PENN - Earnings call transcript Q3 2021 | PENN Entertainment, Inc.

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Operator

Greetings and welcome to the Penn National Gaming Third Quarter Conference Call.

During the presentation, all participants will be in a listen-only mode. [Operator instructions]. I would now like to turn the conference over to Mr. Joe Jaffoni of Investor Relations, please go ahead.

Joseph Jaffoni

Frank. you, Thank everyone. Good morning you Quarter for Gaming's thank Penn joining Call. Third Conference XXXX And National We'll presentation to questions get management's and as as answers. your well and comments momentarily, Safe But review Harbor Disclosure. first the I'll

expects, Such the by or terminologies and future In addition call or estimates, forward-looking anticipates, can of uncertainties. beliefs, current Company's of or should, Securities performance. These within risk, these and of statements, XXXX, strategies, of will, beliefs, forward-looking of such and Private identified conditions. strategies, meaning the acquisitions, expectations Reform results. or events, Today's statements contains of plans, statements words. the the Litigation or uncertainties, are statements discussion intends, to negative, by forward-looking seeks, reflect developments, not other conference current plans, which as use facts of guarantees future expenditures, historical performance, Act projects, involve Or be risks the variations but including or similar capital future operating may,

and with Jay turn pleasure over to the the now be comparable today's financial please reports National in such, Thank as measures publicly release, statements. Company's presented CEO, you The XX-K the well meaning financial found the website. XX-Q. to the with my within of webcast risks the non-GAAP materially as calculated SEC for it's are Regulation directly in and Jay, from and obligation announcement measures revise the with Commission, can ahead. actual Today's Securities update expectations. Company's a your Company's will press any to described Form and Penn including Form with all call assumes and Exchange go and call or When on G. to associated financial no patience forward-looking also include in forward-looking statements filings GAAP Snowden. on accordance measures of the required, vary uncertainties the results most reconciliation that, As non-GAAP today's in news may and Company's

Jay Snowden

us for Joe. call. Thanks, Good morning, earnings quarter third Thanks our joining for everyone.

here CFO, answer usual, of Q&A George, our Wyomissing questions have team can session. help and during Hendrix, I Head As Operations, with the our in Todd other who members your my of me executive Felicia

our see As mobile and live many week new third significant we can states. X from Barstool we more our XX you investor apps the quarter. bringing of Iowa, presentation, in just Sportsbook release than during to corresponding successfully earnings our this milestones launched launched total states, And achieved footprint. the We size doubled which the in

brick-and-mortar to also grow evolve We and our continue footprint.

During the XCs quarter, cardless we of York highly opened and roll continued out across our cashless, the contactless in strategy. omni -channel initial differentiated Pennsylvania tangible strong to began technology our portfolio, market-leading Hollywood to see Casino to benefits results, and

in an into respectively. which adjusted and points property adjusted impacted due Ida, regional and combined August significantly of region, to of and ups South margins second variant, September basis $XX the Delta was Hurricane affected third flare slowed On the core quarter revenues we with business off up the for started the of saw tale momentum adjusted That EBITDAR really same momentum with XXXX the XX%. in second a two in July and XX% beginning over up the quarter, half EBITDAR EBITDAR the us XX million halves side, by us. the which and positive estimated

state million Barstool to -- expenses of of Additionally, this mentioned I new launches, app Sportsbook related statement the earlier reflects $X.X other results quarter. the that

of campaign share $XX.X as the well spending initiative million initial the expenses our ballot sport for in California. for As

in continued and across strong strong, our the in new the due be we and Pennsylvania's a property third and Engagement is Colorado to more performance to gaming Looking quarter, among competition ahead, continue the than October first reflects level our exceptions of younger few of demographic expansion. demos we more quarter of stimulate in third offsetting With beverage Barstool are Indiana saw segments. outperform. with notable residual XX% and what Notably, effects half concepts our to in growth quarter due older grew of database saw in also segments, food in continues the our increased VIP while Delta. the boosting to year-over-year retail the decline spend. frequency visitation and segment, continuing the Sportsbook younger Further, which to and our gaming

