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

                                        REVENUES           EBITDA
                                       Three Months Ended March 31,
                                     2002    2001      2002     2001
                                   -------  -------   -------  -------

Charles Town Races                 $57,097  $41,104   $14,519  $10,998
                                   -------  -------   -------  -------
Casino Magic - Bay St. Louis        22,941   22,221     4,942    5,098
                                   -------  -------   -------  -------
Boomtown Biloxi - Biloxi            19,704   17,893     4,163    3,585
                                   -------  -------   -------  -------
Casino Rouge                        26,934       (A)    7,445       (A)
                                   -------  -------   -------  -------
Casino Rama Management Contract      2,399       (A)    2,195       (A)
                                   -------  -------   -------  -------
Pennsylvania Racing/OTWs            24,934   23,979     3,782    3,913
                                   -------  -------   -------  -------
Earnings from Pennwood
 Racing, Inc. (New Jersey)               -        -       774    1,070
                                   -------  -------   -------  -------
Corporate eliminations (B)            (432)    (357)        -        -
                                   -------  -------   -------  -------
Corporate overhead                      19      300    (4,081)  (2,358)
                                   -------  -------   -------  -------
Corporate overhead CRC Holdings          -        -      (203)      (A)
                                   -------  -------   -------  -------
Total                              153,596  105,140    33,536   22,306
                                   -------  -------   -------  -------

    (A) Casino Rouge and Casino Rama Management Contract were acquired
        by Penn National Gaming on April 27, 2001. In the year ago
        first quarter, under the former management, Casino Rouge
        generated revenues of $26,537 and EBITDA of $8,245 and Casino
        Rama generated management contract revenues of $2,520 and
        EBITDA of $2,144. Corporate overhead for CRC Holdings for the
        three months ended March 31, 2001 was $2,363.
    (B) 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,
                                             -------------------------
                                               2002            2001
                                             --------        --------

Total revenues                               $153,596        $105,140
                                             --------        --------

Earnings from joint venture                       774           1,070

Total operating expenses                      120,834          83,904
                                             --------        --------
Earnings before interest, taxes,
 depreciation and amortization (EBITDA)        33,536          22,306

Depreciation and amortization                   8,066           6,468

Total other expenses                          (10,550)         (8,618)
                                             --------        --------

Income before income taxes                     14,920           7,220

Taxes on income                                 5,638           2,611
                                             --------        --------

Net income before extraordinary item           $9,282          $4,609
                                             --------

Extraordinary item(1)                           5,151               -
                                             --------        --------

Net income                                     $4,131          $4,609
                                             ========        ========

Per share data:
Basic net income before extraordinary item      $0.55           $0.31
                                             --------        --------
Extraordinary item                              $0.30               -
                                             --------        --------
Basic net income                                $0.24           $0.31
                                             ========        ========

Diluted net income before extraordinary item    $0.52           $0.30
                                             --------        --------
Extraordinary item                              $0.29               -
                                             --------        --------
Diluted net income                              $0.23           $0.30
                                             ========        ========
Shares outstanding:
Basic                                          17,016          15,044
                                             ========        ========
Diluted                                        17,868          15,524
                                             ========        ========

    The first quarter 2002 reflects the adoption of FAS 142 on January
1, 2002, regarding treatment of goodwill and other intangible assets,
resulting in Penn National ceasing to amortize goodwill as of the
first quarter of 2002.

    (1) Extraordinary item of $5,151 net of taxes reflects the
        write-off of deferred finance fees and pre-payment fees
        associated with bank debt that was repaid with the proceeds of
        recent financings.