PENN Entertainment, Inc.

Previous wording

We have realigned our digital strategy to prioritize our U.S. iCasino and Canadian operations, with OSB, now offered in the U.S. under theScore Bet brand, and serving as a top-of-funnel customer acquisition and cross-sell channel. Our iCasino strategy is aligned with our core business, which emphasizes cross-sell opportunities across our ecosystem and enhanced connectivity with our PENN Play loyalty program. Our Hollywood-branded iCasino will remain integrated into our OSB product in jurisdictions where permitted, in addition to serving as a standalone iCasino app.

Current wording

Our digital strategy prioritizes our U.S. iCasino and Canadian iCasino and OSB operations. We offer OSB in the U.S. and Canada under theScore Bet brand which serves as a top-of-funnel customer acquisition and cross-sell channel. Our iCasino strategy is aligned with our core business, which emphasizes cross-sell opportunities across our ecosystem and enhanced connectivity with our PENN Play loyalty program. Our Hollywood-branded iCasino remains integrated into our OSB product in U.S. jurisdictions where permitted, in addition to serving as a standalone iCasino app in both the U.S. and Canada. We also operate theScore iCasino, which is integrated into theScore Bet OSB app in Canada in addition to a standalone iCasino app under theScore brand in Canada.

Previous wording

On April 24, 2025, the Company announced a development project to relocate its Ameristar Council Bluffs riverboat casino operations to a new, land-based property to be rebranded as Hollywood Casino Council Bluffs (“HCCB”). Under the proposed plan, the new HCCB is expected to include roughly 125,000 square feet of new development with approximately 58,000 square feet of gaming space and more than 1,000 positions on a single level. The new facility will complement the existing retail sportsbook, 160-room hotel, and dining options in the landside portion of the current infrastructure. The project is anticipated to cost between $180.0 million and $200.0 million and is expected to open in 2028. GLPI has committed to finance, at PENN’s request, up to $150.0 million of the project at a 7.1% cap rate, which may be structured at PENN’s option as either rent or a 5-year term loan that is prepayable at any time without penalty.

Current wording

On September 14, 2026, the Company broke ground on a development project to relocate its Ameristar Council Bluffs riverboat casino operations to a new, land-based property to be rebranded as Hollywood Casino Council Bluffs (“HCCB”). Under the proposed plan, the new HCCB is expected to include roughly 125,000 square feet of new development, approximately 1,000 slots, 25 live table games, and two new dining experiences. The new facility will complement the existing retail sportsbook, over 160-room hotel, and dining options in the landside portion of the current infrastructure. The project is anticipated to cost between $180.0 million and $200.0 million and is expected to open in 2028. GLPI has committed to finance, at PENN’s request, up to $150.0 million of the project at a 7.1% cap rate, which may be structured at PENN’s option as either rent or a 5-year term loan that is prepayable at any time without penalty.

Previous wording

The Aurora Project to relocate its riverboat casino operations to a new, land-based facility opened on June 24, 2026. The facility features approximately 1,200 gaming positions, including high-limit slots and table games, a baccarat room and a sportsbook. The property also includes a premium hotel with 226 rooms and suites, outdoor entertainment area, full-service spa, high-quality bars and restaurants including Sorella by Giada and Boulevard Food & Drink Hall, an approximately 12,000 square-foot event center with meeting areas and roughly 1,700 parking spaces. The Aurora Project included the transfer of certain parcels of land from the City of Aurora, and up to $50.0 million of the project will be funded by the city through a new bond issuance. As of August 5, 2026, we have received $216.3 million in funding from GLPI (representing the $225.0 million commitment of GLPI less costs incurred by GLPI with respect to certain land parcels associated with the Aurora Project), resulting in a $17.4 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease. Additionally, the Company has received $35.9 million from the City of Aurora as of August 5, 2026.

Current wording

The project to relocate the riverboat casino operations of Hollywood Casino Aurora (“Aurora”) to a new, land-based facility (the “Aurora Project”) opened on June 24, 2026. The facility features approximately 1,200 gaming positions, including high-limit slots and table games, a baccarat room and a sportsbook. The property also includes a premium hotel with 226 rooms and suites, outdoor entertainment area, full-service spa, high-quality bars and restaurants including Sorella by Giada and Boulevard Food & Drink Hall, an approximately 12,000-square-foot event center with meeting areas, and roughly 1,700 parking spaces. The Aurora Project included the transfer of certain parcels of land from the City of Aurora and up to $50.0 million of the project will be funded by the city through tax increment financing bonds. We received $216.3 million in funding from GLPI on June 24, 2026 (representing the $225.0 million commitment of GLPI less costs incurred by GLPI with respect to certain land parcels associated with the Aurora Project), resulting in a $17.4 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease. Additionally, the Company has received $35.9 million from the City of Aurora as of November 4, 2026.

