FIRST QUARTER 2023
EARNINGS PRESENTATIONMay 4, 2023

FORWARD-LOOKING STATEMENTS
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by
the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” or “anticipates” or thenegative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Specifically, forward-looking statements
include, but are not limited to, statements regarding: future revenues and Adjusted EBITDAR; the Company’s anticipated share repurchases; the Company’s expectationsof future results of operations and financial condition, including the scale and timing of the Company’s product and technology investments; the Company’s expectations
regarding results, and the impact of competition, in retail/mobile/online sportsbooks, iCasino, online social gaming, and retail operations; the Company’s development andlaunch of its Interactive segment’s products in new jurisdictions and enhancements to existing Interactive segment products, including the content for the Barstool
Sportsbook and Casino and theScore Bet Sportsbook and Casino apps and the migration of the Barstool Sportsbook into both our proprietary player account management
system and risk and trading platforms; the Company’s expectations regarding its acquisition of Barstool Sports and the future success of its products; the Company’s
expectations with respect to the integration and synergies related to the Company’s integration of theScore and Barstool Sports; the continued growth and monetization of
the Company’s media business; the Company’s expectations with respect to the ongoing introduction and the potential benefits of the cashless, cardless and contactless(3C’s) technology; the Company’s development projects, including the prospective development projects at Hollywood Casinos Aurora, Joliet, Columbus, and the M Resort
Spa Casino; our ability to obtain financing for our development projects on attractive terms; and the timing, cost and expected impact of planned capital expenditures on the
Company’s results of operations; the actions of regulatory, legislative, executive or judicial decisions at the federal, state, provincial or local level with regard to our businessand the impact of any such actions.
Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business.
Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materiallyfrom those reflected by such statements. Such factors include: the effects of economic and market conditions in the markets in which the Company operates; competition
with other entertainment, sports content, and casino gaming experiences; the timing, cost and expected impact of product and technology investments; risks relating tointernational operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions; and additional risks anduncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, each as filed with the U.S. Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements
except as required by law. Considering these risks, uncertainties and assumptions, the forward-looking events discussed in this presentation may not occur.

v

2

NON-GAAP FINANCIAL MEASURESIn addition to GAAP financial measures, management uses Adjusted EBITDA, Adjusted EBITDAR, Adjusted EBITDA margin, and Adjusted EBITDAR margin as non-GAAP financial measures. These non-GAAP
financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP. Each of these non-GAAP financial measures is
not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure of comparing performance among different companies. We define Adjusted EBITDA as earnings before
interest expense, net; interest income, income taxes; depreciation and amortization; 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; preopening expenses; and other. Adjusted EBITDA excludes (i) non-cash gains/losses associated with REIT transactions (including our transactions with GLPI entered into on February 21, 2023); and (ii) non-cash
gains/losses associated with partial and step acquisitions as measured in accordance with ASC 805 “Business Combinations” (including the Barstool Acquisition). Adjusted EBITDA is inclusive of income or loss
from unconsolidated affiliates, with our share of non-operating items (such as interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense) added back for Barstool
Sports, Inc. (prior to our acquisition on February 17, 2023) and our Kansas Entertainment, LLC joint venture. Adjusted EBITDA is inclusive of rent expense associated with our triple net operating leases with our
REIT landlords. Although Adjusted EBITDA includes rent expense associated with our triple net operating leases, we believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performanceof our consolidated results of operations. We define Adjusted EBITDA margin as Adjusted EBITDA divided by consolidated revenues.
Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business, and is especially relevant in evaluating large, long-lived
casino-hotel projects because it provides a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. We
present Adjusted EBITDA because it is used by some investors and creditors as an indicator of the strength and performance of ongoing business operations, including our ability to service debt, and to fundcapital expenditures, acquisitions and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare operating performance and value
companies within our industry. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their Adjusted EBITDA calculations ofcertain corporate expenses that do not relate to the management of specific casino properties. However, Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP.
Adjusted EBITDA information is presented as a supplemental disclosure, as management believes that it is a commonly used measure of performance in the gaming industry and that it is considered by many to
be a key indicator of the Company’s operating results.
We define Adjusted EBITDAR as Adjusted EBITDA (as defined above) plus rent expense associated with triple net operating leases (which is a normal, recurring cash operating expense necessary to operate ourbusiness). Adjusted EBITDAR is presented on a consolidated basis outside the financial statements solely as a valuation metric. Management believes that Adjusted EBITDAR is an additional metric traditionallyused by analysts in valuing gaming companies subject to triple net leases since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure
because (i) we believe Adjusted EBITDAR is traditionally used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) Adjusted EBITDAR is one of the metrics usedby other financial analysts in valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate; and (ii) using a
multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate. However, Adjusted
EBITDAR when presented on a consolidated basis is not a financial measure in accordance with GAAP and should not be viewed as a measure of overall operating performance or considered in isolation or as
an alternative to net income because it excludes the rent expense associated with our triple net operating leases and is provided for the limited purposes referenced herein. Adjusted EBITDAR margin is defined
as Adjusted EBITDAR on a consolidated basis divided by revenues on a consolidated basis. Adjusted EBITDAR margin is presented on a consolidated basis outside the financial statements solely as a valuation
metric. We further define Adjusted EBITDAR margin by reportable segment as Adjusted EBITDAR for each segment divided by segment revenues.
The Company does not provide a reconciliation of projected Adjusted EBITDA and Adjusted EBITDAR because it is unable to predict with reasonable accuracy the value of certain adjustments that may
significantly impact the Company’s results, including realized and unrealized gains and losses on equity securities, re-measurement of cash-settled stock-based awards, contingent purchase payments associatedwith prior acquisitions, and income tax (benefit) expense, which are dependent on future events that are out of the Company’s control or that may not be reasonably predicted.

