Committee on Pari-Mutuels: Status and Outlook Christopher McErlean Vice President – Racing Penn National Gaming, Inc.

Penn National Gaming Operates 11 pari-mutuel racetracks in nine different jurisdictions Over 1,100 annual live racing performances $1 billion in pari-mutuel wagers processed Seven racing properties also have casino style gaming: Hollywood Casino at Charles Town Races (Charles Town, WV) Hollywood Casino Hotel & Raceway (Bangor, ME) Hollywood Casino at Penn National Race Course (Grantville, PA) Hollywood Gaming at Dayton Raceway (Dayton, OH) Hollywood Gaming at Mahoning Valley Race Course (Youngstown, OH) Plainridge Park Casino (Plainville, MA) Zia Park Casino, Hotel & Racetrack (Hobbs, NM)

THE RACINO “RACE” “Quick out of the Gate” Ohio Massachusetts Since 2012 purses up 200% Racing Dates up 10% Coordinated racing schedules/circuits Breeding, especially Standardbred, up significantly Massachusetts Since 2014 purses up from $2.5 to $7.5 million at Plainridge Racing dates up 50% Double digit live and import handle increases Significant racing and customer side improvements

THE RACINO “RACE” “Even Paced” Pennsylvania New Mexico “Model” racino jurisdiction Contributions from all facilities, not just racinos Peaked on handle (2013)/racing dates (2009) New Mexico Large increases for purses/racing dates/breeding through 2008 Decline in breeding since then – macro issue for racing in general Finding right mix for ongoing business model for all stakeholders

THE RACINO “RACE” “Bracing for the Competition” West Virginia Maine Early adaptor of racino model Capital fund from VLTs for racing Surrounding states (PA, OH, MD) have caught up Impact to purses/breeders/racing dates Maine Approved gaming in 2005 Original casino generated 21% to racing industry Funding for both purses and racing operations New casino in 2012 shifted market share and generates 3% to racing industry