Penn National Gaming Granted Conditional License

WYOMISSING, Pennsylvania – (PRESS RELEASE) -- Penn National Gaming, Inc. (Nasdaq: PENN) announced today that the Pennsylvania Gaming Control Board (PGCB) has granted the Company a conditional Category 1 slot machine license for the placement of slot machines at its planned Hollywood Casino® racing and gaming facility at the Company's Penn National Race Course.

Penn National commenced construction of its planned, permanent Hollywood Casino racing and gaming facility in Grantville, Pennsylvania in August 2006. The project's $310 million budget includes a $50 million license fee and $260 million for construction and the purchase of an initial 2,000 gaming devices. The Company anticipates opening Hollywood Casino at Penn National by early 2008.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "We are grateful to the Pennsylvania Gaming Control Board and its staff for their hard work in reviewing and considering our plans and application. Securing the conditional Category 1 license is another significant step in advancing one of Penn National's most important development projects. They Company's well developed Master Plan for the site and facility will ensure that Hollywood Casino at Penn National will be a quality entertainment center that elevates the thoroughbred pari-mutuel offering, while simultaneously driving economic development and job growth in the region and in the state."

The Hollywood Casino at Penn National will be a five-story, 365,000 square foot facility and will have capacity for 3,000 slot machines. The amenities for the initial phase of the project include: a food court with three restaurants; a sports bar; track side dining and various concessions to serve the racing area; entertainment, bar and lounge areas on the gaming level; and, a five-story parking garage with valet service parking. Penn National has developed a long-term Master Plan for Hollywood Casino at Penn National which includes the potential future addition of a hotel and conference center, retail outlets, an entertainment center, an additional parking deck, and additional casino space which would allow the facility at full capacity to accommodate 5,000 gaming devices.