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Penn National Gaming Reports First Quarter Revenues of $ 1.27 Billion , Net Income of $ 90.9 Million , Adjusted EBITDAR of $ 447.0 Million , and Adjusted EBITDA of $ 336.6 Million May 6 , 2021 - PENN Generated First Quarter Net Income Margin of 7 % and Record First Quarter Adjusted EBITDAR Margin of 35 % , Benefiting from Strong Demand at Land - Based Casinos and More Efficient Cost Structure - - Focus Remains on Driving Profitable Online Gaming Revenue with Q1 Launches in Michigan and Illinois - WYOMISSING , Pa .-- ( BUSINESS WIRE ) -- May 6 , 2021-- Penn National Gaming , Inc. ( NASDAQ : PENN ) ( " Penn National " or the " Company " ) today reported financial results for the three months ended March 31 , 2021 . Jay Snowden , President and Chief Executive Officer , commented : " Penn National kicked off the year with record results in Q1 2021 from our land - based business and the launch of our online Barstool Sportsbook in Michigan and Illinois . In addition , we fully integrated our mychoice player loyalty program across all our retail and digital offerings , which bolsters Penn National's ecosystem and further expands our competitive advantage . Equally exciting was our inclusion in the S & P 500 in March , which underscores the investment community's confidence in our digital transformation and our position as the nation's largest regional gaming operator . This milestone is a testament to the hard work , determination and commitment of all our team members at the property and corporate levels as well as our valued partners at Barstool Sports . " Last month we filed our proxy statement which included an in - depth ESG report on our ongoing efforts to care for our people , our communities and our planet . Highlights include the launch of a new Diversity Scholarship program in March , which reflects our commitment to equity in post - secondary education opportunities for the children of our team members . With an annual commitment of $ 1 million , we plan to extend up to 65 scholarships this year . In addition , we implemented a supplier diversity initiative with the goal of developing new opportunities for minority - owned businesses . Last month , we hosted companywide ' Days of Listening ' to gather feedback from team members on all matters of diversity and inclusion . Finally , on May 15 , we will launch a new initiative to honor our active - duty military , veterans and first responders . The ' my heroes ' program is an exclusive , fully integrated extension of Penn National's industry leading my choice rewards loyalty program , which will provide our nation's heroes access to exclusive discounts and offers at Penn National's 41 properties in 19 states . " For further information , we have posted a presentation to our website regarding the first quarter highlights and accomplishments , which can be found here . Core Business Firing on All Cylinders For the first quarter ended March 31 , 2021 , Penn National generated revenues of $ 1,274.9 million and Adjusted EBITDAR of $ 447.0 million . Revenues declined 6 % compared to Q1 2019 pro forma results while Adjusted EBITDAR was up 7 % and Adjusted EBITDAR margins increased 434 basis points based on the pro forma comparison . The strong results were driven by contributions from the online Barstool Sportsbook and our iCasino platforms , and land - based gaming properties despite COVID - 19 related closures in Pennsylvania and Illinois for parts of January , and Zia Park in New Mexico not reopening until early March . Further , when adjusting for the days our casinos were mandated to close and excluding the contribution from Penn Interactive , revenues declined 9 % and Adjusted EBITDAR increased 12 % , which equates to margin improvement of more than 700 basis points compared to pro forma Q1 2019 . Mr. Snowden continued : " Despite COVID - related restrictions and closures in January and harsh winter weather in the South segment in February , visitation and length of play continue to improve across all age segments of our player database . Moreover , we saw volumes in the month of March that we have not seen since 2019. Recall , when we reopened our properties in the summer of 2020 , we saw very high spend - per - visit , but visitation was well below pre - COVID levels . Today , we're still seeing spend - per - visit that is much higher than it was pre - COVID , and visitation is at or near 2019 levels in most of our markets , which is a great combination . Importantly , the younger demographic continues to choose gaming as a viable entertainment option while the 55+ age group has been returning to our casinos as vaccines continue to roll out . Unrated play continues to show strength that mirrors what we have seen from our rated guests . This top - line demand coupled with the structural changes we put in place at the start of the pandemic has resulted in remarkable and sustainable margin improvement . Meanwhile , the South segment outperformed with margin improvement of greater than 1,100 basis points compared to the same period in 2019 given the less restrictive COVID protocols in the region , the removal of loss - leading or lower margin amenities , more efficient labor management and a very rational marketing and promotional environment . The Midwest also reported impressive margin gains of nearly 900 basis points despite an uneven playing field related to COVID restrictions in certain key markets . " At quarter end , our cash balance stood at $ 2.1 billion , traditional net debt was approximately $ 353 million and lease - adjusted net leverage was 4.5x based on 2019 Adjusted EBITDAR . " Continued Expansion of our Sportsbook Footprint and Media Strategy Mr. Snowden continued , " We remain focused on garnering top - three gaming revenue market share for the Barstool Sportsbook and driving best in class profitability . Since launching our product just over seven months ago , we have registered more than 400,000 customers and generated over $ 660 million and $ 61 million in handle and gaming revenue , respectively . We plan for the online Barstool Sportsbook to be live in eight states by football season and in at least 10 states before the end of the year . " As previously disclosed , on March 11 , we successfully launched the Barstool Sportsbook in Illinois , ahead of the 2021 NCAA Basketball Tournament .