Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Schedule of estimated fair values of financial instruments

	2011				2010
December 31,	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	238,440	$	238,440	$	246,385	$	246,385
Investment in corporate debt securities		6,790		6,790		5,828		5,828
Loan receivable		—		—		230,500		230,500
Financial liabilities:
Long-term debt
Senior secured credit facility		1,714,001		1,716,720		1,589,125		1,589,125
Senior subordinated notes		325,000		353,438		575,000		612,875
Other long-term obligations		1,949		1,949		3,782		3,782
Interest rate swap contracts		—		—		16,746		16,746

Schedule of the estimated useful lives of property and equipment

Land improvements	5 to 15 years
Building and improvements	10 to 40 years
Furniture, fixtures, and equipment	3 to 7 years

Schedule of promotional allowances

Year ended December 31,	2011		2010		2009
	(in thousands)
Rooms	$	24,646	$	23,980	$	23,316
Food and beverage		106,687		99,024		108,473
Other		10,483		10,398		10,986
Total promotional allowances	$	141,816	$	133,402	$	142,775

Schedule of estimated cost of providing complimentary services

Year ended December 31,	2011		2010		2009
	(in thousands)
Rooms	$	9,149	$	9,188	$	9,406
Food and beverage		76,357		75,180		77,444
Other		6,430		6,544		6,590
Total cost of complimentary services	$	91,936	$	90,912	$	93,440

Allocation of net income attributable to shareholders under the two-class method

Year ended December, 31	2011
	(in thousands)
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries	$	242,351
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries applicable to preferred stock		46,101
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries applicable to common stock	$	196,250

Reconciliation of the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS

Year ended December 31,	2011
	(in thousands)
Determination of shares:
Weighted-average common shares outstanding		77,991
Assumed conversion of dilutive employee stock-based awards		1,782
Assumed conversion of preferred stock		27,278
Diluted weighted-average common shares outstanding		107,051

Calculation of basic and diluted EPS for the entity's common stock

Year ended December 31,	2011
	(in thousands, except per share data)
Calculation of basic EPS attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries:
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries applicable to common stock	$	196,250
Weighted-average common shares outstanding		77,991
Basic EPS	$	2.52
Calculation of diluted EPS attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries:
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries	$	242,351
Diluted weighted-average common shares outstanding		107,051
Diluted EPS	$	2.26

Weighted-average assumptions used in Black-Scholes option pricing model

Year ended December 31,	2011			2010			2009
Risk-free interest rate		1.04	%		2.27	%		2.80	%
Expected volatility		47.60	%		48.02	%		49.68	%
Dividend yield		—			—			—
Weighted-average expected life (years)		5.82			5.73			5.32
Forfeiture rate		5.00	%		5.00	%		5.00	%