’ Equity and Stock-Based Compensation	Stockholders’ Equity and Stock-Based Compensation Preferred Stock On February 20, 2020, the Company issued 883 shares of Series D Preferred Stock, par value $0.01 per share (the “Series D Preferred Stock”), to certain individual stockholders affiliated with Barstool Sports as discussed in Note 10, "Investments in and Advances to Unconsolidated Affiliates." During the quarter ended March 31, 2021, 151.2 shares of Series D Preferred Stock were converted to Penn Common Stock. As a result of the conversion, the Company issued 151,200 shares of common stock with a par value of $0.01. During the quarter ended March 31, 2021, the Company issued 43 shares of Series D Preferred Stock in conjunction with acquiring 0.3% of Barstool Sports common stock. The acquisition of the incremental Barstool Sports common stock represents a partial settlement of the 1% purchase on a delayed basis as described in Note 10, "Investments in and Advances to Unconsolidated Affiliates." As of March 31, 2021 and December 31, 2020, there were 5,000 shares authorized of Series D Preferred Stock of which 775 shares and 883 shares were outstanding, respectively. 2018 Long Term Incentive Compensation Plan The Company’s 2018 Long Term Incentive Compensation Plan, as amended (the “2018 Plan”) permits it to issue stock options (incentive and/or non-qualified), stock appreciation rights (“SARs”), RSAs, phantom stock units (“PSUs”) and other equity and cash awards to employees. Non-employee directors and the chairman emeritus are eligible to receive all such awards, other than incentive stock options. Pursuant to the 2018 Plan, 12,700,000 shares of the Company’s common stock are reserved for issuance. For purposes of determining the number of shares available for issuance under the 2018 Plan, stock options and SARs (except cash-settled SARs) count against the 12,700,000 limit as one share of common stock for each share granted and restricted stock or any other full value stock award count as issuing 2.30 shares of common stock for each share granted. Any awards that are not settled in shares of common stock are not counted against the share limit. As of March 31, 2021, there were 7,404,918 shares available for future grants under the 2018 Plan. Performance Share Program In February 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. An aggregate of 107,297 RSAs with performance-based vesting conditions, at target, was granted in February 2020 under the Performance Share Program II, 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. There were no RSAs issued from the Performance Share Program II during the three months ended March 31, 2021. Stock-based Compensation Expense Stock-based compensation expense, which pertains principally to our stock options and RSAs, for the three months ended March 31, 2021 and 2020 was $4.2 million and $6.0 million, respectively, and is included within the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) under “General and administrative.” Stock Options The Company granted 0.2 million and 0.6 million stock options during the three months ended March 31, 2021 and 2020, respectively. Phantom Stock Units Our outstanding PSUs entitle employees, non-employee directors, and the chairman emeritus to receive cash based on the fair value of the Company’s common stock on the vesting date. Our PSUs vest over a period of three or four years. The cash-settled 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 Consolidated Balance Sheets, associated with its cash-settled PSUs of $8.9 million and $10.1 million as of March 31, 2021 and December 31, 2020, respectively. For PSUs held by employees, non-employee directors, and the chairman emeritus of the Company, there was $20.2 million of total unrecognized compensation cost as of March 31, 2021 that will be recognized over the awards remaining weighted-average vesting period of 2.0 years. For the three months ended March 31, 2021 and 2020, the Company recognized $4.7 million and $0.1 million of compensation expense associated with these awards, respectively. Compensation expense associated with our PSUs is recorded in “General and administrative” within the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). We paid $5.9 million and $2.8 million during the three months ended March 31, 2021 and 2020, respectively, pertaining to cash-settled PSUs. Stock Appreciation Rights Our outstanding SARs are accounted for as liability awards since they will be settled in cash and vest over a period of four years. The fair value of cash-settled SARs is calculated each reporting period and estimated using the Black-Scholes option pricing model. The Company has a liability, which is included in “Accrued expenses and other current liabilities” within the unaudited Consolidated Balance Sheets, associated with its cash-settled SARs of $38.7 million and $54.6 million as of March 31, 2021 and December 31, 2020, respectively. For SARs held by employees of the Company, there was $79.9 million of total unrecognized compensation cost as of March 31, 2021 that will be recognized over the awards remaining weighted-average vesting period of 2.5 years. The Company recognized a charge to compensation expense of $20.3 million and $5.5 million for the three months ended March 31, 2021 and March 31, 2020, respectively. Compensation expense associated with our SARs is recorded in “General and administrative” within the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). We paid $37.2 million and $6.6 million during the three months ended March 31, 2021 and 2020, respectively, related to cash-settled SARs.

Hurricane Laura (Tables)

3 Months Ended

Mar. 31, 2021

Unusual or Infrequent Items, or Both [Abstract]

Schedule of Unusual or Infrequent Items, or Both

The following table summarizes the financial impact of Hurricane Laura related matters:


(in millions)	March 31, 2021		December 31, 2020
Insurance Proceeds	$	47.5	$	47.5
Deductible	$	15.0	$	15.0
Coinsurance	$	2.5	$	2.5
Clean-up and Restoration Costs	$	51.1	$	47.1
Fixed Asset Write-off	$	23.2	$	23.2
Inventory Write-off	$	0.2	$	0.2
Insurance Receivable	$	27.0	$	23.0

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Total revenues	$ 1,274.9	$ 1,116.1
Operating expenses
General and administrative	326.2	307.0
Depreciation and amortization	81.3	95.7
Impairment losses	0.0	616.1
Total operating expenses	1,058.4	1,676.7
Operating income (loss)	216.5	(560.6)
Other income (expenses)
Interest expense, net	(135.7)	(129.8)
Income from unconsolidated affiliates	9.6	4.1
Other	21.1	(21.8)
Total other expenses	(105.0)	(147.5)
Income (loss) before income taxes	111.5	(708.1)
Income tax benefit (expense)	(20.6)	99.5
Net income (loss)	90.9	(608.6)
Less: Net loss attributable to non-controlling interest	0.1	0.0
Net income (loss) attributable to Penn National	91.0	(608.6)
Comprehensive income (loss)	90.9	(608.6)
Less: Comprehensive loss attributable to non-controlling interest	0.1	0.0
Comprehensive income (loss) attributable to Penn National	$ 91.0	$ (608.6)
Earnings (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ 0.58	$ (5.26)
Diluted earnings (loss) per share (in dollars per share)	$ 0.55	$ (5.26)
Weighted average common shares outstanding - basic (in shares)	155.7	115.7
Weighted average common shares outstanding - diluted (in shares)	172.8	115.7
Gaming
Revenues
Total revenues	$ 1,082.0	$ 902.9
Operating expenses
Cost of revenue	527.8	500.9
Food, beverage, hotel and other
Revenues
Total revenues	192.9	213.2
Operating expenses
Cost of revenue	$ 123.1	$ 157.0