Previous wording

The new hotel tower at Columbus opened on June 12, 2026. The 203-room hotel represents a major expansion, offering guests modern, upscale accommodations at the city’s premier gaming, dining and entertainment experience. The 150,000 square-foot tower features 183 standard rooms and 20 luxury suites, a full service bar and restaurant, conference rooms, fitness center and an outdoor seating terrace. We did not request or receive any funding from GLPI for the Columbus Project, and GLPI’s funding commitment expired on December 31, 2025.

Current wording

The new hotel tower at Hollywood Casino Columbus (“Columbus” and the project to develop the hotel tower, the “Columbus Project”) opened on June 12, 2026. The 203-room hotel represents a major expansion, offering guests modern, upscale accommodations at the city’s premier gaming, dining, and entertainment experience. The 150,000-square-foot tower features 183 standard rooms and 20 luxury suites, a full-service bar and restaurant, conference rooms, a fitness center, and an outdoor seating terrace. We did not request or receive any funding from GLPI for the Columbus Project.

Previous wording

The second hotel tower at M Resort opened on December 1, 2025. The M Resort Project added 375 rooms to the Company’s property south of the Las Vegas Strip, bringing its total to 765 rooms and suites. Along with the rooms, the project includes expanded meeting space, updated amenities, and additional local partnerships. On November 3, 2025, the Company received the full $150.0 million in committed funding from GLPI for the M Resort Project, resulting in an $11.7 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease.

Current wording

The second hotel tower at M Resort Spa Casino (“M Resort” and the project to develop the second hotel tower, the “M Resort Project”) opened on December 1, 2025. The M Resort Project added 375 rooms to the Company’s property south of the Las Vegas Strip, bringing its total to 765 rooms and suites. Along with the rooms, the project includes expanded meeting space, updated amenities, and additional local partnerships. On November 3, 2025, the Company received the full $150.0 million in committed funding from GLPI for the M Resort Project, resulting in an $11.7 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease.

Previous wording

The Joliet Project to relocate its riverboat casino operations to a new, state-of-the-art land-based facility opened on August 11, 2025. The best-in-class property features approximately 1,000 slots and 43 live table games, including high-limit slots and table games, a baccarat room, and a retail sportsbook. Its unique bars and restaurants include Sorellina by Giada De Laurentiis and Boulevard Food & Drink Hall. Additional features of the new property include an approximately 10,000 square foot, all-ages event center with meeting areas, and approximately 1,330 parking spaces. On August 1, 2025, the Company received the full $130.0 million in committed funding from GLPI for the Joliet Project, resulting in a $10.1 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease.

Current wording

The project to relocate the riverboat casino operations of Hollywood Casino Joliet (“Joliet”) to a new, state-of-the-art land-based facility (the “Joliet Project”) opened on August 11, 2025. The best-in-class property features approximately 1,000 slots and 43 live table games, including high-limit slots and table games, a baccarat room, and a retail sportsbook. Its unique bars and restaurants include Sorellina by Giada De Laurentiis and Boulevard Food & Drink Hall. Additional features of the new property include an approximately 10,000-square-foot, all-ages event center with meeting areas, and approximately 1,330 parking spaces. On August 1, 2025, the Company received the full $130.0 million in committed funding from GLPI for the Joliet Project, resulting in a $10.1 million increase in annual rent, subject to annual escalation pursuant to the 2023 Master Lease.

Previous wording

The gaming, media, and entertainment industries are characterized by an increasingly high degree of competition among a large number of participants. We compete with a variety of gaming operations, including casinos and hotel casinos of varying quality and size and other gaming options such as state and province-sponsored internet lotteries, sweepstakes, charitable gaming, video gaming terminals at bars, restaurants, taverns and truck stops, historical horse racing gaming terminals, illegal slot machines and skill games, fantasy sports and third-party internet or mobile-based gaming platforms, including both legal and illegal iCasino and sports betting operations, and emerging prediction markets. See the“Segment Comparison of the Three and Six Months Ended June 30, 2026 and 2025” section below for discussions on our results of operations by reportable segment.

Current wording

The gaming, media, and entertainment industries are characterized by an increasingly high degree of competition among a large number of participants. We compete with a variety of gaming operations, including casinos and hotel casinos of varying quality and size and other gaming options such as state and province-sponsored internet lotteries, sweepstakes, charitable gaming, video gaming terminals at bars, restaurants, taverns and truck stops, historical horse racing gaming terminals, illegal slot machines and skill games, fantasy sports and third-party internet or mobile-based gaming platforms, including both legal and illegal iCasino and sports betting operations, and emerging prediction markets. See the“Segment Comparison of the Three and Nine Months Ended September 30, 2026 and 2025” section below for a discussion of our results of operations by reportable segment.

Previous wording

In our business, revenue is driven by discretionary consumer spending. We have no certain mechanism for determining why consumers choose to spend more or less money at our properties or on our online offerings from period-to-period; therefore, we are unable to quantify a dollar amount for each factor that impacts our customers’ spending behaviors. However, based on our experience, we can generally offer some insight into the factors that we believe are likely to account for such changes and which factors may have a greater impact than others. For example, decreases in discretionary consumer spending have historically been brought about by actual or perceived weakened general economic conditions, such as recessions, inflation, rising interest rate environments, tight credit conditions, high unemployment levels, higher income taxes, low levels of consumer confidence, weakness in the housing market, high fuel or other transportation costs, global hostilities, political or social unrest, and the effects of pandemics. In addition, visitation and the volume of play have historically been negatively impacted by significant construction surrounding our properties, adverse regional weather conditions, and natural disasters. In all instances, such insights are based solely on our judgment and professional experience, and no assurance can be given as to the accuracy of our judgments.

