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

                                        REVENUES          EBITDA
                                        Three Months Ended March 31,
                                      2001     2000     2001     2000
Charles Town Races                  $41,116  $28,183  $10,999  $ 6,713
                                    -------  -------  -------  -------
Casino Magic - Bay St. Louis         22,221       (a)   5,098       (a)
                                    -------  -------  -------  -------
Boomtown Biloxi - Biloxi             17,893       (a)   3,585       (a)
                                    -------  -------  -------  -------
Penn National Race Course and
 its OTWs                            15,279   16,273    2,302    2,765
                                    -------  -------  -------  -------
Pocono Downs and its OTWs             8,700    7,992    1,613    1,590
                                    -------  -------  -------  -------
Earnings from Pennwood Racing, Inc.
   (New Jersey)                       1,070      587    1,070      587
                                    -------  -------  -------  -------
Corporate eliminations (1)              (50)    (324)       -        -
                                    -------  -------  -------  -------
Corporate overhead                        -        -   (2,354)  (1,633)
                                    -------  -------  -------  -------
Total                               106,229   52,711   22,313   10,022
                                    -------  -------  -------  -------

    (a) These casino properties were acquired August 8, 2000. In the
        year ago first quarter, the former owners reported Casino
        Magic - Bay St. Louis revenues of $22,787 (before insurance
        recovery of $1,204) and EBITDA of $5,616 (before insurance
        recovery) and Boomtown Biloxi - Biloxi revenues of $17,504 and
        EBITDA of $3,116.

    (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
                                                       March 31,
                                                  -------------------
                                                    2001       2000
                                                    ----       ----

Total revenues                                    $106,229    $52,711
                                                  --------    -------

Total operating expenses                            83,916     42,689
                                                  --------    -------

Earnings before interest, taxes, depreciation
   and amortization                                 22,313     10,022

Depreciation and amortization                        6,935      2,176

Total other income (expenses)(a)                    (8,151)    (2,086)
                                                  --------    -------

Income before income taxes                           7,227      5,760

Taxes on income (benefit)                            2,611      2,141
                                                  --------    -------

Net Income                                          $4,616     $3,619
                                                  ========    =======

Per share data:
     Basic net income                                $0.31      $0.24
                                                  ========    =======
     Diluted net income                              $0.30      $0.24
                                                  ========    =======

Shares outstanding:
     Basic                                          15,044     14,898
                                                  ========    =======
     Diluted                                        15,524     15,212
                                                  ========    =======

    (a) The three months ended March 31, 2001 reflects additional net
        interest expense of approximately $553,000 or after-tax net
        interest expense of approximately $323,000 or $0.02 per
        diluted share related to the previously disclosed delay in
        completing a pending acquisition and approximately $570,000 of
        pre-tax expenses, or after-tax expenses of $370,500 or $0.02
        per diluted share related to upgrades of gaming devices for
        the Company's Charles Town operations.