West to the in more in what momentum New in be come sportsbooks monthly Barstool recent opening we're Louisiana Michigan. to And we market the the new sportsbooks Boomtown, growing our retail X this interactive the Rouge share number they L'Auberge, Baton X over now Iowa, and for week times with at states of users of Orleans with and September pleased more in business, Book seeing cannot excited with coming six [indiscernible] year. announce active We are in Sports in Casino, Virginia, of weeks. last the Our Indiana, were are and retail

for achieve approach able growth been while to this have of $XXX acquisition our marketing, blended to year. under maintaining in resulted the has a which disciplined costs We customer

Apple social over hold alone. is to week parlay of for In bet plus, of tied Store first on plus, X.X. Barstool now the with XXX,XXX apps Store feature really higher X.X say to scale which driven user our same over which We're the a is all with bets bets to app, to helping among have to parlay is rating slips rates. that is footprint, on a leverage features our the parlay shareable I'm higher shared betting mobile pleased game increased and performance. new and And also Apple Sportsbook week XXX,XXX shareable -- last a also leading including App addition Sportsbook per strength the sports seeing engagement media in in now bet Barstool well

only strength positive one competition. and to Michigan to generate earlier. approach marketing to percentage approach both of that in disciplined so return In X hold state proved the positions we far relatively a despite September, we gaming I market while continuing the of revenue, has operators versus handle of referenced that net successfully football, Pennsylvania every top-X have With as September, in share developed top-X our reported our the in unfavorable

Our in Barstool has of livestream very live that last some week Penn out acquisition Team, Cat which Jersey, those from last Paul played been Logan New developed first also quarter, which rolled game in-house obviously digital iCasino and for for pretty studio night Barstool-branded it was dealer a by busy caught Interactive content. you this HitPoint in Big also called Blackjack. our And launched amazing our being

theScore's momentum All drive XXth. theScore, Barstool our We the be cross-sell expect additional upgrades this further enhanced reach consumer doesn't at with its of today. by ability customer engage sports for audience that acquisition fans will with officially greatly exist and With to a funnel, Barstool's the of closed from positive complementary wide the audience, and on simply products which highly destination content, the we're iCasino retain acquisition the top one-stop to on these horizon. October creating

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approximately growth, pursuing are forward, theScore, million revenue highly and our quarter. Marketing we with building Looking the a what in such only the while Ontario. initially betting fourth we significant at interactive expect opportunistically delayed a and of and to we focused planned sports fully-integrated media generate on as our launch in investments in Despite Ontario, markets anticipated including partners Product and from business differentiated solution loss these tech new $XX

the learn, I PENN you've brands, customers, traditional via is the and strategy really what renting tactics. products, buy stock, it's As to aggressive from build, marketing come eyeballs hope whether loyal our versus competition experiences, sets of to tech apart

rather that found paid Barstool relying bespoke often our fun, Our features bets, features, than to developing can't promos be on primarily that goal and continues include and experiential, VIP and advertising, merchandise, be and simply are products branded elsewhere. differentiated, experiences unique with promos

approach of our display during full this a and and result and loyalty The promotion will best-in-class profile August was in is Aurora successful Hollywood our long-term right fully-integrated at power property. omni held that event on expect strategy late We strategy our -channel retention. margin the in media and in Casino

at a to That expense. accounts in first-time XX,XXX X-day we currently until were to sports about As player for on paid featuring were to a special Bears party per the By new lot by key which attended XX,XXX up culminated of compares you Chicago media our a wagering minimal nearly know, parking in-person Barstool the We casino period in a casino. day XX Illinois requires able block for game, averaging talent. registration mobile XX depositors -- with over context that point. drive promotion

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Now to Felicia. over turn it I will

