Playboy.com and Penn National to Launch Online Pari-Mutuel Wagering Operation For Horseracing

- PlayboyRacingUSA.com Slated for Third Quarter Launch -



Apr 16, 2001, 01:00 ET from Playboy.com

    NEW YORK and WYOMISSING, Pa., April 16 /PRNewswire/ -- Playboy.com, Inc.,
 a wholly owned subsidiary of Playboy Enterprises, Inc. (NYSE:   PLA), today
 announced it has signed an agreement with Penn National Gaming, Inc.
 (Nasdaq:   PENN) to develop PlayboyRacingUSA.com, an online pari-mutuel wagering
 site for horseracing.  It is expected to begin operations in the third quarter
 of 2001.
     Under the terms of the agreement, Penn National will be responsible for
 the service's development, day-to-day operations and overhead, including
 hardware and software, management and customer support.  Playboy will provide
 marketing, branding, user interface, design and content.  The site will be
 licensed and operated in Pennsylvania.  Penn National, through its wholly
 owned subsidiary, eBetUSA.com, Inc., has formulated a vertical marketing
 strategy that builds upon its existing authorization for account wagering.
     PlayboyRacingUSA.com will use the expertise of Penn National, one of North
 America's leading on- and off-track horseracing operators, to offer a wide
 variety of pari-mutuel wagering on horseraces in North America.  Bettors from
 around the world will have access, through PlayboyRacing.com, to most of the
 great racing events originating out of the United States and Canada.  Penn
 National, through its Pennsylvania Horseracing Commission and Pennsylvania
 Harness Racing Commission approved operation, gives Playboy the opportunity to
 launch their site with live racing and wagering on nearly thirty racetracks.
 The site will have safeguards to prevent accepting wagering from states and
 jurisdictions where online pari-mutuel wagering is prohibited.
     Lawrence R. Lux, President of Playboy.com, said, "The site will bring
 Playboy's unique brand of sexiness, excitement and fun to online horseracing.
 Our live Playboy Betting Bunny, Deanna, who consumers will already know from
 PlayboySportsBook.com, will serve as the site's interactive hostess.  In
 addition, PlayboyRacingUSA.com will offer a range of distinctive features,
 including real-time odds, scratches, race results, video event coverage and
 commentary."
     "PlayboyRacingUSA.com is our second online gaming initiative and the first
 that will be available to U.S. citizens due to the acceptance of horseracing
 wagering in many U.S. states," said Christie Hefner, Chairman of Playboy.com.
 "This allows us to fully leverage Playboy.com's 4.4 million monthly unique
 visitors which combined with Penn National's operational expertise will allow
 us to create a significant high-margin revenue addition to Playboy.com."
     Peter M. Carlino, Chief Executive Officer of Penn National, said, "By
 teaming with Playboy we are creating an exciting growth opportunity that
 leverages Penn National's substantial pari-mutuel expertise, industry presence
 and systems, with Playboy's tremendous brand and marketing strengths,
 including its large and demographically appropriate online and offline
 audiences.  We look forward to a close working partnership and the formal
 launch of the service in the third quarter."
     Since 1993, industry sources have reported steady annual increases in
 total on-track and off-track handle (gross wagers) for the U.S. thoroughbred
 racing industry.  Total handle in the U.S. alone was $14.2 billion in the year
 2000, an increase of 3.6% over the prior year.  Penn National estimates that
 online pari-mutuel betting amounted to only a few percentage points of total
 handle in 2000.  However, given the rapid growth in online access and the
 availability of online betting in approximately 37 U.S. states, plus a fast-
 developing international market, the growth of online pari-mutuel wagering is
 expected to dramatically outpace the industry for several years.
     In February, Playboy announced separate plans to launch
 PlayboySportsBook.com -- which will provide fixed odds wagering on various
 world-wide sporting events -- and said that it expects to add casino games to
 its online gaming initiatives in the coming year.
 
     About Playboy.com
     Playboy.com; a wholly owned subsidiary of Playboy Enterprises, Inc.
 (NYSE:   PLA), an international multimedia entertainment company; is the #1
 lifestyle and entertainment destination Web site for men.  Playboy.com
 operates Playboy-branded Web sites targeting the entertainment and lifestyle
 interests of young men, including: Playboy.com ( http://www.playboy.com ), an
 advertising and e-commerce-supported Web site that offers a range of
 entertainment, information and e-commerce; Playboy Cyber Club
 ( http://cyber.playboy.com ), a members-only subscription site featuring
 premium Playboy content and exclusive online events; the Playboy Store
 ( http://www.playboystore.com ), which sells Playboy-branded products; and
 Playboy Auctions (http://auctions.playboy.com), which auctions Playboy-branded
 merchandise and admission to exclusive Playboy events, and allows fans to
 auction their own Playboy memorabilia and collectibles.  Playboy.com also
 operates SpiceTV.com ( http://www.SpiceTV.com ), a site featuring premium
 adult entertainment under the Spice brand.
 