Current wording

In our business, revenue is driven by discretionary consumer spending. We have no certain mechanism for determining why consumers choose to spend more or less money at our properties or on our online offerings from period-to-period; therefore, we are unable to quantify a dollar amount for each factor that impacts our customers’ spending behaviors. However, based on our experience, we can generally offer some insight into the factors that we believe are likely to account for such changes and which factors may have a greater impact than others. For example, decreases in discretionary consumer spending have historically been brought about by actual or perceived weakened general economic conditions, such as recessions, inflation, rising interest rate environments, tight credit conditions, high unemployment levels, higher income taxes, low levels of consumer confidence, weakness in the housing market, high fuel or other transportation costs, global hostilities, political or social unrest, and the effects of pandemics. In addition, visitation and the volume of play have historically been negatively affected by significant construction surrounding our properties, adverse regional weather conditions, and natural disasters. In all instances, such insights are based solely on our judgment and professional experience, and no assurance can be given as to the accuracy of our judgments.

Previous wording

The majority of our revenues is gaming revenue, which is highly dependent upon the volume and spending levels of customers at our properties. Our gaming revenue is derived primarily from slot machines (which represented approximately 86% of our gaming revenue for the six months ended June 30, 2026 and 2025, respectively) and, to a lesser extent, table games, OSB, and iCasino. Aside from gaming revenue, our revenues are primarily derived from our hotel, dining, retail, commissions, program sales, admissions, concessions and certain other ancillary activities, and our racing operations.

Current wording

The majority of our revenues consist of gaming revenue, which is highly dependent upon the volume and spending levels of customers at our properties. Our gaming revenue is derived primarily from slot machines (which represented approximately 86% of our gaming revenue for both the nine months ended September 30, 2026 and 2025) and, to a lesser extent, table games, OSB, and iCasino. Aside from gaming revenue, our revenues are derived from our hotel, dining, retail, commissions, program sales, admissions, concessions and certain other ancillary activities, and our racing operations.

Previous wording

For online gaming, customers deposit cash into their online accounts for use in OSB and iCasino play. Liabilities are recognized for online player account funds that have not been withdrawn and for wagers that have been placed on events that have not yet occurred. Online sportsbook handle is the gross amount wagered during a given period. The win or hold percentage is the net amount of gaming wins and losses, with liabilities recognized for any bonus funds deposited into player accounts. Given that OSB wagers are made based on the outcomes of future sporting events, the win or hold percentage can vary based on the bet type (i.e., straight wagers vs. parlay wagers). Online slot handle is the gross amount wagered during a given period. The win or hold percentage is the net amount of gaming wins and losses, with liabilities recognized for accruals related to the anticipated payout of online progressive jackpots. Given the stability in our online slot hold percentages on a historical basis, we have not experienced significant impacts to the results of our operations or cash flows from changes in these percentages. Online table game hold is the amount of handle that is retained and recorded as gaming revenue. Our online table game hold percentages are fairly stable as we do not regularly experience high-value online play, which can lead to volatility in hold percentages. Given the stability in our online table game hold percentages on a historical basis, we have not experienced significant impacts to the results of our operations or cash flows from changes in these percentages.

Current wording

For online gaming, customers deposit cash into their online accounts for use in OSB and iCasino play. Liabilities are recognized for online player account funds that have not been withdrawn and for wagers that have been placed on events that have not yet occurred. OSB handle is the gross amount wagered during a given period. The win or hold percentage is the net amount of gaming wins and losses, with liabilities recognized for any bonus funds deposited into player accounts. Given that OSB wagers are made based on the outcomes of future sporting events, the win or hold percentage can vary based on the bet type (i.e., straight wagers versus parlay wagers). Online slot handle is the gross amount wagered during a given period. The win or hold percentage is the net amount of gaming wins and losses, with liabilities recognized for accruals related to the anticipated payout of online progressive jackpots. Given the stability in our online slot hold percentages on a historical basis, we have not experienced significant impacts to the results of our operations or cash flows from changes in these percentages. Online table game hold is the amount of handle that is retained and recorded as gaming revenue. Our online table game hold percentages are fairly stable as we do not regularly experience high-value online play, which can lead to volatility in hold percentages. Given the stability in our online table game hold percentages on a historical basis, we have not experienced significant impacts to the results of our operations or cash flows from changes in these percentages.

Previous wording

We have five reportable segments: Northeast, South, West, Midwest, and Interactive. The Northeast, South, West, and Midwest segments (referred to as our “retail segments”) primarily generate revenue from gaming operations (such as slot machines and table games), food and beverage offerings, and hotel visitation. The Interactive segment includes all of our OSB, online casino/iCasino, and social gaming (collectively referred to as “online gaming”) operations, management of retail sports betting, and media operations.