Fair Value Measurements - Carrying Amounts and Estimated Fair Values by Input Level (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Jan. 19, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate	5.625%
Financial assets:
Equity securities	$ 169.3	$ 143.1
Senior Notes \| 5.625% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate	5.625%	5.625%	5.625%
Recurring \| Level 1
Financial assets:
Cash and cash equivalents	$ 2,062.2	$ 1,853.8
Equity securities	0.0	0.0
Held-to-maturity securities	0.0	0.0
Promissory notes	0.0	0.0
Financial liabilities:
Other liabilities	0.0	0.0
Puts and calls related to certain Barstool Sports shares	0.0	0.0
Recurring \| Level 1 \| Senior Secured Credit Facilities
Financial liabilities:
Long-term debt	1,603.9	1,609.3
Recurring \| Level 1 \| Senior Notes \| 5.625% Notes
Financial liabilities:
Long-term debt	415.5	418.0
Recurring \| Level 1 \| Senior Notes \| 2.75% Convertible Notes due 2026
Financial liabilities:
Long-term debt	1,488.9	1,274.5
Recurring \| Level 1 \| Other long-term obligations
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 2
Financial assets:
Cash and cash equivalents	0.0	0.0
Equity securities	169.3	143.1
Held-to-maturity securities	6.7	6.7
Promissory notes	15.1	15.1
Financial liabilities:
Other liabilities	2.6	2.8
Puts and calls related to certain Barstool Sports shares	3.1	0.3
Recurring \| Level 2 \| Senior Secured Credit Facilities
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 2 \| Senior Notes \| 5.625% Notes
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 2 \| Senior Notes \| 2.75% Convertible Notes due 2026
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 2 \| Other long-term obligations
Financial liabilities:
Long-term debt	72.3	72.8
Recurring \| Level 3
Financial assets:
Cash and cash equivalents	0.0	0.0
Equity securities	0.0	0.0
Held-to-maturity securities	0.0	0.0
Promissory notes	0.0	0.0
Financial liabilities:
Other liabilities	7.4	7.3
Puts and calls related to certain Barstool Sports shares	0.0	0.0
Recurring \| Level 3 \| Senior Secured Credit Facilities
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 3 \| Senior Notes \| 5.625% Notes
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 3 \| Senior Notes \| 2.75% Convertible Notes due 2026
Financial liabilities:
Long-term debt	0.0	0.0
Recurring \| Level 3 \| Other long-term obligations
Financial liabilities:
Long-term debt	74.0	0.0
Recurring \| Carrying Amount
Financial assets:
Cash and cash equivalents	2,062.2	1,853.8
Equity securities	169.3	143.1
Held-to-maturity securities	6.7	6.7
Promissory notes	15.1	15.1
Financial liabilities:
Other liabilities	10.2	10.1
Puts and calls related to certain Barstool Sports shares	3.1	0.3
Recurring \| Carrying Amount \| Senior Secured Credit Facilities
Financial liabilities:
Long-term debt	1,586.4	1,600.3
Recurring \| Carrying Amount \| Senior Notes \| 5.625% Notes
Financial liabilities:
Long-term debt	399.5	399.5
Recurring \| Carrying Amount \| Senior Notes \| 2.75% Convertible Notes due 2026
Financial liabilities:
Long-term debt	243.1	239.8
Recurring \| Carrying Amount \| Other long-term obligations
Financial liabilities:
Long-term debt	146.3	73.0
Recurring \| Fair Value
Financial assets:
Cash and cash equivalents	2,062.2	1,853.8
Equity securities	169.3	143.1
Held-to-maturity securities	6.7	6.7
Promissory notes	15.1	15.1
Financial liabilities:
Other liabilities	10.0	10.1
Puts and calls related to certain Barstool Sports shares	3.1	0.3
Recurring \| Fair Value \| Senior Secured Credit Facilities
Financial liabilities:
Long-term debt	1,603.9	1,609.3
Recurring \| Fair Value \| Senior Notes \| 5.625% Notes
Financial liabilities:
Long-term debt	415.5	418.0
Recurring \| Fair Value \| Senior Notes \| 2.75% Convertible Notes due 2026
Financial liabilities:
Long-term debt	1,488.9	1,274.5
Recurring \| Fair Value \| Other long-term obligations
Financial liabilities:
Long-term debt	$ 146.3	$ 72.8

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	18.50%	14.10%
Increase in valuation allowance	$ 5.3
Prepaid taxes	$ 32.5		$ 52.7

Organization and Basis of Presentation	3 Months Ended
Organization and Basis of Presentation	Mar. 31, 2021
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 (“Penn National,” the “Company,” “we,” “our,” or “us”), is a leading, diversified, multi-jurisdictional owner and manager of gaming and racing properties, online gaming, retail and online sports betting operations, and video gaming terminal (“VGT”) operations. Our wholly-owned interactive division, Penn Interactive Ventures, LLC (“Penn Interactive”), operates retail sports betting across the Company’s portfolio, as well as online sports betting, online social casino, bingo and online casinos (“iGaming”). The Company holds a 36% (inclusive of 1% on a delayed basis) equity interest in Barstool Sports, Inc. (“Barstool Sports”), a leading digital sports, entertainment, lifestyle and media company, and entered into a strategic relationship with Barstool Sports, whereby Barstool Sports will exclusively promote the Company's land-based retail sportsbooks, iGaming products and online sports betting products, including the Barstool Sportsbook mobile app, to its national audience. We launched an online sports betting app called Barstool Sports in Pennsylvania, Michigan and Illinois. We also operate iGaming in Pennsylvania and Michigan. Our mychoice® customer loyalty program (the "mychoice program") currently has over 20 million members and provides such members with various benefits, including complimentary goods and/or services. The Company’s strategy continues to evolve from an owner and manager of gaming and racing properties into an omni-channel provider of retail and online gaming and sports betting entertainment. As of March 31, 2021, we owned, managed, or had ownership interests in 41 gaming and racing properties in 19 states and were licensed to offer live sports betting at our properties in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, Nevada, Pennsylvania, and West Virginia. The majority of the real estate assets (i.e., land and buildings) used in our operations are subject to triple net master leases, the most significant of which are the Penn Master Lease and the Pinnacle Master Lease (as such terms are defined in Note 9, “Leases,” and collectively referred to as the “Master Leases”), with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”), a real estate investment trust (“REIT”). Update on the Impact of the COVID-19 Pandemic: As of March 31, 2021, with the exception of Valley Race Park, all of our properties have reopened. Zia Park, which reopened on March 5, 2021, was subsequently ordered by the New Mexico State Health Department to temporarily close from April 8, 2021 through April 20, 2021. Basis of Presentation: The unaudited 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 notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results of operations and cash flows for the interim periods presented herein are not necessarily indicative of the results that would be achieved during a full year of operations or in future periods. These unaudited 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, 2020.

