Penn National to retain Empress Casino Joliet

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc. (PENN: Nasdaq) (the "Company") announced today that the Illinois Gaming Board ("IGB") has resolved to allow Penn National to retain the Empress Casino Joliet in Joliet, Illinois. The decision by the IGB came following presentations by members of Penn National's senior management team to the IGB on January 15, 2008 and February 19, 2008.

Penn National assumed ownership of the Empress Casino Joliet with its acquisition of Argosy Gaming Company, which was completed in October 2005. In connection with this acquisition, Penn National entered into an agreement with the IGB in which it agreed, in part, to enter into an agreement to divest the Empress Casino Joliet by December 31, 2006, which date was later extended to June 30, 2008, subject to Penn National having the right to request that the IGB review and reconsider the terms of the agreement. At yesterday's meeting, the IGB granted Penn National's request to retain the Empress Casino Joliet based, in part, on their determination that no undue economic concentration had occurred as a result of Penn National's ownership of the Empress Casino Joliet.

Peter M. Carlino, Chief Executive Officer of Penn National Gaming, commented, "We appreciate the consideration and cooperation of the members of the Illinois Gaming Board and are delighted that they have agreed to allow Penn National to retain the Empress Casino Joliet. This decision clears the way for Penn National to invest $50 million in the facility to improve its competitive position in the market. We are proud to be an employer and contributor in the Illinois market and with three properties in the State we look forward to being a long-term member of the Joliet, Alton and Aurora business communities."