Penn National Gaming Announces a Community Relations Advisory Agreement with Russell Simmons and Labor Framework Agreement with New York Hotel & Motel Trades Council, AFL-CIO

Penn National Gaming, Inc. (PENN: Nasdaq) announced today that it has reached a community relations agreement with Russell Simmons’ Rush Communications of NYC and a labor framework agreement with the New York Hotel & Motel Trades Council, AFL-CIO in relation to a video lottery terminal gaming facility at New York’s Aqueduct Race Track. The agreements reflect Penn National’s commitment to Aqueduct’s local Queens community, New York City and New York State, horsemen and employees, and extend Penn National’s record of community, charitable and civic support and diversity initiatives in each of the markets in which it operates.

The agreement with Russell Simmons’ Rush Communications of NYC brings together Penn National’s unparalleled financial stability and liquidity, role as one of the nation’s largest investors in the re-development of pari-mutuel facilities and operator of successful horse racing facilities, with Rush’s local resources, community advocacy and focus on corporate social responsibility.

In its capacity as community relations advisor on this project, Rush will be involved in public affairs and in advising Penn National on its planned local community relations and outreach, charitable donations, diversity and humane initiatives. Rush will assist Penn National Gaming in meeting its commitment to Community Board 10 and local officials to be a strong local partner. Rush will donate a portion of its compensation for providing services to Penn National to charities.

Russell Simmons commented, "As a Queens native, I am sensitive to the developmental needs, educational opportunities and other conditions that can benefit from Penn National’s plan for the Aqueduct facility. I am also acutely aware of the animal rights issues that could be advocated for within this role. Penn National is an exemplary corporate citizen and the re-development of Aqueduct represents an important vehicle for creating sustainable economic growth and contributions to the borough and New York as well as empowerment, community relations, and humane initiatives that are close to my heart.”

Penn National’s agreement with the New York Hotel & Motel Trades Council, AFL-CIO establishes a framework to ensure that organized labor will participate in the ongoing operations of Aqueduct if Penn National is selected to develop and operate the video lottery terminal facility.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "We are delighted to have access to the counsel, resources and involvement of Russell Simmons and Rush Communications in our plan to develop the Aqueduct facility in Queens. In conversations with Community Board 10 and other local leaders, we understand the importance of working with the Queens community to hear and respond to their priorities and concerns as we move forward with the revitalization of Aqueduct and the surrounding area. As an advisor, Russell will ensure that our company-wide record as a responsible community partner will extend to our proposed development and operation of video lottery terminals at Aqueduct in Queens and improve the greater New York City region and the lives of local constituents. Similarly, the AFL-CIO agreement represents our intention to develop and maintain a constructive and beneficial rapport with employees, as we create sustainable economic benefits for the region and the state.

"Our overall bid for the state contract to revitalize Aqueduct and operate 4,500 video lottery terminals clearly stands above all others. Penn National’s proposal includes an immediate cash payment to the state of $250 million, the highest up front amount that has been offered. Furthermore, the time line for our construction re-development and facility opening within ten months of final selection by the State of New York will mean that the state and community will see much needed revenues faster than any of the competing proposals. Finally, Penn National’s proven record of investment, development and operation of highly successful pari-mutuel and entertainment facilities in Pennsylvania, Maine, New Mexico and West Virginia exceeds all of the other bidders.”

About Penn National Gaming

Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates nineteen facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National’s operated facilities feature over 26,300 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 959,000 square feet of gaming floor space.

About Rush Communications

RUSH Communications is a leading multi-faceted holding company with investments in prominent and respected brands in three industry segments: entertainment and media; fashion and lifestyle; and empowerment.

About Russell Simmons

USA Today recently named Russell Simmons one of the "Top 25 Most Influential People of the Past 25 Years,” calling him a "hip-hop pioneer” for his groundbreaking vision that has influenced music, fashion, finance, television and film, as well as the face of modern philanthropy. From creating his seminal Def Jam Recordings in 1984, to the 2007 publishing of his New York Times best-seller Do You! 12 Laws to Access the Power in You to Achieve Happiness and Success, Russell is recognized globally for his influence and entrepreneurial approach to both business and philanthropy. Giving back is of primary importance to him in all aspects of life and as Chairman and CEO of Rush Communications, he has consistently leveraged his influence in the recording industry, fashion, television, financial services, and jewelry sectors to give back. A devoted yogi and social activist, Russell also leads the non-profit division of his empire, Rush Community Affairs, and its ongoing commitment to empowering at-risk youth through education, the arts, and social engagement and was instrumental in the recent overturning of the Rockefeller Drug Laws. Russell also serves as UN Goodwill Ambassador For The Permanent Memorial To Honor The Victims Of Slavery and The Trans-Atlantic Slave Trade.

In addition to historical facts or statements of current conditions, this press release contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations and beliefs but are not guarantees of future performance. As such actual results may vary materially from expectations. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses; the activities of our competitors and the emergence of new competitors; construction factors, including delays and increased cost of labor and materials; and other factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.