Felicia Hendrix

earlier. XQ that of deck, reported morning, our everyone. posted the items million Revenues this number our $XXX Jay of and one-time of be were can in which There $X.X EBITDA discussed and on adjusted five website EBITDA the Thanks, was affected breakout morning. Jay. items levels XX% earnings And higher. quarter. found above revenues billion of third on were in detailed these results was A adjusted XX% of slide We've quarter, XX a which good

last into we $X almost excited month major sports We're we lies Company. our achieved acquisition Gaming, and into as digital content mentioned, ahead, being to milestone our Score closed PENN Jay America's continue Media proudly billion welcome our on of about leading and entertainment North we what a and Score family. evolution and As Team

in quarter. Corporate was $XX.X million which housekeeping As our the other segment reported for several items. is expense, in

on remain and for track and Cash Maintenance $XXX.X capex payments $XX.X million. Category $XX.X this $XX.X Casino casino second was And were cash taxes million. year, were our Hollywood rent Our of million, X we budget was opening on in later cash the Morgantown. million. interest Pennsylvania

$XXX be us September sheet following revolver. a of $X.X liquidity debt even decrease for undrawn our Traditional focused balance of million million, of billion as our remain was during million secured XXXX to $XX the $X.X to a principally consisting under in growth, net as we on repayments Our $XX theScore. facilities. cash due billion asset and was senior continues of Total our credit key acquisition XXth, quarter,

X.X lease times EBITDAR. adjusted on based was XX-month leverage Our trailing net

billion of levering was million we transaction by in As the estimate turn. of was purchase $XXX half paid $X roughly approximately a and a reminder, cash, our theScore,

future the we not environment quarter-to-quarter. And the continue re-evaluate back As to XXXX and that, we providing the Delta quarter, EBITDAR generate our policy uncertain remains us and to above outbreak adjusted with third continue bright revenues believe current it guidance, to will we while reminded Jay. I'll turn we levels, the over maintain can looks of in and

Jay Snowden

say dedication hit helps again demonstrated by Ida I Thanks available that in quickly from the but basic of earlier once With compassion the and aftermath, XX, the incredible housing stop members utilities disabled Felicia. our it XX to completely August one the you remark. Orleans, have limited after day team been and provide Gulf for the properties, referenced needed another. our PENN the really years devastated provisions. storm surprised I've New not family has my and country think across to temporary to It Katrina response overwhelmed, on in I Hurricane much Hurricane our which when about is supplies ago much to in Coast. this sister

the veterans. the Concussion we our established on project one apply fund, Hurricane our In is nation's of organizations addition, for to research Foundation Penn a Gaming's assistance heroes, relief National for and Legacy PTSD on members launched newest partner our emergency continue immediate expand support financial special for needs. Ida CTE Foundation, to our for focused team Meanwhile, which

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of Women, Recently fellows temporary Program, is to Champion One some women's learn of volunteered Commerce Executive York's New hiring the to its there corporate way we of female U.S. like that, also Pickett organizations our for our skills XXth Breakfast up members gender the to life. will questions. at a in of Diversity Directors, refugees been search our named Champions the of PENN from help to transition during board open active for quarter, be over balance the The which military for honored Chamber America. the of civilian for helps back of I'd And and Fort X,XXX into line of life new organization, the back Corporate board. personnel at Forum Annual Philadelphia Board X -- diversity with the to of Heroes separate acclimate to Board hand We recognized help Frank leading it Forum on with of on premier has comprising November Women's by Greater by job, Region's XX% efforts. Also were

Operator

for One Thank question. you. [Operator instructions]. the first moment please

Greff Our Morgan. Joe first JP from question Please comes with proceed.

