PENN Entertainment, Inc.PENN
PENN Entertainment, Inc. Goodwill & Intangibles Disclosure
Note 8—Goodwill and Other Intangible Assets
A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:
| (in millions) | Northeast | South | West | Midwest | Interactive | Other | Total | ||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill, gross | $ | 923.5 | $ | 236.6 | $ | 216.8 | $ | 1,116.7 | $ | 1,664.0 | $ | 87.7 | $ | 4,245.3 | |||||||||||||||||||||||||||
| Accumulated goodwill impairment losses | (828.8) | (61.0) | (16.6) | (556.1) | — | (87.7) | (1,550.2) | ||||||||||||||||||||||||||||||||||
| Goodwill, net | $ | 94.7 | $ | 175.6 | $ | 200.2 | $ | 560.6 | $ | 1,664.0 | $ | — | $ | 2,695.1 | |||||||||||||||||||||||||||
| Effect of foreign currency exchange rates | — | — | — | — | (119.7) | — | (119.7) | ||||||||||||||||||||||||||||||||||
| Impairment losses during year | — | (6.1) | — | (6.2) | — | — | (12.3) | ||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill, gross | $ | 923.5 | $ | 236.6 | $ | 216.8 | $ | 1,116.7 | $ | 1,544.3 | $ | 87.7 | $ | 4,125.6 | |||||||||||||||||||||||||||
| Accumulated goodwill impairment losses | (828.8) | (67.1) | (16.6) | (562.3) | — | (87.7) | (1,562.5) | ||||||||||||||||||||||||||||||||||
| Goodwill, net | $ | 94.7 | $ | 169.5 | $ | 200.2 | $ | 554.4 | $ | 1,544.3 | $ | — | $ | 2,563.1 | |||||||||||||||||||||||||||
| Effect of foreign currency exchange rates | — | — | — | — | 55.5 | — | 55.5 | ||||||||||||||||||||||||||||||||||
| Impairment losses during year | — | (7.0) | — | — | (825.0) | — | (832.0) | ||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill, gross | $ | 923.5 | $ | 236.6 | $ | 216.8 | $ | 1,116.7 | $ | 1,599.8 | $ | 87.7 | $ | 4,181.1 | |||||||||||||||||||||||||||
| Accumulated goodwill impairment losses | (828.8) | (74.1) | (16.6) | (562.3) | (825.0) | (87.7) | (2,394.5) | ||||||||||||||||||||||||||||||||||
| Goodwill, net | $ | 94.7 | $ | 162.5 | $ | 200.2 | $ | 554.4 | $ | 774.8 | $ | — | $ | 1,786.6 | |||||||||||||||||||||||||||
Summary of Impairment Charges by Reportable Segment
| For the year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Goodwill | Gaming Licenses | Trademarks | Goodwill | Gaming Licenses | Trademarks | Goodwill | Gaming Licenses | |||||||||||||||||||||||||||||||||||||||
Segment | |||||||||||||||||||||||||||||||||||||||||||||||
| Northeast | $ | — | $ | 23.5 | $ | — | $ | — | $ | 66.0 | $ | 1.0 | $ | 30.0 | $ | 100.6 | |||||||||||||||||||||||||||||||
| South | 7.0 | 64.8 | 4.5 | 6.1 | 3.3 | 6.5 | — | — | |||||||||||||||||||||||||||||||||||||||
| West | — | — | 5.5 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Midwest | — | — | 15.0 | 6.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Interactive | 825.0 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 832.0 | $ | 88.3 | $ | 25.0 | $ | 12.3 | $ | 69.3 | $ | 7.5 | $ | 30.0 | $ | 100.6 | |||||||||||||||||||||||||||||||
Impairment charges on goodwill, gaming licenses, and trademarks are recorded to “” within our Consolidated Statement of Operations.
Interim Assessments for Impairment
During the third quarter of 2025, PENN announced the mutual decision for an early termination (the “Termination Agreement”) of its Sportsbook Agreement with ESPN (as defined in Note 12, “Commitments and Contingencies”). Pursuant to the Termination Agreement, PENN’s exclusive right to use the ESPN BET trademark for OSB in the U.S. ended on December 1, 2025. As a result, the Company realigned its digital focus to leverage the strength of its U.S. iCasino and Canadian operations, while continuing to use OSB to drive both the acquisition of customers with significant lifetime value and unique cross-sell opportunities across PENN’s retail and digital assets. The Company rebranded its OSB offering in the U.S. to theScore Bet.
The realignment of its digital focus led the Company to revise its future cash flow projections for the Interactive reporting unit and to perform an interim quantitative impairment test during the third quarter of 2025, which resulted in a non-cash impairment charge of $825.0 million. The impairment charge is presented in “Impairment losses” within the Consolidated Statements of Operations. The estimated fair value of the Interactive goodwill was determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs.
