Penn National Gaming Reports First Quarter Revenue of $592.3 Million, EBITDA of $148.8 Million and Diluted EPS of $0.34

http://www.businesswire.com/news/home/20100422005500/en

WYOMISSING, Pa.--(Business Wire)--
Penn National Gaming, Inc. (Nasdaq: PENN):

- Establishes 2010 Second Quarter Guidance and Updates 2010 Full Year Guidance
-

Conference Call: Today, April 22, 2010 at 10:00 a.m. ET
Dial-in number: 212/231-2929
Webcast: www.pngaming.com

Replay information provided below

Penn National Gaming, Inc. (PENN: Nasdaq) today reported first quarter operating
results for the three months ended March 31, 2010, as summarized below:

Summary of First Quarter Results
(in millions, except per share data) Three Months Ended
March 31,
2010 Actual 2010 Guidance (2) 2009 Actual
Net revenues $ 592.3 $ 596.7 $ 612.2
EBITDA (1) 148.8 137.9 158.9
Less charges for stock compensation, impairment loss for replaced Lawrenceburg vessel, Empress Casino Hotel fire, depreciation and amortization, gain/loss on disposal of assets, interest expense - net, income taxes, and other expenses (112.6 ) (113.0 ) (118.2 )
Net income attributable to the shareholders of Penn
National Gaming, Inc. and subsidiaries $ 36.2 $ 24.9 $ 40.7

Diluted earnings per common share attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries $ 0.34 $ 0.23 $ 0.38

(1) EBITDA is income (loss) from operations, excluding charges for stock compensation, impairment loss for replaced Lawrenceburg vessel, Empress Casino Hotel fire, depreciation and amortization, and gain or loss on disposal of assets, and is inclusive of loss
from unconsolidated affiliates. A reconciliation of net income (loss) attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries per accounting principles generally accepted in the United States of America ("GAAP") to EBITDA, as well
as income (loss) from operations per GAAP to EBITDA, is included in the accompanying financial schedules.

(2) The figures in this column present the guidance Penn National Gaming provided on February 4, 2010 for the three months ended March 31, 2010.

Review of First Quarter 2010 Results vs. Guidance and First Quarter 2009 Results
Three Months Ended
March 31,
2010 2010 Guidance 2009
Diluted earnings per common share attributable to the shareholders of Penn National
Gaming, Inc. and subsidiaries (1) $ 0.34 $ 0.23 $ 0.38
Tax impact of settlement of tax case related to Pocono Downs - 0.04 -
Empress Casino Hotel fire - - 0.03
Gain on accelerated payment of debt related to Pocono Downs transaction - - (0.01 )
Adjusted diluted earnings per common share attributable to the shareholders of Penn National
Gaming, Inc. and subsidiaries $ 0.34 $ 0.27 $ 0.40

(1) The figures in the guidance column present the guidance Penn National Gaming provided on February 4, 2010 for the three months ended March 31, 2010.

Peter M. Carlino, Chairman and Chief Executive Officer of Penn National Gaming
commented, "First quarter revenue trends continue to reflect the current
macroeconomic environment as well as a greater-than-anticipated impact of
weather at several of our properties. Nevertheless, Penn National`s first
quarter 2010 EBITDA exceeded guidance by $10.9 million. First quarter 2010
property level EBITDA margins of approximately 27.8% were approximately 80 and
70 basis points below comparable periods in 2009 and 2008, respectively. We
believe that the implementation of strategies to strengthen margins in the
current environment through a corporate and property level focus on effective
marketing programs and spending, other cost reductions, and staffing
rationalizations has eased our operating margin declines.

"We also believe there are areas for continued improvement at several Penn
National facilities which will be carefully implemented to avoid impacting
customer satisfaction and the competitiveness of our facilities in their
respective markets. However, it will take some time to return margins to
previous levels generally, and our historically high margins will not be
attainable until revenues return to prior levels.

