Penn National Gaming Further Strengthens Property Level Management.

Business Editors

BILOXI, Miss. & BLACK HAWK, Colo. & WYOMISSING, Pa.--(BUSINESS WIRE)--Oct. 31, 2002--Penn National Gaming, Inc. (Nasdaq:PENN)--

Promotes Thirty-Five Year Gaming Industry Executive Patrick Murphy to
                  General Manager of Boomtown Biloxi

   Appoints Twenty-Three Year Gaming Industry Executive Thomas Burke
             as General Manager of Bullwhackers Properties

Penn National Gaming, Inc. (Nasdaq:PENN) announced today senior property level management appointments at its Boomtown Biloxi casino in Biloxi, Mississippi and at its Bullwhackers properties in Black Hawk, Colorado.

Effective November 1, Patrick Murphy, who has served as the Assistant General Manager at Boomtown Biloxi, has been named General Manager of the property while Thomas P. Burke has been named the General Manager of the Bullwhackers properties. Additionally, Himbert J. Sinopoli, who is presently the Director of Finance at Boomtown Biloxi will assume the position of Assistant General Manager at Boomtown Biloxi. The promotions and appointment are consistent with Penn National's strategy of promoting and attracting proven gaming industry veterans to manage the Company's acquired regional gaming properties.

Patrick Murphy's career spans over 35 years of gaming experience in various operational capacities in the Reno, Tahoe, Las Vegas and Mississippi gaming markets at properties including Harold's Club, Harrah's, Golden Nugget Hotel & Casino and The Las Vegas Hilton. Pat Murphy joined the Boomtown organization in 1978 and has served as the Assistant General Manager at Boomtown Biloxi since 1994 when he was instrumental in the property's opening. Himbert J. Sinopoli, who has served for three and a half years as the Director of Finance at Boomtown Biloxi will assume Mr. Murphy's Assistant General Manager responsibilities at Boomtown Biloxi. Mr. Sinopoli, with over eight years of gaming industry experience has held property level and corporate level positions of increasing responsibilities and prior to entering the gaming industry was employed with KPMG Peat Marwick, Food Lion, Inc. and Mississippi Power Company.

Thomas P. Burke brings a broad range of gaming industry experience to his new position as General Manager of the Bullwhackers Casino, the adjoining Bullpen Sports Casino and the Silver Hawk Saloon, located in Black Hawk, Colorado. Prior to joining Penn National, Tom served as Senior Vice President and General Manager, Ameristar Casino Hotel, Kansas City, where he oversaw and directed initiatives resulting in a tripling of cash flow over a four year period. His prior experience includes serving as Assistant General Manager at Majestic Star Casino, Gary Indiana; Director of Casino Administration/Project Manager at American Gaming and Entertainment, Atlantic City, New Jersey; Vice President of Casino Finance at Trump Taj Mahal Casino Resort, Atlantic City, New Jersey; Casino Controller at Trump Castle, Atlantic City, New Jersey and other executive gaming and lodging positions dating back to 1979.

In their new roles Messrs. Murphy and Burke will be responsible for all facets of the operation of Boomtown Biloxi and the Bullwhacker property, respectively, and will report directly to Penn National President and Chief Operating Officer, Kevin DeSanctis.

Mr. DeSanctis commented on the promotions and appointments, "As one of the nation's leading operators of regional gaming properties, we have consistently emphasized the attraction and development of premier local management talent. By strengthening the experience base of our property level management after we have acquired a property, we ensure that the property has the best prospect of delivering on the potential that we identify at the time of acquisition. We have been very successful with this strategy as new management appointments at some of our other properties have resulted in improved market share leading to enhanced EBITDA contributions.

"We are delighted to announce the promotions of Pat and Himbert as both have distinguished themselves as individuals capable of extending the strong reputation that the Boomtown property has established for itself in the Biloxi market. And, Tom Burke is a welcome appointment at Bullwhackers as he brings an extensive gaming career of accomplishments that we believe will enable Penn National to derive greater market share and financial results from the Bullwhackers properties which we acquired earlier this year. We look forward to all of these individuals contributing to improving our competitive position in their respective markets."

Penn National Gaming owns and operates Charles Town Races in Charles Town, West Virginia, which presently features 2,583 gaming machines (with approval to offer 3,500 machines); two Mississippi casinos, the Casino Magic hotel, casino, golf resort and marina in Bay St. Louis and the Boomtown Biloxi casino in Biloxi; the Casino Rouge, a riverboat gaming facility in Baton Rouge, Louisiana and the Bullwhackers properties in Black Hawk, Colorado. Penn National also owns two racetracks and eleven off-track wagering facilities in Pennsylvania; the racetrack at Charles Town Races in West Virginia; a 50% interest in the Pennwood Inc. joint venture which owns and operates Freehold Raceway; and operates Casino Rama, a gaming facility located approximately 90 miles north of Toronto, Canada, pursuant to a management contract. Penn National recently agreed to acquire Hollywood Casino Corporation (AMEX: HWD), the owner and operator of Hollywood-themed casino entertainment facilities under the service mark Hollywood Casino(R) in Aurora, Illinois, Tunica, Mississippi and Shreveport, Louisiana.

In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these statements include those regarding our pending acquisition of Hollywood Casino Corporation, our financial guidance for the 2002 fourth quarter and 2002 full year, our prospects for future growth and our optimism in light of current economic conditions. These statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and the actual results to differ materially. The Company describes certain of these risks and uncertainties in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2001. Some of these risks include those relating to the ability of the Company to integrate and manage facilities it acquires, risks relating to the development and expansion of properties, risks of increased competition and risks relating to the fact that we are heavily regulated by gaming authorities. The Company does not intend to update publicly any forward-looking statements except as required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.