PENN Entertainment’s online sports betting and iGaming division followed its retail segment with year-over-year adjusted revenue growth in the first quarter of 2026.
Key Takeaways
- PENN’s Interactive segment generated $358.3 million in revenue during Q1.
- Retail’s Adjusted EBITDA margin rose slightly year-over-year to 33.2%.
- This was the first full segment under theScore Bet brand in the U.S.
The gaming operator behind brands theScore Bet and Hollywood Casino reported on Thursday that the Interactive segment generated $358.3 million and paid out $185.8 million in taxes, leaving the company $172.5 million in quarterly profits, a 6.5% increase from Q1 2025.
Revenue from PENN’s 42 retail casino resorts was up 2.8% $1.4 billion in adjusted revenue, a 2.8% year-over-year bump.
“We are pleased to report another solid quarter,” PENN CEO and president Jay Snowden said. “Retail Segment Adjusted EBITDAR grew year-over-year, and stable trends are carrying into April. In our Interactive segment, continued online casino growth combined with positive trends in Ontario are driving momentum as we prepare for the anticipated July 13 launch of regulated iCasino and online sports betting in Alberta.”
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New brand, increased profits
This was PENN’s first full quarter following a digital change in 16 U.S. markets. The company ended its branding relationship with ESPN in late 2025 and transitioned into theScore, the operator’s Canadian brand, before the end of the year.
Online sports betting saw a 5.2% year-over-year adjusted revenue increase to $65.2 million behind a hold that rose from 7.5% to 8.4% in Q1 2026. PENN’s online casinos generated 15% year-over-year revenue growth, and the $70.9-million profit was the highest ever produced by the operator in a quarter.
The Interactive segment’s Adjusted EBITDA improved 88% from an $89 million loss to a $10.8 million loss in Q1. Cost management and 65% less marketing spend helped lead to better results, the company reported.
“Our Interactive segment delivered a meaningful Adjusted EBITDA improvement year-over-year, which marks the first full quarter under our realigned digital strategy,” Snowden said. “iCasino revenue growth of approximately 15% year-over-year was driven by the continued momentum of standalone iCasino, which notably achieved record quarterly revenue in the first quarter as well as record monthly revenue in March. The trends we are seeing provide us with confidence in the trajectory of the business and upcoming launch in Alberta.”
PENN reported that Ontario online sports betting, iGaming, and Monthly Average Users (MAUs) experienced year-over-year growth in Q1. Net gaming revenue across Ontario, Michigan, West Virginia, New Jersey, and Pennsylvania spiked 362% from Q1 2025, while MAUs grew by 345%.
Retail growth
PENN’s Adjusted EBITDA Q1 margin of 33.2% from the retail segment improved slightly from the previous year, reaching $471.4 million.
The West region saw the largest year-over-year revenue growth at 12.4%, while the Midwest spiked 8.1%. Revenue from the South was down 2.4%, while the Northeast, PENN’s most profitable region, was up less than 1% year-over-year.
The company highlighted an increased visitation and higher spending per visit across all segments, which is supported by theoretical revenue growth, leading to the largest quarterly increase in three years. PENN said retail’s “stable trends” have carried over into April as well.
Other highlights
PENN announced that it issued $600 million of unsecured notes in March that are due 2031 with an interest rate of 6.75%, using the net proceeds to repay borrowings. The company reports that it has $1.7 billion in total liquidity, inclusive of $708 million in cash and cash equivalents, and traditional net debt of $2.2 billion.
The gaming operator increased its full-year guidance after Q1’s success by $12 million to $1.93 billion, which also includes a boost from the upcoming Alberta launch. TheScore Bet is one of several online sports betting and iGaming operators planning to be available when wagering goes live there this summer.
“We’re continuing to see positive trends in Ontario, including year-over-year growth in average MAUs, OSB revenue, and iCasino revenue. These results reflect the strength of theScore Bet brand in Canada and our realigned digital strategy, which we think bodes well for the anticipated July 13th launch of regulated iCasino and online sports betting in Alberta,” Snowden said. “theScore Bet has been approved as a registered iGaming operator by the AGLC, and pre-registration efforts have begun in the province.”