"Consistent with our goal of building long-term value for shareholders, Penn
National Gaming is focused on optimizing operating results from our existing
property portfolio, including the planned addition this year of table games at
our facilities in West Virginia and Pennsylvania, while advancing our
development and expansion pipeline of new growth opportunities in Maryland,
Kansas and Ohio. We are aggressively deploying the Company`s strong cash flow,
balance sheet and liquidity position -- including cash of approximately $642.5
million at the end of the first quarter -- to expand and diversify our operating
base. At the same time, we remain prudent and opportunistic in the management of
our capital structure, as evidenced by the repurchase during the quarter of 225
shares, or $22.5 million face value, of our Series B Redeemable Preferred Stock
at a substantial discount.

"Highlighting our focus on near- and long-term growth, four new gaming
facilities in Maryland, Kansas and Ohio, and our table game expansions at
Charles Town and Hollywood Casino at Penn National Race Course, are all expected
to open within the next two and a half years. These facilities will further
diversify our geographic reach, expand our current base of slot machines and
table games, allow the Company to build on its already robust customer database,
and position Penn National to participate in gaming expansion in new
jurisdictions in a manner that more than offsets the impact on our existing
facilities of overall gaming industry expansion.

"Penn National has a long-term track record for generating attractive returns on
development projects and completing accretive acquisitions. Our $883 million
planned share of investment in facilities in new markets is expected to deliver
attractive EBITDA returns based on several factors, including a first mover
advantage in Maryland, the lack of nearby gaming alternatives in our Ohio
markets and our focus on matching capital spending to the size of the
addressable adult population bases and gaming tax rates. We believe that by
prudently managing our property portfolio and competitive positions in current
markets while simultaneously pursuing a range of new opportunities to
significantly expand our operating platform and returns, Penn National can
deliver significant growth as the economy and consumer spending rebounds which
will in turn create new value for shareholders."

Development and Expansion Projects

The table below summarizes Penn National Gaming`s current facility development
projects:

Project/Scope New Planned Penn's Share of Amount Expected
Gaming Total Planned Expended Opening
Positions Budget Total through Date
Budget March 31,
2010
(in millions)

Hollywood Casino - $14 $14 $6.1 Meeting Space - Completed February 2010
Lawrenceburg (IN) - Steakhouse/Lounge & Bar - Opened April 2010
Amenities - Meeting space Mid-Priced Restaurant/Bar/Coffee - 3rd Quarter 2010
and kitchen on the vessel
lower level, new
steakhouse/lounge, mid
-priced restaurant/bar and
coffee venue on the gaming
-entry level of the landside
pavilion.

Hollywood Casino Perryville 1,500 $98 $98 $35.2 4th Quarter 2010
(MD) - Construction has
begun on the new facility
with 75,000 square feet of
gaming space on a 36-acre
parcel of land in
Perryville, MD adjacent to
Interstate 95. The Hollywood
-themed structure will
include 1,500 video lottery
terminals along with food
and beverage offerings and
extensive parking.

Empress Casino Hotel (IL) - - $81 (1) $81 (1) $22.7 (1) Parking Deck - Opened February 2010
Construction of an 1,100 Land-Based Pavilion - 4th Quarter 2010
space parking garage, new Phase II Vessel Upgrades - 1st Quarter 2011
pavilion containing
restaurants and public
areas, Phase II gaming
vessel upgrades, VIP
amenities and Phase II
outdoor landscaping.

Charles Town Entertainment 865 $40 $40 $2.7 Table Games/Poker/Entertainment Lounge - 3rd Quarter 2010
Complex (WV) - The residents Steakhouse/Lounge - 4th Quarter 2010
of Jefferson County, WV
approved table games in a
referendum in December 2009.
Project scope and budget are
being finalized, with an
estimated addition of 85
table games, 27 poker tables
and the addition of a
steakhouse/lounge and
Hollywood on the Roof
entertainment lounge.

Hollywood Casino at Penn 400 $25 $25 $0.9 Phase I - 3rd Quarter 2010
National Race Course (PA) -
With the legalization of
table games in Pennsylvania
in January 2010, project
scope and budgets are being
finalized. Phase I includes
an estimated 40 table games
and 12 poker tables within
the existing facility.

