Company Press Release
July 7, 2000
WYOMISSING, PA -- Penn National Gaming, Inc. (NASDAQ: PENN) announced yesterday that it is in exclusive discussions
to acquire CRC Holdings, Inc. (CRC) which does business as Carnival Resorts and Casinos. CRC is an experienced
operator of gaming facilities and the owner of approximately 59% of Louisiana Casino Cruises, Inc. (LCCI). Penn
National is also in discussions with the minority owners of LCCI with the goal of acquiring 100% of LCCI. Though
the parties are seeking to enter into definitive agreements within the next thirty days, there can be no assurance
that the parties will reach agreements. Any such agreements would be subject to regulatory approval.
LCCI owns and operates a riverboat gaming facility in Baton Rouge, Louisiana, the Casino Rouge, which for the year
ended November 30, 1999 had a 61.9% share of the Baton Rouge gaming market casino revenues, as reported by the
Louisiana State Police, a regulatory body governing the market.
CRC also has a management contract for Casino Rama, a casino located approximately 80 miles north of Toronto, Canada,
in Orillia, Canada on the Chippewas of Mnjikaning First Nation land. The Casino Rama facility is currently undergoing
a U.S. $160 million expansion.
Penn National owns, operates and conducts wagering at its Penn National Race Course and Pocono Downs Racetrack,
and at its ten off-track wagering (OTW) facilities in Allentown, Erie, Reading, Chambersburg, York, Williamsport,
Lancaster, Hazleton, Carbondale and Johnstown, Pennsylvania. Penn National also owns and operates Charles Town
Races, a live thoroughbred racing facility in Jefferson County, West Virginia, which also features 1,500 slot machines.
Penn National's 50%-owned joint venture, Pennwood Racing, Inc., owns and operates Freehold Raceway, and under a
long-term lease operates Garden State Park in New Jersey. Penn National intends (subject to certain conditions)
to acquire the Casino Magic hotel, casino, golf resort and marina in Bay St. Louis, Mississippi and the Boomtown
Biloxi casino in Biloxi, Mississippi from Pinnacle Entertainment, Inc. (NYSE: PNK - news). Penn National serves
as the exclusive U.S. wagering hub operator for the TrackPower direct-to-home pari-mutuel digital satellite service
(Dish Network), which also distributes races conducted at Penn National facilities and certain races simulcast
through Penn National.
Except for the historical information in this press release, this press release includes forward-looking statements
which are made pursuant to the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties,
including, but not limited to, quarterly fluctuations in results, the management of growth, weather, regulatory
changes, and other risks detailed from time to time in the Penn National's Securities and Exchange Commission filings.
Actual results may differ materially from such information set forth herein.
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Contact:
Penn National Gaming, Inc., Wyomissing
Robert Ippolito, 610/373-2400
Chief Financial Officer
or
Jaffoni & Collins Incorporated, New York
Joseph N. Jaffoni, 212/835-8500
penn@jcir.com