The venture plans to break ground for construction of thefacility overlooking Turn 2 at Kansas Speedway on April 30, with aplanned opening in the first half of 2012. The initial phaseincludes a 100,000-square-foot casino floor with capacity for 2,300slot machines, 61 table games and 25 poker tables, a high-energylounge and a variety of dining and entertainment options. Thelong-term development plans include additional phases, which, basedon market demand, could bring a hotel, expanded gaming space, aspa, convention center and an entertainment retail district toKansas Speedway, said the venture in a statement Friday.

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Pursuant to the terms of the joint venture, Kansas Speedwaycontributed 101 acres for the development of the new facility. Pennand Kansas Speedway will equally share the full project developmentcosts.

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Kansas Entertainment has agreed to commit 1% (or approximately$2.2 million) of gaming revenue annually to the Unified Governmentof Wyandotte County for unrestricted civic use, plus annualcontributions of $500,000 per year to non-host school districts,$500,000 per year to community services and charitable causes,$100,000 to Unified Government Parks & Recreation, $25,000 toConventions & Visitors Bureau and $10,000 per year to localchambers of commerce.

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In addition, ISC will seek a second NASCAR Sprint Cup Seriesrace for Kansas Speedway and plans to build a new road course for aGrand-Am race at the track. These commitments, contributions andplans for expanded activities at the track are in addition to the24% State and 3% local tax on gaming revenues generated byHollywood Casino at Kansas Speedway, which will add to state andlocal revenues, with further annual contributions commencingfollowing the facility's opening.

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"We believe the Hollywood Casino at Kansas Speedway represents amajor economic growth engine for the region," and Timothy Wilmott,president and COO of Penn National. He said the project willinclude 1,700 construction jobs in the next two years and, once thefacility is completed and open, more than 1,000 full time jobs.

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Penn presently operates nineteen facilities in 15 jurisdictions,including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana,Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio,Pennsylvania, West Virginia, and Ontario. In the second half of2010, Penn plans to add table games to its facilities in WestVirginia and Pennsylvania and expects to open the first videolottery terminal facility in the state of Maryland in Cecil County.Penn is also developing casinos in Toledo, OH and Columbus, OH withopenings targeted for the second half of 2012. The company recentlyannounced its planned acquisition of Beulah Park in Ohio in atransaction expected to close in the second quarter of 2010.

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The project was formerly created for different companies.International Speedway had planned a $705 million project with HardRock Hotel and the Cordish Co. However, that partnership collapsedand Penn bought out Cordish.

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