v

3

Q1 SUMMARY RESULTS
Q1 results reflect consistent retail performance across most of our portfolio, with revenue
growth in Interactive driven in part by our acquisition of Barstool Sports

REVENUES

NET INCOME

NET INCOME MARGIN$1,673.3$514.4

30.7%

ADJ. EBITDAR

ADJ. EBITDA$478.2$332.2

ADJ. EBITDAR MARGIN

28.6%

Increasing 2023 revenue guidance range to $6.37-$6.81 billion from $6.15-$6.58
billion to reflect our now 100% ownership of Barstool Sports. Our $1.875-$2.0
billion EBITDAR guidance range is unchanged.
v($ in millions)4Q1 FINANCIAL HIGHLIGHTS
Strong performance in our Northeast Segment mostly offset softer y/y results in the South
Segment, while margins were impacted by approximately 100 bps from a shift in revenue to higher
tax jurisdictions and, to a lesser extent, the settlement of certain litigation matters
REVENUES$1,564NET INCOME$1,673

$514

+7.0%

ADJUSTED EBITDAR*
$495

$478

+897%

(3.3%)(58%)$52
Q1 2022($ in millions)Q1 2023

Q1 2022

Q1 2023

Q1 2022

Q1 2023v* Q1 2023 Adjusted EBITDA was $332.2 million compared to Q1 2022 Adjusted EBITDA of $434.6 million

5

RETAIL SEGMENT TAX RATES AND MARGINS
Our property-level margins are impacted by applicable gaming tax rates; as a result, ouroverall property-level margins are affected by relative contribution by segment
Q1’23 Gaming Tax and Margins by Segment
41.8%

42.5%

39.3%

37.9%

30.4%

26.8%
22.3%
18.3%

NortheastSouth
Gaming Tax Rate

Gaming tax rate reflects all gaming and admissions taxes as a percentage of revenue by segment.

West

MidwestAdj. EBITDAR Marginsv

6

Q1 INTERACTIVE SEGMENT RESULTSInteractive segment results reflect our launches in Ohio and Massachusetts, as well as theacquisition of the remainder of Barstool Sports

REVENUES

Segment Notes$233.5• Interactive includes all of our online sports betting, iCasino and onlinesocial gaming operations, management of retail sports betting and media(including Barstool Sports)

million• Revenues include $28.2 million related to Barstool Sports following ouracquisition on February 17, 2023*• Revenues also include $92.3 million related to the gross-up of gaming tax
reimbursements from third-party skin partners (v. $50.3 million in Q1’22)

ADJ. EBITDA($5.7)
million• Excluding the impact of these gaming tax reimbursements and Barstool
Sports, the segment’s revenues grew approximately 24% year-over-year*

Prior to February 17, 2023, PENN owned 36% of Barstool Sports, during which time we recorded our portion of
Barstool's net income or loss, including adjustments to Adjusted EBITDAR, one quarter in arrears.
v

