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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We have five reportable segments: Northeast, South, West, Midwest, and Interactive. Our gaming and racing properties are grouped by geographic location, and each is viewed as an operating segment with the exception of our two properties in Jackpot, Nevada, which are viewed as one operating segment. We consider our combined VGT operations, by state, to be separate operating segments. Interactive includes all of our online gaming operations, management of retail sports betting, media, and in the prior year, the operating results of Barstool. We owned 36% of Barstool common stock prior to the February 17, 2023 Barstool Acquisition, pursuant to which we acquired the remaining 64% of Barstool common stock. On August 8, 2023, we entered into the Barstool SPA, and we sold 100% of the outstanding shares of Barstool common stock. See Note 5, “Acquisitions and Dispositions” for further 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 June 30,For the six months ended June 30,
(in millions)2024202320242023
Revenues:  
Northeast segment$696.3 $688.0 $1,381.0 $1,388.5 
South segment298.2 308.3 596.7 623.1 
West segment135.3 130.0 264.1 259.7 
Midwest segment298.1 293.3 589.3 588.6 
Interactive segment232.6 257.5 440.3 491.0 
Other (1)
5.9 6.2 11.9 12.0 
Intersegment eliminations (2)
(3.4)(8.5)(13.4)(14.8)
Total$1,663.0 $1,674.8 $3,269.9 $3,348.1 
Adjusted EBITDAR (3):
Northeast segment$204.7 $217.3 $407.3 $430.2 
South segment111.4 120.9 224.9 244.5 
West segment50.6 49.6 96.5 98.7 
Midwest segment 129.9 127.1 246.9 252.7 
Interactive segment(102.8)(12.8)(298.8)(18.5)
Other (1)
(26.8)(25.3)(53.6)(52.6)
Total (3)
367.0 476.8 623.2 955.0 
Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)
(154.9)(146.4)(309.7)(292.4)
Stock-based compensation(14.2)(19.7)(26.1)(36.2)
Cash-settled stock-based awards variance3.1 6.2 11.1 9.1 
Loss on disposal of assets(9.1)— (8.9)— 
Contingent purchase price— (0.2)— (0.5)
Depreciation and amortization(109.1)(110.6)(217.8)(218.1)
Insurance recoveries, net of deductible charges2.7 13.6 2.7 13.6 
Non-operating items of equity method investments (5)
(1.0)(0.9)(2.1)(5.4)
Interest expense, net(119.4)(115.6)(238.5)(228.6)
Interest income5.8 9.9 12.9 20.3 
Gain on Barstool Acquisition, net (6)
— — — 83.4 
Gain on REIT transactions, net (7)
— — — 500.8 
Other (8)
(1.2)(0.3)(4.6)(5.9)
Income (loss) before income taxes(30.3)112.8 (157.8)795.1 
Income tax benefit (expense)3.2 (34.7)15.8 (202.6)
Net income (loss)$(27.1)$78.1 $(142.0)$592.5 
(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Park, the Company’s joint venture interests in Freehold Raceway, and our management contract for Retama Park Racetrack. 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 or have not otherwise been allocated. Corporate overhead costs were $24.5 million and $24.8 million for the three months ended June 30, 2024 and 2023, respectively, and $49.4 million and $51.1 million for the six months ended June 30, 2024 and 2023, respectively.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)We define Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (4) below), stock-based compensation, debt extinguishment 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 expenses, non-cash gains/losses associated with REIT transactions, loss on disposal of business, non-cash gains/losses associated with partial and step acquisitions as measured in accordance with ASC Topic 805, “Business Combinations”, and other. 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 and our Kansas Entertainment joint venture.
(4)Amounts pertain to the operating lease components contained within the: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease.
(5)Consists principally of interest expense, net, income taxes, depreciation and amortization, and stock-based compensation expense associated with Barstool prior to us acquiring the remaining 64% of Barstool common stock (see Note 5, “Acquisitions and Dispositions”), and our Kansas Entertainment joint venture.
(6)Includes a gain of $66.5 million associated with Barstool related to remeasurement of the equity investment immediately prior to the acquisition date of February 17, 2023 and a gain of $16.9 million related to the acquisition of the remaining 64% of Barstool common stock (see Note 5, “Acquisitions and Dispositions”).
(7)Upon the execution of the February 21, 2023 AR PENN Master Lease and the 2023 Master Lease, both effective January 1, 2023, we recognized a gain of $500.8 million as a result of the reclassification and remeasurement of lease components (see Note 8, “Leases”).
(8)Primarily relates to unrealized holding losses of $3.9 million and unrealized holding gains on our equity securities of $6.3 million for the three months ended June 30, 2024 and 2023, respectively, and unrealized holding losses of $5.4 million and unrealized holding gains of $3.1 million for the six months ended June 30, 2024 and 2023, respectively, which are discussed in Note 14, “Fair Value Measurements.”

The table below presents capital expenditures by segment:
 For the three months ended June 30,For the six months ended June 30,
(in millions)2024202320242023
Capital expenditures:  
Northeast segment$13.3 $24.7 $18.9 $47.5 
South segment23.6 15.4 35.4 29.1 
West segment11.4 6.5 12.9 10.3 
Midwest segment38.2 16.9 57.4 29.6 
Interactive segment0.3 2.6 1.0 9.7 
Other1.4 3.5 4.0 6.6 
Total capital expenditures$88.2 $69.6 $129.6 $132.8 
The table below presents investment in and advances to unconsolidated affiliates and total assets by segment:
(in millions)NortheastSouthWestMidwestInteractive
Other (1)
Total
Balance sheet as of June 30, 2024
Investment in and advances to unconsolidated affiliates$— $— $— $81.7 $— $4.8 $86.5 
Total assets$1,831.6 $1,278.8 $399.6 $1,355.0 $2,379.0 $8,294.0 $15,538.0 
Balance sheet as of December 31, 2023
Investment in and advances to unconsolidated affiliates$— $— $— $80.8 $— $4.1 $84.9 
Total assets$1,827.4 $1,244.5 $388.6 $1,241.1 $2,549.9 $8,812.7 $16,064.2 
(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, net, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.