Long-term Debt - Convertible Notes (Details) - 2.75% Convertible Notes due 2026 - Convertible Notes - USD ($) $ in Millions	Mar. 31, 2021	May 31, 2020
Debt Instrument [Line Items]
Principal	$ 330.5
Unamortized debt discount	(81.4)
Unamortized debt issuance costs	(6.0)
Net carrying amount	243.1
Carrying amount of equity component	$ 88.2	$ 91.8

Acquisitions and Dispositions - Additional Information (Details) - USD ($) $ in Millions	Apr. 13, 2021	Mar. 15, 2021	Dec. 15, 2020	Apr. 16, 2020
Sam Houston Race Park and Valley Race Park \| PM Texas Holdings, LLC
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired		50.00%
Purchase price		$ 56.0
Payments to acquire businesses, gross		42.0
Business combination, consideration transferred, equity interests issued and issuable		$ 14.0
Business acquisition state prior of anniversary term		10 years
Tropicana Las Vegas
Business Acquisition [Line Items]
Sale of property in exchange for rent credits				$ 307.5
Real estate sale, buyer subsequent sale period				24 months
Real estate sale, subsequent sale by buyer				75.00%
Real estate sale, subsequent sale by buyer, proceeds threshold				$ 307.5
Real estate sale, subsequent sale by buyer, threshold target				12 months
Real estate sale				50.00%
Tropicana Las Vegas \| Subsequent Event
Business Acquisition [Line Items]
Purchase option agreement, purchase price	$ 150.0
Initial lease term	50 years
Purchase option agreement, initial annual rent if purchased	$ 10.5
Hollywood Casino Perryville
Business Acquisition [Line Items]
Purchase option agreement, purchase price			$ 31.1
Purchase option agreement, initial annual rent if purchased			$ 7.8

Leases - Triple Net Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Leased Assets [Line Items]
Lease payments	$ 226.0	$ 223.8
Penn Master Lease
Schedule of Leased Assets [Line Items]
Lease payments	117.9	114.8
Pinnacle Master Lease
Schedule of Leased Assets [Line Items]
Lease payments	81.3	82.5
Meadows Lease
Schedule of Leased Assets [Line Items]
Lease payments	6.2	6.7
Margaritaville Lease
Schedule of Leased Assets [Line Items]
Lease payments	5.9	5.9
Greektown Lease
Schedule of Leased Assets [Line Items]
Lease payments	13.9	13.9
Morgantown Lease
Schedule of Leased Assets [Line Items]
Lease payments	$ 0.8	$ 0.0

Acquisitions and Dispositions	3 Months Ended
Acquisitions and Dispositions	Mar. 31, 2021
Business Combinations [Abstract]
Acquisitions and Dispositions	Acquisitions and Dispositions Sam Houston Race Park and Valley Race Park On March 15, 2021, the Company entered into a purchase agreement with PM Texas Holdings, LLC for the purchase of the remaining 50% ownership interest in the Sam Houston Race Park in Houston, Texas, the Valley Race Park in Harlingen, Texas, and a license to operate a racetrack in Austin, Texas. The purchase price consisted of $56.0 million, comprised of $42.0 million in cash and $14.0 million of the Company's common equity, as well as a contingent consideration. The contingent consideration will be triggered in the event the State of Texas establishes a statutory framework authorizing land-based gaming or online gaming operations in the state prior to the ten-year anniversary of the closing date. The transaction is expected to close in the second quarter of 2021. Tropicana Las Vegas On April 16, 2020, we sold the real estate assets associated with our Tropicana property to GLPI in exchange for rent credits of $307.5 million and utilized them to pay rent under our existing Master Leases and the Meadows Lease beginning in May 2020. Contemporaneous with the sale, the Company entered into the Tropicana Lease (as defined and discussed in Note 9, “Leases”). Pursuant to the purchase agreement, GLPI would conduct a sale process with respect to both the real estate assets and the operations of Tropicana for up to 24 months (the “Sale Period”), with the Company receiving (i) 75% of the proceeds above $307.5 million plus certain taxes, expenses and costs if an agreement for such sale is signed in the first 12 months of the Sale Period or (ii) 50% of the proceeds above $307.5 million plus certain taxes, expenses and costs if an agreement for such sale is signed in the remainder of the Sale Period. On April 13, 2021, GLPI announced that it entered into a binding term sheet with Bally’s Corporation (“Bally’s”) whereby Bally’s plans to acquire both GLPI’s non-land real estate assets and Penn’s outstanding equity interests in Tropicana Las Vegas Hotel and Casino, Inc., which has the gaming license and operates the Tropicana, for an aggregate cash acquisition price of $150.0 million. GLPI will retain ownership of the land and will concurrently enter into a 50-year ground lease with initial annual rent of $10.5 million. This transaction is expected to close in early 2022, subject to Penn, GLPI and Bally's entering into definitive agreements and regulatory approval. Hollywood Casino Perryville On December 15, 2020, the Company entered into a definitive agreement with GLPI to purchase the operations of Hollywood Casino Perryville for $31.1 million. The transaction is expected to close early in the third quarter of 2021, subject to approval of the Maryland Lottery and Gaming Control Commission and other customary closing conditions. Simultaneous with the closing of the transaction, we would lease the real estate assets associated with Hollywood Casino Perryville from GLPI with initial annual rent of $7.8 million per year subject to escalation.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies


	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course(1)	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
1st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino	Bossier City, Louisiana	Margaritaville Lease

West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Tropicana Lease
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease

Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton (3)	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway (4)	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming (2)	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease

(1)Our two Category 4 developments, Hollywood Casino York and Hollywood Casino Morgantown, are included with Hollywood Casino at Penn National Race Course.