7

HEALTHY BALANCE SHEET & LIQUIDITY POSITION
Our strong balance sheet enabled us to repurchase 1,646,963 shares during the firstquarter under our stock repurchase authorization at an average price of $30.36
DEBT MATURITIES(1)Cash Balance$1,311Liquidity(2)$2,288

Total Traditional Debt

$2,690

Traditional Net Debt(3)$1,378

Lease-Adjusted Net
Leverage(4)4.6x% of Fixed Rate Debt(5)85%Undrawn Revolving
Credit Facility$1,000

$993
$529

2023

2024

Unsecured notes

2025

$330

$400

2026

2027

Term Loan A

Term Loan B

$400
2028

2029

Convertible notes(1) Amounts shown exclude $163.5 million of other-long-term obligations.
(2) Liquidity is calculated as unrestricted cash plus revolver availability, net of Letters of Credit outstanding.
(3) Traditional net debt is calculated as “Total Traditional Debt” which is the principal amount of debt outstanding (and excludes the financing obligation associated with cash proceeds and non-cash interest on certain claims of which the principal repayment is
Contingent) less “Cash and cash equivalents”.
(4) Numerator is cash rent payments to REIT landlords capitalized at 8x plus Total traditional debt, less Cash and cash equivalents; denominator is Adjusted EBITDAR for the trailing 12 months ended March 31, 2023.
8(5) Fixed rate debt is based on total traditional debt plus the cash rent payments to REIT landlords capitalized at 8x.

v

DATABASE HIGHLIGHTSAs our database continues to build, we saw strong growth in rated theo from our older
demographics in Q1, particularly the 65 and over segment
PENN Play™ Registrations by Quarter

Y/Y Change in Rated Theo By Age*(in thousands)

1400

1000

(5%)

2%

800

21 to 34

35 to 44

1200

-43%

+11%

5%

45 to 54

400

4%

9%

200

55 to 64

65 and over600

0Q2 2022

Q3 2022

Q4 2022

Q1 2023*

Represents change in average daily theoretical win by segment in Q1’23 v. Q1’22.

v

9AGE SEGMENT DATABASE TRENDS
The 21 to 44 year old age demographic was stable in Q1 after significant growth throughout
2021 and 2022, as the segment grew from 13.1% of total retail theo in Q1’19 to 18.5% in Q1’23% of Company Rated Theo By Segment*
3%
10%

4%
10%

18%

19%

27%

42%

27%

40%

5%

6%

5%

13%

13%

13%

22%

22%

22%

28%

27%

27%

31%

33%

32%

Change in Rated Theo Mix
Q1’19 to Q1’23
21 to 34+200 bps

35 to 44

+340 bps

45 to 54+420 bps

55 to 640 bps

65 and over

(960 bps)

Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023

65+*

55 - 64

Represents average daily theoretical win by segment.

45 - 54

35 - 44

21 - 34v

10

CROSS-CHANNEL TRENDS
Our omni-channel strategy drove impressive y/y increases in rated theo from cross-play
across our retail and digital offerings

Owned Media
AssetsBest-in-Class
Regional
Destinations

Y/Y Increase in Rated Theo from Cross-Sell*+11%

Online andRetail Sport
Betting+16% +12%
Online to
RetailRetail to
Online+41%

iCasino andDigital Gaming

OSB/iCasino
Cross-Sellv* Represents change in average daily theoretical win by segment in Q1’23 v. Q1’22.

11

MYCHOICE REWARDS IS NOW PENN PLAY
A NEW ERA OF LOYALTY
Launched April 24, 2023

Better connects to the PENN Entertainment brand to
reinforce our unified ecosystem of entertainment
Further leverages structural advantages to driveomni-channel cross-sell and monetization across products
Accelerates database growth, consumer reach, andengagement across play type, age segments, and ADTv

12

BENEFITS OF THE PENN PLAY LOYALTY PROGRAM

More Ways to Earn and Redeem Across the Ecosystem(Retail and Online Gaming, Non-Gaming, and Partners)
Growing Network of Leading Partners to Expand Reach andProvide Additional Value
Reimagined Play and Promotions for Differentiated Benefits
Digitally Powered to Acquire, Engage, and Retain Membersv

13

BEST-IN-CLASS RETAIL SPORTSBOOKS
DuringWe recently
Marchopened
Madness,fournotabletemporary
Barstoolretailpersonalities
sportsbooksparticipatedin Ohio and inone
live
instreams
Massachusetts,from ourmarket leading retail sportsbooks in Ohio and Louisiana, leading to increased brandawareness and digital engagement

