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Four development projects are seeing casinos become destination resorts
The completion of four development projects has helped drive record quarterly land-based revenues for PENN Entertainment, with nine casinos setting new second-quarter revenue records, with Hollywood iCasino, also reaching a new high.
Land-based generated revenues of $1.5bn and online gaming generating revenues of $349.4m. Hollywood Casino Joliet, which opened last August, continued to deliver strong results in Q2, and that momentum has continued into early Q3. M Resort continues to capture previously unmet demand and drive enhanced property performance following the opening of our new hotel tower last December.
In fact, M Resort generated record net revenue and adjusted EBITDA in Q2. Hollywood Columbus benefited from the recent opening of a new hotel tower on June 12, strengthening its position as the leading regional gaming destination in the state of Ohio. The property generated an all-time net revenue record in July, the first full month with the hotel open. Over the hotel’s first month and a half of operations, out-of-market guests accounted for 85 per cent of hotel cash revenue, which shows its value as a regional gaming destination.
Hollywood Aurora, opened on June 24, and while still early, has been showing strong growth, approximately doubling its footfall, slot volumes, table volumes, and non-gaming revenues versus prior-year levels. The hotel is now attracting higher-worth customers, with rated guests generating 21 per cent higher average daily worth when staying at the property. Up next in the pipeline will be the relocation of Hollywood Council Bluffs, which is expected to open in 2028. This project will convert a first-generation riverboat casino license into a modern and more efficient land-based facility that will connect seamlessly with our existing 444-room hotel.
Jay Snowden, Chief Executive Officer and President, said: “We continued to execute against our 2026 strategic priorities this quarter: delivering Segment Adjusted EBITDAR growth, optimising corporate overhead, growing cash flow, and deleveraging the balance sheet. PENN achieved record quarterly Retail segment revenues, supported by strong performance across our portfolio, including our four recently completed development projects. Our Interactive segment remains on track to deliver upon our previously stated goals, supported by growth in US iCasino and Canada. Adjusted EBITDA improved by $52.5m year-over-year, reflecting disciplined execution of our strategy to drive profitability. The encouraging trends in our Retail and Interactive operating segments have continued through July.”
“PENN’s geographically diverse Retail segment delivered portfolio-wide strength, with nine properties setting second-quarter records for revenues and Adjusted EBITDAR,” said Mr. Snowden. “We experienced another quarter of year-over-year growth in theoretical revenue, supported by meaningful contributions from mid- and high-worth customer segments, as well as growth in unrated revenue, underscoring broad-based consumer demand. Second-quarter Segment Adjusted EBITDAR margins improved quarter-over-quarter and year-over-year, reflecting our property teams’ focus on converting solid demand into favorable operating results. In June 2026, we opened both the new hotel tower at Hollywood Columbus and the new Hollywood Casino Aurora, and early trends at both properties are encouraging, including strong visitation from VIP players.”
“Our Interactive segment delivered another quarter of meaningful year-over-year Adjusted EBITDA improvement. In the US, standalone Hollywood iCasino experienced quarter-over-quarter as well as year-over-year growth, achieving record quarterly revenues. In Ontario, gaming operations continued to gain momentum, supported by strong growth in online sports betting (“OSB”) revenues aided by solid World Cup engagement and cross-sell of the reactivated World Cup OSB user base into iCasino. We also successfully launched theScore Bet, as well as theScore Casino and Hollywood iCasino standalone apps, in Alberta on July 13,” concluded Mr. Snowden.