(2)VGT route operations

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

Complimentaries Associated with Gaming Contracts


	For the three months ended March 31,
(in millions)	2021		2020
Food and beverage	$	36.1	$	54.0
Hotel	26.4		30.9
Other	1.9		3.2
Total complimentaries associated with gaming contracts	$	64.4	$	88.1

Customer-related Liabilities

Penn Interactive enters into multi-year agreements with sports betting operators for online sports betting and related iGaming market access across our portfolio of properties, from which we received cash and equity securities, including ordinary shares and warrants, specific to two operator agreements. Deferred revenue associated with third-party sports betting operators for online sports betting and related iGaming market access, which is included in “Other long-term liabilities” within our unaudited Consolidated Balance Sheets, was $54.8 million and $52.7 million as of March 31, 2021 and December 31, 2020, respectively.

Gaming and Racing Taxes: We are subject to gaming and pari-mutuel taxes based on gross gaming revenue and pari-mutuel revenue in the jurisdictions in which we operate. The Company primarily recognizes gaming and pari-mutuel tax expense based on the statutorily required percentage of revenue that is required to be paid to state and local jurisdictions in the states where or in which the wagering occurs. For the three months ended March 31, 2021, these expenses, which were recorded in gaming expense within the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss), were $417.9 million, respectively, as compared to $336.3 million for the three months ended March 31, 2020.

Holders of the Company’s Series D Preferred Stock (as defined in Note 10, “Investments in and Advances to Unconsolidated Affiliates”) are entitled to participate equally and ratably in all dividends and distributions paid to holders of Penn Common Stock irrespective of any vesting requirement. Accordingly, the Series D Preferred Stock shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the preferred shares on the calculation of basic and diluted EPS. The holders of the Company’s Series D Preferred Stock are not obligated to absorb losses; therefore, in reporting periods where the Company is in a net loss position, it does not apply the two-class method. In reporting periods where the Company is in a net income position, the two-class method is applied by allocating all earnings during the period to common shares and preferred shares. See Note 14, “Earnings (Loss) per Share,” for more information.

Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Master Leases

The components contained within the Master Leases are accounted for as either (i) operating leases, (ii) finance leases, or (iii) financing obligations. Changes to future lease payments under the Master Leases (i.e., when future escalators become known or future variable rent resets occur), which are discussed below, require the Company to either (i) increase both the ROU assets and corresponding lease liabilities with respect to operating and finance leases or (ii) record the incremental variable payment associated with the financing obligation to interest expense. In addition, monthly rent associated with Hollywood Casino Columbus (“Columbus”) and monthly rent in excess of the Hollywood Casino Toledo (“Toledo”) rent floor, which are discussed below, are considered contingent rent.

Pursuant to a binding term sheet between the Company and GLPI entered into on March 27, 2020, we agreed that, in the future, we would exercise the next scheduled five-year renewal under the Penn Master Lease and the Pinnacle Master Lease. GLPI agreed they would grant us the option to exercise an additional five-year renewal term at the end of the lease term on the Penn Master Lease and the Pinnacle Master Lease, subject to certain conditions. In the future, upon exercising each of these renewal options, the term of the Penn Master Lease would extend to November 30, 2033 and the term of the Pinnacle Master Lease would extend to April 30, 2031. If all renewal options contained within the Penn Master Lease and the Pinnacle Master Lease were exercised, inclusive of these renewal options, the term of the Penn Master Lease would extend to November 30, 2053 and the term of the Pinnacle Master Lease would extend to April 30, 2056.

Penn Master Lease

Pursuant to the triple net master lease with GLPI (the “Penn Master Lease”), which became effective November 1, 2013, 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 performance, which is prospectively adjusted (i) every five years by an amount equal to 4% of the average change in net revenues of all properties under the Penn Master Lease (other than Columbus and 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.

The next annual escalator test date is scheduled to occur effective November 1, 2021. The next Penn Percentage Rent reset is scheduled to occur on November 1, 2023.

Pinnacle Master Lease

In connection with the acquisition of Pinnacle Entertainment, Inc., on October 15, 2018, the Company assumed a triple net master lease with GLPI (the “Pinnacle Master Lease”), originally effective April 28, 2016, 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 ten-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, 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 is scheduled to occur effective May 1, 2021. The next Pinnacle Percentage Rent reset is scheduled to occur on May 1, 2022.

Operating Leases

In addition to the operating lease components contained within the Master Leases (primarily land), the Company’s operating leases consist mainly of (i) individual triple net leases with GLPI for the real estate assets used in the operations of Tropicana Las Vegas (the “Tropicana Lease”) and Meadows Racetrack and Casino (the “Meadows Lease”), (ii) individual triple net leases with VICI for the real estate assets used in the operations of Margaritaville (the “Margaritaville Lease”) and Greektown (the “Greektown Lease” and collectively with the Master Leases operating lease components (primarily the land), the Meadows Lease, the Margaritaville Lease and the Tropicana Lease, the “Triple Net Operating Leases”), (iii) ground and levee leases to landlords which were not assumed by our REIT Landlords and remain an obligation of the Company, and (iv) building and equipment not subject to the 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.

On February 1, 2021, the Margaritaville Percentage Rent resulted in an annual rent reduction of $0.1 million, which will be in effect until the next Margaritaville Percentage Rent reset, scheduled to occur on February 1, 2023. Upon reset of the Margaritaville Percentage Rent, effective February 1, 2021, we recognized an additional operating lease ROU asset and corresponding lease liability of $5.5 million. We did not incur an annual escalator for the lease year ended January 31, 2021. The next annual escalator test date is scheduled to occur on February 1, 2022.

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

Total payments made under the Triple Net Leases were as follows:


	For the three months ended March 31,
(in millions)	2021		2020
Penn Master Lease	$	117.9	$	114.8
Pinnacle Master Lease	81.3		82.5
Meadows Lease	6.2		6.7
Margaritaville Lease	5.9		5.9
Greektown Lease	13.9		13.9
Morgantown Lease	0.8		—
Total (1)	$	226.0	$	223.8

(1)Rent payable under the Tropicana Lease is nominal. Therefore, it has been excluded from the table above.

