Penn National Gaming Enters into Agreement to Acquire Cordish’s Interest in Proposed Destination Gaming Resort at Kansas Speedway

Penn Hollywood Kansas, Inc, a subsidiary of Penn National Gaming, Inc. (Nasdaq: PENN) ("the Company”) announced today that it has entered into an agreement, subject to local and regulatory approvals and certain other closing conditions, with principals of The Cordish Company ("Cordish”), the managing member of Kansas Entertainment, LLC, whereby Penn National has agreed to acquire Cordish’s 50% interest in Kansas Entertainment, LLC and their role as managing member.

As a result of the agreement with Cordish, Penn National will join Kansas Speedway Development Corporation, a wholly owned subsidiary of International Speedway Corporation (Nasdaq: ISCA) (which owns the other 50% of Kansas Entertainment, LLC) in its pending application with the Kansas Lottery Commission to develop and operate a Hollywood-themed entertainment destination facility overlooking Turn 2 at Kansas Speedway in the North East Gaming Zone in Wyandotte County, Kansas. Penn National and International Speedway Corporation will share equally the cost of developing and constructing the proposed facility and intend to jointly seek third party financing for the project. If such third party financing cannot be obtained on satisfactory terms, Penn National and International Speedway Corporation have committed to fully finance the project on such terms and conditions upon which they mutually agree. Penn National and International Speedway Corporation are currently finalizing certain operating and economic terms of their partnership and intend to provide additional disclosure about financial and project terms once they are completed.

Upon securing consents from the Unified Government of Wyandotte County and the Kansas Lottery Commission to proceed as a managing member of Kansas Entertainment, LLC, Penn National Gaming intends to withdraw the application of its subsidiary, Penn Hollywood Kansas, to be considered as a Lottery Gaming Facility Manager of a venue at the intersection of I-435 and Parallel Parkway in Kansas City, Kansas.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "When Penn National became aware of the opportunity to work with International Speedway Corporation on this project, we evaluated our options in Wyandotte County and determined that we could bring the most value to the region and our shareholders by working collaboratively to leverage the Company’s proven property development skills and expertise as a multi-jurisdictional operator with the enormous national and worldwide draw of NASCAR® racing. We believe our ownership interest in Kansas Entertainment and intention to use our strong balance sheet and capital readiness provides unparalleled certainty that a highly successful first-class destination resort will be developed -- thereby ensuring that a wide range of employment and long-term economic benefits inure to Wyandotte County and the state of Kansas. As such, we look forward to continuing our work with local and state authorities to develop a distinctive entertainment facility that will create jobs, tax revenues and other sustainable economic benefits for the region. Moreover, we look forward to working with ISC on refining the details of this project as well as exploring other potential development opportunities.”

Both ISC and Penn National acknowledge Cordish’s role in advancing the project to its current state of readiness including its vision for integrating a casino entertainment destination facility with a world-class motor sports speedway to bring tremendous benefits to the host community, customers, other constituents and the developers. Penn National fully acknowledges and supports Kansas Entertainment, LLC’s prior commitments to donate an additional one percent of its gaming revenues to the Unified Government of Wyandotte County, the host community, for charitable and civic causes, as well as its financial commitment to non-host area school districts. Such contributions are in addition to the statutory taxes payable to the State and local governments.

In June 2009, Kansas Entertainment, LLC received an endorsement from the Unified Government of Wyandotte County for its proposed development and subsequently executed a development agreement with the County. In August 2009, the Kansas Lottery Commission approved the Management Contract for Kansas Entertainment, LLC and recommended to the Kansas Lottery Gaming Facility Review Board that the Kansas Racing and Gaming Commission begin a review and background checks. The Kansas Lottery Gaming Facility Review Board is expected to take 60 days following receipt of the Kansas Lottery Commission recommendation to award the management agreement and development rights for Wyandotte County with a decision expected in late 2009.

"We are fully committed to bringing a premiere entertainment and casino destination facility to Wyandotte County and Kansas Speedway,” said Lesa France Kennedy, International Speedway Corporation Chief Executive Officer. "We are delighted to be able to advance the project with Penn National’s participation as their financial strength and property development and management skills represent a natural complement to International Speedway Corporation’s national reach and the excellent site at Kansas Speedway. As a result, this project is uniquely capable of maximizing tourism, tax revenue and national and international media attention for both the state of Kansas and Wyandotte County.”

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 International Speedway Corporation

International Speedway Corporation is a leading promoter of motorsports activities, currently promoting more than 100 racing events annually as well as numerous other motorsports-related activities. The Company owns and/or operates 13 of the nation’s major motorsports entertainment facilities, including Daytona International Speedway® in Florida (home of the Daytona 500®); Talladega Superspeedway® in Alabama; Michigan International Speedway® located outside Detroit; Richmond International Raceway® in Virginia; Auto Club Speedway of Southern California^SM near Los Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland Speedway® and Route 66 Raceway^SM near Chicago, Illinois; Homestead-Miami Speedway^SM in Florida; Martinsville Speedway® in Virginia; Darlington Raceway® in South Carolina; and Watkins Glen International® in New York. In addition, ISC promotes major motorsports activities in Montreal, Quebec, through its wholly owned subsidiary, Stock-Car Montreal.

The Company also owns and operates MRN® Radio, the nation's largest independent sports radio network; the Daytona 500 Experience^SM, the "Ultimate Motorsports Attraction” in Daytona Beach, Florida, and official attraction of NASCAR®; and Americrown Service Corporation^SM, a subsidiary that provides catering services, food and beverage concessions, and produces and markets motorsports-related merchandise. In addition, ISC has an indirect 50 percent interest in Motorsports Authentics®, which markets and distributes motorsports-related merchandise licensed by certain competitors in NASCAR racing. For more information, visit the Company's Web site at www.iscmotorsports.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Although Penn National Gaming, Inc. and its subsidiaries (collectively, the "Company”) believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our 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 passage of state, federal or local legislation that would expand, restrict, further tax, prevent or negatively impact operations (such as a smoking ban at any of our facilities) in the jurisdictions in which we do business; the activities of our competitors and the emergence of new competitors; construction factors, including delays and increased cost of labor and materials; the costs and risks involved in the pursuit of those development opportunities; the availability and cost of financing; the effects of local and national economic, credit, capital market, housing, energy conditions on the economy in general and on the gaming and lodging industries in particular; 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.