Current wording

We have five reportable segments: Northeast, South, West, Midwest, and Interactive. The Northeast, South, West, and Midwest segments (referred to as our “retail segments”) primarily generate revenue from gaming operations (such as slot machines and table games), food and beverage offerings, and hotel visitation. The Interactive segment includes all of our OSB, iCasino, and social gaming (collectively referred to as “online gaming”) operations, management of retail sports betting, and media operations.

Previous wording

(1)The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park, and our management contract for Retama Park Racetrack. 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, which consists 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. Corporate overhead was $29.5 million and $38.7 million for the three months ended June 30, 2026 and 2025, respectively, and $57.7 million and $74.7 million for the six months ended June 30, 2026 and 2025, respectively. Corporate overhead for the three and six months ended June 30, 2025 included $9.4 million and $17.1 million, respectively, of legal and advisory costs related to activist activity in connection with our 2025 annual meeting of shareholders.

Current wording

(1)The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of the Company’s standalone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park, and our management contract for Retama Park Racetrack. 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, which consists of certain expenses, such as: payroll, professional fees, travel expenses, and other general and administrative expenses that do not directly relate to a reportable segment or have not otherwise been allocated. Corporate overhead was $30.4 million and $34.0 million for the three months ended September 30, 2026 and 2025, respectively, and $88.1 million and $108.7 million for the nine months ended September 30, 2026 and 2025, respectively. Corporate overhead for the three and nine months ended September 30, 2025 included $3.9 million and $21.0 million, respectively, of legal and advisory costs related to activist activity in connection with our 2025 annual meeting of shareholders.

Previous wording

Gaming revenuesfor the three and six months ended June 30, 2026 increased by $28.9 million and $64.9 million, respectively, compared to the corresponding prior year periods. Increased spend per visit contributed to the growth in gaming revenues at our retail segments. Strong performance across our portfolio and incremental contributions from our four recently completed development projects delivered record revenues at nine of our retail properties. The opening of our new land-based Joliet facility on August 11, 2025, second hotel tower at M Resort on December 1, 2025, andnew hotel tower at Hollywood Casino Columbus on June 12, 2026 contributed to increases in gaming revenues during the current year periods. Increases in gaming revenues within our retail segments were partially offset by decreases in online gaming revenues, particularly online sports revenues, within our Interactive segmentdue to lower handle compared to the corresponding prior year periods. For thesix months ended June 30, 2026, increases in gaming revenues at our Northeast, West, and Midwest segments were also offset by a decrease in gaming revenues within our South segment as newsupply continues to impact visitation and weather events negatively impacted revenues during the first quarter of 2026.

Current wording

Gaming revenues for the nine months ended September 30, 2026 increased by $110.9 million compared to the corresponding prior year period. Increased spend per visit contributed to the growth in gaming revenues at our Northeast, West, and Midwest segments. The openings of the recent development projects, as described above in the“Executive Overview,” contributed to increases in gaming revenues during the current year period. In our Interactive segment, online gaming revenues decreased as growth in our iCasino revenues was offset by decreases in OSB revenues due to lower handle compared to the corresponding prior year period. Increases in gaming revenues at our Northeast, West, and Midwest segments were also offset by a decrease in gaming revenues within our South segment as new supply negatively affected visitation and weather events negatively affected revenues during the first quarter of 2026.

Previous wording

Food, beverage, hotel, and other revenues for the three and six months ended June 30, 2026 increased by $63.5 million and $134.0 million, respectively, compared to the corresponding prior year periods. The increases were primarily due to increases in gaming tax reimbursement amounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market access of $47.6 million and $105.2 million, respectively, compared to the corresponding prior year periods. Additionally, the recent openings of the second hotel tower at M Resort and our new land-based Joliet facility contributed to increases in hotel and food and beverage revenues within our West and Midwest segments, respectively, as discussed above.

Current wording

Food, beverage, hotel, and other revenues for the three and nine months ended September 30, 2026 increased by $76.7 million and $210.7 million, respectively, compared to the corresponding prior year periods. For the three and nine months ended September 30, 2026, the increases were primarily due to increases in gaming tax reimbursement amounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market access of $51.9 million and $157.1 million, respectively, compared to the corresponding prior year periods. Additionally, the recent openings of our newhotel tower at Columbus, second hotel tower at M Resort, new land-based Aurora facility, and new land-based Joliet facility contributed to increases in hotel and food and beverage revenues within our Northeast, West, and Midwest segments.

Previous wording

See“Segment Comparison of the Three and Six Months Ended June 30, 2026 and 2025” below for more detailed explanations of the fluctuations in revenues.

Current wording

See“Segment Comparison of the Three and Nine Months Ended September 30, 2026 and 2025” below for more detailed explanations of the fluctuations in revenues.

