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| National Gaming Wins Dismissal of Showboat Development Company Lawsuit |
1/29/2002 WYOMISSING, PA--.--Jan. 29, 2002--Penn National Gaming, Inc. (PENN: Nasdaq) announced today that the United States District Court for the District of Nevada has granted Penn National's motion to dismiss for lack of personal jurisdiction with respect to Sh Penn National Gaming Wins Dismissal of Showboat Development Company Lawsuit WYOMISSING, PA--.--Jan. 29, 2002--Penn National Gaming, Inc. (PENN: Nasdaq) announced today that the United States District Court for the District of Nevada has granted Penn National's motion to dismiss for lack of personal jurisdiction with respect to Showboat Development Company's lawsuit against Penn National Gaming, Inc. and other parties. The District Court's decision is subject to appeal by Showboat Development Company. However, Penn National believes the outcome of the Nevada District Court is a positive development in the resolution of this matter. In a court order entered January 25, 2002, Penn National's motion to dismiss was granted, "Because the subject of the agreements between Plaintiff and Defendant was located in West Virginia and the option could not be exercised without changes in West Virginia law, the Court finds that jurisdiction over Defendants is not appropriate in the state of Nevada." While the court dismissed the suit on jurisdictional issues, Penn National Gaming is pleased that the Court concurred with its belief that the operation of a casino would require a change of West Virginia law. The suit, filed in July 2001 alleged, among other claims, that Penn National's operation of its Charles Town Races property in West Virginia constitutes the operation of a casino, thereby triggering an option Showboat holds to manage a casino at the facility. Penn National Gaming owns and operates Charles Town Races in Charles Town, West Virginia, which presently features 2,000 gaming machines; two Mississippi casinos, the Casino Magic hotel, casino, golf resort and marina in Bay St. Louis and the Boomtown Biloxi casino in Biloxi; and the Casino Rouge, a riverboat gaming facility in Baton Rouge, Louisiana. Penn National also owns two racetracks and eleven off-track wagering facilities in Pennsylvania and the racetrack at Charles Town Races in West Virginia, and operates the Casino Rama, a gaming facility located approximately 90 miles north of Toronto, Canada, pursuant to a management contract. In August 2001, Penn National agreed to acquire Bullwhackers Casino, the adjoining Bullpen Sports Casino, and Silver Hawk Saloon and Casino in Black Hawk, Colorado. CONTACT: Penn National Gaming Robert Ippolito, 610/373-2400 |
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