Penn National Gaming’s Planned REIT to Be Named “Gaming and Leisure Properties, Inc.”

  Penn National Gaming’s Planned REIT to Be Named “Gaming and Leisure
  Properties, Inc.”

Indiana Gaming Commission Grants GLP Capital, L.P., a Subsidiary of Gaming and
    Leisure Properties, Inc., a Temporary Supplier License as Landlord of
                        Hollywood Casino Lawrenceburg

Business Wire

WYOMISSING, Pa. -- May 01, 2013

Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company”) announced today that
Gaming and Leisure Properties, Inc. (“GLPI”) will be the name of the newly
formed, publicly traded real estate investment trust (REIT) that would hold
substantially all of Penn National’s real property assets following the
proposed separation of the Company’s operating assets from its real property
assets. In conjunction with the announcement, the Company also reported that
it received notification from the Indiana Gaming Commission (“IGC”) that it
has granted GLP Capital, L.P. (“GLP”), a subsidiary of GLPI, a temporary
supplier license.

GLP was formed in conjunction with the proposed separation of Penn National’s
gaming operating assets and real property assets, and would be the owner of
the real estate at Hollywood Casino Lawrenceburg. Gaming laws in Indiana
specify that a landlord for a gaming facility must apply for and receive a
supplier license and the temporary license stipulates that it allows GLP to
acquire and lease back real estate used in gaming services at Hollywood Casino
Lawrenceburg. GLP’s temporary license is for one year and is subject to the
Commission’s final determination on whether Penn National’s planned real
estate investment trust transaction is approved by a vote of the Commission.
Pending final approval by the Commission, the temporary license allows GLP to
operate in Indiana with the same ability as if it possessed a permanent
license.

Last week, Penn National announced that its subsidiary, Mountainview
Thoroughbred Racing Association, received initial approval from the
Pennsylvania Gaming Control Board (“PGCB”) for a corporate restructuring
related to the proposed separation. Mountainview Thoroughbred Racing
Association does business as Hollywood Casino at Penn National Race Course. As
part of the initial approval, the PGCB indicated that it approved the concept
of the corporate restructuring subject to the receipt and review of the usual
and customary financing documents, receipt of certain applications for the
appropriate entities, officers and directors and other information.

On November 15, 2012, Penn National announced that it intended to pursue a
plan to separate its gaming operating assets and real property assets into two
publicly traded companies – an operating entity, Penn National Gaming, and a
newly formed, publicly traded REIT, GLPI – and that it received a private
letter ruling from the Internal Revenue Service related to the treatment of
the separation and the qualification of GLPI as a REIT, which is subject to
certain qualifications and based on certain representations and statements
made by Penn National . The completion of the proposed transaction is
contingent on receipt of approvals from gaming regulators in certain states
where Penn National has operations as well as other conditions.

Based on Penn National’s current real estate portfolio, GLPI is expected to
initially own the real estate for 19 casino facilities, which have a total of
over 2,900 acres of land and 6.6 million square feet of building space. GLPI
would lease back to the operating company 17 of these casino facilities and
own and operate two gaming facilities in Baton Rouge, Louisiana and
Perryville, Maryland.

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: the proposed
separation of PropCo (GLPI) from PENN, including our ability to timely receive
all necessary consents and approvals, the anticipated timing of the proposed
separation, the expected tax treatment of the proposed transaction, the
ability of each of the post spin Company and PropCo (GLPI) to conduct and
expand their respective businesses following the proposed spin-off, and the
diversion of management’s attention from traditional business concerns; our
ability to raise the capital necessary to finance the spin-off, including the
redemption of our existing debt and preferred stock obligations, the
anticipated cash portion of our special E&P dividend and transaction costs;
our ability to obtain timely regulatory approvals required to own, develop
and/or operate our facilities, or other delays or impediments to completing
our planned acquisitions or projects, including favorable resolution of any
related litigation, including the appeal by the Ohio Roundtable addressing the
legality of video lottery terminals in Ohio; our ability to secure state and
local permits and approvals (including from the Ohio State Racing Commission)
necessary for construction; construction factors, including delays, unexpected
remediation costs, local opposition and increased cost of labor and materials;
our ability to reach agreements with the thoroughbred and harness horseman in
Ohio in connection with the proposed relocations and to otherwise maintain
agreements with our horseman, pari-mutuel clerks and other organized labor
groups; the impact of terrorism and other international hostilities; 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, 610-373-2400
Chief Financial Officer
or
JCIR
Joseph N. Jaffoni, Richard Land
212-835-8500 or penn@jcir.com