Previous wording

Gaming expenses primarily consist of gaming taxes, payroll, marketing and promotional expenses, and other expenses associated with our gaming operations. Gaming expenses for the three and six months ended June 30, 2026 decreased by $36.5 million and $82.4 million, respectively, compared to the corresponding prior year periods, due primarily to decreases in marketing expenses at our Interactive segment. During thecorresponding prior year periods, we incurred additional marketing expenses to support our promotion of ESPN BET within our Interactive segment. The decrease in gaming expenses was partially offset by increases in gaming taxes at our Northeast, Midwest, and West segments related to increased gaming revenues as discussed above.

Current wording

Gaming expenses primarily consist of gaming taxes, payroll, marketing and promotional expenses, and other expenses associated with our gaming operations. Gaming expenses for the three and nine months ended September 30, 2026 decreased by $37.4 million and $119.7 million, respectively, compared to the corresponding prior year periods, due primarily to decreases in marketing expenses at our Interactive segment. During thecorresponding prior year periods, we incurred additional marketing expenses to support our promotion of ESPN BET within our Interactive segment. The decrease in gaming expenses was partially offset by increases in gaming taxes at our Northeast, Midwest, and West segments related to increased gaming revenues as discussed above.

Previous wording

Food, beverage, hotel, and other expenses consist primarily of payroll expenses, costs of goods sold, and other costs associated with our food, beverage, hotel, retail, racing, and Interactive operations. Food, beverage, hotel, and other expenses for thethree and six months ended June 30, 2026 increased by$51.7 million and $116.2 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming tax reimbursement amounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market access.

Current wording

Food, beverage, hotel, and other expenses consist primarily of payroll expenses, costs of goods sold, and other costs associated with our food, beverage, hotel, retail, racing, and Interactive operations. Food, beverage, hotel, and other expenses for thethree and nine months ended September 30, 2026 increased by$61.3 million and $177.5 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming tax reimbursement amounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market access.

Previous wording

For the three and six months ended June 30, 2026, general and administrative expenses increased by $30.7 million and $55.4 million, respectively, compared to the corresponding prior year periods, primarily due to transaction costs and pre-opening expenses related to the Aurora Project and the Columbus Project, as well as increases in rent expense due to the 2023 Master Lease modifications associated with the PENN Development Projects, as discussed above in the“Executive Overview.” For the six months ended June 30, 2026, general and administrative expenses also included settlement costs and related legal and advisory fees associated with the Cooperation Agreement with HG Vora Capital Management, LLC and related parties, as well as non-recurring restructuring charges (primarily severance) related to the Company’s new corporate organizational structure. For the three and six months ended June 30, 2025, general and administrative expenses also included legal and advisory costs related to activist activity incurred in connection with our 2025 annual meeting of shareholders of $9.4 million and $17.1 million, respectively.

Current wording

For the three months ended September 30, 2026, general and administrative expenses remained relatively flat. For the nine months ended September 30, 2026, general and administrative expenses increased by $57.9 million compared to the corresponding prior year period, primarily due to transaction costs and pre-opening expenses related to the Aurora Project and the Columbus Project, as well as increases in rent expense due to the 2023 Master Lease modifications associated with the Aurora, M Resort, and Joliet Projects, as discussed above in the“Executive Overview.” For the nine months ended September 30, 2026, general and administrative expenses also included settlement costs and related legal and advisory fees associated with the Cooperation Agreement with HG Vora Capital Management, LLC and related parties, as well as non-recurring restructuring charges (primarily severance) related to the Company’s new corporate organizational structure. For the three and nine months ended September 30, 2025, general and administrative expenses also included legal and advisory costs related to activist activity incurred in connection with our 2025 annual meeting of shareholders of $3.9 million and $21.0 million, respectively.

Previous wording

Depreciation and amortizationfor the three and six months ended June 30, 2026 increased $7.3 million and $16.3 million, respectively, compared to the corresponding prior year periods, primarily due to the opening of our new land-based Joliet facility on August 11, 2025 and the opening of the second hotel tower at M Resort on December 1, 2025.

Current wording

Depreciation and amortizationfor the three and nine months ended September 30, 2026 increased $9.6 million and $25.9 million, respectively, compared to the corresponding prior year periods, primarily due to the opening of our development projects: M Resort (December 1, 2025), Columbus (June 12, 2026), and Aurora (June 24, 2026). Additionally, depreciation and amortization for the nine months ended September 30, 2026 further increased due to the opening of Joliet (August 11, 2025).

Previous wording

Interest expense, net increased by $5.0 million for the three months ended June 30, 2026, compared to the corresponding prior year period, primarily due to the Company completing an offering of $600.0 million aggregate principal amount of 6.75% senior unsecured notes in the first quarter of 2026 and a reduction in capitalized interest upon completion of the PENN Development Projects. The increase was partially offset by a 50 basis point reduction in interest rates on our Amended Term Loan B Facility stemming from the execution of the Fourth Amendment Agreement to the Second Amended and Restated Credit Agreement. See Note 5, “Long-Term Debt” to the unaudited Consolidated Financial Statements for additional details.