The components of lease expense were as follows:


	Location on unaudited Consolidated Statements of Operations and Comprehensive Income (Loss)	For the three months ended March 31,
(in millions)		2021		2020
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	110.4	$	97.5
Operating lease cost (2)	Primarily General and administrative	3.9		4.3
Short-term lease cost	Primarily Gaming expense	13.3		12.1
Variable lease cost (2)	Primarily Gaming expense	1.1		0.8
Total		$	128.7	$	114.7

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	3.7	$	3.9
Amortization of ROU assets (3)	Depreciation and amortization	1.9		2.0
Total		$	5.6	$	5.9

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	102.6	$	97.4

(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)Pertains to the Dayton and Mahoning Valley finance leases.

Leases

Master Leases

Penn Master Lease

The next annual escalator test date is scheduled to occur effective November 1, 2021. The next Penn Percentage Rent reset is scheduled to occur on November 1, 2023.

Pinnacle Master Lease

The next annual escalator test date is scheduled to occur effective May 1, 2021. The next Pinnacle Percentage Rent reset is scheduled to occur on May 1, 2022.

Operating Leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

Total payments made under the Triple Net Leases were as follows:


	For the three months ended March 31,
(in millions)	2021		2020
Penn Master Lease	$	117.9	$	114.8
Pinnacle Master Lease	81.3		82.5
Meadows Lease	6.2		6.7
Margaritaville Lease	5.9		5.9
Greektown Lease	13.9		13.9
Morgantown Lease	0.8		—
Total (1)	$	226.0	$	223.8

(1)Rent payable under the Tropicana Lease is nominal. Therefore, it has been excluded from the table above.

The components of lease expense were as follows:


	Location on unaudited Consolidated Statements of Operations and Comprehensive Income (Loss)	For the three months ended March 31,
(in millions)		2021		2020
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	110.4	$	97.5
Operating lease cost (2)	Primarily General and administrative	3.9		4.3
Short-term lease cost	Primarily Gaming expense	13.3		12.1
Variable lease cost (2)	Primarily Gaming expense	1.1		0.8
Total		$	128.7	$	114.7

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	3.7	$	3.9
Amortization of ROU assets (3)	Depreciation and amortization	1.9		2.0
Total		$	5.6	$	5.9

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	102.6	$	97.4

(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)Pertains to the Dayton and Mahoning Valley finance leases.

Leases

Master Leases

Penn Master Lease

The next annual escalator test date is scheduled to occur effective November 1, 2021. The next Penn Percentage Rent reset is scheduled to occur on November 1, 2023.

Pinnacle Master Lease

The next annual escalator test date is scheduled to occur effective May 1, 2021. The next Pinnacle Percentage Rent reset is scheduled to occur on May 1, 2022.

Operating Leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2021:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2021 (excluding the three months ended March 31, 2021)	$	314.1	$	16.5	$	277.7
2022	410.3		21.6		370.3
2023	400.2		20.8		370.4
2024	383.7		16.7		370.4
2025	380.7		16.7		370.5
Thereafter	7,791.1		376.7		9,094.5
Total lease payments	9,680.1		469.0		10,853.8
Less: Imputed interest	(5,212.4)		(251.3)		(6,730.1)
Present value of future lease payments	4,467.7		217.7		4,123.7
Less: Current portion of lease obligations	(130.7)		(7.0)		(36.7)
Long-term portion of lease obligations	$	4,337.0	$	210.7	$	4,087.0

Total payments made under the Triple Net Leases were as follows:


	For the three months ended March 31,
(in millions)	2021		2020
Penn Master Lease	$	117.9	$	114.8
Pinnacle Master Lease	81.3		82.5
Meadows Lease	6.2		6.7
Margaritaville Lease	5.9		5.9
Greektown Lease	13.9		13.9
Morgantown Lease	0.8		—
Total (1)	$	226.0	$	223.8

(1)Rent payable under the Tropicana Lease is nominal. Therefore, it has been excluded from the table above.

The components of lease expense were as follows:


	Location on unaudited Consolidated Statements of Operations and Comprehensive Income (Loss)	For the three months ended March 31,
(in millions)		2021		2020
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	110.4	$	97.5
Operating lease cost (2)	Primarily General and administrative	3.9		4.3
Short-term lease cost	Primarily Gaming expense	13.3		12.1
Variable lease cost (2)	Primarily Gaming expense	1.1		0.8
Total		$	128.7	$	114.7

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	3.7	$	3.9
Amortization of ROU assets (3)	Depreciation and amortization	1.9		2.0
Total		$	5.6	$	5.9

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	102.6	$	97.4

(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)Pertains to the Dayton and Mahoning Valley finance leases.

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 20,200,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 14,400,000
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201613Member
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 1,300,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 2,300,000

- Definition

Indicates amendment to accounting standards.

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+ Details

New Accounting Pronouncements	3 Months Ended
New Accounting Pronouncements	Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Accounting Pronouncements to be Implemented In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides an optional expedient and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of the London Interbank Offered Rate (referred to as “LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 also provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. ASU 2020-04 can be adopted no later than December 1, 2022 with early adoption permitted. The interest rates associated with the Company’s borrowings under its Senior Secured Credit Facilities (as defined in Note 8, “Long-term Debt”) are tied to LIBOR. The Company is currently evaluating the impact of the adoption of ASU 2020-04 on our Consolidated Financial Statements. In August 2020, The FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 eliminates the number of accounting models used to account for convertible debt instruments and convertible preferred stock. The update also amends the disclosure requirements for convertible instruments and EPS in an effort to increase financial reporting transparency. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-06 on our Consolidated Financial Statements. A variety of proposed or otherwise potential accounting standards are currently being studied by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our Consolidated Financial Statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Earnings (Loss) per Share - Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) shares in Millions	3 Months Ended
	Mar. 31, 2021 shares
Employee Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive stock options and dilutive RSAs (in shares)	2.2
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive stock options and dilutive RSAs (in shares)	0.3
Convertible Preferred Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Assumed conversion of convertible preferred shares (in shares)	0.4

