Speaking of the digital business, earlier this month, we announced that the founding family behind the score, John, Benge, Abri and Noah Levy will be transitioning from their leadership of the score and PENN Interactive John departed earlier this week, while Bengem Abri and Noah will be leaving in early April. We have been working closely with the Levy's over the last several months on this plan and timing to ensure a smooth operational transition. Their departure comes at a natural inflection point for our interactive business. We've achieved a lot over the last several years, including the completion of our proprietary tech stack, the successful launch of the Score Bet in Ontario the migration of our tech stack into the U.S. and now the launch of ESPN BET.

Even more importantly, we have developed an incredibly deep bench across PENN Interactive and we have several talented leaders ready to step up and take on more responsibility in the coming months. I want to extend my sincere thanks to John, Benge, Abri and Noah for all of their hard work and contributions to PENN interactive success. We are near the conclusion of the month-long search process for the new Head of Interactive and look forward to sharing an update on that with you in the near future. Turning to Slide 6 in our investor presentation. On November 14, we successfully and seamlessly launched ESPN BET simultaneously in 17 states across the U.S. a first in the industry and no doubt a testament to the strength of our technology teams.

Bolstered by the number 1 brand in sports media, the launch resulted in much higher than expected registrations generating over 1 million new sign-ups to our industry-leading PENN Play Rewards program and expanding our digital database by over 50%. In fact, we acquired as many first-time depositors and betters in the first 2 months as we had anticipated we would generate in the first full year post launch. Importantly, approximately 1/3 of these customers are located within 50 miles of one of our more than 43 retail properties which sets up well for cross-selling and monetization as part of our omnichannel strategy. In addition, we saw our average -- excuse me, monthly active users grow from nearly 190,000 in the third quarter to more than 770,000 in the fourth quarter.

Our early success bodes well for our planned launches in North Carolina and New York this year which I'll talk about in a moment. Given the early success in customer acquisition and retention, we now expect the digital segment to inflect to roughly breakeven in 2025 and start generating meaningful EBITDA and free cash flow in 2026 and beyond. Turning to Slide 7 and 8. You'll see that strong early retention and consistent user acquisition have led to steady month-over-month increases in cash handle even as our promotional expenses have started to normalize. Our January cash handle was 289% higher than prelaunch cash handle in October of '23, while our promotional expenses as a percentage of handle went down from 32.2% in November to 2.8% this January.

According to the latest sensor tower data which is similar to other data sources you may have seen such as Aptopia, we have consistently held the number 3 ranking and share of weekly active users amongst our top peers, providing a foundation for even greater handle and GGR share gains as we grow our share of wallet and monetization per user. The ESPN BET numbers on the chart on Slide 8 shows steady acquisition and retention across the board, even as our promotional expense began to taper. On our initial promo offer at launch was right in line with our competitors and we lowered that offer by 50% in advance of the Super Bowl given the more recreational play surrounding the game. Meanwhile, the total time spent on ESPN BET according to the sensor tower data also continued to ramp nicely as we added new features and integrations which will only accelerate now that we can focus more of our product and engineering teams energy on product improvements, especially in the areas of same-game parlays, player props and live betting as opposed to time-consuming migrations and launches, something we are all very excited about.

All of this is very promising as it relates to both top-of-funnel demand for ESPN BET and early retention success. The important takeaway here is the ESPN BET app is proving to be sticky in the early days as a result of our strong brands and UI, UX which will improve from here with product enhancements and deeper integrations with ESPN in the coming quarters. As you'll see on Slides 9 and 10, ESPN BET has helped us reach new demographics of sports fans that are incremental to our digital database, resulting in a 63% greater year-over-year parlay mix and higher volumes for non-NFL games, particularly the NBA. While these parlay results are a clear improvement from where we were prelaunch, we still have a long way to go in this area and you'll see significant improvements throughout 2024.

We also saw a 35% increase in our percentage mix of females in our digital database. These data points demonstrate the potential for ESPN BET to help broaden the appeal of sports betting to the more casual better and grow the overall market, an important goal of ours from day 1. Notably, before the launch of ESPN BET, overall market handle grew by more than 17% year-over-year January to October 2023 in the states with publicly available data in our market analysis. After ESPN BET overall market handle is up nearly 30% and year-over-year from November through December 2023 and it's up over 25% even when you exclude ESPN BET. ESPN BET has and continues to bring new sports fans and betters into the sports betting ecosystem. ESPN BET has also helped boost our Hollywood-branded iCasino business which has seen a nearly 280% increase in monthly active users, providing a platform for future growth with new proprietary content continuing to roll out from our PENN game studios.

