How Penn National Gaming survived 2020 casino closures

Penn National Gaming weathered pandemic losses with cost cuts and community aid

A $730M cash reserve wasn't enough—so the casino giant sold properties, furloughed staff, and still found ways to help frontline workers. Here's how they turned crisis into resilience.

Penn National Gaming weathered pandemic losses with cost cuts and community aid

Penn National Gaming faced serious financial pressure during the 2020 pandemic shutdowns. With casinos closed, the company warned it could only survive just over five months without reopening. Despite the strain, it also stepped in to support communities by donating food and protective gear to frontline workers. By the end of March 2020, Penn National Gaming held $730 million in cash and cash equivalents. Yet the company was burning through $6.4 million each day due to the closures. To ease the financial burden, it cut costs through property sales, staff furloughs, and reduced compensation.

The company sold the Tropicana Las Vegas property to Gaming & Leisure Properties in exchange for $307.5 million in rent credits. It also secured an extra $30 million in rent credits for its new Morgantown, Pennsylvania facility. Additionally, Penn National negotiated a credit agreement amendment, suspending financial maintenance requirements for the rest of the year. Beyond cost-cutting, the firm maintained a diversified revenue strategy, ensuring no single state accounted for more than 15% of its income across 19 states. In 2020, it also held an exclusive option to acquire operations at Hollywood Casino Perryville in Maryland. During the crisis, Penn National Gaming donated over 45 tons of food to local communities. It further supported first responders by providing hotel rooms, masks, and other protective equipment.

The company's financial moves helped it navigate the pandemic's challenges. With rent credits, cost reductions, and a diversified revenue model, it aimed to stabilise operations. Meanwhile, its community support efforts provided relief to those affected by the crisis.