Penn National Gaming, Inc

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International Guild of Hospitality & Restaurant Managers

Penn National Gaming, Inc (NasdaqNM:PENN)

Wyomissing Professional Ctr.
825 Berkshire Blvd.
Wyomissing, PA 19610

Phone: (610) 373-2400
Fax: (610) 376-2842
Email: freddl@pngaming.com
Employees (last reported count): 13,608

Penn National Gaming, Inc. is a diversified, multi-jurisdictional owner and operator of gaming properties, as well as horse racetracks and associated off-track wagering facilities (OTWs). The Company owns or operates five gaming properties located in West Virginia , Mississippi , Louisiana and Ontario , Canada . They are focused primarily on serving customers within driving distance of the properties. The Company also owns two racetracks and 11 off-track wagering facilities in Pennsylvania .

In April 2001, the Company acquired Casino Rouge in Baton Rouge , Louisiana , and the management contract for Casino Rama in Orillia , Ontario , Canada . In addition, in April 2002, the Company acquired the operations of Bullwhackers Casino, the adjoining Bullpen Sports Casino and Silver Hawk Saloon and Casino in Black Hawk, Colorado .

Charles Town Entertainment Complex

The Charles Town Entertainment Complex in Charles Town, West Virginia, features 2,000 gaming machines, a thoroughbred racetrack, simulcast wagering, entertainment and dining. The facility is located within driving distance of Baltimore , Maryland , and Washington , D.C.

Casino Magic Bay St. Louis

Casino Magic Bay St. Louis offers approximately 39,500 square feet of gaming space, with approximately 1,138 slot machines and 36 table games. The facility is located in the Gulf Coast gaming market, and is within driving distance of New Orleans , Louisiana ; Mobile , Alabama , and other cities in the Southeast. The property includes a 201-room hotel with banquet and meeting space, a 1,800-seat arena, an 18-hole Arnold Palmer-designed championship golf course, a steak and seafood restaurant, a buffet-style restaurant and a live entertainment lounge.

Boomtown Biloxi

Boomtown Biloxi, also located in the Gulf Coast gaming market, offers approximately 33,600 square feet of gaming space, with 1,171 slot machines and 22 table games, as well as other gaming amenities. These include a buffet/menu-service restaurant, 120-seat deli-style restaurant, full-service bakery, a western dance hall/cabaret and a 20,000-square-foot family entertainment center.

Casino Rouge

Casino Rouge is one of two dockside riverboat gaming facilities operating in Baton Rouge , Louisiana . The property features a four-story, 47,000-square-foot riverboat casino, replicating a nineteenth-century Mississippi River paddlewheel steamboat, and a two-story, 58,000-square-foot dockside embarkation building.

Casino Rama

The Company operates Casino Rama, a full-service gaming and entertainment facility, on behalf of the Ontario Lottery and Gaming Corporation, an agency of the Province of Ontario . Casino Rama, located on the lands of the Mnjikaning First Nation, is approximately 90 miles north of Toronto , Canada , and has approximately 75,000 square feet of gaming space, 2,172 gaming machines and 122 table games.

Penn National Race Course, Pocono Downs and Other Pari-Mutuel Assets

In addition to the Company's gaming facilities, the Company owns and operates Penn National Race Course, located outside of Harrisburg , one of two thoroughbred racetracks in Pennsylvania . It also owns and operates Pocono Downs, located outside of Wilkes-Barre , one of two harness racetracks in Pennsylvania .

The Company's racing and pari-mutuel revenues are derived from wagering on its live races at its racetracks, at its OTWs, at other Pennsylvania racetracks and their OTWs and through telephone account wagering. Revenues are also produced from wagering at the Company's racetracks on certain stakes races run at out-of-state racetracks, wagering on full-card import simulcasts at the Company's racetracks and OTWs, through telephone account wagering and from fees from wagering on export simulcasting the Company's races at out-of-state locations.

Penn National Race Course is located on approximately 225 acres approximately 15 miles northeast of Harrisburg , 100 miles west of Philadelphia and 200 miles east of Pittsburgh . Pocono Downs is located on approximately 400 acres in Plains Township , outside Wilkes-Barre , Pennsylvania . The property includes a 5/8-mile all-weather, lighted harness track. Charles Town Races at the Charles Town Entertainment Complex is located on a portion of a 250-acre parcel in Charles Town, West Virginia. The property includes a 3/4-mile all-weather, lighted thoroughbred racetrack. The property surrounding the Charles Town Entertainment Complex, including the site of the former Shenandoah Downs Racetrack, is available for future expansion or development.

The Company's OTWs provide areas for viewing import simulcasts and televised sporting events, placing pari-mutuel wagers and dining. The facilities also provide parking. The Company presently operates 11 of the 20 OTWs open in Pennsylvania .

eBetUSA.com, Inc., the Company's wholly owned subsidiary, is a closed-loop, subscriber-based system that operates a pari-mutuel wagering platform across the Internet. eBetUSA.com operates in selected jurisdictions with the approval of the Pennsylvania State Horse Racing Commission and the Pennsylvania State Harness Racing Commission. The Website technology is provided under a license agreement with eBet Limited of Australia.

In April 2001, the Company entered into an agreement with Playboy.com, Inc., a wholly owned subsidiary of Playboy Enterprises, Inc., to develop PlayboyRacingUSA.com, an online pari-mutuel horseracing-wagering site. Under the terms of the agreement, the Company is responsible for day-to-day operations of the site and Playboy will be responsible for marketing related services, user interface and design. The site began operations in the third quarter of 2001, and is licensed and operated in Pennsylvania . Bettors from around the world will be able to access the site, however, the site will have safeguards to prevent the acceptance of wagering from jurisdictions where online pari-mutuel wagering is prohibited.

Penn National's gaming machine operations at the Charles Town Entertainment Complex face competition from other gaming machine venues in West Virginia, as well as in neighboring states, including Dover Downs, Delaware Park and Harrington Raceway in Delaware, and the casinos in Atlantic City, New Jersey. The principal competitor to Casino Rouge is the Argosy Casino, which is a licensed riverboat casino in Baton Rouge , Louisiana .

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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