Hollywood Casino Toledo (OH) 3,760 $300 (2) $270 (2) $2.7 Second Half 2012
- With the passage of Issue
3 in November 2009
authorizing casinos in
Toledo, Columbus, Cincinnati
and Cleveland, project scope
and budgets are in
development for the Toledo
site, with a 125,000 square
foot casino with up to 3,000
slot machines, 80 table
games and 20 poker tables, a
2,500 space parking garage,
plus food and beverage
outlets and entertainment
lounge.

Hollywood Casino Columbus 4,950 $400 (2) $360 (2) $68.3 Second Half 2012
(OH) - With the passage of
Issue 3 in November 2009
authorizing casinos in
Columbus, Toledo, Cincinnati
and Cleveland, project scope
and budgets are in
development for the Columbus
180,000 square foot casino
with up to 4,000 slot
machines at opening, up to
100 table games and 25 poker
tables, a 4,000 space
parking garage, plus food
and beverage outlets and
entertainment lounge.
Pending Ohio's May 4th
primary-election ballot
authorizing the movement of
the casino site to the
former Delphi property west
of Columbus, pre
-construction development is
presently occurring
simultaneously on both the
Delphi site and the original
Arena District site.

Kansas Motor Speedway (KS) - 2,977 $410 (3) $155 (3) $14.4 1st Quarter 2012
The Kansas Gaming Facility
Review Board approved the
50/50 joint venture project
proposed by a subsidiary of
Penn National Gaming and a
subsidiary of International
Speedway Corp. in December
2009. Project design is
currently underway with
Kansas Lottery Commission
approval for an 100,000
square foot casino, with a
minimum of 2,300 slot
machines, 61 table games and
25 poker tables, a 1,500
space parking deck, plus a
variety of dining and
entertainment options.

(1) Net of amounts received from insurance proceeds.

(2) Issue 3 requires a total minimum initial investment of at least $250 million per facility in addition to the $50 million initial license fee. The noncontrolling interest contribution for Toledo and Columbus is $30 million and $40 million, respectively.

(3) The planned total budget, including land and licensing, is $410 million.

Financial Guidance

The table below sets forth current guidance targets for financial results for
the 2010 second quarter and full year, based on the following assumptions:

* Economic conditions do not deteriorate any further;
* Five months of West Virginia table game results;
* Four months of Pennsylvania table game results;
* Two months of Hollywood Casino Perryville results;
* Includes $11.8 million of pre-opening expenses for West Virginia table games,
Hollywood Casino Perryville, Pennsylvania table games, Ohio (excluding expenses
attributable to non-controlling interests), and Empress Casino Hotel;
* Excludes expected gain from insurance proceeds related to Empress Casino Hotel
fire which destroyed the casino`s land side entertainment pavilion;
* Depreciation and amortization charges in 2010 of $210.5 million, with $52.0
million projected to be incurred in the second quarter of 2010;
* Estimated non-cash stock compensation expenses of $25.5 million for 2010, with
$6.5 million of the cost incurred in the second quarter of 2010;
* LIBOR is based on the forward curve;
* Blended income tax rate of 42.5% for 2010, with a 45% rate for the remainder
of 2010;
* Excludes any impairment charge that the Company may have to record, after the
May 2010 Ohio referendum, for the parcel of land on which it is not building the
Columbus casino;
* A diluted share count of approximately 107.0 million shares; and,
* There will be no material changes in applicable legislation or regulation,
world events, weather, economic conditions, or other circumstances beyond our
control that may adversely affect the Company`s results of operations.