Revenue Disaggregation (Details) - USD ($) $ in Millions	3 Months Ended
Revenue Disaggregation (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,274.9	$ 1,116.1
Gaming
Disaggregation of Revenue [Line Items]
Total revenues	1,082.0	902.9
Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	63.0	105.1
Hotel
Disaggregation of Revenue [Line Items]
Total revenues	43.8	60.6
Other
Disaggregation of Revenue [Line Items]
Total revenues	86.1	47.5
Operating Segments \| Northeast
Disaggregation of Revenue [Line Items]
Total revenues	570.9	520.7
Operating Segments \| Northeast \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	527.0	458.7
Operating Segments \| Northeast \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	20.9	33.9
Operating Segments \| Northeast \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	5.8	8.8
Operating Segments \| Northeast \| Other
Disaggregation of Revenue [Line Items]
Total revenues	17.2	19.3
Operating Segments \| South
Disaggregation of Revenue [Line Items]
Total revenues	295.9	223.3
Operating Segments \| South \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	245.4	168.6
Operating Segments \| South \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	23.1	29.7
Operating Segments \| South \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	19.6	17.8
Operating Segments \| South \| Other
Disaggregation of Revenue [Line Items]
Total revenues	7.8	7.2
Operating Segments \| West
Disaggregation of Revenue [Line Items]
Total revenues	96.6	126.6
Operating Segments \| West \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	69.1	71.9
Operating Segments \| West \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	11.9	23.5
Operating Segments \| West \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	12.5	25.8
Operating Segments \| West \| Other
Disaggregation of Revenue [Line Items]
Total revenues	3.1	5.4
Operating Segments \| Midwest
Disaggregation of Revenue [Line Items]
Total revenues	234.7	228.1
Operating Segments \| Midwest \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	216.9	196.2
Operating Segments \| Midwest \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	7.0	17.8
Operating Segments \| Midwest \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	5.9	8.2
Operating Segments \| Midwest \| Other
Disaggregation of Revenue [Line Items]
Total revenues	4.9	5.9
Other
Disaggregation of Revenue [Line Items]
Total revenues	87.9	20.3
Other \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	23.6	7.6
Other \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	0.1	0.2
Other \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	0.0	0.0
Other \| Other
Disaggregation of Revenue [Line Items]
Total revenues	64.2	12.5
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Total revenues	(11.1)	(2.9)
Intersegment Eliminations \| Gaming
Disaggregation of Revenue [Line Items]
Total revenues	0.0	(0.1)
Intersegment Eliminations \| Food and beverage
Disaggregation of Revenue [Line Items]
Total revenues	0.0	0.0
Intersegment Eliminations \| Hotel
Disaggregation of Revenue [Line Items]
Total revenues	0.0	0.0
Intersegment Eliminations \| Other
Disaggregation of Revenue [Line Items]
Total revenues	$ (11.1)	$ (2.8)

Long-term Debt - Interest Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt Disclosure [Abstract]
Interest expense	$ (136.6)	$ (130.4)
Interest income	0.2	0.2
Capitalized interest	0.7	0.4
Interest expense, net	(135.7)	$ (129.8)
Coupon interest	2.3
Amortization of debt discount	3.1
Amortization of debt issuance costs	0.2
Convertible Notes interest expense	$ 5.6

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net income (loss)	$ 90.9	$ (608.6)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	81.3	95.7
Amortization of debt discount and debt issuance costs	5.5	2.0
Noncash operating lease expense	35.5	22.0
Change in fair value of contingent purchase price	(0.1)	(2.2)
Holding (gain) loss on equity securities	(26.2)	21.8
Change in fair value in puts/calls associated with our Barstool Sports investment	4.6	0.0
Loss (gain) on sale or disposal of property and equipment	(0.1)	0.6
Income from unconsolidated affiliates	(9.6)	(4.1)
Return on investment from unconsolidated affiliates	5.5	8.7
Deferred income taxes	8.3	(67.4)
Stock-based compensation	4.2	6.0
Impairment losses	0.0	616.1
Changes in operating assets and liabilities, net of businesses acquired
Accounts receivable	(41.1)	39.3
Prepaid expenses and other current assets	(28.5)	(4.3)
Other assets	(1.6)	6.5
Accounts payable	(10.6)	29.1
Accrued expenses	70.9	(101.4)
Income taxes	20.2	(31.7)
Operating lease liabilities	(31.1)	(31.4)
Other current and long-term liabilities	2.5	(29.9)
Net cash provided by (used in) operating activities	180.5	(33.2)
Investing activities
Capital expenditures	(25.7)	(42.8)
Consideration paid for Barstool Sports investment	0.0	(135.0)
Consideration paid for acquisitions of businesses, net of cash acquired	0.0	(3.0)
Other	(1.6)	(2.6)
Net cash used in investing activities	(27.3)	(183.4)
Financing activities
Proceeds from revolving credit facility	0.0	540.0
Repayments on revolving credit facility	0.0	(10.0)
Principal payments on long-term debt	(16.1)	(11.7)
Proceeds from other long-term obligations	72.5	0.0
Payments of other long-term obligations	(0.7)	(8.4)
Principal payments on financing obligations	(8.7)	(13.5)
Principal payments on finance leases	(1.7)	(1.6)
Proceeds from exercise of options	5.7	4.6
Proceeds from insurance financing	23.1	15.7
Payments on insurance financing	(9.2)	(6.3)
Other	(4.8)	0.0
Net cash provided by financing activities	60.1	508.8
Change in cash, cash equivalents, and restricted cash	213.3	292.2
Cash, cash equivalents and restricted cash at the beginning of the year	1,870.4	455.2
Cash, cash equivalents and restricted cash at the end of the period	2,083.7	747.4
Reconciliation of cash, cash equivalents and restricted cash:
Total cash, cash equivalents and restricted cash	2,083.7	747.4
Supplemental disclosure:
Cash paid for interest, net of amounts capitalized	138.8	135.6
Cash refunds related to income taxes, net	(8.8)	(1.1)
Non-cash investing and financing activities:
Commencement of operating leases	5.7	1.0
Accrued capital expenditures	$ 15.6	$ 7.4

Fair Value Measurements - Changes in Fair Value of Level 3 Liabilities (Details) - Recurring $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Other Liabilities
Balance	$ 7.3
Additions	72.5
Interest	1.5
Included in earnings	0.1
Balance	$ 81.4

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt, Net of Current Maturities

The table below presents long-term debt, net of current maturities:


