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Penn National Gaming Submits Separate Proposals for $160 Million Downtown Hollywood Casino Sioux City and $167 Million Hollywood

  Penn National Gaming Submits Separate Proposals for $160 Million Downtown
  Hollywood Casino Sioux City and $167 Million Hollywood Casino Siouxland in
  Woodbury County

 - Each Facility Would Feature 33,000 Square-Foot Gaming Floor with 750 Slot
  Machines and 20 Live Table Games, Four Dining and Entertainment Venues and
Multipurpose Event Center; Hollywood Casino Sioux City Master Plan Includes a
               $40 Million Phase II with 150 Guestroom Hotel –

Business Wire

SIOUX CITY, Iowa & WYOMISSING, Pa. -- November 05, 2012

Penn National Gaming, Inc. (NASDAQ: PENN) announced today that it has
submitted to the Iowa Racing & Gaming Commission (IRGC) two proposals for a
new gaming and entertainment destination in Woodbury County for its
consideration. Each proposal represents a best-in-class approach to regional
gaming and will maximize tourism and revenues for Woodbury County and the
State of Iowa. While the proposals are similar in scope, the unique
characteristics of each location will allow the IRGC to determine which type
of facility would best serve the region and the State of Iowa.

The first proposal, Hollywood Casino Sioux City, would be built on a 10-acre
site in the center of one of the prime areas that the Sioux City Planning
Division has identified as a preferred casino zone. The 100,000 square-foot
Hollywood Casino Sioux City will feature a 33,000 square-foot casino floor
with 750 slot machines, 20 live table games and a 5-table poker room. The
facility will include structured parking for 800 vehicles and a 300-space
surface lot while allowing easy access from Sioux City Transit’s local
transportation options. Non-gaming dining and entertainment amenities include
a fine-dining steakhouse, casual grille, casino bar and sports pub. Hollywood
Casino Sioux City would also feature a 6,000 square-foot multi-purpose event
center with a 500-seat concert venue. The master plan for the development
contemplates a $40 million phase II expansion with a 150-guestroom hotel as
well as space for an additional 50 slot machines, 5 table games, 5 new poker
tables and additional food and beverage options.

The second proposal, Hollywood Casino Siouxland, with a $167 million projected
cost, is similar in size and scope to the Hollywood Casino Sioux City downtown
project, but would lie in Woodbury County south of Sioux City and would
include a 150-room hotel as part of the Phase One construction. Both projects
would bring meaningful employment and other economic activity to the greater
Sioux City area including over 400 employees at the new facility.

The Greater Siouxland Improvement Association will serve as Penn National’s
qualified sponsoring organization and is comprised of an impressive group of
local leaders and concerned constituents with a focused goal. The board
members of Greater Siouxland bring an extended and impressive record of
community service, integrity and dedication, as well as a wealth of fresh
ideas on the needs of the community.

Peter Carlino, Chairman and Chief Executive Officer of Penn National Gaming,
commented, “In carefully considering the needs and requirements of the local
community and the goals of the IRGC, we believe each proposal represents the
strongest option for Woodbury County and the State of Iowa. We are prepared to
work immediately with the IRGC and other local leaders to develop whichever of
these facilities is deemed to be the most attractive and beneficial to the
city and state of Iowa. Given the number of proposed gaming projects in recent
years that have not been completed, we believe the importance of the financial
strength of the operator and our ability to deliver on the commitments we’ve
made are critical distinguishing factors. Penn National requires no financing
to move forward with our proposals and can fund either of these projects with
cash flow from existing operations.

“We believe our Sioux City proposals are the best way forward for the
community given our long-term record of operation in the community and proven
track record of developing first-class gaming and entertainment resorts in
urban locations including most recently Toledo and Columbus in Ohio. Our
proposed facilities, if approved, will ensure the continued employment of our
team at Argosy Sioux City and create 800 new construction jobs as well as 400
jobs at the facility upon opening within approximately 18 months following
approval from the IRGC. Both of our proposals also allow Penn National to
introduce Sioux City to our Hollywood brand, which invokes the glamour of
1930s’ art deco Hollywood.

“Penn National’s balance sheet and financial liquidity as well as our proven
development record and ability to generate both strong employment and tax
dollars are unmatched. We plan to develop either of these facilities, using
funds from our existing operations and are ready to move as quickly as
possible to ensure that the local community benefits immediately. The entire
Penn National team looks forward to working with our local partner and the
IGRC to move forward and bring this exciting new gaming and entertainment
facility to Sioux City.”

The IRGC plans to make a decision submitted proposals on April 18, 2013.

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 receive and maintain, or
delays in obtaining, the regulatory approvals required to own, develop and/or
operate our facilities, or other delays or impediments to completing our
planned acquisitions or projects; 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 the effective rate of taxation at any of our properties or at the
corporate level; our expectations for the continued availability and cost of
capital; the outcome of pending legal proceedings; 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, 610-373-2400
Chief Financial Officer
or
JCIR
Joseph N. Jaffoni, Richard Land
212-835-8500 or penn@jcir.com
 
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