Joe Greff

lead and just would and that and about your acquisition talk -- off environment you what I marketing give very I Jay, how of in you imagine specifically Ontario anticipate. here what the than there, we're everybody. morning, seeing approach be approach you the to your being versus U.S. was anticipate I -- a different Good what hoping the sense there, want and us

Jay Snowden

Happy Yeah. to, Joe.

this be going live - think information information have we to best, this to was we noting probably initially just December. probably like we it's off point, first is to mid call ready it updated in that sometime worth looks in more point. have I at thought additional going go probably most the be it Ontario the And at QX, QX,

a from perspective. that's So timeline

we're else, Ontario We've at the and starting we're market aggressively got with sport’s to to going an make from feel the sure that We preeminent think our we partners be We're across have obviously good launch perspective, And I plan we really excited. the overall that. digital really launching a start want marketing Canada. there. a theScore. brand We splash. really in media everybody really works line leading great big with and [indiscernible]family in with at the about

some Joe, restrictions there. the there to so a market think stands that of Ontario, there'll different things us be that benefit one bit a I are advertising really is of in

you that can't You discounting brands, but can We advertise lead welcome your promotions. big with type environment.

that and lead We in we brand Barstool. the we very loyalty will the with in to to audience theScore U.S. Canada theScore have With a loyal the Bet, similar have be here what with

to casino product the in at we plan when even And to major on live. in for they're better time. and sports the ready in Ontario, Ontario live they're iCasino to launch to place. a delay with be us a get to launch content and have ready slight feel we that hopefully even with And great that we go side player a assuming about, allows if honestly, So online the go ready anything, us in more same go expect

Joe Greff

that regional assets from another for Las about Can MGM a you involved how heard last just and do were Vegas their were Cosmo marketing your what assets. asset earlier to went Great. this in then relative into and buyer. And valuing much with this are Obviously, to would you. Opco Caesars your the Opcos Opco how much and We've think a it talk to the strip about strategic week of a week do then about night, topics how how priority is And of switching valued? Strip priority you you strategic strip you an putting that is, premier flywheel.

Jay Snowden

that and were confirmed public, pretty definitely process Cosmopolitan. in we involved the -- we've bidding It's been for Yeah. pretty

of I in once a on assets the stands really get class think your the potentially hands That's opportunity best-in-class one really own. to its globe. Cosmo in around lifetime a of a

around it was felt the us that -channel. And though Generally have asset differentiated several strategic we imperative we us. so Vegas that for Las as think checks Strip we a it's boxes because given for imperative approach I don't that omni speaking, have

I we of to what valuable representation know think that the at in and a really interested. already asset states of were the absolutely have Vegas find right If We we Vegas we that price, people could and we location, right that then is us, for because course be and right we've way organically having Las that's the that the imperative throughout strategic Vegas, right the to activate, know We like database. accomplished that a the and across largely goal. very is to its finding asset regional U.S. gamble Mecca. more drive would visitation

I so in they're would don't create had that think where it such value be But feel could if they're asset And going, imperative asset we chase some or we strategic already a And great that's overpay. would currently. we an an Vegas. retention when that's we how

have intensity for Strip So we'll our kick or I you're to all you a But to most going in a in markets. lot multiple you a more are your regional And pay is tyres you we I OpCo to yes, and but Las be disciplined fixed, out maintenance if know, We're that entirely, not OpCo, careful Las Vegas capital thoughtful think largely to lease there's your be approach. And an about higher something fixed. largely would the as assets. when than there. there's rent, going and requirements Vegas have for all think typically, because,

invest the takes And from the eventually one so -- to free flow cash property, continuing and it away flow cash the you're free if for opportunity. generation well, EBITDA in that's the and

I variables. So lot there's just think of a

going have we to we're they a look but at assume return chasing if good by anything you don't think as available you asset we be I -- believe asset become not get available, that should its can become that they on. to

Joe Greff

transaction? proforma count diluted Great, thanks. Felicia, And one, what's what one Score quick just final share the for the

Felicia Hendrix

in Joe, of I don't will now. get back have that just right me to that front I with offline. you

Jay Snowden

we the Yes. million just whatever know Joe. shares I your $XX XX issued to so associated was, with Score, last add number

Felicia Hendrix

I'll to this back get

Joe Greff

Thank you.

Felicia Hendrix

another person takes.

Operator

next comes Shaun from Bank Please question Our Kelley of with America. proceed.

