Jay A. Snowden
President, Chief Executive Officer and Director at PENN Entertainment
Thanks, Joe. Good morning, everyone. Joining me today is our CFO, Felicia Hendrix, and our Head of Operations, Todd George as well as other members of our executive team. We provided a link to our investor presentation in our earnings release, which we'll be referring to in the prepared remarks, if you want to follow along. Pleased to report that despite continued economic headwinds, the competitive and promotional environment has largely remained stable, and we once again had another solid quarter with revenues of $1.625 billion and adjusted EBITDAR of $472 million. We saw revenue growth of 7.5% year-over-year, driven by our Interactive segment and strong results at our retail operations. Our leaders and team members across the company continue to do an outstanding job. As you'll see on Slide six, our interactive results for the quarter included costs associated with the launch of Kansas, our first full football season in Ontario and Louisiana, lobbying expense of $12.5 million for California that we account for above the EBITDA line and a payment processing fee adjustment of $7.9 million. Given our strong revenue growth, disciplined approach to marketing and the fact that our Interactive segment was profitable in October, we remain confident in our ability to deliver profitability in 2023. As we've highlighted in prior quarters, we're continuing to see growth in our mychoice database with year-over-year increases in rated theo across all segments except for the 65 and older group. I would like to focus your attention in particular on Slides eight and nine, which illustrates the strong recent growth in our 21- to 44-year-old segments.
In just a few years, we've seen this group grow from just a bit over 10% of our total theoretical revenue to nearly 20%. We are continuing to reimagine our properties to appeal to this demographic with dynamic retail sports books and sports bars, third-party F&B concepts, refreshed hotel products, new entertainment and best-in-class technology, which we believe will pay meaningful dividends in the quarters and years ahead. Speaking of technology, we recently introduced our industry-leading three Cs in Kansas, making it our 10th property in four states that -- where we're live. We expect to roll the technology out to several additional properties by the end of this year pending regulatory approvals. Our early experience with three Cs is proving out that guests that adopt our digital wallet demonstrate both higher frequency visitation and greater gaming spend per trip, and we are excited about the long-term prospects for this innovation.
Our newly rebranded Hollywood Casino Greektown in Detroit on Slide 10 is a good example of our strategy to reimagine our properties. As you may recall, the hotel had been unavailable for nearly two years due to water damage.
This gave us the opportunity to completely remodel our standard rooms and hotel lobby to add updated offerings and new F&B concepts. With our renovation nearing completion, we think Greentown is well positioned to improve performance as downtown Detroit continues to rebound. Turning to Slide 13. On September 1st, we launched both retail and online sports betting in Kansas. Beginning with the Hollywood 400 presented by Barstool Sportsbook and continuing with coordinated joint marketing efforts, our omnichannel approach there has delivered one of our most successful launches to date when you combine both retail and online sports betting results. We saw our highest ever first -- highest ever level of first-time deposits on a per capita basis in the state and over 45% of our online handle is being driven by our existing mychoice database. On October 21st, Todd and I and some other members of our team attended the successful opening of our retail Barstool Sportsbook at L'Auberge Baton Rouge in Louisiana. We were joined by Dave Portnoy and Big Cat who were also in town for the Barstool college football tour at the Ole Miss-LSU game right up the street. Great event overall and lots of excitement generated by Barstool at the Sportsbook and the events surrounding the game. Turning to Slide 14. In Ontario, we're seeing meaningful benefits from our integrated media ecosystem with theScore media users contributing over 80% more GGR than nonmedia users. We believe this experience positions us for similar success in the U.S., following completion of the initial integration of the Barstool Sports book into theScore media app, which began on October 19. Our transition in Ontario to our proprietary tech platform has exceeded our expectations by performing seamlessly with increased utilization, new betting markets and other features. Notably, Ontario has already become our top market in North America for both online sports betting and iCasino, and we are seeing very nice momentum in both categories through our first football season. We remain on track to migrate the Barstool Sports book to our proprietary tech platform in mid-2023, after which we will begin to realize cost savings and improved marketing capabilities in the U.S. On the iCasino front, as highlighted on Slide 16, we are seeing continued momentum this quarter with the introduction of 226 new third-party games across all platforms.
Meanwhile, Penn Game Studios recently launched Barstool roulette and has developed our first in-house multiline slot game, which is set to launch next month. We are particularly excited about our initial iCasino results and retention KPIs in Ontario. The advanced promotional capabilities of our player account management system have helped drive these results in Ontario, and we look forward to bringing these same capabilities to the Barstool casino in the U.S. next year post migration. Turning to Slide 19, despite some general industry softness in digital advertising, our media business has delivered solid results in Q3, as theScore grew year-over-year engagement and continued to build out our sports media presence with the addition of content from NFL Insider, Jordan Schultz. Meanwhile, Barstool Sports also continues to add new content, new influencers and grow its audience, including the launch of a new NBA focused podcast featuring Barstool Sports Rone and Pat Beverly of the Los Angeles Lakers. Before turning it over to Felicia, I wanted to give a shout out to our General Manager, Maureen Wasloski and her entire team at Ameristar Vicksburg for their efforts in support of the nearby city of Jackson, Mississippi during this summer's water crisis. Our team members delivered several pallets of much-needed water and emergency supplies, in addition to providing temporary housing to those in need. These are the type of actions that define our culture at Penn Entertainment, and I'm really proud of Maureen and her team for their efforts. In addition, as you'll see on Slide 21, this quarter, we launched a Scope one and two carbon emissions assessment, which we expect to be completed by the end of the year. On the DE&I front, we were honored to have been named for the second year in a row as a Champion of Board Diversity by the Forum of Executive Women for having female members comprise 44% of our corporate Board of Directors. Finally, as part of our $4 million commitment to fund STEM scholarships at Historically Black Colleges and Universities, we're proud to name Prairie View A&M in Texas and Jackson State in Mississippi as our 5th and 6th schools to enter the program.
With that, I'll hand it over to Felicia.