PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
                     Business Segment Information
                      (In thousands) (unaudited)

                                      REVENUES            EBITDA
                                      Three Months Ended June 30,
                                   2001      2000      2001      2000

Charles Town Races             $ 48,014  $ 34,263  $ 13,659  $  9,391
                               --------- --------- --------- ---------
Casino Magic - Bay St. Louis     22,892         *     5,023         *
                               --------- --------- --------- ---------
Boomtown Biloxi - Biloxi         17,939         *     3,685         *
                               --------- --------- --------- ---------
Casino Rouge                     16,053        **     4,034        **
                               --------- --------- --------- ---------
Casion Rama Management
 Contract                         1,981        **     1,826        **
                               --------- --------- --------- ---------
Penn National Race Course
 and its OTWs                    15,514    16,733     2,017     2,763
                               --------- --------- --------- ---------
Pocono Downs and its OTWs        10,779    10,354     1,955     2,385
                               --------- --------- --------- ---------
Earnings from Pennwood
 Racing, Inc. (New Jersey)            -         -       490       842
                               --------- --------- --------- ---------
Corporate eliminations (1)         (479)     (499)        -         -
                               --------- --------- --------- ---------
Corporate overhead                   39        60    (2,463)   (1,512)
                               --------- --------- --------- ---------
Corporate overhead
 CRC Holdings                         -         -      (159)       **
                               --------- --------- --------- ---------
Total                           132,732    60,911    30,067    13,868
                               --------- --------- --------- ---------

*   These casino properties were acquired August 8, 2000. In the year
    ago second quarter, the former owners reported Casino Magic - Bay
    St. Louis revenues of $22,854 and EBITDA of $5,829 and Boomtown
    Biloxi - Biloxi revenues of $16,456 and EBITDA of $3,243.

**  This casino property and casino management contract were acquired
    April 27, 2001, hence, Penn National's reported revenues and
    EBITDA from these assets represents approximately 70% of a full
    quarter. In the year ago second quarter Casino Rouge generated
    revenues of $22,836 and EBITDA of $6,574 and Casino Rama generated
    management contract revenues of $3,014 and EBITDA of $2,514.
    Corporate overhead for CRC Holdings for the three months ended
    June 30, 2000 was $1,671.

(1) For intracompany transactions related to import/export
    simulcasting


              PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

               Summary Consolidated Statement Of Income
                 (In thousands, except per share data)
                              (unaudited)


                               Three Months Ended    Six Months Ended
                                      June 30,            June 30,
                               ------------------- -------------------
                                   2001      2000      2001      2000
                                   ----      ----      ----      ----
Total revenues                 $132,732   $60,911  $237,891  $113,035

Earnings from Joint Venture         490       842     1,560     1,429

Total operating expenses        103,155    47,884   187,071    90,570
                               --------- --------- --------- ---------

Earnings before interest,
 taxes, depreciation
 and amortization                30,067    13,869    52,380    23,894

Depreciation and amortization     8,987     2,192    15,921     4,368

Total other income (expenses)*  (11,154)   (2,003)  (19,306)   (4,089)
                               --------- --------- --------- ---------

Income before income taxes        9,926     9,674    17,153    15,437

Taxes on income                   3,442     3,450     6,053     5,591
                               --------- --------- --------- ---------


Net Income                       $6,484    $6,224   $11,100    $9,846
                               ========= ========= ========= =========

Per share data:
Basic net income                  $0.42     $0.42     $0.73    $0. 66
                               ========= ========= ========= =========

Diluted net income*               $0.41     $0.40     $0.71    $0. 64
                               ========= ========= ========= =========

Shares outstanding:
Basic                            15,282    14,938    15,167    14,918
                               ========= ========= ========= =========

Diluted                          15,895    15,431    15,729    15,338
                               ========= ========= ========= =========