32
Total Retail Books
Across 15 States

18%
Handle Market Share
ex-NV (Jan23-Feb23)v

14

RECENT SPORTS BETTING LAUNCHES
Our recent retail and online sports betting launches in Kansas, Ohio and Massachusetts
have helped drive strong performance at our retail properties+11%
Y/Y Retail Revenue Growth*+7.9%
Kansas+8.1%
Ohio+14.1%
Massachusetts* Represents revenue growth from Q1’22 to Q1’23v

15

iCASINO & PENN GAME STUDIOS GROWTH
We are seeing solid growth in our iCasino business and continue to develop and launch
proprietary games from Penn Game Studios across the U.S. and Ontario
iCasino GGR*

Penn Game Studios Handle**($ in millions)($ in millions)$361.0$59.5$44.7$213.4$240.4$303.3$272.8

Legendary LarryTM

Q1'22

Q1'23

Q1'22

Q2'22

Q3'22

Q4'22

Q1'23

* Includes revenues across theScore Bet (Ontario), Hollywood Casino (PA) and Barstool Casino (PA, MI, NJ and WV)** Includes handle across theScore Bet (Ontario) and Barstool Casino (PA, MI, NJ and WV). Prior periods reflect data reconciliations with third-party platform provider.

Launched January
2023

v

16

STRONG ONTARIO PERFORMANCE
Ontario continues to be our top market in North America for both sports betting andiCasino, with strong growth and encouraging trends through the NBA and NHL seasons
GGR By Month

Apr '22 May '22 Jun '22 Jul '22 Aug '22 Sep '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23

Sports Betting

While February was
impacted by low hold inSports Betting, we
experienced record
months for both Sports
Betting and iCasino
GGR in MarchiCasinov

17

BENEFITS OF TECH STACK BECOMING EVIDENT
Our performance in Ontario illustrates the meaningful strategic advantages of a fully owned
tech stack and provides a blueprint for success in the U.S. post-migration

Ontario Performance v. U.S. Performance Since Migration

+118%

+26%

6-MonthRetention

Cross-Sell into
iCasinov

18

theSCORE MEDIA PERFORMANCE
Leveraging our expansive reach and a highly engaged user base, theScore’s mobile
media business recorded another quarter of growth

ENGAGEMENTAward winning media app continuing to drive
audience and engagement growth* Sessions represent the total number of times the app was launched by users

1.9b

+22%

Q3 Total
Sessions*

Y/Y Monthly
Sessions* Growthv

19

BARSTOOL SPORTS
On February 17, we completed our acquisition of Barstool Sports, which continues to build
its audience through a diversified mix of highly engaging content

20
#1

#1

Sports Podcast

Hockey Podcast

Unrivaled influence in Golf

#1
Publisher on TikTok

BET Hip Hop Awards“Best Hip Hop
Platform” Nominee

Year Anniversary
100+ Personalities
90+ Shows
60+ Brandsv

20

BARSTOOL SPORTS Q1 HIGHLIGHTS
Barstool demonstrated strong audience and viewership growth in Q1, achieving record crossplatform views (>40% YoY) and growing >60% in both YouTube subscribers and TikTok followers
The brand continues to lead with a wide variety of content in Sports, Pop Culture,
and Comedy across Audio, Video, Social Media, and Live Events

Q1 Highlights
Barstool Golf x PGA Tour

Super Bowl Week Coverage

New Lifestyle Show

Officially partnered with the
PGA Tour, launching cobranded merch at The Players
and Waste Management

Daily 2-hour Barstool Live showsat the Barstool bar in Scottsdale
throughout Super Bowl Week

Launched 2nd show with Gillie &Wallo, hosts of podcast Million
Dollaz Worth of Game called Gillie &Wallo Adventures

Sundae Conversation

Top Celebrity Guests

Caleb Pressley’s Sundae
Conversation is now one of Barstool’s
largest shows, with the Drake episodegenerating >31m cross-platform views

Barstool continues to book thebiggest names in Sports &Entertainment as guests
Q1: Drew Barrymore, Michael B. Jordan,
Stephen A. Smith, & many more...