Current wording

Interest expense, net increased by $8.6 million and $3.8 million for the three and nine months ended September 30, 2026, respectively, compared to the corresponding prior year periods. The increases were primarily due to a reduction in capitalized interest upon completion of the recent development projects, as described above in the“Executive Overview,” and additional interest expense associated with the Company’s issuance of $600.0 million aggregate principal amount of 6.75% senior unsecured notes in the first quarter of 2026. The increases in both periods were partially offset by a 50-basis-point reduction in interest rates on our Amended Term Loan B Facility resulting from the Fourth Amendment Agreement to the Second Amended and Restated Credit Agreement. For the nine months ended September 30, 2026, the increase in interest expense, net was further offset by the first quarter of 2025 including interest expense related to the Company’s financing arrangement, which upon derecognition, resulted in the “Gain on financing arrangement” described below. See Note 5, “Long-Term Debt” to the unaudited Consolidated Financial Statements for additional details.

Previous wording

Interest income decreased by $0.1 million and $1.5 million for the three and six months ended June 30, 2026, respectively, compared to the corresponding prior year periods, primarily due to decreases in the amount invested in money market funds, which we use for short term investing.

Current wording

Interest income increased by $1.4 million for the three months ended September 30, 2026 compared to the corresponding prior year period, primarily due to the increase in cash and cash equivalents allowing us to increase the amount invested in money market funds, which we use for short term investing. Interest income for the nine months ended September 30, 2026 remained flat compared to the prior year period.

Previous wording

Loss on early extinguishment of debt for the current periods relates to the refinancing transactions of the Company’s Amended Revolving Credit Facility, Amended Term Loan A Facility, and Amended Term Loan B Facility in the second quarter of 2026. The loss on early extinguishment of debt for the corresponding prior year periods relates to the repurchase of the 2.75% convertible notes due 2026 (the “Convertible Notes”). For further discussion on the refinancing and repurchase transactions, see Note 5, “Long-Term Debt,” to our unaudited Consolidated Financial Statements.

Current wording

Loss on early extinguishment of debt for the current period relates to the refinancing transactions of the Company’s Amended Credit Facilities in the second quarter of 2026. The loss on early extinguishment of debt for the corresponding prior year period relates to the repurchase of the 2.75% convertible notes due 2026 (the “Convertible Notes”). For further discussion on the refinancing and repurchase transactions, see Note 5, “Long-Term Debt” to the unaudited Consolidated Financial Statements.

Previous wording

Other primarily consisted of foreign currency revaluation for the three and six months ended June 30, 2026. The corresponding prior year period primarily consisted of realized and unrealized gains and losses on equity securities held by PENN Interactive, as well as miscellaneous income and expense items. The equity securities were sold during the second quarter of 2025.

Current wording

Other primarily consisted of foreign currency revaluation for the three and nine months ended September 30, 2026. The corresponding prior year period primarily consisted of realized and unrealized gains and losses on equity securities held by PENN Interactive, as well as miscellaneous income and expense items. The equity securities were sold during the second quarter of 2025.

Previous wording

Income tax expensewas $7.1 million and $6.4 million for the three months ended June 30, 2026 and 2025, respectively, and $15.8 million and $54.1 million for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate (income taxes as a percentage of income from operations before income taxes), including discrete items was 11.3% and 18.4% for the three and six months ended June 30, 2026, respectively.

Current wording

Income tax expensewas $1.7 million and $17.5 million for the three and nine months ended September 30, 2026, respectively, as compared to an expense of $5.3 million and $59.4 million for the three and nine months ended September 30, 2025, respectively. The effective tax rate (income taxes as a percentage of income from operations before income taxes), including discrete items was 3.5% and 13.1% for the three and nine months ended September 30, 2026, respectively.

Previous wording

We excluded certain foreign losses from our worldwide effective tax rate calculation due to a year-to-date ordinary loss for which no benefit may be recognized. The change in the effective tax rate for the three and six months ended June 30, 2026, as compared to the corresponding prior periods was primarily due to: (i) excluding certain foreign losses for which no tax benefit can be recognized in our worldwide effective tax rate calculation; (ii) non-deductible permanent items; (iii) state taxes; and (iv) changes in uncertain tax positions. See Note 8, “Income Taxes” to the unaudited Consolidated Financial Statements for additional details.

Current wording

We excluded certain foreign losses from our worldwide effective tax rate calculation due to a year-to-date ordinary loss for which no benefit may be recognized. The change in the effective tax rate for the three and nine months ended September 30, 2026, as compared to the corresponding prior periods was primarily due to: (i) excluding certain foreign losses for which no tax benefit can be recognized in our worldwide effective tax rate calculation; (ii) non-deductible permanent items; (iii) state taxes; and (iv) changes in uncertain tax positions. See Note 8, “Income Taxes” to the unaudited Consolidated Financial Statements for additional details.

