D:SOURCES: http://phx.corporate-ir.net/phoenix.zhtml?

c=120420&p=irol-irhome Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The company presently operates twenty-nine facilities in nineteen jurisdictionsIn aggregate, Penn National's operated facilities currently feature approximately 36,800 gaming machines, approximately 850 table games, 2,900 hotel rooms and approximately 1.6 million square feet of gaming floor space. http://www.thestreet.com/story/11769543/1/penn-national-gaming-announces-intent-to-pursue-theseparation-of-its-real-estate-assets-from-its-operating-assets.html Penn National Gaming, Inc. (PENN: Nasdaq) (PENN) announced today that it intends to pursue a plan to separate its gaming operating assets and real property assets into two publicly traded companies including an operating entity, Penn National Gaming (PNG), and, through a tax-free spin-off of its real estate assets to holders of PENN common stock, a newly formed, publicly traded real estate investment trust (REIT) (PropCo), subject to required gaming regulatory body approvals. Based on PENNs current real estate portfolio, PropCo is expected to initially own 17 casino facilities, which have a total of over 3,200 acres of land, 6.9 million square feet of building space and 20,000 structured parking spaces, as well as two new facilities to be constructed in Ohio. http://phx.corporate-ir.net/phoenix.zhtml?c=120420&p=irol-newsArticle&ID=1754167&highlight= MARYLAND HEIGHTS, Mo. & WYOMISSING, Pa.--(BUSINESS WIRE)--Nov. 5, 2012-- Penn National Gaming, Inc.(PENN: Nasdaq) announced today that having received requisite regulatory approvals, it has completed its acquisition of the stock of the Harrahs St. Louis gaming and lodging facility from Caesars Entertainment (CZR: Nasdaq) for total consideration of approximately $610 million. http://www.thestreet.com/story/11769507/1/penn-national-gaming-submits-proposal-for-480-millionhollywood-casino-philadelphia-in-the-heart-of-the-city8217s-sports-amp-entertainment-district.html Located in the heart of Philadelphias sports and entertainment district which includes Citizens Bank Park, the Wells Fargo Center and Lincoln Financial Field Hollywood Casino Philadelphia would feature a 100,000 square-foot casino floor with 2,050 slot machines, 66 live table games and a 15-table poker room. Additionally, the new gaming and entertainment facility will include structured parking for 3,500 vehicles as well as an integrated bus arrival and waiting area. Non-gaming dining and entertainment amenities would include a fine-dining steakhouse, sports pub, casual grill, noodle bar, food court with four distinct outlets and casino bar as well as a 180-seat entertainment lounge which would host live acts. http://seekingalpha.com/news-article/4673761-penn-national-gaming-submits-separate-proposals-for160-million-downtown-hollywood-casino-sioux-city-and-167-million-hollywood-casino-siouxland-inwoodbury-county SIOUX CITY, Iowa & WYOMISSING, Pa.--(BUSINESS WIRE)-- Penn National Gaming, Inc. (PENN) announced today that it has submitted to the Iowa Racing & Gaming Commission (IRGC) two proposals for a new gaming and entertainment destination in Woodbury County for its consideration. Each

proposal represents a best-in-class approach to regional gaming and will maximize tourism and revenues for Woodbury County and the State of Iowa. http://www.pngaming.com/Community/Penn%20National%20Gaming%20Foundation The Penn National Gaming Foundation, a 501(c)3 private foundation, was launched in 2005 by Penn National Gaming, Inc. in the wake of Hurricane Katrina to provide assistance to the nearly 2,000 Penn National employees impacted by the storm. The Foundation awarded over $1.4 million in grants for immediate needs such as food, water, clothing, shelter and medical needs. http://www.thestreet.com/story/11773256/1/penn-national-gaming-penn-todays-featured-leisurelaggard.html?puc=yahoo&cm_ven=YAHOO Currently there are 13 analysts that rate Penn National Gaming a buy, no analysts rate it a sell, and 3 rate it a hold. TheStreet Ratings rates Penn National Gaming as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

http://finance.yahoo.com/q/co?s=PENN+Competitors PENN CZR CHDN MNTG Industry

3.63B Market Cap: Net Income (ttm): 190.12M

726.81M

1.06B

79.18M

710.52M

-1.24B

59.19M

-6.72M

N/A

CZR = Caesars Entertainment Corporation CHDN = Churchill Downs Inc. MNTG = MTR Gaming Group, Inc. Industry = Resorts & Casinos

http://calvinayre.com/2012/11/19/casino/how-and-why-penn-national-is-splitting-up/ The idea itself is not necessarily new Las Vegas Sands (LVS) CEO Sheldon Adelson noted the possibility of a similar move in the conference call following his companys third quarter earnings release but Penn is the first company in the industry to actually commence the process of monetizing its real estate holdings. Indeed, the as-yet-unnamed REIT will be, as Penn noted in its press release announcing the move, the first gaming focused REIT in history. The potential for a new operating model in the casino industry boosted a number of stocks, including Penns domestic competitors. Ameristar Casinos (ASCA) rose nearly 16%, while Isle of Capri Casinos (ISLE), Boyd Gaming(BYD), and Pinnacle Entertainment (PNK) all gained 7% in trading Friday.

