Penn National Gaming Submits Proposal for $480 Million Hollywood Casino Philadelphia in the Heart of the City’s Sports &

  Penn National Gaming Submits Proposal for $480 Million Hollywood Casino
  Philadelphia in the Heart of the City’s Sports & Entertainment District

    - Facility to Feature 100,000 Square-Foot Gaming Floor with 2,050 Slot
Machines, 66 Live Table Games, a 15-Table Poker Room, and Multiple Dining and
                            Entertainment Venues -

Business Wire

WYOMISSING, Pa. -- November 15, 2012

Penn National Gaming, Inc. (NASDAQ: PENN) announced today that it has
submitted a proposal to the Pennsylvania Gaming Control Board (PGCB) for a new
gaming and entertainment destination in Philadelphia. The Company believes
this proposal represents a best-in-class approach to regional gaming that will
boost local tourism and maximize revenues for Philadelphia and the
Commonwealth of Pennsylvania. Headquartered in Pennsylvania, Penn National
Gaming is the country’s most active developer of new entertainment and gaming
destinations, having opened six new facilities over the past five years across
the country. Each facility was opened on time and on budget, each resulted in
significant new local employment and tax revenue and Penn National is capable
of immediately funding its Philadelphia proposal.

Penn National has held preliminary discussions with Congressman Robert Brady,
State Senator Anthony Hardy Williams and Philadelphia City Councilman Kenyatta
Johnson regarding the proposed Hollywood Casino at 700 Packer Avenue in South
Philadelphia. By law, Penn can own no more than one third of the equity in the
facility given its preexisting ownership of Hollywood Casino at Penn National
Race Course. This presents an exciting opportunity for the City of
Philadelphia or one of its designated entities who would benefit from Penn’s
proven management expertise, while maximizing the economic opportunity for the
community. Alternatively, Penn is also evaluating the possibility of
relocating the proposed Hollywood Casino facility to the 300 block of Packer
Avenue in South Philadelphia on property currently owned by the Philadelphia
Industrial Development Corporation, totaling nearly 27 acres. The Company
anticipates a near term announcement on these plans.

Located in the heart of Philadelphia’s sports and entertainment district –
which includes Citizens Bank Park, the Wells Fargo Center and Lincoln
Financial Field – Hollywood Casino Philadelphia would feature a 100,000
square-foot casino floor with 2,050 slot machines, 66 live table games and a
15-table poker room. Additionally, the new gaming and entertainment facility
will include structured parking for 3,500 vehicles as well as an integrated
bus arrival and waiting area. Non-gaming dining and entertainment amenities
would include a fine-dining steakhouse, sports pub, casual grill, noodle bar,
food court with four distinct outlets and casino bar as well as a 180-seat
entertainment lounge which would host live acts. The master plan for the
development contemplates a phase II expansion with a 500-guestroom hotel as
well as space for an additional 1,000 slot machines, 40 table games, 5 poker
tables, additional food and beverage options, and increased structured parking
capacity.

Peter Carlino, Chairman and Chief Executive Officer of Penn National Gaming,
commented, “We believe our proposed Hollywood Casino Philadelphia represents
the best way forward for both the City of Philadelphia and the Commonwealth of
Pennsylvania, and represents a careful consideration of the needs of the local
community and the goals of the PGCB. Penn National has an established,
long-term record of operation in the Commonwealth and a proven ability to
deliver projects on time and on budget that generate attractive revenue and
employment for our host communities. We believe our experience in developing
first-class gaming and entertainment resorts in urban locations, including
most recently Toledo and Columbus in Ohio and Kansas City, Kansas, will enable
Penn to quickly deliver on the expectations set out by the PGCB.

“Furthermore, given the rising number of recent proposed gaming projects that
have not been completed for financial reasons, we believe Penn National’s
financial strength and proven ability to complete projects on schedule make us
the ideal operator to develop this new gaming and entertainment facility in
Philadelphia. We require no additional financing to move forward with our
proposal and can fully fund the development and construction of Hollywood
Casino Philadelphia with cash flow from existing operations.

“Penn National’s balance sheet strength, financial liquidity, successful
development and operating record and ability to generate both strong long-term
employment and growing tax revenues for our host communities are unmatched
within the gaming industry. We plan to move quickly to develop this facility
using funds from our existing operations in order to ensure that Philadelphia
and the Commonwealth of Pennsylvania benefit immediately. The entire Penn
National team looks forward to working with the PGCB to further enhance the
heart of Philadelphia’s sports and entertainment district with an exciting
gaming and entertainment destination.”

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; our ability to secure state and local
permits and approvals necessary for construction; construction factors,
including delays, unexpected remediation costs, local opposition and increased
cost of labor and materials; 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
penn@jcir.com
 
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