(in millions, except per share data) Three Months Ending June 30, Full Year Ending December 31,
2010 2009 2010 Revised 2010 Prior 2009
Guidance Actual Guidance Guidance (2) Actual
Net revenues $ 588.3 $ 580.8 $ 2,406.4 $ 2,433.2 $ 2,369.3
EBITDA (1) 141.5 141.7 578.4 563.0 565.8
Less charges for stock compensation, impairment losses, Empress Casino Hotel fire, depreciation and amortization, gain/loss on disposal of assets, interest expense - net, income taxes, loss on early extinguishment of debt, and other expenses (114.3 ) (113.2 ) (457.4 ) (455.3 ) (833.2 )
Less: Net loss attributable to noncontrolling interests - - - - (2.5 )
Net income (loss) attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries $ 27.2 $ 28.5 $ 121.0 $ 107.7 $ (264.9 )

Diluted earnings (loss) per common share attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries $ 0.26 $ 0.27 $ 1.13 $ 1.00 $ (3.39 )

(1) EBITDA is income (loss) from operations, excluding charges for stock compensation, impairment losses, Empress Casino Hotel fire, depreciation and amortization, and gain or loss on disposal of assets, and is inclusive of loss from unconsolidated affiliates.

(2) These figures present the guidance Penn National Gaming provided on February 4, 2010 for the full year ending December 31, 2010.

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
Property Information - Operations
(in thousands) (unaudited)

NET REVENUES EBITDA (1)
Three Months Ended March 31, Three Months Ended March 31,
2010 2009 2010 2009
Charles Town Entertainment Complex $ 103,215 $ 117,904 $ 28,345 $ 33,858
Hollywood Casino Lawrenceburg 111,046 101,501 33,832 30,861
Hollywood Casino at Penn National Race Course 75,610 72,955 15,334 13,194
Hollywood Casino Aurora 43,989 48,754 12,821 15,280
Empress Casino Hotel (2) 36,044 32,869 8,554 7,338
Argosy Casino Riverside 48,719 50,295 17,481 17,396
Hollywood Casino Baton Rouge 30,549 35,089 11,763 14,809
Argosy Casino Alton 18,618 20,599 4,207 4,878
Hollywood Casino Tunica 22,362 24,410 6,634 6,461
Hollywood Casino Bay St. Louis 21,330 25,989 4,045 6,133
Argosy Casino Sioux City 14,674 13,917 5,500 4,995
Boomtown Biloxi 18,207 19,943 5,215 6,749
Hollywood Slots Hotel and Raceway 16,225 14,365 2,990 2,216
Bullwhackers 4,883 4,852 (368 ) 154
Black Gold Casino at Zia Park 20,626 22,346 7,107 8,379
Casino Rama management service contract 3,194 3,033 2,809 2,734
Raceway Park 1,311 1,489 (139 ) (170 )
Sanford-Orlando Kennel Club 1,721 1,916 194 289
Unconsolidated affiliates - - (1,412 ) (303 )
Corporate overhead - - (16,150 ) (16,392 )
Total $ 592,323 $ 612,226 $ 148,762 $ 158,859

(1) EBITDA is income (loss) from operations, excluding charges for stock compensation, impairment loss for replaced Lawrenceburg vessel, Empress Casino Hotel fire, depreciation and amortization, and gain or loss on disposal of assets, and is inclusive of loss from unconsolidated affiliates. A reconciliation of net income (loss) attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries per GAAP to EBITDA, as well as income (loss) from operations per GAAP to EBITDA, is included in the
accompanying financial schedules.

(2) Empress Casino Hotel was closed from March 20, 2009 until June 25, 2009 due to a fire.

Reconciliation of EBITDA to Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries (GAAP)

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
(in thousands) (unaudited)

Three Months Ended
March 31,
2010 2009
EBITDA $ 148,762 $ 158,859
Loss from unconsolidated affiliates 1,412 303
Depreciation and amortization (51,180 ) (44,430 )
Charge for stock compensation (6,384 ) (8,485 )
Impairment loss for replaced Lawrenceburg vessel (136 ) -
Empress Casino Hotel fire (59 ) (5,400 )
Loss on disposal of assets (64 ) (12 )
Income from operations $ 92,351 $ 100,835
Interest expense (34,292 ) (31,238 )
Interest income 730 3,091
Loss from unconsolidated affiliates (1,412 ) (303 )
Other (1,321 ) 2,092
Taxes on income (19,901 ) (33,816 )
Net income including noncontrolling interests 36,155 40,661
Less: Net loss attributable to noncontrolling interests (9 ) -
Net income attributable to the shareholders of Penn National
Gaming, Inc. and subsidiaries $ 36,164 $ 40,661

