PENN

PENN Entertainment, Inc.

HARAM — SCREEN DOES NOT PASSstock

Is PENN Halal?

Casino, racetrack, sportsbook and iCasino operator — gaming was 75.00% of Q1 2026 revenue and remains the core business screen failure.

What You Should Know

PENN Entertainment's March 31, 2026 Form 10-Q reports $14,118.0M total assets, $2,923.9M current-plus-long-term debt, $708.0M cash, $241.0M receivables and $1,779.1M quarterly revenue. ZakatInvest calculates debt/assets 20.71%, cash plus identifiable interest-bearing securities/assets 5.31%, receivables plus cash/assets 6.72% and disclosed interest income/revenue 0.11%. Gaming revenue was $1,334.4M, or 75.00% of quarterly revenue. That is a conservative disclosed gaming-activity proxy; it does not claim every food, hotel, beverage or media dollar has one universal ruling.

⚠️ Concerns

  • Core business includes casino and racetrack gambling (maysir); gaming revenue was $1,334.4M or 75.00% of Q1 revenue
  • theScore Bet online sports betting and iCasino remain active after the ESPN licensing change
  • Alcohol service and hospitality support the gaming properties
  • PENN reported $2.9B of aggregate principal indebtedness and issued $600M of 6.75% notes in March 2026
  • The next filing should recheck debt, refinancing, digital mix and gaming revenue disclosures

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
20.71%Within limit
Below 33.333% under FTSE Yasaar

2,923.9 / 14,118

Cash + interest-bearing securities / assets
5.31%Within limit
Below 33.333% under FTSE Yasaar

749 / 14,118

Receivables + cash / assets
6.72%Within limit
Below 50% under FTSE Yasaar

949 / 14,118

Non-compliant income / revenue
0.11%Within limit
No more than 5% under FTSE Yasaar

1.9 / 1,779.1

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Fails

Debt/assets are 20.71%, liquidity is 5.31%, receivables plus cash are 6.72% and disclosed interest income is 0.11%, all below the examined FTSE financial limits. The gaming business screen fails independently.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Fails

Debt/assets of 20.71%, liquidity of 5.31% and receivables plus cash of 6.72% are below the examined MSCI total-assets limits. The disclosed gaming activity remains a failed business screen; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Fails

Debt/assets of 20.71% and liquidity of 5.31% are below the examined Malaysia SAC financial limits. This calculation is not an official classification of a U.S.-listed security, and the gaming business screen fails.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed historical market-cap series is not stored, but a different denominator cannot cure the failed casino, racetrack, sports-betting and iCasino business screen.

Business-activity disclosure

PENN operates in 27 North American jurisdictions through retail casino and racetrack properties plus an Interactive segment containing online sports betting, iCasino, social gaming, retail sports-bet management and media. Gaming revenue was $1,334.4 million, or 75.00% of quarterly revenue, and the company describes gaming as a primary operating activity.

Limitation: The filing reports a consolidated gaming revenue line rather than a school-specific prohibited-revenue taxonomy. The entered gaming amount is a conservative disclosed proxy for casino, racetrack and online wagering activity, not a claim that every food, hotel, beverage or media dollar is impermissible.

Purification

The core gambling business is not resolved by purification. The filing discloses $1.9 million of interest income, or 0.11% of revenue, but no scholar-approved purification percentage is asserted for gaming revenue, alcohol or other mixed activities.

Inputs, assumptions and primary sources
  • Inputs use PENN's March 31, 2026 Form 10-Q; amounts are USD millions.
  • Debt uses $38.3 million of current maturities plus $2,885.6 million of long-term debt, net of discounts and issuance costs. Financing obligations and operating/finance lease liabilities are excluded rather than silently treated as conventional debt.
  • Cash uses $708.0 million of cash and cash equivalents. Identifiable interest-bearing securities use $26.4 million of available-for-sale debt securities, $6.7 million of held-to-maturity securities and $7.9 million of promissory notes; equity securities are not included.
  • Receivables use $241.0 million of accounts receivable, net; prepaid and other current assets are excluded.
  • Total quarterly revenue was $1,779.1 million. The filing reports $1.9 million of interest income and $101.0 million of net interest expense.
  • Gaming revenue of $1,334.4 million is entered as a conservative disclosed gaming-activity proxy. The filing also reports $444.7 million of food, beverage, hotel and other revenue; the gaming line does not claim every non-gaming dollar is prohibited or that a scholar-approved purification percentage exists.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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