(in millions)	March 31, 2021		December 31, 2020
Senior Secured Credit Facilities:
Revolving Credit Facility due 2023	$	—	$	—
Term Loan A Facility due 2023	623.6		636.9
Term Loan B-1 Facility due 2025	988.4		991.2
5.625% Notes due 2027	400.0		400.0
2.75% Convertible Notes due 2026	330.5		330.5
Other long-term obligations	146.3		73.0
	2,488.8		2,431.6
Less: Current maturities of long-term debt	(85.8)		(81.4)
Less: Debt discount	(83.1)		(86.2)
Less: Debt issuance costs	(30.4)		(32.8)
	$	2,289.5	$	2,231.2

Schedule Convertible Notes

The Convertible Notes consisted of the following components:


(in millions)	March 31, 2021
Liability component:
Principal	$	330.5
Unamortized debt discount	(81.4)
Unamortized debt issuance costs	(6.0)
Net carrying amount	$	243.1

Carrying amount of equity component	$	88.2

Schedule of Interest Expense, Net

The table below presents interest expense, net:


	For the three months ended March 31,
(in millions)	2021		2020
Interest expense	$	(136.6)	$	(130.4)
Interest income	0.2		0.2
Capitalized interest	0.7		0.4
Interest expense, net	$	(135.7)	$	(129.8)

The table below presents interest expense related to the Convertible Notes:


	For the three months ended March 31,
(in millions)	2021
Coupon interest	$	2.3
Amortization of debt discount	3.1
Amortization of debt issuance costs	0.2
Convertible Notes interest expense	$	5.6

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of Operating and Reportable Segments

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


	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course(1)	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
1st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino	Bossier City, Louisiana	Margaritaville Lease

West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Tropicana Lease
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease

Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton (3)	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway (4)	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming (2)	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease

(1)Our two Category 4 developments, Hollywood Casino York and Hollywood Casino Morgantown, are included with Hollywood Casino at Penn National Race Course.

(2)VGT route operations

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

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


	For the three months ended March 31,
(in millions)	2021		2020
Revenues:
Northeast segment	$	570.9	$	520.7
South segment	295.9		223.3
West segment	96.6		126.6
Midwest segment	234.7		228.1
Other (1)	87.9		20.3
Intersegment eliminations (2)	(11.1)		(2.9)
Total	$	1,274.9	$	1,116.1

Adjusted EBITDAR (3):
Northeast segment	$	193.2	$	124.5
South segment	133.9		52.6
West segment	35.2		24.6
Midwest segment	106.0		69.5
Other (1)	(21.3)		(18.9)

Total (3)	447.0		252.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)	(110.4)		(97.5)
Stock-based compensation	(4.2)		(6.0)
Cash-settled stock-based awards variance	(21.5)		8.9
Gain (loss) on disposal of assets	0.1		(0.6)
Contingent purchase price	(0.1)		2.2
Pre-opening and acquisition costs	(1.6)		(3.2)
Depreciation and amortization	(81.3)		(95.7)
Impairment losses	—		(616.1)
Insurance recoveries, net of deductible charges	—		0.1
Non-operating items of equity method investments (5)	(1.6)		(0.9)
Interest expense, net	(135.7)		(129.8)

Other (6)	20.8		(21.8)


Income (loss) before income taxes	111.5		(708.1)
Income tax benefit (expense)	(20.6)		99.5
Net income (loss)	$	90.9	$	(608.6)

(2)Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

(5)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment JV.


	For the three months ended March 31,
(in millions)	2021		2020
Capital expenditures:
Northeast segment	$	15.4	$	30.3
South segment	1.8		4.0
West segment	3.2		2.5
Midwest segment	1.9		3.4
Other	3.4		2.6
Total capital expenditures	$	25.7	$	42.8


(in millions)	Northeast		South		West		Midwest		Other (1)		Total
As of March 31, 2021
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.9	$	189.8	$	275.8
Total assets	$	2,040.3	$	1,184.8	$	402.6	$	1,213.7	$	10,046.8	$	14,888.2

As of December 31, 2020
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.2	$	181.5	$	266.8
Total assets	$	1,958.4	$	1,165.4	$	401.5	$	1,161.1	$	9,980.9	$	14,667.3

(2)Our investment in Barstool Sports is included within the Other category.

Schedule of Complimentaries

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


	For the three months ended March 31,
(in millions)	2021		2020
Food and beverage	$	36.1	$	54.0
Hotel	26.4		30.9
Other	1.9		3.2
Total complimentaries associated with gaming contracts	$	64.4	$	88.1

Earnings (Loss) per Share - Antidilutive Securities and Reconciliation of Weighted-Average Common Shares Outstanding (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income (Loss) Attributable to Parent, Diluted [Abstract]
Net income (loss) attributable to Penn National	$ 91.0	$ (608.6)
Net income applicable to preferred stock	0.5	0.0
Net income (loss) applicable to common stock	$ 90.5	$ (608.6)
Weighted-average number of shares outstanding
Weighted - average common shares outstanding - Basic (in shares)	155.7	115.7
Convertible debt (in shares)	14.1	0.0
Weighted-average common shares outstanding - Diluted (in shares)	172.8	115.7
Stock options
Weighted-average number of shares outstanding
Dilutive stock options and dilutive RSAs (in shares)	2.6	0.0
Restricted stock
Weighted-average number of shares outstanding
Dilutive stock options and dilutive RSAs (in shares)	0.4	0.0
Stock options
Weighted-average number of shares outstanding
Anti-dilutive securities (in shares)	0.2	1.2
Restricted stock
Weighted-average number of shares outstanding
Dilutive stock options and dilutive RSAs (in shares)	0.3
Convertible Preferred Shares
Weighted-average number of shares outstanding
Anti-dilutive securities (in shares)	0.8

Earnings (Loss) per Share - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock	$ 90.5	$ (608.6)
Weighted average common shares outstanding - basic (in shares)	155.7	115.7
Basic earnings (loss) per share (in dollars per share)	$ 0.58	$ (5.26)
Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock	$ 90.5	$ (608.6)
Convertible Notes	4.3	0.0
Diluted income (loss) applicable to common stock	$ 94.8	$ (608.6)
Weighted average common shares outstanding - diluted (in shares)	172.8	115.7
Diluted earnings (loss) per share (in dollars per share)	$ 0.55	$ (5.26)
Effective tax rate	18.50%	14.10%
Convertible Notes
Calculation of diluted earnings (loss) per share:
Effective tax rate	20.00%

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (122.9)	$ (120.7)
Total	23.9
Total other intangible assets, gross carrying amount	1,634.8	1,634.2
Total other intangible assets, net carrying amount	1,511.9	1,513.5
Gaming licenses
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	1,246.4	1,246.1
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	240.9	240.9
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	106.9	106.9
Accumulated Amortization	(86.7)	(85.2)
Total	20.2	21.7
Other
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, gross carrying amount	39.9	39.6
Accumulated Amortization	(36.2)	(35.5)
Total	$ 3.7	$ 4.1

Goodwill and Other Intangible Assets - Expected Intangible Asset Amortization Expense (Details) $ in Millions	Mar. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (excluding the three months ended March 31, 2021)	$ 5.4
2022	5.6
2023	4.2
2024	3.7
2025	3.0
Thereafter	2.0
Total	$ 23.9

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
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, results of operations, or cash flows.

