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Penn National Gaming Completes $610 Million Accretive Acquisition of Harrah’s St. Louis



  Penn National Gaming Completes $610 Million Accretive Acquisition of
  Harrah’s St. Louis

- Transaction Marks Penn National’s Entrée in the St. Louis Gaming Market with
                Established, Missouri-Based Gaming Facility -

  - Property Re-Branding Initiatives Commence; Hollywood Casino St. Louis to
           Feature Renovated Gaming Floor Including 400 New Slots -

Business Wire

MARYLAND HEIGHTS, Mo. & WYOMISSING, Pa. -- November 05, 2012

Penn National Gaming, Inc. (PENN: Nasdaq) announced today that having received
requisite regulatory approvals, it has completed its acquisition of the stock
of the Harrah’s St. Louis gaming and lodging facility from Caesars
Entertainment (CZR: Nasdaq) for total consideration of approximately $610
million.

Peter M. Carlino, Chief Executive Officer of Penn National, commented, “The
acquisition of Harrah’s St. Louis further expands and diversifies Penn
National’s regional operating platform with a facility that is extremely
well-positioned in another large, stable metropolitan market. Our planned
facility upgrades include the introduction of Penn National’s Hollywood brand
– which has been successfully deployed at thirteen other properties across the
country – and will invoke the glamour of 1930s’ art deco Hollywood.

“We recently named 30-year gaming industry veteran, and former Harrah’s
executive, Tony Carlucci the Vice President and General Manager of the
property and we are confident he will build upon the facility’s current
success and position in the attractive St. Louis market. We have budgeted $61
million to re-brand the facility including significantly upgrading and
updating the gaming floor and aligning IT and reporting functions with our
existing systems. We look forward to a full year benefit of operations at
Hollywood Casino St. Louis as well as the three new Hollywood properties in
Kansas City, Toledo and Columbus in 2013.”

Hollywood Casino St. Louis is located in Maryland Heights, Missouri, directly
off I-70 and adjacent to the Missouri River and approximately 22 miles
northwest of downtown St. Louis, approximately eight miles west of Lambert St.
Louis International Airport, and approximately 25 miles southwest of the Penn
National’s Argosy Casino Alton. The facility is situated on over 294 acres
along the Missouri river and features approximately 109,000 square feet of
gaming space with approximately 2,100 gaming machines and 80 table games
(including poker positions), a 500 guestroom hotel, nine dining and
entertainment venues and structured and surface parking for 4,644 vehicles.

About Penn National Gaming

Penn National Gaming owns, operates or has ownership interests in gaming and
racing facilities with a focus on slot machine entertainment. The company
presently operates twenty-nine facilities in nineteen jurisdictions, including
Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine,
Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio,
Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's
operated facilities currently feature approximately 36,800 gaming machines,
approximately 850 table games, 2,900 hotel rooms and approximately 1.6 million
square feet of gaming floor space.

Forward-looking Statements

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, the “Company”) 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 actual results to differ from expectations include, but are not limited
to, risks related to the following: our ability to successfully integrate
Harrah’s St. Louis into our existing business and achieve the expected returns
from such business; the passage of state, federal or local legislation
(including referenda) that would expand, restrict, further tax, prevent or
negatively impact operations in or adjacent to the jurisdictions in which we
do or seek to do business (such as a smoking ban at any of our facilities);
the effects of local and national economic, credit, capital market, housing,
and energy conditions on the economy in general and on the gaming and lodging
industries in particular; the activities of our competitors and the emergence
of new competitors (traditional and internet based); increases in any form of
taxation at any of our properties or at the corporate level; changes in
accounting standards; our dependence on key personnel; the impact of terrorism
and other international hostilities; the impact of weather; and other factors
as discussed in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011, subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K as filed with the SEC. The Company does not intend to
update publicly any forward-looking statements except as required by law.

Contact:

Penn National Gaming, Inc.
William J. Clifford, Chief Financial Officer, 610-373-2400
or
JCIR
Joseph N. Jaffoni or Richard Land, 212-835-8500
penn@jcir.com
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