Retail and online gaming operator PENN Entertainment’s third-quarter revenue rose 7.1% compared to the same three-month period in 2025.
- PENN reported $1.37 billion in gaming revenue during Q3.
- Online sports betting and iGaming grew by 17% year over year.
- The Northeast and Midwest saw the most significant retail improvements.
The hotel-casino company reported on Thursday that retail accounted for $1.5 billion of its overall $1.84 billion in revenue during the quarter ending Sept. 30, up from $1.7 billion in Q3 2025. The quarter produced gaming revenue of $1.37 billion, an increase from $1.32 billion.
Adjusted EBITDA across all five segments reached $284 million, a 45% year-over-year increase, while the company’s net income was $32 million, well ahead of the previous Q3’s $865.1 million loss.
“Our retail segment achieved record third-quarter revenue, reflecting broad-based strength across the portfolio, including our completed development projects,” PENN CEO Jay Snowden said. “Sustained revenue growth in U.S. standalone Hollywood iCasino and Canada, together with operational discipline, reinforces our confidence in achieving our full-year Adjusted EBITDA target in our Interactive segment. Importantly, the healthy operating trends we experienced across both our retail and interactive segments continued through October.”
Online revenue rises
PENN’s interactive segment, which includes online sports betting, iGaming, and retail sportsbooks, generated $348.4 million in revenue, up from $297.7 million in the previous third quarter.
PENN reported that online sports betting in Ontario and iGaming users and revenue per user increased in the company’s now second Canadian province. PENN launched its interactive products in Alberta during Q3.
“We are also pleased with the early performance of our Alberta iCasino and OSB operations, which further expand our Canadian presence,” Snowden said. “These encouraging trends reinforce our strategic focus on U.S. iCasino and Canada as key drivers of profitable growth.”
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Segment growth
The Northeast Segment, which includes hotel-casino properties in Illinois, Pennsylvania, and Ohio, generated the highest retail revenue at $708.3 million, a 2.6% year-over-year increase. The segment’s Adjusted EBITDA of $208.1 million was up from $197.9 million during Q3 2025.
The South saw the slightest revenue increase, with the Midwest offering the greatest year-over-year growth at 14.4%. The West segment grew by 6%.
“Our retail segment delivered better-than-expected revenue and Adjusted EBITDAR results, driven by same-store growth and contributions from our completed development projects,” Snowden said. “Property-level performance was supported by increases in rated revenue and spend per visit across all age segments, meaningful contributions from mid- and high-worth customers, and continued growth in unrated revenue. For the third consecutive quarter, Segment Adjusted EBITDAR margins improved year-over-year. We believe the returns we are generating from investments in our portfolio highlight the opportunity across our remaining development pipeline and position us well for future growth.”