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Information

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


	Location	Real Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East Chicago	East Chicago, Indiana	Pinnacle Master Lease
Greektown Casino-Hotel	Detroit, Michigan	Greektown Lease
Hollywood Casino Bangor	Bangor, Maine	Penn Master Lease
Hollywood Casino at Charles Town Races	Charles Town, West Virginia	Penn Master Lease
Hollywood Casino Columbus	Columbus, Ohio	Penn Master Lease
Hollywood Casino Lawrenceburg	Lawrenceburg, Indiana	Penn Master Lease
Hollywood Casino at Penn National Race Course(1)	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
1st Jackpot Casino	Tunica, Mississippi	Penn Master Lease
Ameristar Vicksburg	Vicksburg, Mississippi	Pinnacle Master Lease
Boomtown Biloxi	Biloxi, Mississippi	Penn Master Lease
Boomtown Bossier City	Bossier City, Louisiana	Pinnacle Master Lease
Boomtown New Orleans	New Orleans, Louisiana	Pinnacle Master Lease
Hollywood Casino Gulf Coast	Bay St. Louis, Mississippi	Penn Master Lease
Hollywood Casino Tunica	Tunica, Mississippi	Penn Master Lease
L’Auberge Baton Rouge	Baton Rouge, Louisiana	Pinnacle Master Lease
L’Auberge Lake Charles	Lake Charles, Louisiana	Pinnacle Master Lease
Margaritaville Resort Casino	Bossier City, Louisiana	Margaritaville Lease

West segment
Ameristar Black Hawk	Black Hawk, Colorado	Pinnacle Master Lease
Cactus Petes and Horseshu	Jackpot, Nevada	Pinnacle Master Lease
M Resort	Henderson, Nevada	Penn Master Lease
Tropicana Las Vegas	Las Vegas, Nevada	Tropicana Lease
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease

Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton (3)	Alton, Illinois	Penn Master Lease
Argosy Casino Riverside	Riverside, Missouri	Penn Master Lease
Hollywood Casino Aurora	Aurora, Illinois	Penn Master Lease
Hollywood Casino Joliet	Joliet, Illinois	Penn Master Lease
Hollywood Casino at Kansas Speedway (4)	Kansas City, Kansas	Owned - JV
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming (2)	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease

(1)Our two Category 4 developments, Hollywood Casino York and Hollywood Casino Morgantown, are included with Hollywood Casino at Penn National Race Course.

(2)VGT route operations

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

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


	For the three months ended March 31,
(in millions)	2021		2020
Revenues:
Northeast segment	$	570.9	$	520.7
South segment	295.9		223.3
West segment	96.6		126.6
Midwest segment	234.7		228.1
Other (1)	87.9		20.3
Intersegment eliminations (2)	(11.1)		(2.9)
Total	$	1,274.9	$	1,116.1

Adjusted EBITDAR (3):
Northeast segment	$	193.2	$	124.5
South segment	133.9		52.6
West segment	35.2		24.6
Midwest segment	106.0		69.5
Other (1)	(21.3)		(18.9)

Total (3)	447.0		252.3

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)	(110.4)		(97.5)
Stock-based compensation	(4.2)		(6.0)
Cash-settled stock-based awards variance	(21.5)		8.9
Gain (loss) on disposal of assets	0.1		(0.6)
Contingent purchase price	(0.1)		2.2
Pre-opening and acquisition costs	(1.6)		(3.2)
Depreciation and amortization	(81.3)		(95.7)
Impairment losses	—		(616.1)
Insurance recoveries, net of deductible charges	—		0.1
Non-operating items of equity method investments (5)	(1.6)		(0.9)
Interest expense, net	(135.7)		(129.8)

Other (6)	20.8		(21.8)


Income (loss) before income taxes	111.5		(708.1)
Income tax benefit (expense)	(20.6)		99.5
Net income (loss)	$	90.9	$	(608.6)

(2)Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

(5)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment JV.


	For the three months ended March 31,
(in millions)	2021		2020
Capital expenditures:
Northeast segment	$	15.4	$	30.3
South segment	1.8		4.0
West segment	3.2		2.5
Midwest segment	1.9		3.4
Other	3.4		2.6
Total capital expenditures	$	25.7	$	42.8


(in millions)	Northeast		South		West		Midwest		Other (1)		Total
As of March 31, 2021
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.9	$	189.8	$	275.8
Total assets	$	2,040.3	$	1,184.8	$	402.6	$	1,213.7	$	10,046.8	$	14,888.2

As of December 31, 2020
Investment in and advances to unconsolidated affiliates (2)	$	0.1	$	—	$	—	$	85.2	$	181.5	$	266.8
Total assets	$	1,958.4	$	1,165.4	$	401.5	$	1,161.1	$	9,980.9	$	14,667.3

(2)Our investment in Barstool Sports is included within the Other category.

Significant Accounting Policies - Revenue Disaggregation and Customer-Related Liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) type agreement	Dec. 31, 2020 USD ($)
Disaggregation of Revenue [Line Items]
Contract With Customer, Liability, Number Of Liability Types \| type	3
Online sports betting and iGaming market access
Disaggregation of Revenue [Line Items]
Customer-related liabilities	$ 54.8	$ 52.7
Number of operator agreements containing ordinary shares and warrants \| agreement	2
Loyalty Credit Obligation
Disaggregation of Revenue [Line Items]
Customer-related liabilities	$ 39.0	35.8
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	$ 63.6	47.1
Customer-related liabilities, long-term	$ 0.5	$ 0.5