As we've emphasized in the past, when customers engage with us across multiple channels, their value goes up more than 6x over those who engage via only 1 channel and we continue to see a lot of upside as we improve our iCasino offerings. As illustrated on Slide 13, in connection with the launch, ESPN implemented an initial wave of exclusive BET mode integrations across the ESPN ecosystem which includes our 6-pack odds integration. This provides for a seamless click-through from the ESPN game cast to a customer's desired bet on the ESPN BET app. This is very powerful as there are over 28 million monthly active users on the ESPN media app. You should expect more BET mode integration throughout 2024. I said at the outset of our partnership with ESPN that we'd be getting significant value for our marketing dollars by allocating our $150 million per year to the single best brand and platform in the U.S. to reach sports fans and potential betters.

We're already seeing that with a robust menu of promotion and integration across all of ESPN's platforms, including traditional linear advertising, digital media, in program integration, bods attribution, database marketing opportunities and access to some of the biggest personalities in sports media for special events, promotions and social media engagement. As I mentioned, we have just scratched the surface on these integrations and there's substantially more to come, all included as part of our deal that we will unveil throughout 2024 and into 2025. Our initial ESPN BET advertising campaign was headlined by Sports Center anchors, Scott Van Pelt and L. Duncan. We then added spots with NBA legend Kendrick Perkins, the host of Get Up, Mike Greenberg, followed by our most recent commercial with sports betting analyst, Aaron Dolan, that launched during the Super Bowl week.

This campaign with Aaron is our first product and integration-focused campaign which we expect will help drive continued awareness of ESPN BET and our direct integration with the ESPN Media app. Meanwhile, L. Duncan and Aaron Dolan hosted a Super Bowl party at the M Resort at our property in Las Vegas. And I'm happy to announce we'll be rebranding Greektown's market-leading Sportsbook to ESPN bet just in time for the NFL draft in Detroit. In addition, ESPN regional radio talent will be hosting events throughout the year in our retail sports book. We look forward to additional ESPN BET retail launches at key properties as we continue to create meaningful cross-sell opportunities. Looking ahead to the rest of 2024, we are excited to introduce ESPN BET in North Carolina which is expected in March and New York expected prior to football season in each case, of course, subject to regulatory approvals.

While the economic model in New York is indeed challenging, we look forward to bringing ESPN BET to the largest regulated online sports wagering market in North America. These 2 new jurisdictions will be extremely efficient for us. As highlighted on Slide 16, our ESPN annual national marketing spend per capita will be reduced by 20%, with the addition of North Carolina and New York which will take our addressable online sports betting U.S. population from 37% to 46% and significantly expand our reach and scale. Very important for us as most of our ESPN and off-channel marketing spend is nationally focused. As noted in the release this morning, the Interactive segment EBITDA losses for the fourth quarter were higher than expected. The majority of that miss was driven by the high volume of customers acquired through ESPN BET which resulted in elevated promo expense that negatively impacted net revenues.

And, to a lesser extent, unfavorable hold due to customer-friendly sports results. The first 2 weeks following the launch of ESPN BET in November happened to be 2 of the lowest hold percentage weeks of the entire NFL season. Looking ahead, we expect that first quarter 2024 interactive EBITDA losses will be roughly half of our fourth quarter '23 interactive EBITDA results. And for Q1 to be the largest EBITDA loss quarter of the year for us in 2024. For the entire year of 2024 on a same-store basis, we anticipate an EBITDA loss commensurate with what we saw in Q4 at around $330 million, demonstrating the top line momentum and efficiencies on the cost side. Due to the 2 state launches this year in North Carolina and New York which we announced on Tuesday, we are forecasting a total EBITDA loss in 2024 of approximately $400 million.

As mentioned earlier, we now anticipate 2025 being around breakeven and 2026 to deliver meaningful positive EBITDA and free cash flow. Before turning it over to Felicia, I'd like to thank our property leaders and all of our team members for delivering another quarter of really solid property level performance. Notably, 10 properties spread across our portfolio achieved their highest ever fourth quarter revenue. These outperformers helped offset the impact of supply pressures in a few of our key markets as well as continued softness in our south region. This further demonstrates the benefits of our geographic diversity and unique omnichannel strategy. The introduction of new technologies and our ongoing reimagination of our properties, while providing a best-in-class customer experience is continuing to drive demand for PENN.

As you know, our industry-leading customer loyalty program, PENN play, is supported by our 3 Cs technology which is now deployed at 21 properties collectively representing approximately 70% of our retail EBITDAR. During the quarter, we've also grown our total PENN wallet customers to 110,000 and we've received $300 million in total PENN deposits. As we've often said, those guests who use the digital wallet demonstrates superior loyalty through increased visitation, time on device and total theoretical end. And with that, I'll turn it over to Felicia.