Previous wording

On June 29, 2026, the Indiana Supreme Court ruled in the Company’s favor with respect to its Indiana wagering tax add-back position for the 2015 through 2017 tax years, reversing a prior decision of the Indiana Tax Court. As a result, the Company reversed the previously recorded unrecognized tax benefits and corresponding accrued interest, which was recognized as a discrete benefit during the quarter. The Company continues to maintain reserves associated with subsequent tax years pending resolution of those periods.

Current wording

On June 29, 2026, the Indiana Supreme Court ruled in the Company’s favor with respect to its Indiana wagering tax add-back position for the 2015 through 2017 tax years, reversing a prior decision of the Indiana Tax Court. As a result of the ruling, the Company recognized a discrete tax benefit during the second quarter of 2026 related to the 2015 through 2017 tax years. During the third quarter of 2026, the Company was notified by the Indiana Department of Revenue (“DOR”) that the 2018 through 2021 tax years will be reassessed consistent with the Supreme Court ruling. As a result, the Company reversed the previously recorded unrecognized tax benefits and corresponding accrued interest, which was recognized as a discrete tax benefit during the third quarter of 2026 related to the 2018 through 2021 tax years. The Company continues to maintain reserves associated with the remaining open tax years pending further resolution of these periods with the DOR.

Previous wording

The Northeast segment’s revenues for the three and six months ended June 30, 2026 increased by $20.0 million and $26.2 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming revenues, particularly slots revenues, as well as increases in hotel revenue. The current year periods benefited fromthe opening of the new hotel tower at Hollywood Casino Columbus on June 12, 2026, which, along with four of our other Northeast segment properties, had record revenues during the second quarter of 2026.

Current wording

The Northeast segment’s revenues for the three and nine months ended September 30, 2026 increased by $17.8 million and $44.0 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming revenues, particularly slots revenues, as well as increases in hotel revenue. The current year periods benefited fromthe opening of the new hotel tower at Columbus on June 12, 2026.

Previous wording

For the three and six months ended June 30, 2026, the Northeast segment’s Adjusted EBITDAR increased$10.7 million and $11.0 million, respectively, and Adjusted EBITDAR margin increased to 30.1% and 29.2%, respectively, primarily due to increases in gaming revenues discussed above.

Current wording

For the three and nine months ended September 30, 2026, the Northeast segment’s Adjusted EBITDAR increased$10.2 million and $21.2 million, respectively, and Adjusted EBITDAR margin increased to 29.4% and 29.3%, respectively, primarily due to increases in revenues discussed above.

Previous wording

The South segment’s revenues for the three months ended June 30, 2026 decreased by $0.3 million, compared to the prior year period, primarily due to a decrease in food and beverage revenues, partially offset by an increase in gaming revenues.

Current wording

The South segment’s revenues for the three months ended September 30, 2026 increased by $0.8 million, compared to the prior year period, due to an increase in gaming revenues.

Previous wording

The South segment’s revenues for the six months ended June 30, 2026 decreased by $7.4 million, compared to the prior year period, primarily due to a decrease in gaming revenues as increased competition and severe weather events negatively impacted several of our properties during the first quarter of 2026, partially offset by an increase in food and beverage revenues.

Current wording

The South segment’s revenues for the nine months ended September 30, 2026 decreased by $6.6 million, compared to the prior year period, primarily due to a decrease in gaming revenues as increased competition and severe weather events negatively affected several of our properties during the first quarter of 2026, partially offset by an increase in food and beverage revenues.

Previous wording

For the six months ended June 30, 2026, the South segment’s Adjusted EBITDAR increased by $5.1 million and Adjusted EBITDAR margin increased to 36.6%, primarily due to a one-time favorable adjustment related to a legal accrual in the first quarter of 2026.

Current wording

For the three and nine months ended September 30, 2026, the South segment’s Adjusted EBITDAR increased by $10.6 million and $15.7 million, respectively, and Adjusted EBITDAR margin increased to 37.1% and 36.7%, respectively, primarily due to decreases in general and administrative expenses and labor costs. For the nine months ended September 30, 2026, Adjusted EBITDAR and Adjusted EBITDAR margin further increased due to a one-time favorable adjustment related to a legal accrual in the first quarter of 2026.

Previous wording

The West segment’s revenues for the three and six months ended June 30, 2026 increased by $13.8 million and $29.8 million, respectively, compared to the corresponding prior year periods, due toincreases in both gaming revenues andfood, beverage, hotel, and other revenues. Increases during the three and six months ended June 30, 2026 were driven primarily by the opening of the second hotel tower at M Resort on December 1, 2025, which, along with one of our other West segment properties, had record revenues during the second quarter of 2026.

Current wording

The West segment’s revenues for the three and nine months ended September 30, 2026 increased by $9.2 million and $39.2 million, respectively, compared to the corresponding prior year periods, due toincreases in both gaming revenues andfood, beverage, hotel, and other revenues. Increases during the three and nine months ended September 30, 2026 were driven primarily by the opening of the second hotel tower at M Resort on December 1, 2025.

Previous wording

For the three and six months ended June 30, 2026, the West segment’s Adjusted EBITDAR increased by $1.5 million and $9.8 million, respectively, primarily due to the increases in revenues discussed above.