Reconciliation of Income from Operations (GAAP) to EBITDA

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Property Information Including Corporate Overhead

(in thousands) (unaudited)

Three Months Ended March 31, 2010

Income (loss) Charge for stock Impairment loss Empress Casino Depreciation Loss (gain) Loss from EBITDA
from compensation for replaced Hotel Fire and on disposal of unconsolidated
operations Lawrenceburg amortization assets affiliates
vessel
Charles Town Entertainment Complex $ 22,081 $ - $ - $ - $ 6,264 $ - $ - $ 28,345
Hollywood Casino Lawrenceburg 24,286 - 136 - 9,410 - - 33,832
Hollywood Casino at Penn National Race Course 6,816 - - - 8,441 77 - 15,334
Hollywood Casino Aurora 10,999 - - - 1,822 - - 12,821
Empress Casino Hotel 6,021 - - 59 2,474 - - 8,554
Argosy Casino Riverside 14,340 - - - 3,144 (3 ) - 17,481
Hollywood Casino Baton Rouge 9,491 - - - 2,272 - - 11,763
Argosy Casino Alton 2,786 - - - 1,421 - - 4,207
Hollywood Casino Tunica 4,979 - - - 1,644 11 - 6,634
Hollywood Casino Bay St. Louis 482 - - - 3,563 - - 4,045
Argosy Casino Sioux City 4,425 - - - 1,075 - - 5,500
Boomtown Biloxi 2,188 - - - 3,048 (21 ) - 5,215
Hollywood Slots Hotel and Raceway (407 ) - - - 3,397 - - 2,990
Bullwhackers (600 ) - - - 232 - - (368 )
Black Gold Casino at Zia Park 6,034 - - - 1,073 - - 7,107
Casino Rama management service contract 2,809 - - - - - - 2,809
Raceway Park (238 ) - - - 99 - - (139 )
Sanford-Orlando Kennel Club 67 - - - 127 - - 194
Unconsolidated affiliates - - - - - - (1,412 ) (1,412 )
Corporate overhead (24,208 ) 6,384 - - 1,674 - - (16,150 )
Total $ 92,351 $ 6,384 $ 136 $ 59 $ 51,180 $ 64 $ (1,412 ) $ 148,762

Three Months Ended March 31, 2009

Income (loss) Charge for stock Empress Casino Depreciation (Gain) loss Loss from EBITDA
from compensation Hotel Fire and on disposal of unconsolidated
operations amortization assets affiliates
Charles Town Entertainment Complex $ 27,821 $ - $ - $ 6,038 $ (1 ) $ - $ 33,858
Hollywood Casino Lawrenceburg 26,448 - - 4,407 6 - 30,861
Hollywood Casino at Penn National Race Course 6,626 - - 6,566 2 - 13,194
Hollywood Casino Aurora 13,448 - - 1,832 - - 15,280
Empress Casino Hotel (1) (858 ) - 5,400 2,805 (9 ) - 7,338
Argosy Casino Riverside 14,526 - - 2,864 6 - 17,396
Hollywood Casino Baton Rouge 12,508 - - 2,293 8 - 14,809
Argosy Casino Alton 3,567 - - 1,495 (184 ) - 4,878
Hollywood Casino Tunica 4,676 - - 1,731 54 - 6,461
Hollywood Casino Bay St. Louis 2,581 - - 3,523 29 - 6,133
Argosy Casino Sioux City 3,879 - - 1,116 - - 4,995
Boomtown Biloxi 3,851 - - 2,893 5 - 6,749
Hollywood Slots Hotel and Raceway (853 ) - - 3,067 2 - 2,216
Bullwhackers (468 ) - - 610 12 - 154
Black Gold Casino at Zia Park 7,117 - - 1,262 - - 8,379
Casino Rama management service contract 2,734 - - - - - 2,734
Raceway Park (266 ) - - 96 - - (170 )
Sanford-Orlando Kennel Club 156 - - 133 - - 289
Unconsolidated affiliates - - - - - (303 ) (303 )
Corporate overhead (26,658 ) 8,485 - 1,699 82 - (16,392 )
Total $ 100,835 $ 8,485 $ 5,400 $ 44,430 $ 12 $ (303 ) $ 158,859

(1) Empress Casino Hotel was closed from March 20, 2009 until June 25, 2009 due to a fire.