PENN NATIONAL REINVENTS THE GAMING SECTOR

Right after Penn National Gaming Inc. announced their plans to break up into two public companies, creating the first casino-focused Real Estate Investment Trust (REIT), stocks of the said company skyrocketed and shares surged to more than 41%. As casino businesses continue their climb to resurgence since 2010, this bold move by Penn National would surely ensure profit for investors in the sector. 40 years after its first horseracing venue was created in 1971, Penn National has created a buzz in the casino industry with the amount of gaming and racing facilities and luxurious hotels it acquired and established in the United States. With over 29 facilities that feature an incredible selection of gaming experiences, luxuryliving and gourmet dining in 19 states, Penn National boasts over 36,800 gaming machines, 2,900 hotel accommodations and approximately 1.6 million in square feet of gaming floor space. The announcement of Penn National to pursue the separation of its real property assets and operating assets could be seen as a pressure for other gaming-focused companies to follow suit for the said REIT deal could prove to be a an immediate value play for Penn National. Based on the companys outstanding real estate portfolio, REIT PropCo initially is expected to be in possession of 17 of Penns casino facilities. Analysts say that this trend could jumpstart a tax-efficient strategy to distribute profits in the gaming sector, proving Penn Nationals move to be revolutionary for the sector. Competitors have been acknowledging as well the benefits of following Penn National in monetizing their real estate holdings. Pinnacle Entertainment and Boyd Gaming, amongst others, have already expressed their desires to jump in the bandwagon set by Penn National, earning them a good 7% increase in shares. This, however, is still inferior to the boost that was experienced by Penn National upon its REIT announcement. A company with a good financial base like Penn National Gaming, with a net worth of approximately $3.7 billion, engaging in REIT would open new possibilities for profit-gaining, expanding operations and tactical acquisitions. For other gaming companies like Caesars Entertainment Corporation which holds a market cap of only $727 million, it would not be as easy for their shares and stocks to skyrocket. Just last year, Penn National acquired one of the top world-class resorts in Las Vegas. Forbes 4-Star Award Winner M Resort is a prestigious casino and resort that revolutionizes Las Vegas gaming into a whole new level of class and luxury. With a state-of-the-art Race and Sports book and VIP Players lounge for the gamers, a 23,000 square foot world-class spa to provide the most soothing and tranquil experience and a dining experience voted Best Buffet in the whole of Las Vegas, M Resort is a huge asset for Penn National that would guarantee maximum return for investors and stockholders. In addition to its top-notch collection of casinos and racetracks, Penn National announced recently thecompletion of its purchase of Hollywood Casino St. Louis, another Hollywood brand by Penn National that approximates to $610 million. Also, the company has already submitted three proposals for new gaming and entertainment destinations in Philadelphia and Iowa. With a 100,000 square-foot casino floor that would house 2,050 slot machines and 66 live table games and non-gaming amenities which includes a fine-dining steakhouse, sports pub and a 180-seat entertainment lounge for live acts, the proposed Hollywood Casino Philadelphia will be a gallant move to significantly improve the tourism and

local employment in the said state. In Woodbury County, Penn National has submitted two facility proposals to the Iowa Racing & Gaming Commission. Both with projected costs at around $167 million, Hollywood Casino Siouxland and Hollywood Casino Sioux City would surely be the best options of the city and state of Iowa to boost economic activity and employment. The successful acquisitions and expansions of Penn National, having opened six new facilities in five years all over the country with target budget and time allotment, is a proof of the capability of the company to sustain and fund The Penn National Gaming Foundation. The foundation is a private charity launched by Penn National in 2005, in time to provide aid and support to approximately 2,000 of their employees affected by Hurricane Katrina. The said foundation continues to work as of today, supporting numerous non-profit organizations through out the whole of United States.

Penn National Gaming has established itself as a reputable company that is able to efficiently acquire and develop leading game assets over the years. With 13 out of 16 analysts rating Penn National as a buy, the company proves its continuously expanding profit margins and firm performance in the stock exchange.