Shaun Kelley

everyone. fair couple talk you morning good online state a the handle Jay, there? fight the the How a But a your you think stats your just versus the new on maybe your the business. Arizona, on of questions up performing target you're maybe a loss. thus quarter longer-term heading far on around about you bit Helpful Could quarter. color revenue environment, expectations or fourth into couple with of board. little fourth Barstool gave like Hey, in holding share. a across aspiration how is launch Obviously,

Jay Snowden

let Yes. maybe the at Well, end, Arizona sort but a talk level. of hit high at me I'll -- I'll

football of start September season -- As think or the year about of this on Xth. you launch the

X, earlier, mentioned states X. year. were actually, last I Pennsylvania live year in We As in Week versus went a live we X in prior,

of X week revenue the this environment week. X week over at the have shown really look then a you week last investor tremendous over Week to we and We growth have And slide way if on week. through from NFL, in handle presentation. So all

week week-over-week averaging to think growth week handle X% I we're from X. X

you this season in the many have what were match-bet I through football deposit we're year, the of And say that of close don't happy which that when X to we their So seeing. else with that way to would have also late we you system. bonuses some launch these because a bit states, for start game we're work I launches did. anybody states, think and the came very that to

X at October. weekend, look if like After itself handle had match $X,XXX X for it to takes promotion, way for everybody through. We was to share, deposit than definitely September, your to which NGR in continuing a X offer lowers maybe states and in based -- weeks do significantly offered and obviously those grow And work good GGR we were X your X not its in about a NGR. reversed so average covered, that What we hold, but really X, softer about, through, at you October but percentage and lower lot Is we, in to a and hold the that GGR Hold initial dollars in had our that market -- which I and look first you what normal very in share. saw first rate heard on handle weeks seeing weekends. assuming market and we're NGR. November. you've in good else, the a grow that to hold means then able a feel are seeing But to rates, October we our final just obviously think an John and X early only to have that less October hold is NGR there favorites converting you more what and able promotional flowing normal. probably was bet being

this, only Now but is in NGR, welcome would recorded unfortunately, states. we two

where as addition play a So what much running than GGR handle a operators driving Also, get actually of we everybody the is business game of Michigan and by how very handle, to that good really to driven promotions. are paid you in terms else. media, ultimately, is different what's Pennsylvania, look in most being and how

and GGR actually And the see don't NGR handle, NGR. you can adjust visibility its looks either it's that handle what or Every have you really other like. so in state,

week good, of normal from hold week you -- the through feel trending you that the see X, handle to as rate. should what's X, like X feel week that momentum from that even assume assuming looks on a better have cases week we X shows slide just as NGR So we in and we some

market question. this yet. reported have the like, came I But Arizona, morning. into at that it seen has this your zero point last that what out not visibility have Now looks unless not to been I

As Arizona as to the some than of in -- we the population not pack. states larger us. quite for middle of Pennsylvania perhaps. it's it's states, launches, compare the and larger would states like sort It's I say good Illinois better other It's of as and some

Shaun Kelley

Super follow-up. helpful. And just as maybe my

you're could bit an You on give online you mean, each just the offering. you offering. to quarter either or more, that think when marketing, give going little it, I to obviously push that you're place want channels us us the through have already to casino but a just And bigger update you support maybe I you at have think working broader have. through the a that that product

Jay Snowden

product currently as Yeah, was when did so and better we know when is of we is iCasino. We great launched we because our bit I around than though launched was have in offering question. and -- in the in media Pennsylvania, feel XXXX. there Michigan. significantly we better than that promotion it launched early product little Michigan a much when in paid it We

tells from obviously the different perspective, at the manufacturer feel something of product content. we So you content, if that library offering of slot look library you our

where be. did. we are as think think needs much it's offering live. with it competitive the have a better. states is getting still I ultimately it's our a But to we where offering than best-in-class iCasino lot don't product offerings I We better today in And don't

