PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
Business Segment Information
Three Months Ended September 30,
(In thousands)
(unaudited)

                                     REVENUES             EBITDA
                                     --------             ------
                                  2000      1999      2000      1999
                                  ----      ----      ----      ----

Penn National Race Course and
 its OTWs                      $16,933   $16,132   $ 3,010   $ 2,409
                               -------   -------   -------   -------

Pocono Downs and its OTWs      $10,972   $ 9,731   $ 2,567   $ 2,205
                               -------   -------   -------   -------

Charles Town Races             $38,460   $21,695   $10,364   $ 4,732
                               -------   -------   -------   -------

Mississippi casinos
Casino Magic - Bay St.
   Louis                       $13,794   $     -   $ 2,417   $     -
                               -------   -------   -------   -------
  Boomtown Biloxi - Biloxi     $10,615   $     -   $ 1,419   $     -
                               -------   -------   -------   -------

Earnings from Pennwood Racing,
 Inc. (New Jersey)             $   815   $   516   $   815   $   516
                               -------   -------   -------   -------

Corporate eliminations(1)     ($   507) ($   508)  $     -   $     -
                               -------   -------   -------   -------

Corporate overhead                   -         -  ($ 1,635) ($ 1,192)
                               -------   -------   -------   -------

Total                          $91,082   $47,566   $18,957   $ 8,670
                               =======   =======   =======   =======


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


PENN NATIONAL GAMING, INC.
Summary Consolidated Statements Of Income
(In thousands, except per share data)
(unaudited)

                            Three Months Ended     Nine Months Ended
                               September 30,         September 30,
                           --------------------  ---------------------
                              2000      1999        2000      1999
                              ----      ----        ----      ----
Total revenues              $ 91,082  $ 47,566    $206,758  $125,739

Total operating expenses      72,125    38,896     163,908   105,060
                            --------  --------    --------  --------

Earnings before interest,
taxes, depreciation and
amortization                 18,957     8,670      42,850    20,679
Depreciation and
 amortization                  4,089     2,324       8,457     6,469

Total other (expenses)        (5,580)   (1,835)     (9,669)   (5,539)
                            --------  --------    --------  --------

Income before income taxes     9,288     4,541      24,724     8,671

Taxes on income                3,286     1,703       8,876     3,272
                            --------  --------    --------  --------

Income before extraordinary
 item                          6,002     2,838      15,848     5,399

Extraordinary item(2)          6,583         -       6,583         -
                            --------  --------    --------  --------

Net Income (loss)           $   (581) $  2,838    $  9,265  $  5,399
                            ========  ========    ========  ========

Per share data:
Basic net income before
 extraordinary item         $   0.40  $   0.19    $   1.06  $   0.36
                            ========  ========    ========  ========
Basic net income (loss)     $  (0.04) $   0.19    $   0.62  $   0.36
                            ========  ========    ========  ========

Diluted net income before
 extraordinary item         $   0.39  $   0.19    $   1.03  $   0.36
                            ========  ========    ========  ========
Diluted net income (loss)   $  (0.04) $   0.19    $   0.60  $   0.36
                            ========  ========    ========  ========

Shares outstanding:
Basic                         15,007    14,868      14,948    14,812
                            ========  ========    ========  ========

Diluted                       15,504    15,242      15,407    15,179
                            ========  ========    ========  ========


(2) For the early extinguishment of debt