v

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RECENT ESG HIGHLIGHTS• On April 25th, we issued our 2022 Corporate Social Responsibility Report,
which details the significant progress PENN has made in advancing ourEnvironmental, Social and Governance (“ESG”) priorities over the last year.
• In February, to help celebrate Black History Month, we organized numerous
events to support our Diversity, Equity & Inclusion efforts.
• We also celebrated women’s achievements during the month of March and, onInternational Women’s Day, our Women Leading at PENN Program featured apanel with two of our female Board members.
• Additionally, following the devastating tornados in the Rolling Fork area ofMississippi, our Ameristar Casino Vicksburg and Hollywood Casino Tunica
teams donated pallets of water, food and essential items, as well as providing
temporary housing to displaced team members.
• Finally, in April Barstool launched a major mental health awareness push aspart of its Viceroy and Chicks Ambassador Program on college campuses,
reaching over 500 universities, 1,200 unique social media channels, and 20
million cross-platform followers.
v

22

APPENDICESNORTH AMERICA’S LEADING PROVIDER OF INTEGRATED ENTERTAINMENT,
SPORTS CONTENT AND CASINO GAMING EXPERIENCES

Strong Balance Sheet andFree Cash Flow

Brand
LicensingCutting-Edge Tech andExperiences,High
Dynamic
Media
and Merchandise
Growth Digital BusinessBusinesses

Our diversified portfolio of leading
regional casinos is generating
significant and consistent free cash
flow to fund future growth and/or
return capital to shareholders

Our Interactive segment is growing
rapidly, with a differentiated strategy
that leverages our proprietary
technology and the industry’s lowest
customer acquisition costs

Our media businesses are expanding
our ecosystem and providing organic
cross-sell opportunities and newchannels for growth, including
24
advertising andv commerceOMNI-CHANNEL STRATEGY
Highly differentiated strategy focused on organic cross-sell opportunities
from our portfolio of leading brands
Media &
Content

Casinos & Racetracks

Sports Betting

Online Gaming

SPORTSBOOK & CASINOv

25

EXECUTING ON OUR STRATEGY
We are focusing on organic cross-sell opportunities, reinforced by our investments inmarket-leading retail casinos, sports media assets and technology, including a state-of-theart fully integrated media, betting and casino platform
LEVERAGING OUR STRUCTURALADVANTAGESWe are benefiting from organic customer acquisition formobile sports betting and iCasino from Barstool Sports,
theScore and the PENN Play database, while improving
cross-sell and monetization

EFFICIENTLY MONETIZING ACROSSMULTIPLE CHANNELS
Our retail operations generate strong revenues, Adjusted
EBITDAR and cash flow, while our Interactive segment
has continued to experience rapid growth while
maintaining our disciplined approach

BUILDING OUR ECOSYSTEM
Our PENN Play database has grown significantly toapproximately 27 million members, and we are continuing
to build our audience and reach through the combinationof our retail, interactive and media businesses, especiallyin the younger demographics

INVESTING IN PRODUCT AND
TECHNOLOGYIn July 2022, we successfully migrated theScore Bet in
Ontario to our in-house trading platform, with migrationof the Barstool Sportsbook in the U.S. expected to occur
in July 2023; meanwhile we continue to expand ourmarket leading 3C’s technology at our retail casinosv

26

RETAIL SPORTSBOOKS
We now operate 32 retail sportsbooks across the country, which are capturing outsizedshare while providing highly profitable cross-sell opportunities
Colorado• Ameristar Black Hawk*

Illinois• Argosy Alton• Hollywood Aurora• Hollywood Joliet

Indiana• Ameristar East Chicago*• Hollywood Lawrenceburg*

Iowa• Ameristar Council Bluffs

Kansas• Hollywood Speedway*

Louisiana• Boomtown Bossier City

•
•
•
•

Boomtown New Orleans
L’Auberge Baton Rouge*
L’Auberge Lake Charles*
Margaritaville

Maryland• Hollywood Perryville*

Massachusetts• Plainridge Park

Michigan• Hollywood Greektown*

Mississippi
•
•
•
•
•

1st Jackpot
Ameristar Vicksburg
Boomtown Biloxi
Hollywood Gulf Coast
Hollywood Tunica

Ohio
•
•
•
•

Hollywood Columbus*
Hollywood Toledo*
Hollywood Dayton*
Hollywood Mahoning Valley*

Pennsylvania••••

Hollywood Meadows*
Hollywood Morgantown*
Hollywood PNRC*
Hollywood York*

Washington• 7 Cedars Casino**West Virginia• Hollywood Charles Town*

Wisconsin• Mole Lake*** Barstool-branded Sportsbook** Operated pursuant to third-party management contractv

