PENN’s Pennsylvania Gaming Revenue Posts Its Strongest Year-Over-Year Growth of 2026 in October
Key Facts
PENN Entertainment’s CEO said gaming revenue in Pennsylvania posted the company’s strongest year-over-year growth in the state in 2026 to that point in October. He added that most of the growth was concentrated in the second half of the month, after enforcement against unlicensed skill-game machines began. The executive linked the improvement to customers shifting toward regulated activities, presenting that as his explanation for the revenue trend. The statement places the impact of enforcement at the center of the company’s October results in the state. The company did not specify the size of the increase or the share attributable specifically to customer migration.
Pennsylvania State Police began enforcement after a compliance period ended on October 13, 2026, and announced that unlicensed locations that kept the machines would be subject to action and seizure starting October 14. In an update through November 10, police said they had visited 12,202 establishments since enforcement began. They said 12,134 locations no longer had skill games, equivalent to a 99.4% compliance rate among the locations visited. Police also reported seizing 14 machines and $1,913. The figures show that the removal campaign covered thousands of locations in its first weeks, while investigations into noncompliant locations remain active and ongoing.
The state relied on a June 15, 2026, Pennsylvania Supreme Court ruling that deemed skill-game machines gambling devices under the Gaming Act. Police said the machines are permitted only at locations where the General Assembly has expressly authorized gambling, including locations licensed by the Gaming Control Board. The ruling therefore does not amount to a general ban on all machines; licensed and inspected machines at casinos and qualifying truck stops remained permitted. The ruling established the legal framework police cited in calling on unlicensed establishments to remove the machines. Potential actions include seizure of the machines, related equipment and proceeds, as well as criminal charges where appropriate.
Police explained that some operators’ characterization of the machines as promotional lottery games does not change their legal treatment if playing offers a chance to win something of value. This includes cases in which the player does not pay cash, as police said payment in any form remains covered by the ruling. This interpretation reflects the breadth of enforcement, covering how the game is played and the potential prize, not just the direct use of cash. By contrast, PENN’s statement on the impact of a shift to regulated activities reflects management’s explanation for October growth. The company did not provide a separate figure for revenue resulting from the machines’ removal or customer migration.
PENN’s October comments followed its third-quarter results, with revenue of $1.840 billion, compared with $1.7173 billion in the same period of 2025. The company posted net income of $32.6 million, after a net loss of $865.1 million a year earlier. Retail revenue was $1.5 billion, and the segment’s adjusted EBITDAR was $501.8 million, with a 33.7% margin. PENN said healthy operating trends in its retail and interactive segments continued through October, and retail revenue growth extended across its portfolio, supported by completed development projects. These figures place Pennsylvania’s performance in the context of broader operating improvement reported by the company, without attributing all of the state’s growth to enforcement.
In the interactive segment, revenue was $348.4 million in the third quarter and included a $191.4 million tax accounting benefit, while the segment posted an adjusted EBITDAR loss of $18.3 million. Company management also said truck-stop route growth exceeded 30% in October, a stream separate from traditional casino operations. The distinction allows a reading of the growth sources cited by management: Pennsylvania gaming revenue, retail segment trends across the portfolio and truck-stop routes. But the available figures do not break out skill-game machines’ contribution to any of these items. PENN shares closed at $18.15 on November 11, 2026, according to EL7 data.
State police said investigations into locations that did not voluntarily remove the machines remain active and ongoing, with those locations still subject to seizure and other actions as circumstances warrant. The October revenue data cited by PENN management cover one month and do not by themselves measure whether the impact will persist in subsequent periods. The event links state law enforcement with the results of a licensed gaming company in a local market, while the compliance figures indicate the extent to which machines were removed from inspected locations. Police said owners of noncompliant locations may face seizure of machines, equipment and proceeds, and may be charged with crimes. Ongoing investigations are the next step announced in the enforcement campaign.