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Penn National Gaming Enters into Management and Development Agreements with Jamul Indian Village for New $360 Million Hollywood



  Penn National Gaming Enters into Management and Development Agreements with
  Jamul Indian Village for New $360 Million Hollywood-Branded Casino & Resort
  in San Diego County

Business Wire

SAN DIEGO & WYOMISSING, Pa. -- April 5, 2013

Penn National Gaming, Inc. (NASDAQ: PENN) announced today that one of its
wholly-owned subsidiaries and the Jamul Indian Village (“the Tribe”) have
entered into definitive agreements to jointly develop a Hollywood-branded
casino and resort on the Tribe’s trust land in San Diego County, California.
The proposed facility is located approximately 20 miles east of downtown San
Diego, right off Route 94.

The proposed $360 million development will include a three-story gaming and
entertainment facility of approximately 200,000 square feet featuring at least
1,700 slot machines, 50 live table games including poker, multiple
restaurants, bars and lounges and a partially enclosed parking structure with
over 1,900 spaces. The proposed project will create an estimated 1,200
construction jobs and up to 1,500 permanent jobs in the area. It is
anticipated that construction could commence late this year with an expected
construction period of approximately 24 months. Penn National may, under
certain circumstances, provide backstop financing to the Tribe in connection
with the project and, upon opening, Penn National will manage the casino and
resort.

The agreements with Penn National will allow the Tribe to realize its vision
for revitalizing its six-acre reservation, while creating and supporting
employment opportunities. Ultimately, the newly-designed project will create
jobs for the local community in the Jamul and Dulzura areas, allow the Tribe
to become self-sufficient and enable it to share gaming revenue with local
governments and charities.

“The development and management of a Hollywood-branded casino and resort with
Executive Council Chairman Hunter and the Jamul Indian Village will deliver a
balance of economic benefits, environmental stewardship and social
responsibility,” said Timothy Wilmott, President and Chief Operating Officer
of Penn National Gaming. “We look forward to a productive collaboration with
the Tribe that will benefit the community, the Tribe and Penn National.”

“We are pleased to work closely with Penn National Gaming, a respected
industry leader that brings significant experience, energy and integrity to
this important project,” said Tribal Executive Council Chairman Raymond
Hunter. “Penn National has a proven track record of development and operation
of first-class gaming facilities and its strong balance sheet is an asset to
the project. Penn National also shares the Tribe’s focus on a development that
is consistent with the character of the Jamul area. In addition, the Company
shares our commitment to be respectful of environmental requirements and local
processes inherent to this project.”

Earlier this year, after an extensive and comprehensive Tribal environmental
review process consistent with both the National Environmental Protection Act
(NEPA) and the California Environmental Quality Act (CEQA), the Tribe approved
and certified the project’s Tribal Environmental Evaluation and Mitigation
Plan and is now working with State and County agencies to address potential
environmental impacts.

Lakes Entertainment, Inc., which until last year was working with the Tribe on
this project, remains a subordinated lender but has no further rights or
obligations with respect to the development process or facility management.
The agreements between Penn National and the Tribe have been filed with and
are subject to the National Indian Gaming Commission’s review and approval.

About Jamul Indian Village

The Jamul Tribe has been recognized by federal officials since the 19^th
century. The tribal government of the Jamul Indian Village has the
responsibility to conserve tribal property, develop community resources,
administer justice and build a legacy of economic self-reliance for our Tribal
members and future generations. For more information visit
www.jamulindianvillage.com. Jamul Indian Village entered into a Tribal-State
compact in October 1999 with then Governor Davis.

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 34,800 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” or “PENN”) 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 secure
financing for this project; our ability to secure state and local permits and
regulatory approvals necessary for the proposed Jamul project; construction
factors, including delays, unexpected remediation costs, challenges associated
with building a complex project on a relatively small parcel, 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); and other factors as discussed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2012, 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
Robert Mesa
Jamul Indian Village
619/402-3500
berts@aol.com
or
Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500 or penn@jcir.com
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