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data) (unaudited)

Three Months Ended March 31,
2010 2009

Revenues
Gaming $ 543,373 $ 559,903
Management service fee 3,194 3,033
Food, beverage and other 80,432 84,622
Gross revenues 626,999 647,558
Less promotional allowances (34,676 ) (35,332 )
Net revenues 592,323 612,226

Operating expenses
Gaming 290,861 297,562
Food, beverage and other 63,220 64,529
General and administrative 94,516 99,470
Impairment loss for replaced Lawrenceburg vessel 136 -
Empress Casino Hotel fire 59 5,400
Depreciation and amortization 51,180 44,430
Total operating expenses 499,972 511,391
Income from operations 92,351 100,835

Other income (expenses)
Interest expense (34,292 ) (31,238 )
Interest income 730 3,091
Loss from unconsolidated affiliates (1,412 ) (303 )
Other (1,321 ) 2,092
Total other expenses (36,295 ) (26,358 )

Income from operations before income taxes 56,056 74,477
Taxes on income 19,901 33,816
Net income including noncontrolling interests 36,155 40,661
Less: Net loss attributable to noncontrolling interests (9 ) -
Net income attributable to the shareholders of Penn National
Gaming, Inc. and subsidiaries $ 36,164 $ 40,661

Earnings per common share attributable to the shareholders of
Penn National Gaming, Inc. and subsidiaries:
Basic earnings per common share $ 0.37 $ 0.42
Diluted earnings per common share $ 0.34 $ 0.38

Weighted-average common shares outstanding:
Basic 78,563 77,813
Diluted 107,037 106,534

Diluted Share Count Methodology

Reflecting the issuance of 12,500 shares on October 30, 2008 of the $1.25
billion, zero coupon, Series B Redeemable Preferred Stock and the repurchase of
225 shares in the first quarter of 2010, Penn National Gaming is required to
adjust its diluted weighted average outstanding share count for the purposes of
calculating diluted earnings per share as follows:

* When the price of Penn National Gaming`s common stock is less than $45, the
diluted weighted average outstanding share count is increased by 27,277,778
shares (regardless of how much the stock price is below $45);
* When the price of Penn National Gaming`s common stock is between $45 and $67,
the diluted weighted average outstanding share count will be increased by an
amount which can be calculated by dividing the $1.23 billion (face value) by the
current price per share. This will result in an increase in the diluted weighted
average outstanding share count of between 18,320,896 shares and 27,277,778
shares depending on the current share price; and,
* When the price of Penn National Gaming`s common stock is above $67, the
diluted weighted average outstanding share count will be increased by 18,320,896
shares (regardless of how much the stock price exceeds $67).

Reconciliation of Non-GAAP Measures to GAAP

EBITDA, or earnings before interest, taxes, charges for stock compensation,
impairment losses, Empress Casino Hotel fire, depreciation and amortization,
gain or loss on disposal of assets, and other expenses, and inclusive of loss
from unconsolidated affiliates, is not a measure of performance or liquidity
calculated in accordance with GAAP. EBITDA information is presented as a
supplemental disclosure, as management believes that it is a widely used measure
of performance in the gaming industry. In addition, management uses EBITDA as
the primary measure of the operating performance of its properties, including
the evaluation of operating personnel. EBITDA should not be construed as an
alternative to operating income, as an indicator of the Company's operating
performance, as an alternative to cash flows from operating activities, as a
measure of liquidity, or as any other measure of performance determined in
accordance with GAAP. The Company has significant uses of cash flows, including
capital expenditures, interest payments, taxes and debt principal repayments,
which are not reflected in EBITDA. It should also be noted that other gaming
companies that report EBITDA information may calculate EBITDA in a different
manner than the Company. EBITDA is presented as a supplemental disclosure, as
management believes that it is a principal basis for the valuation of gaming
companies, as this measure is considered by many to be a better indicator of the
Company`s operating results than diluted net income (loss) attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries per GAAP. A
reconciliation of the Company`s EBITDA to net income (loss) attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries per GAAP, as well as
the Company`s EBITDA to income (loss) from operations per GAAP, is included in
the accompanying financial schedules.