Additionally, during the second quarter of 2025, PENN announced a development project to relocate its Ameristar Council Bluffs (“ACB”) riverboat casino operations to a new, land-based facility to be rebranded as Hollywood Casino Council Bluffs. As a result of this strategic rebranding decision, the Company reassessed the indefinite-lived classification of the ACB trademark and concluded the trademark is no longer considered to have an indefinite useful life. The Company performed a quantitative impairment test, then assigned the remaining carrying amount of $7.0 million a finite useful life of approximately 2.5 years. The interim assessment for impairment resulted in a non-cash impairment charge of $15.0 million, recorded within the Midwest segment, reflecting the decline in the trademark’s fair value. The primary driver of the impairment was a reduction in the projected revenues attributable to the ACB trademark compared to its prior valuation. The impairment charge is presented in “” within the Consolidated Statements of Operations. The fair value of the ACB trademark was estimated using a relief-from-royalty discounted cash flow model incorporating Level 3 inputs.
Annual Assessments for Impairment
In 2025, the annual assessment for impairment resulted in a non-cash impairment charge of $7.0 million to goodwill in our South segment due to reductions in long-term cash flow projections as a result of economic challenges in a specific operating region. In 2024, we recorded goodwill impairment charges totaling $12.3 million in our South and Midwest segments due to increased competition that led to slight reductions in long-term cash flow projections at certain of our properties. In 2023, we recorded a goodwill impairment charge of $30.0 million at our Hollywood Casino Greektown (“Greektown”) reporting unit due to economic challenges in the region in which it operates. The estimated fair value of the reporting units was determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs.
In 2025, 2024, and 2023, the annual assessment for impairment resulted in non-cash impairment charges of $88.3 million, $69.3 million, and $100.6 million, respectively, on our gaming licenses in our Northeast and South segments. A former expansion of legislation in the market and increased supply resulted in reductions in long-term cash flow projections for certain of our properties, resulting in impairment of gaming licenses. The estimated fair values of the gaming licenses were determined by using a discounted cash flow model, which utilized Level 3 inputs.
In 2025 and 2024, the annual assessment for impairment resulted in non-cash impairment charges of $10.0 million and $7.5 million, respectively, on our trademarks. These charges primarily related to properties in our South and West segments due to reductions in long-term cash flow projections as a result of increased competition and economic challenges in specific operating regions. The estimated fair values of trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.
Carrying Values of Goodwill and Other Intangible Assets
As of October 1, 2025, the date of the most recent annual impairment test, five reporting units had negative carrying amounts. The amount of goodwill at these reporting units was as follows:
| (in millions) | |||||
| Northeast segment | |||||
| Plainridge Park Casino | $ | 6.3 | |||
| South segment | |||||
| Ameristar Vicksburg | $ | 19.5 | |||
| Boomtown New Orleans | $ | 5.2 | |||
| West segment | |||||
| Cactus Petes and Horseshu | $ | 10.2 | |||
| Midwest segment | |||||
| Ameristar Council Bluffs | $ | 36.2 | |||
The table below presents the gross carrying amount, accumulated amortization, and net carrying amount of each major class of other intangible assets:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
| Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
| Gaming licenses | $ | 976.7 | $ | — | $ | 976.7 | $ | 1,064.9 | $ | — | $ | 1,064.9 | |||||||||||||||||||||||
| Trademarks | 291.7 | — | 291.7 | 319.5 | — | 319.5 | |||||||||||||||||||||||||||||
| Other | 0.6 | — | 0.6 | 0.6 | — | 0.6 | |||||||||||||||||||||||||||||
| Amortizing intangible assets | |||||||||||||||||||||||||||||||||||
| Customer relationships | 111.9 | (110.0) | 1.9 | 111.6 | (106.6) | 5.0 | |||||||||||||||||||||||||||||
| Technology | 370.7 | (252.6) | 118.1 | 303.0 | (184.9) | 118.1 | |||||||||||||||||||||||||||||
| Other | 37.3 | (21.5) | 15.8 | 40.1 | (18.3) | 21.8 | |||||||||||||||||||||||||||||
| Total other intangible assets, net | $ | 1,788.9 | $ | (384.1) | $ | 1,404.8 | $ | 1,839.7 | $ | (309.8) | $ | 1,529.9 | |||||||||||||||||||||||
During the year ended December 31, 2024, we acquired a gaming license for operating online sports wagering in the state of New York, which was recorded to “Gaming licenses” at its fair value of $25.0 million.
Amortization expense related to our amortizing intangible assets was $39.6 million, $49.9 million, and $58.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of December 31, 2025:
| (in millions) | |||||
| Years ending December 31: | |||||
| 2026 | $ | 58.0 | |||
| 2027 | 40.1 | ||||
| 2028 | 22.4 | ||||
| 2029 | 4.7 | ||||
| 2030 | 3.7 | ||||
| Thereafter | 6.9 | ||||
| Total | $ | 135.8 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 15, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.