27

INDUSTRY LEADING CASHLESS SOLUTION
Our 3C’s (cashless, cardless and contactless) technology is rapidly gaining adoption anddelivering very encouraging results

195k

$104m

Total PENN Walletcustomers*

Total PENN wallet
deposits*

We have now deployed the 3C’s at 21
properties, which collectively represent
approximately 70% of our retail EBITDAR* Stats through end of Q1 2023

3C’s Deployment
To-Date• Indiana (2)• Kansas (1)• Louisiana (3)• Michigan (1)• Mississippi (2)• Missouri (3)• Ohio (4)• Pennsylvania (4)• West Virginia (1)v

28RETAIL GROWTH PROJECTSWe are continuing to progress on four exciting retail growth projects,
all of which we expect to open by the end of 2025
Anticipated Budgets• Aurora relocation - $360 million• Joliet relocation - $185 million• M Hotel 2nd Tower - $205 million• Columbus hotel - $100 million
Capital Investments• GLPI will fund up to $575 million in theaggregate for the projects, with the Cityof Aurora contributing $50 million for
Hollywood Casino Aurora• Construction is expected to begin inlate 2023, with the bulk of spend in
2024 and 2025v

29

HISTORICAL REGIONAL RESILIENCYRegional markets performed far better than the Las Vegas Strip following the 2007-08
downturn, and the current operating environment is more favorable
Gross Gaming Revenue Growth (as %)*
5.0%

2.6%

0.0%

• Rational promotional and marketing
reinvestment environment +11%
• 2007-08 experience provides roadmap
for adjusting to any reduction involumes-5.0%-10.0%(13.8%)-15.0%-20.0%-25.0%
2007

2008

2009

Las Vegas Strip*

Favorable Operating Environment

2010

2011

2012

• Post-COVID learnings have helped us
optimize our business model• Growth in younger demographic canoffset declines in older demos

Regional Markets

Indexed to 2007. Source: Company data, state and national gaming regulators, GS Research, DICJ and UNLVv

30

GEOGRAPHIC DIVERSIFICATIONOur geographicallydiversified footprint
helps reduce theimpact of local
economic pressures,
while our ability to offer
both retail andinteractive experiences
positions us to takeadvantage of changes
in consumer behavior

v

31

ILLUSTRATIVE IMPACT OF A RECESSION
Although business trends remain strong, we are prepared to offset nearly half of any
revenue declines through aggressive cost mitigation measures+11%

We estimate approximately

45%

of any revenue declines can beoffset through expense reductions

Our strong balance sheet, flexible businessmodel and disciplined approach to capex
provide us with multiple levers to maintainfree cash flow in an economic downturnv

32

LEASE SUMMARY (EFFECTIVE AS OF JAN 1, 2023)
Our leased properties are subject to modest and capped annual escalators
AR PENN Master LeasePNK Master Lease

VICI Leases

2023 Master Lease

Properties
CoveredPENN legacy properties,
excluding those moved
to 2023 Master Lease

Pinnacle legacy
properties plus
Plainridge Park• Greektown(separate lease)• Margaritaville(separate lease)

Aurora, Joliet, Columbus,
Toledo, M Resort, Perryvilleand The Meadows

Rent
Components• Land Based (Fixed)• Building Base subject to annual escalator• Variable Percentage Rent as Adjusted

AnnualEscalator

Max. of 2% subject to Adjusted Revenue
to Rent Ratio (as defined in the leases)of 1.8x to 1

Variable
Percentage
Rent
Adjustment

All Rent subject to annual
escalator (no Land Based orPercentage Rent)
Max. of 2% subject to aratio set forth in theleasesFixed at 1.5% per year*

Adjusted every 5 years (AR PENN) or 2 years (PNK and VICI) by 4% ofchange in revenues above baseline

N/A

Summary does not include stand-alone Morgantown ground lease, which has a maximum escalator of 1.5%, dropping to 1.25% subject to CPI requirements after the third year
* There is also a one-time rent increase of $1.4 million effective November 1, 2027v

33

GAAP TO NON-GAAP RECONCILIATION(1) 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 tothe acquisition of the remaining 64% of Barstool common stock.
(2) 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 andremeasurement of lease components.
(3) Our cash-settled stock-based awards are adjusted to fair value each reporting period based primarily on the price of the Company’s common stock. As such, significant fluctuations in the price of theCompany’s common stock during any reporting period could cause significant variances to budget on cash-settled stock-based awards.
(4) 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 and our Kansas Entertainment, LLC joint venture.

v

34