Penn National Gaming Joint Venture Submits Proposal for $225 Million Racing
and Gaming Facility in Western Pennsylvania
WYOMISSING & MAHONING TOWNSHIP, Pa. -- May 31, 2013
Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company”) announced today that
the Company and Endeka Entertainment LP submitted a proposal to the
Pennsylvania Gaming Control Board (“PGCB”) for the development of a $225
million integrated racing and gaming facility (inclusive of $66.5 million of
licensing fees) in Mahoning Township, Pennsylvania, subject to customary
The proposed Lawrence Downs Casino and Racing Resort will feature a new
harness racing facility; approximately 1,250 slot machines at opening with
capacity for 1,500; approximately 40 live table games and 10 poker tables; a
variety of food and beverage options; and surface parking for 2,000 vehicles.
Lawrence Downs Casino and Racing Resort would be located in Mahoning Township
near the intersection of State Route 551 and State Route 422, approximately 60
miles north of Pittsburgh.
Pursuant to the terms of the agreements, Penn National will provide the $50
million license fee bond and the Company will fund $15 million through a loan.
The Company will also acquire a warrant to purchase a one third ownership
interest in the business. Penn National will develop and manage the project.
Following construction, the parties anticipate that Gaming and Leisure
Properties, Inc., the real estate investment trust that, subject to regulatory
approval, will be publicly traded and 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, will purchase the
facility and lease it back to the owner.
“Endeka Entertainment is pleased to partner on this project with Penn National
Gaming, the nation’s leading racing and gaming company,” said Manuel
Stamatakis, the initial Managing General Partner of Endeka. “We are
particularly pleased to bring this economic development project to Lawrence
County as it will generate a significant number of new local jobs and other
“With 11whollyowned or joint venture pari-mutuel racing facilities, Penn
National owns the most racing facilities of any operator in North America. The
Company has a long-standing commitment to the growth of horseracing in
Pennsylvania and the proposed Lawrence Downs Casino and Racing Resort is a
clear indication of our belief in the industry’s future,” said Tim Wilmott,
President and Chief Operating Officer of Penn National Gaming. “We look
forward to working with Manny Stamatakis and the principals at Endeka
Entertainment to bring the excitement of world-class harness racing and
first-class gaming entertainment to Mahoning Township and its surrounding
communities in Western Pennsylvania.”
“The success of Hollywood Casino at Penn National Race Course illustrates the
strong economic and employment benefits that integrated gaming and racing
facilities can create for the local community and this proposed project will
benefit from the combination of Penn National’s extensive record of successful
development of new properties and our strong balance sheet.”
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.
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 from PENN, including our ability to timely receive all
necessary consents and approvals; our ability to secure timely gaming, racing
and local permits and approvals 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
organized labor and horsemen groups; our ability to agree to terms with
partners for transactions such as this and the costs and risks involved in the
pursuit of such opportunities; our expectations for the continued availability
and cost of capital; 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.
Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
Joseph N. Jaffoni, Richard Land
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