to Logan watching continue better Casino, Barstool at to same we're just you that's the as better product. was in acquisition the Barstool about think live Cat, with about New earlier, going in several and actually live night room, all the live live others driving can and as watch Online cats, amazing as reinvesting a in we and on went dealer mentioned them content playing -- Jersey we Blackjack We to and stream. I last we're Dan So themed, Big Paul fan, and feel

last they can New them. what You like Jersey, doing in state Cat Paul, behind of behind were if can live, download people other where some Barstool. app where lot you're you night, at and a we're and the a Which the personalities of in bet Big Logan is were

do just care creators or personalities, content can others we would to things anybody bet So have behind. than don't can't or that simply the do

game to be were prioritize. in online terms to told, going think said continue support from of you're I that to think how around, be you'll we're late growth continue online make products. in And market online ultimately casino, to launch prioritize we and to see and up before, I casino seeing I've the reflective standpoint. think this all And but much truth as offering I launching had We We marketing X.X a X.X having our Store. from where the So more develop to many We new on App Apple in product, great states want possible. overall those investments is as ramp a we an and perspective, us on see the great we're we we've products as get we share want a sports of scale that, momentum. live on delivered of -- to not we again, betting as already a competitive, and

We best we with, from an done that. have to brand lead sports amazing online And ultimately activate that online for can a acquisition to sports up conversion ends audience that have casino. betting have great tool being and you the

be an have pursuing. first, we're to us. we of would front the of that the top online know of we progress. we're terms of an third betting need or we've in got inning in be. and are we and I us But probably lots we're front in and still in capability, online standpoint, so casino we're improvement where runway From will a nowhere making say near from product of fourth And of perspective, sports lot

Shaun Kelley

you Thank much. very

Jay Snowden

Thanks, Shaun.

Operator

next Ryan Sigdahl question Capital. proceed. Our Please from Craig-Hallum with comes

Ryan Sigdahl

taking Jay, for Thanks morning, questions. Good Felicia. our

Jay Snowden

Ryan. Hey,

Ryan Sigdahl

they're potentially Curious in their be XXXX, of QX, I sometime what than if think that PENN two getting specific, comment, and about too businesses next profitable without only Interactive? guess you're then online seeing profitability to inflect all it to do FanDuel, those, profitable guided be given year? to possible how Can Caesars, willing expect but of million you is loss, XX sooner you even

Jay Snowden

is really. to This strategy welcome, been we've the that and are what we able these -- differentiation do, topics and obviously, our given

the absolutely break-even that standpoint would of Penn Here's said preacquisition describe or that, XXXX I've stand before a by I that this would we way Interactive we that. high be in I XXXX XXXX. better from at and a theScore is thought still level,

have We

Jay Snowden

PAM promotional acquired live currently theScore however, real already significant on and engine. investments And technology. theScore own around in making we're theScore, their their in own and the has U.S.,

mean, just great. customization. the what tech they're and but so you and you, personalization think stability but can are when own create this we're far and is importantly results not seeing why stack, good, you pursuing all own already have finding our that feedback around your when I is PAM, really So and that I they're ratings obviously

is almost and in customers we with know what they're by of So it's back you promotional what what can have around significant right. retention in tip more because done. coming as if your their different, already seeing X million though X do engine you to bit experience a ecosystem, million just bet Everybody's and have innings, sportsbooks, been and able for just pretty us we're value, early that's we're it's be now what to people is seeing, the encouraged often but terms they've

be of until standpoint, It maybe guidance on All XXXX. the be will the And XXXX give for be that just have to a millions XXX we way exact in product now, profitable. be not a providing a I won't stack. hundreds an you and but don't for all number so we're from will it's under technology to number million. going around in investing negative; it

because expenses live that's able not also in those a I to go when it the on to yet depend think Ontario, driver us as huge that offset of offset some we're will for relates we revenue to it Score.

