M&A

15 January, 2010

Penn National Gaming Statement on Completing Purchase of Arena District Property in Columbus

Press Release Source: Penn National Gaming, Inc. On Friday January 15, 2010, 3:30 pm EST

WYOMISSING, Pa. & COLUMBUS, Ohio--(BUSINESS WIRE)--Penn National Gaming, Inc. (Nasdaq: PENN - News) announced today that, pursuant to the terms and timing contained in the Company's option agreement with the site owner, it has completed the purchase of a total of approximately 24 acres (comprised of a main parcel of approximately 18 acres and three adjoining parcels of approximately 6 acres) located at and in the vicinity of 560 Nationwide Boulevard in the Columbus Arena District. The 18 acre former Jaeger Machine Works site has been designated in the Ohio Constitution as an authorized casino location. Notwithstanding the Company's land purchase and planned development efforts at the Arena District site, Penn National is continuing to consider a limited number of alternative sites in Columbus that could allow for the development of the proposed Hollywood Casino Columbus to begin earlier.

"Penn National Gaming and its partner, Rock Ventures, do not want to lose any time in fulfilling our commitments under Issue 3 to invest over $1 billion in Ohio and begin generating over 34,000 new jobs, specifically those jobs and the economic development that benefits Columbus" said Eric Schippers, senior vice president of Penn National. "The Company is also sensitive to the tight timetable required to introduce new legislation to move the site, which would require a three fifths vote of the Legislature and a statewide vote in May. Penn National hopes to be in a position to make an announcement on the outcome of its initiatives to explore an alternative site within the next few days. However, given the uncertainty of an outcome in the Legislature or ultimately at the ballot box in May, Penn National intends to continue to plan for development on the Arena District site in parallel with our evaluation of potential alternative sites. Penn National will invest a minimum of $250 million to build Hollywood Casino Columbus and is targeting an opening in the second half of 2012 with gaming taxes earmarked for counties, cities and public schools across the state as well as for Ohio's horse racing industry."

About Penn National Gaming

Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates nineteen facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National's operated facilities feature over 26,300 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 959,000 square feet of gaming floor space.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Although Penn National Gaming, Inc. and its subsidiaries (collectively "Penn National") believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our expectations. Meaningful factors that could cause Penn National's actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses; the passage of state, federal or local legislation that would expand, restrict, further tax, prevent or negatively impact operations (such as a smoking ban at any of our facilities) in the jurisdictions in which we do business; the activities of our competitors and the emergence of new competitors; construction factors, including delays, local opposition and increased cost of labor and materials; the costs and risks involved in the pursuit of those development opportunities; the availability and cost of financing; the effects of local and national economic, credit, capital market, housing, energy conditions on the economy in general and on the gaming and lodging industries in particular; and other factors as discussed in Penn National's Annual Report on Form 10-K for the year ended December 31, 2008, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. Penn National does not intend to update publicly any forward-looking statements except as required by law.