A reconciliation of each property`s EBITDA to income (loss) from operations is
included in the financial schedules herein. On a property level, EBITDA is
reconciled to income (loss) from operations per GAAP, rather than net income
(loss) attributable to the shareholders of Penn National Gaming, Inc. and
subsidiaries per GAAP due to, among other things, the impracticability of
allocating interest expense, interest income, income taxes and certain other
items to the Company`s various properties on a property-by-property basis.
Management believes that this presentation is more meaningful to investors in
evaluating the performance of the Company`s individual properties and is
consistent with the reporting of other gaming companies.

Conference Call, Webcast and Replay Details

Penn National Gaming is hosting a conference call and simultaneous webcast at
10:00 am ET today, both of which are open to the general public. The conference
call number is 212/231-2929; please call five minutes in advance to ensure that
you are connected prior to the presentation. Questions will be reserved for
call-in analysts and investors. Interested parties may also access the live call
on the Internet at www.pngaming.com; allow 15 minutes to register and download
and install any necessary software.

Following its completion, a replay of the call can be accessed until May 22,
2010 by dialing 800/633-8284 or 402/977-9140 (international callers). The access
code for the replay is 21466145. A replay of the call can also be accessed for
thirty days on the Internet at www.pngaming.com.

This press release, which includes financial information to be discussed by
management during the conference call and disclosure and reconciliation of
non-GAAP financial measures, is available on the Company`s web site,
www.pngaming.com in the "News" section (select link for "Press Releases").

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 nineteen
facilities in fifteen jurisdictions, including Colorado, Florida, Illinois,
Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico,
Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National
Gaming`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.

In the second half of 2010, the Company plans to add table games to its
facilities in West Virginia and Pennsylvania, and expects to open the first
video lottery terminal facility in the state of Maryland in Cecil County.
Through a joint venture, Penn National is developing a full casino at Kansas
Speedway in Kansas City, which is anticipated to open in early 2012, and is also
developing casinos in Toledo and Columbus, Ohio, with openings targeted for the
second half of 2012. The Company recently announced its planned acquisition of
Beulah Park in Ohio in a transaction expected to close in the second quarter of
2010.

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") 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 maintain regulatory approvals for
our existing businesses and to receive regulatory approvals for our new
businesses; the passage of state, federal or local legislation (including
referenda) that would expand, restrict, further tax, prevent or negatively
impact operations in the jurisdictions in which we do business (such as a
smoking ban at any of our facilities) or in jurisdictions where we seek to do
business; the activities of our competitors and the emergence of new
competitors; increases in the effective rate of taxation at any of our
properties or at the corporate level; delays or changes to, or cancellations of,
planned capital projects at our gaming and pari-mutuel facilities or an
inability to achieve the expected returns from such projects; construction
factors, including delays, unexpected remediation costs, local opposition and
increased cost of labor and materials; the ability to recover proceeds on
significant insurance claims; our ability to identify attractive acquisition and
development opportunities and to agree to terms with partners for such
transactions; the costs and risks involved in the pursuit of such opportunities
and our ability to complete the acquisition or development of, and achieve the
expected returns from such opportunities; the availability and cost of
financing; the maintenance of agreements with our horsemen, pari-mutuel clerks
and other organized labor groups; the outcome of pending legal proceedings; 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; changes in accounting standards; third-party relations and
approvals; our dependence on key personnel; the impact of terrorism and other
international hostilities; the impact of weather; and other factors as discussed
in the Company`s Annual Report on Form 10-K for the year ended December 31,
2009, 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
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Richard Land
212-835-8500
penn@jcir.com

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