Penn National Gaming Completes Previously Announced Beulah Park Acquisition and Closes on Investment in Maryland Jockey Club Joint Venture

- Transactions Further Expand and Diversify Company’s Portfolio of Pari-mutuel Operations and Presence in Key Markets -

WYOMISSING, Pa. & GROVE CITY, Ohio & BALTIMORE & LAUREL, Md.--()--Penn National Gaming, Inc. (PENN: Nasdaq) announced today that following approval from the Ohio State Racing Commission it has completed the previously announced acquisition of Beulah Park in Grove City, Ohio; and following approval from the Maryland Racing Commission it has closed on its investment in the previously announced joint venture with MI Developments Inc. to own and operate the Maryland Jockey Club including its racing operations at Laurel Park and Pimlico and extensive real estate assets.

Peter M. Carlino, Chief Executive Officer of Penn National, commented, “The acquisition of Beulah Park further expands our portfolio of pari-mutuel facilities and, given our ownership of Raceway Park in Toledo, the Company has secured a second opportunity to benefit from the possible legalization of VLTs at Ohio’s seven racetracks. The joint venture for the Maryland Jockey Club aligns Penn National, now the nation’s largest owner of racing facilities, with Pimlico Race Course and Laurel Park, two of the country’s most historic racing venues. Our involvement in Pimlico --home to the Preakness Stakes -- and Laurel Park, is consistent with Penn National’s strategy of diversifying our pari-mutuel operations and presence in key markets with assets that can benefit from the placement of gaming devices. We look forward to working with our JV partner to maximize the use and value of the Maryland Jockey Club’s real estate assets and to pursue other opportunities, including gaming, to maximize Penn National’s return from this transaction.”

Beulah Park, located approximately seven miles south of Columbus, Ohio, opened in 1923 as Ohio’s first thoroughbred racing facility. The track is situated on an approximately 210 acres site just outside Columbus’ I-270 Beltway and features live thoroughbred racing from October to May as well as simulcast wagering from several tracks nationwide. The Park includes a grandstand, outdoor paddock, a clubhouse lounge and four dining options. During the summer, Beulah Park also hosts live events such as concerts and fairs.

Pimlico Race Course, opened in 1870, is the country’s second oldest racetrack and is the annual host of the Preakness® Stakes, the second leg in thoroughbred racing’s Triple Crown and the cornerstone event in the facility’s annual eight week spring meet. Pimlico Race Course features a one-mile oval track, a 7/8-mile turf course and fixed seating for approximately 15,000 spectators. Laurel Park, the sister track to Pimlico, opened in 1911 and hosts a 3 ½ month winter meet beginning in January as well as a four month fall meet beginning in September. Laurel Park features a 1 1/8 mile oval track and a one mile turf course with fixed seating for approximately 5,000 spectators.

About Penn National Gaming

Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty two facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National’s operated facilities feature over 26,300 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 959,000 square feet of gaming floor space.

The Company plans to add table games to its facilities in West Virginia and Pennsylvania this month and expects to open the first video lottery terminal facility in the state of Maryland in Cecil County late in the third quarter. Through a joint venture, Penn National is developing a full casino at Kansas Speedway in Kansas City, which is anticipated to open in the first half of 2012, and is also developing casinos in Toledo and Columbus, Ohio, with openings targeted for the second half of 2012.

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. Penn describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2009. Meaningful factors which could cause actual results to differ from expectations described in this press release include, but are not limited to, the passage of state, federal or local legislation that would expand, restrict, further tax or prevent racing and/or gaming operations; the activities of our competitors and the emergence of new competitors; construction factors, including delays, local opposition and increased cost of labor and materials; the costs and risks involved in the pursuit of those development opportunities; the availability and cost of financing; the effects of local and national economic, credit, capital market, housing, energy conditions on the economy in general and on the gaming and lodging industries in particular; and other factors as discussed in the Company’s filings with the United States Securities and Exchange Commission. Furthermore, the Company does not intend to update publicly any forward-looking statements except as required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.

Contacts

Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Richard Land, 212-835-8500
penn@jcir.com

Contacts

Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Richard Land, 212-835-8500
penn@jcir.com