So loss be annualize $XX better. more I and there XXXX think XX that to you XXXX, million come for could QX, for safe on be now, we'll per for or quarter to probably

sure on us, their own And to we when going for stack, even you have include live, over want stack, everything trading and be the the season management, of season is Score will vertical stick before year 'XX. back season completely hockey The be, XXXX, is completely bring growth And tech as football tech the managed tech XXXX. to football U.S. convert in including For we U.S. vertical. in and then March the that going then and before risk be to XXXX the make whole football everything to we we it because comes together. investments is to stack Madness services,

be doing So in also is there if tech there would definitely be XXXX XX we're going on it happy we profitability vertical that. be going but stack, and to in to weren't

Ryan Sigdahl

quick you're Hurricane the And Two concerns then you helpful. commented secondly, any million cardless between revenue Ida you on or in impact the up adopting and you potential on on seven on from financials, to break cashless, early XX properties, and Felicia, that Very two? those can uplift COVID, live contactless with share margin impact at give financial locations. metrics can initiatives that those

Jay Snowden

questions. Yes, Ryan. to I'm those Todd George going address X ask to

Todd George

and we Ida between have thanks, from region. material J.B. our Delta Southern the the are -- a amount The breakdown variant, that I'd And EBITDA say generated Ryan. of Thanks,

skew I we versus Louisiana of bit there pockets Hurricane around a the bit but from Delta a towards both little spread kind U.S. a had we heavier and was -- the Mississippi. were the generate Delta and quite out, would So variant.

Ida more From So a impact focused there. of the XCs.

Jay we're pleased so are using before, early an with seeing what you but heard innings, we with So analogy launch. each very

getting device but is thought and a at that, younger great a wallet. as downloading properties greater we're that as seeing not adoption. And casino, people across So seeing if X going we and that now adoption we're removing from that in What your tick the demographics. Pennsylvania all well greater even lot of that as launch that Initially, for and look in you and standing are with are guest from it's playing increased A surprised see line. well two users, baseline, to in normal we're casinos comes growth wallet actually we're growth raise we Ohio. demographics, time on we're pleasantly greater the casinos, people as just two as would from friction with app each

other we So future very at have in more think and quarters to this properties. roll I report out early we'll after

Ryan Sigdahl

hop Good and Thanks. back. I'll luck,

Jay Snowden

Ryan. Thanks,

Operator

Jonas with Securities. comes Truist Our from next question Please proceed. Barry

Barry Jonas

growth behind at to any for the strategy or standalone The are Sports for there. new centers vehicles profit channels point the Great. as Thanks. as other bit Can about as little Pizza, marketing talk bars, a be you these Penn, intent Barstool and meaningful well some they more drive to gaming.

Jay Snowden

around probably Barstool. frozen It's around also it opportunity lot for weeks say, One the publicly. those only Portnoy build But of of even of financial an maybe for That's Frozen know about. cases brand in That it a the the a who is they bit a great the media demand. pizza. of some to for overwhelming depends few really everybody aid, of question, as has shopping frozen pizzas social to Take people of Walmart’s expectations, Pizza there's and whatever would handle ratings funnel. Great thousands opportunities out and the been continuing Dave have the which in first it's importantly lot to in be heard at you're they've but away example, talking course But of share is the top blown country. geographies I be Barry. their an sold that going lot different both. and just those, already country. pizza sharing Not Bite But to of across pizza of going good and of know shared offering do how to I'll or and of Walmart, Erika I both. little in fan on Yeah. of them buzz a the of frozen hundreds and just a Barstool is purchases

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Jay Snowden

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Barry Jonas

curious cannibalization. learning about follow-up my between question, road, differences touches that on out the you're building land-based guess thinking which I'm as similarities is the I if player. about Interactive, And you're were potential how online and down longer-term and Yes. the you the Penn

Jay Snowden

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Todd George

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Barry Jonas

color. the all for Thanks Great.

