PENN Entertainment Reports Strong Pennsylvania Month After Skill-Game Ban, Eyes Texas as Q3 Revenue Hits $1.84B

PENN Entertainment, Inc. told investors on 5 November 2026 that October was its strongest year-over-year gaming revenue growth month of 2026 in Pennsylvania, after the state's ban on illegal skill-based games took effect on 14 October, and that it is positioned to pursue expansion in Texas following the 3 November midterm elections.

The comments came on the company's third-quarter earnings call, alongside consolidated revenue of $1.84bn and a raised full-year Retail outlook.

Pennsylvania skill-game ban: October was PENN's best 2026 month

Snowden, PENN's chief executive, said the Pennsylvania ban followed a determination by the Pennsylvania Supreme Court. He said October was the company's strongest year-over-year gaming revenue growth month of 2026 in the state, with most of the improvement arriving in the second half of the month, after the ban took effect.

For background on the market PENN is operating in, see Gamingo's earlier report on Pennsylvania's record gaming revenue.

Snowden also ran through other state-level developments on the call:

The Illinois pressure is relevant to PENN's riverboat properties, which Gamingo covered when the Illinois Gaming Board approved the relocation of Penn's riverboat casinos.

Texas: PENN says it is ready to play offense

Answering a question from Truist on the midterms, Snowden said PENN is "ready to play offense" in Texas. He pointed to a new governor and a new party in power, with the House flipped and the Senate not, and referred to the elections held on Tuesday 3 November 2026. He said he could not predict the outcome.

PENN owns two of the three Class 1 thoroughbred tracks in Texas, Retama and Sam Houston. The third belongs to the Chickasaw Nation. His remarks centered on racetracks, lobbying and general gaming expansion in the state.

Texas gambling policy has been a live topic before, including the Texas Lottery's move to ban online lottery couriers, covered in Gamingo's report on the courier ban.

Q3 2026 results: $1.84bn revenue and a swing to profit

The figures below come from PENN's Form 8-K, Exhibit 99.1, dated 5 November 2026.

Revenue rose 7.1%. The prior-year loss included impairment charges. Interactive revenue includes a $191.4m tax gross-up, which lifts the consolidated headline figure.

The Retail segment produced about $1.5bn of revenue, which the company describes as record third-quarter revenue for the segment. Retail segment Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and rent costs, as adjusted) was $501.8m, a 33.7% margin. Snowden said "healthy operating trends" in Retail and Interactive continued through October.

PENN ended September with $2.0bn of total liquidity, including $1.0bn of cash. Traditional net debt was $1.8bn, or 2.3x traditional net leverage.

Guidance: Retail outlook raised, Interactive on track for 2027 profit

PENN lifted its full-year 2026 Retail guidance on the call.

The 2026 skins tax gross-up guidance is about $25m lower than previously assumed. The Interactive Adjusted EBITDA loss for the first nine months was $38.7m, against $227.6m a year earlier. The chief technology officer said "2027 will be profitable for the year" for Interactive.

Alberta launch and a pass on prediction markets

Alberta launch costs in Q3 were about $20m. Excluding that investment, Interactive Adjusted EBITDA improved sequentially in every quarter of 2026. The release described early performance of the Alberta iCasino and online sports betting operations as encouraging.

On prediction markets, the CTO said there was nothing material in customer acquisition cost or users, and that PENN is "staying away" from the category. That is consistent with the position Covers reported for the company in February 2026. For wider sector context, see Gamingo's coverage of record prediction market volume in October 2026.

Capital allocation priorities

Management ranked deleveraging and internal growth projects first. Snowden said share repurchases are "front of mind" for 2027. Investors will watch whether Texas lobbying produces concrete legislation, and whether Pennsylvania's October momentum holds through the winter months.

Status reviewed on 6 November 2026. Financial figures come from PENN's Form 8-K Exhibit 99.1 filed with the SEC, and commentary comes from the company's 5 November 2026 earnings call. More finance news and North America coverage.