Penn National Expects to Close Deal Soon

WYOMISSING, Pennsylvania -- (PRESS RELEASE -- Penn National Gaming, Inc. (PENN: Nasdaq) announced today that its subsidiary Louisiana Casino Cruises, Inc. ("LCCI"), has satisfied substantially all of the conditions to closing related to its proposed purchase of the property on which Penn National's Casino Rouge conducts a significant portion of its dockside operations. As previously disclosed, LCCI agreed to purchase the property from the property lessor for $30.5 million subject to the satisfaction of certain real estate-related closing conditions. The real estate transaction will settle all outstanding legal claims between the parties and is expected to close within thirty days. As a result of the transaction, Penn National will record a one-time settlement charge of approximately $28.2 million pre-tax, or $0.20 per diluted share after tax in its 2005 second quarter. Penn National Gaming will release its 2005 second quarter financial results on Thursday, July 28, 2005 and will host a conference call and simultaneous webcast.