Operator

question proceed. from Needham Company. with MacKinnon & Bernie Please next comes Our

Bernie Mcternan

Great. Good questions. the taking morning. for Thanks

How's Just users focus adding the I the engagement days, previously. that relative base? to how look is Casino of at and the those in the the payers Illinois in in and wanted event overall Hollywood know depositor’s first-time what early live but it's significant game been of XX,XXX on retention to step-up retention the you've

Jay Snowden

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Bernie Mcternan

touch Got just it. That's access. on to then market helpful. And wanted

state. $X.X And what's your access, York. any we're spent topic in the then California, million initiative bringing on while on potentially for just of New ballot OSB market You the to thoughts that on outlook

Jay Snowden

days of everybody Yes. hit it's California one the both of Happy this seven think, that together, the to was I million. those. wrote are is, We'll I have same check. mean, We're actually California initiatives operators $XX.X working see. and ballot on valid initiative.

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Bernie Mcternan

the Yes. Jay. comments. Thanks, I appreciate

Operator

with Our Morgan next proceed. Stanley. question from Thomas Allen Please comes

Thomas Allen

if So just is will think thinking concentrated. at you How iGaming your add, basically iGaming at typically turn affecting do we're excitement it how the you you so sports opposite, we that out like, Company? And seeing look not about international are markets, and betting. more when

Jay Snowden

maybe answer you for. make I sure shooting sure what Can the I'm follow question, I'll you're not I Thomas,

Thomas Allen

Yes.

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Jay Snowden

Yes.

I got you. Okay.

overall thoughts my Here's on share. market

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competitive. So There is going market likely to be continue think, as well. to will mix around. some I share, consolidation obviously in shift It's the

today. those And continuing of market evolve share. only we'll also there's online we'll tough it peg, think, Thomas, questions but how advantages. XX% terms more So over in fragmentation in there will operator share live XX% lot than are what have "winner" believe XX% or going are looks to that if of The in that of is that look share see or three are to, I XX% I a any parts that have really to different market that's to don't built-in reason to see population market that -- any if Europe. going plays I operator market whole be casino have don't companies be out, like. the ultimate and to think loss I know Europe single real it's states always results some that around to thing on are share

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But out. think of I to think to we're a bit really it's little play take time I well-positioned. going

Thomas Allen

follow-up. Helpful. just then my And

of in of places where and machines. One different the back, table in attracting game retail some retail or [Indiscernible]. what demographic, cable Any maybe the some sportsbooks of to seeing you've opened benefits numbers games around sportsbooks is you're Thanks. maybe updated attractions a up the side, over players like on slot bringing

Jay Snowden

we've to said want Yeah. beyond to that Todd, what we've previously. add you said anything -- that

Todd George

you -- table trends So seeing to The also for slots. kind all month, and beverage a -branded as our so as has bit to retail component been every increase region. year. That games seeing experiential. and been conversion referenced the we're feature And a about across table really food talked growth quite sportsbooks as over then able really the well, thing beverage we has and that conversion pretty to which robust the But some us, great electronic grow over business. Jay -- property, across this Barstool in of especially this continue. every expected games, obviously We're I the in and it's at close food every of a more

get So Louisiana. we're to excited

As got Jay on the week, months. open touched X upcoming we've the branded of in be opening in X this them converting temporary sportsbooks Barstool sportsbooks, remarks, those we'll his but

keeping really that Texas as customer over. that we for coming So look

to the to lot reactivate inactive. been Cincinnati the the and has with customer You able coming a Chicago had case in being Indiana That and Indiana. really Indiana, customer each mentioned to back coming Chicago the back

touched what on you continue we everything So is see. to

Jay Snowden

follow-ups, I'm right time ten any and you And at have o'clock. we're Thomas, unless to everyone's always sensitive other

I else, think So Thomas anything Frank, unless has there. probably we'll stop

Thomas Allen

you. Thank

Jay Snowden

for catching Alright. morning. Have in Thanks, Thomas. you, forward early joining We us February to you good And this earnings. very likely QX for one. else thank with our up look again, a everybody

Operator

the for that for conclude your day participation today. great does and your call disconnect conference everyone. a thank please We you you That line. ask Have

PENN Entertainment (PENN) 4 Nov 212021 Q3 Earnings call transcript