Penn National Gaming Announces Agreement with State of Ohio Regarding the Relocation of Its Two Racetracks

Penn National Gaming, Inc.

announced today it has reached an agreement with the State of Ohio that will help pave the way toward the relocation of its two Ohio racetracks and the development of new approximately $200 million racetrack/video lottery terminal facilities (inclusive of a $50 million license fee) in Dayton and in Austintown (located in the Mahoning Valley). The non-binding Memorandum of Understanding (

) between the Company and the office of Ohio Gov. John Kasich requires Penn National to pay a $75 million relocation fee per VLT facility within 180 days after each facility opens. Penn National previously announced its intent to relocate Beulah Park from the Columbus suburb of Grove City to Austintown and Raceway Park from Toledo to Dayton. The MOU contemplates Penn National paying the State 33.5% from VLT revenues as well as a yet to be determined amount to the Ohio horse racing industry.