Jamul Indian Village of California and Penn National Gaming Launch Construction of $360 Million Hollywood Casino Jamul in San

  Jamul Indian Village of California and Penn National Gaming Launch
  Construction of $360 Million Hollywood Casino Jamul in San Diego County

Business Wire

SAN DIEGO & WYOMISSING, Pa. -- January 10, 2014

Jamul Indian Village of California (JIV) and a wholly owned subsidiary of Penn
National Gaming, Inc. (NASDAQ:PENN), today announced the launch of
construction activities at the site of the proposed $360 million Hollywood
Casino Jamul on JIV’s reservation in Jamul, California, approximately 20 miles
east of downtown San Diego, off of State Route 94.

Rendering of Hollywood Casino Jamul (Photo: Business Wire)

Rendering of Hollywood Casino Jamul (Photo: Business Wire)

Hollywood Casino Jamul, projected to open in late 2015, is expected to include
a three-story gaming and entertainment facility of approximately 200,000
square feet, featuring over 1,700 slot machines, 50 live table games including
poker, multiple restaurants, bars and lounges and an enclosed below grade
parking structure with over 1,900 spaces. The project will create an estimated
2,500 construction and permanent jobs in the area. JIV has completed a
comprehensive and rigorous environmental review as required by the JIV’s 1999
Gaming Compact with the State of California. JIV has made significant changes
to the design of the facility to incorporate local community input, including
significantly reducing its height and footprint. In addition, the planned
development will now include water and wastewater reclamation facilities,
addressing on-site fire protection measures. Visually, the facility will
feature an earth tone color palette and downcast lighting to integrate with
and complement the surrounding area.

“We are very excited that our long-time dream will finally become a reality,”
said Raymond Hunter, Chairman of the Jamul Indian Village of California. “We
have worked tirelessly for well over a decade listening to the voices of the
community, addressing concerns, and ultimately developing a project that
blends seamlessly into the region, while creating approximately 2,500 much
needed construction and permanent jobs in our region. We look forward to
continuing to be a good neighbor, as well as becoming a philanthropic leader
and an active business partner in San Diego County. We are grateful for the
constructive meetings and dialogue with the Governor’s office, California
Department of Transportation, California Department of Fish and Wildlife, and
many others who participated in this process.”

The commencement of construction related activities follows the recent review
and approval by the California Department of Transportation (“Caltrans”) of
the project’s Transportation Management Plan (TMP) and issuance of an
Encroachment Permit to the Tribe to minimize any traffic impact on SR-94
during the building phase of the project. The TMP includes flagging
operations, state-of-the-art dirt and dust control measures, CHP patrolling of
the impacted area and more.

“We have worked with Caltrans to develop TMP procedures that will keep
construction traffic moving in a safe and convenient manner,” said Chairman
Hunter. “Rather than using existing access roads for our hauling operations
that require no encroachment of public right of ways, we specifically planned
for our hauling operations to travel to the southeast and away from the
businesses and neighborhoods in Jamul to minimize any potential impact on the
community.”

“We are excited to serve as the JIV’s developer, lender and manager of this
Hollywood-branded gaming facility, which will deliver economic benefits for
the Tribe and the local community,” said Jay Snowden, Chief Operating Officer
for Penn National Gaming. “Jamul Indian Village of California has been working
on this casino development for nearly fifteen years, and we’re proud to be a
partner with them on a project that allows them to bring to fruition their
vision to revitalize their reservation and become self-sufficient, while
simultaneously sharing gaming revenue with local governments and charities.
Along with JIV, we have made substantial progress with respect to the National
Indian Gaming Commission’s process for approval of Penn National’s role as
manager.”

The Tribe continues its commitment to working with all public agencies to
minimize any off-reservation impacts related to the facility. The SR-94
Project Development Process, currently underway, will determine, consistent
with Caltrans standard policies and environmental review process, a safe,
convenient and cost effective means of improving the highway to accommodate
traffic during the operation of the gaming project. The Project Development
Process and critical SR-94 road improvements are expected to be finished in
conjunction with the scheduled completion of the casino’s construction.

About Jamul Indian Village of California (JIV)

The Kumeyaay Nation of Southern California can be traced back 12,000 years
with first European contact occurring at San Diego Bay in 1524. Jamul Indian
Village of California, one of 13 bands of the Kumeyaay Nation federally
recognized as a sovereign nation, traces its roots to these natives. Jamul
Indian Village of California strives to provide a greater quality of life for
its people by providing educational opportunities, health care and employment
opportunities today to open the doors of tomorrow. Jamul Indian Village of
California entered into a 1999 Tribal-State compact in October 1999 with then
Governor Davis. For more information about JIV, please visit
www.jamulindianvillage.com.

About Penn National Gaming

Penn National Gaming, through its subsidiaries, owns, operates or has
ownership interests in gaming and racing facilities with a focus on slot
machine entertainment. The Company presently operates twenty-six facilities in
seventeen jurisdictions, including Florida, Illinois, Indiana, Iowa, Kansas,
Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio,
Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn's operated
facilities feature approximately 31,000 gaming machines, 800 table games and
2,900 hotel rooms.

Forward-Looking Statements for Penn National

This press release includes “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning the
construction, opening and operation of Hollywood Casino Jamul. These
statements include forward looking terminology such as “expects,” “believes,”
“estimates,” “expects,” “intends,” “may,” “will,” “should,” or “anticipates”
or other variation of these or similar words, or by discussions of future
events, strategies or risks and uncertainties. Such forward looking statements
are inherently subject to risks, uncertainties and assumptions about the
project, JIV and Penn National Gaming and its subsidiaries, and, accordingly,
any forward looking statements are qualified in their entirety by reference to
the risk factors described in Penn National Gaming’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 Securities and
Exchange Commission. In addition to typical risks for large development
projects of this type, the following particular risks apply in this instance:
the complexities of constructing on a relatively small land parcel, the risks
involved with sovereign immunity, local opposition, current and potential
future litigation, and pending regulatory and construction related approvals
from a variety of state, local and federal agencies. All subsequent written
and oral forward looking statements attributable to Penn National Gaming or
persons acting on Penn National Gaming’s behalf are expressly qualified in
their entirety by the cautionary statements included in this press release.
Penn National Gaming undertakes no obligation to publicly update or revise any
forward looking statements contained or incorporated by reference herein,
except as required by law.

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Contact:

MJE Marketing
Marlee J.Ehrenfeld, 619-682-3841
Marlee@mjemarketing.com
or
Penn National Gaming
Eric Schippers, 610-373-2400
Eric.Schippers@pngaming.com
 
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