Penn National Gaming Announces Intent to Withdraw from the Proposed Lawrence Downs Casino & Racing Resort in Western Pennsylv...

Penn National Gaming, Inc. (NASDAQ: PENN) today announced that it has informed the partners of Endeka Entertainment LP (“Endeka”) of its intent to withdraw from the proposed Lawrence Downs Casino and Racing Resort project. An application by Endeka for the proposed $225 million integrated racing and gaming facility in Lawrence County, Pennsylvania has been pending before the Pennsylvania Gaming Control Board (PGCB) since May 2013.

“We are disappointed to be withdrawing from this project,” stated BJ Fair, Chief Development Officer for Penn National Gaming. “However, given the continued softness in the economy and the level of market saturation -- not just in Western Pennsylvania, but across the Commonwealth -- we are regrettably unable to justify this investment at the statutorily required spending levels,” said Fair.

“We sincerely appreciate the strong support for this proposal by the people of Lawrence County, and while we will not be going forward with the project, we have offered to assist with the transition to another potential operator,” said Fair.

In conjunction with its announcement, Penn National today filed a complaint, including a request for declaratory judgment, in Berks County Court of Common Pleas. “We are disappointed that our continued open dialogue with the partners in Endeka about the deteriorating market conditions in Lawrence County, and our multiple offers to cooperate fully in transitioning the project to a new operator, have been met only with threats of legal action,” said Fair. “We’re asking the court to reaffirm our rights regarding withdrawal.”

About Penn National Gaming

Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. At December 31, 2014, the Company operated twenty-six facilities in seventeen jurisdictions, including Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. At December 31, 2014, in aggregate, Penn National Gaming’s operated facilities featured approximately 31,000 gaming machines, 760 table games and 3,100 hotel rooms.

Forward-Looking Statements for Penn National Gaming

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “seeks,” “may,” “will,” “should” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties, including future plans, strategies, performance, developments, acquisitions, capital expenditures, and operating results. Actual results may vary materially from expectations. These forward looking statements are inherently subject to risks, uncertainties and assumptions about Penn National Gaming and its subsidiaries, including risks related to litigation relating to the project, and accordingly, any forward looking statements are qualified in their entirety by reference to the factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as well as any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the United States Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.

Penn National Gaming, Inc.Saul V. Reibstein, 610-373-2400Chief Financial OfficerorJCIRJoseph N. Jaffoni, Richard Land212-835-8500penn@jcir.com

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