Felicia Hendrix: Our property level segments reported another solid year. Fourth quarter '23 EBITDA results of $476 million exceeded the implied guidance we provided on our third quarter call, despite headwinds of roughly $10 million from the Detroit union negotiations and road closures. And as Jay highlighted, our Interactive segment is showing early signs of strong momentum. As usual, you will find on Page 12 of our earnings release a table that summarizes our cash expenditures in the quarter including cash payments to our REIT landlords, cash taxes, cash interest and total CapEx. Of our total $152 million in CapEx in the quarter, $16 million with project CapEx, primarily related to our 4 retail growth projects. We ended 2023 with total liquidity of $2.1 billion, inclusive of $1.1 billion in cash and cash equivalents.

We expect our liquidity to remain strong throughout 2024 and we have no debt maturities until 2026 which are our $330 million convertible notes. As we previously guided on our third quarter earnings call, we continue to expect our lease-adjusted net leverage to peak in the third quarter of '24. While third quarter leverage will be higher than initially anticipated given the demand-based strength of our ESPN BET launch in the fourth quarter, '23. This increase is temporary and we will also delever more quickly. By year-end 2025, we will return to pre ESPN BET leverage levels. And in 2026, we will generate meaningful EBITDA and free cash flow from the Interactive division. Thinking about this another way, our path to record free cash flow is very clear, following a year of investment in 2024 and delevering in '25, 2026 will be an exciting inflection point for us given the high EBITDA to free cash flow conversion of our interactive business which when combined with the free cash flow generated by the existing core business, plus the 4 retail growth projects that will be coming online in early 2026, will position us extremely well to drive shareholder value.

I will now provide guidance for our Retail and Interactive segments. For the full year 2024, we expect retail revenues to range from $5.6 billion to $5.75 billion and adjusted EBITDA to range from $1.905 billion to $2.025 billion. Our guidance factors in extreme January weather, new supply in Nebraska, Illinois and Louisiana, road construction in a couple of markets and moderate upward wage pressure. For the Interactive segment in 2024, we expect to generate revenues of $1.28 billion to $1.415 billion and an adjusted EBITDA loss range of $420 million to $380 million. These ranges include our launches in North Carolina and New York. On a same-store basis, we anticipate an adjusted EBITDA loss of around $330 million. To help you with modeling the interactive segment revenues, you should assume that our 2023 tax gross up of roughly $400 million remains flat year-over-year in 2024 and other revenues inclusive of skins, social gaming and media is roughly $200 million in 2024.

As Jay mentioned earlier, in the first quarter of 2024, we expect the Interactive segment adjusted EBITDA loss to be roughly 1/2 of our fourth quarter interactive EBITDA results and for the first quarter '24 to be the largest EBITDA loss quarter of the year. We expect 2024 corporate expense of roughly $105 million, inclusive of our cash settled stock-based awards. Total CapEx for 2024 is approximately $500 million, inclusive of $275 million of project CapEx for our 4 development projects. For cash interest expense, we forecast $170 million for the full year after roughly $13 million of interest income. For cash taxes, we are projecting to be in a refund position of roughly $15 million. And as you think about our share count for 2024, our basic share count as of the end of 2023 was $152 million and we typically have roughly $15 million of diluted shares inclusive of the 14 million share dilution from the converts.

And with that, I'll turn it back to Jay.

Jay Snowden: All right. Thanks, Felicia. As you saw in our release, we're continuing to expand on our corporate social responsibility efforts. As we look back on the year, I'm very proud of the continued growth of our diversity, equity and inclusion initiatives which are deservedly gaining a lot of attention Newsweek named PENN, one of America's greatest workplaces for diversity. And Forbes named us for the third straight year as one of America's best employers for diversity. Time Magazine went so far as to name us one of the world's best companies for 2023. Meanwhile, on the community front, we provided more than $7 million in support to local charities and veterans focused organizations and more than $17 million in economic development grants in 2023, in addition to the more than 8,000 volunteer hours from our team members to help those in need.

And on the environmental side, we completed our inaugural Scope 3 Greenhouse Gas inventory and established carbon abatement targets for 2024 and beyond. You can read more about these -- all of these initiatives in our 2023 CSR report which is scheduled to be published in April in conjunction with our proxy filing. In closing, we're continuing to see a stable consumer environment and healthy operating trends in our retail businesses. And on the digital side, I want to reiterate that our partnership with ESPN is not your typical media sports book commercial agreement. Ours is an exclusive strategic long-term alliance that, as I mentioned, has the potential to deliver unique products, experiences and integrations that are unmatched. And of course, with that will come attractive returns for our shareholders.

We had 3 primary goals with ESPN BET for the first several months post launch. Number one, execute on a successful launch, both in terms of top-of-funnel demand and app stability, competitiveness and performance. Number two, grow the market, given the strong brand equity and reach of ESPN along with the media integrations. And number three, provide a differentiated experience and value proposition to ensure lasting relationships and product retention. So far, we're off to a great start on all 3 and have built a tremendous foundation for our upcoming launches in New York, North Carolina and beyond. So with that, Frank, we'll open it up for questions.

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