Current wording

For the three months ended September 30, 2026, the West segment’s Adjusted EBITDAR decreased by$0.2 million and Adjusted EBITDAR margin decreased to 34.5%, primarily due to increases in general and administrative expenses and labor costs.

Previous wording

For the three and six months ended June 30, 2026, the West segment’s Adjusted EBITDAR margin decreased to 36.3% and 36.7%, respectively, primarily due to a one-time favorable adjustment in the prior year period coupled with a one-time unfavorable legal settlement in the current year period.

Current wording

For the nine months ended September 30, 2026, the West segment’s Adjusted EBITDAR increased by$9.6 million primarily due to the increases in revenues discussed above. Adjusted EBITDAR margin decreased to 35.9% primarily due to aone-time favorable adjustment in the prior year period coupled with a one-time unfavorable legal settlement in the current year period, as well asincreases in general and administrative expenses.

Previous wording

The Midwest segment’s revenues for the three and six months ended June 30, 2026 increased by$23.6 million and $46.6 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming revenues driven by the relocation of Joliet from a riverboat casino operation to a new land-based facility that opened on August 11, 2025. Additionally, two of our other Midwest segment properties had record revenues during the second quarter of 2026.

Current wording

The Midwest segment’s revenues for the three and nine months ended September 30, 2026 increased by$43.6 million and $90.2 million, respectively, compared to the corresponding prior year periods, primarily due to increases in gaming revenues driven by the relocations of Aurora and Joliet from riverboat casino operations to new land-based facilities that opened on June 24, 2026 and August 11, 2025, respectively.

Previous wording

For the three and six months ended June 30, 2026, the Midwest segment’s Adjusted EBITDAR increased by $11.2 million and $16.1 million, respectively, due to the increase in revenues discussed above.

Current wording

For the three and nine months ended September 30, 2026, the Midwest segment’s Adjusted EBITDAR increased by $15.4 million and $31.5 million, respectively, due to the increase in revenues discussed above.

Previous wording

For the three months ended June 30, 2026, Adjusted EBITDAR margin increased to 41.5% primarilydue to the increases in gaming revenues discussed above and aone-time favorable property tax adjustment. For the six months ended June 30, 2026, Adjusted EBITDAR margin decreased to 40.2%, primarilydue to increases inmarketing expenses, labor costs, and gaming taxes, partially offset by the increases in revenue and the property tax adjustment, both as discussed above.

Current wording

For the three months ended September 30, 2026, Adjusted EBITDAR margin decreased to 39.3%, primarilydue to increases in labor costs and marketing expenses, partially offset by the increases in revenue discussed above. For the nine months ended September 30, 2026, the Adjusted EBITDAR margin decreased to 39.9%, primarilydue to increases in labor costs and marketing expenses, partially offset by the increases in revenue discussed above and a one-time favorable property tax adjustment in the current year period.

Previous wording

The Interactive segment’s revenues for the three and six months ended June 30, 2026 increased by$33.3 million and$101.5 million, respectively, compared to the corresponding prior year periods, primarily due to increases in other revenues. Other revenues include gaming taxamounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market accessof $185.5 million and $137.9 million for the three months ended June 30, 2026 and 2025, respectively, and $371.3 million and $266.1 million for the six months ended June 30, 2026 and 2025, respectively. Increases to other revenue were partially offset by decreases to gaming revenues, particularly online sports revenues, due to lower handle compared to the corresponding prior year periods.

Current wording

The Interactive segment’s revenues for the three and nine months ended September 30, 2026 increased by$50.7 million and$152.1 million, respectively, compared to the corresponding prior year periods, primarily due to increases in other revenues. Other revenues include gaming taxamounts related tothird-party OSB and/or iCasino partners for OSB and iCasino market accessof $191.4 million and $139.5 million for the three months ended September 30, 2026 and 2025, respectively, and $562.7 million and $405.6 million for the nine months ended September 30, 2026 and 2025, respectively. Additionally, online gaming revenues decreased as growth in our iCasino revenues was offset by decreases in OSB revenues due to lower handle compared to the corresponding prior year periods.

Previous wording

For the three and six months ended June 30, 2026, the Interactive segment’s Adjusted EBITDA and Adjusted EBITDA margin increased primarily due to decreases in marketing expense and labor costs.

Current wording

For the three and nine months ended September 30, 2026, the Interactive segment’s Adjusted EBITDA and Adjusted EBITDA margin increased primarily due to decreases in marketing expense, general and administrative expenses, and labor costs.

Previous wording

Other consists of the Company’s stand-alone racing operations, as well as corporate overhead expenses, which primarily include 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. Revenues for the three and six months ended June 30, 2026 remained relatively flat compared to the prior year periods.

Current wording

Other consists of the Company’s standalone racing operations, as well as corporate overhead expenses, which primarily include certain expenses such as payroll, professional fees, travel expenses, and other general and administrative expenses that do not directly relate to a reportable segment or have not otherwise been allocated. Revenues for the three and nine months ended September 30, 2026 remained relatively flat compared to the prior year periods.