     This release contains "forward-looking statements" as to expectations,
 beliefs, plans, objectives and future financial performance, and assumptions
 underlying or concerning the foregoing.  Such forward-looking statements
 involve risks and uncertainties which could cause actual results or outcomes
 to differ materially from those expressed in the forward-looking statements.
 The following are some of the important factors that could cause actual
 results or outcomes to differ materially from those discussed in the forward-
 looking statements: (1) government actions or initiatives, including (a)
 attempts to limit or otherwise regulate the sale of adult-oriented materials,
 including print, video and online materials or businesses such as casino
 gaming, (b) regulation of the advertisement of tobacco products, or (c)
 substantive changes in postal regulations or rates, (2) further increases in
 paper prices, (3) changes in distribution technology and/or unforeseen delays
 in the implementation of such technology by the cable and satellite industries
 that might affect the company's plans and assumptions regarding carriage of
 its program services, (4) increased competition for advertisers from other
 publications and media or any significant decrease in spending by advertisers
 generally or with respect to the adult male market, (5) increased competition
 for transponders and channel space, and any decline in the company's access
 to, and acceptance by, cable and DTH systems, (6) the effects of the
 consolidation taking place nationally in the single-copy magazine distribution
 system, (7) marketing issues facing direct marketing stamp sheet agents, (8)
 new competition in the adult cable television market, (9) uncertainty of
 market acceptance of the Internet as a medium for information, entertainment,
 e-commerce and advertising, an increasingly competitive environment for
 advertising sales, the impact of competition from other content and
 merchandise providers, as well as the Company's reliance on third parties for
 technology and distribution for its online business, and (10) potential
 adverse effects of unresolved Year 2000 problems including external key
 suppliers.
 
     About Penn National
     Penn National has been a leader in development and operation of racetracks
 in the U.S.  At the same time, Penn National has been on the leading edge of
 technology development in the pari-mutuel industry.  Penn National's
 groundbreaking achievements include being the first telephone account wagering
 company in the U.S., and the first company to simulcast its races to other
 jurisdictions for patrons to wager.  In November of 2000, Penn National Gaming
 became one of the first major U.S. racing companies to launch an on-line
 wagering platform across the Internet at its ebetusa.com website. Penn
 National owns and operates two Mississippi casinos, the Casino Magic hotel,
 casino, golf resort and marina in Bay St. Louis, and the Boomtown Biloxi
 casino in Biloxi as well as three racetracks and eleven off-track wagering
 (OTW) facilities located in Pennsylvania (two tracks and eleven OTWs) and West
 Virginia (one track).  The West Virginia track, Charles Town Races, presently
 features 1,974 gaming machines that will soon be increased to 2,000.  Penn
 National is also currently in a merger agreement with CRC Holdings, Inc. where
 Penn National will be the surviving parent corporation owning the Casino Rouge
 in Baton Rouge, Louisiana and a management contract for the operation of a
 casino complex north of Toronto, Canada.
 
     In addition to historical facts or statements of current condition, this
 press release may contain forward-looking statements that involve risks and
 uncertainties.  You may identify some of these forward-looking statements by
 the use of words in the statements such as "anticipate," "estimate," "expect,"
 "project," "intend," "plan," "believe" or words and terms of similar meaning.
 The Company describes certain of these risks and uncertainties in its filings
 with the Securities and Exchange Commission, including its Annual Reports on
 Form 10-K, its most recent quarterly reports on Form 10-Q and its Current
 Reports on Form 8-K.  These risks and uncertainties could cause the Company's
 actual results and experience to differ materially from anticipated results
 and expectations expressed in any forward-looking statements.  Given these
 risks and uncertainties, any or all forward-looking statements may prove to be
 incorrect.  Therefore, you should not rely on any such factors or forward-
 looking statements.  Furthermore, the Company does not intend (and is not
 obligated) to update publicly any forward-looking statements.  The cautionary
 advice in this paragraph is permitted by the Private Securities Litigation
 Reform Act of 1995.
 
 

SOURCE Playboy.com
    NEW YORK and WYOMISSING, Pa., April 16 /PRNewswire/ -- Playboy.com, Inc.,
 a wholly owned subsidiary of Playboy Enterprises, Inc. (NYSE:   PLA), today
 announced it has signed an agreement with Penn National Gaming, Inc.
 (Nasdaq:   PENN) to develop PlayboyRacingUSA.com, an online pari-mutuel wagering
 site for horseracing.  It is expected to begin operations in the third quarter
 of 2001.
     Under the terms of the agreement, Penn National will be responsible for
 the service's development, day-to-day operations and overhead, including
 hardware and software, management and customer support.  Playboy will provide
 marketing, branding, user interface, design and content.  The site will be
 licensed and operated in Pennsylvania.  Penn National, through its wholly
 owned subsidiary, eBetUSA.com, Inc., has formulated a vertical marketing
 strategy that builds upon its existing authorization for account wagering.
     PlayboyRacingUSA.com will use the expertise of Penn National, one of North
 America's leading on- and off-track horseracing operators, to offer a wide
 variety of pari-mutuel wagering on horseraces in North America.  Bettors from
 around the world will have access, through PlayboyRacing.com, to most of the
 great racing events originating out of the United States and Canada.  Penn
 National, through its Pennsylvania Horseracing Commission and Pennsylvania
 Harness Racing Commission approved operation, gives Playboy the opportunity to
 launch their site with live racing and wagering on nearly thirty racetracks.
 The site will have safeguards to prevent accepting wagering from states and
 jurisdictions where online pari-mutuel wagering is prohibited.
     Lawrence R. Lux, President of Playboy.com, said, "The site will bring
 Playboy's unique brand of sexiness, excitement and fun to online horseracing.
 Our live Playboy Betting Bunny, Deanna, who consumers will already know from
 PlayboySportsBook.com, will serve as the site's interactive hostess.  In
 addition, PlayboyRacingUSA.com will offer a range of distinctive features,
 including real-time odds, scratches, race results, video event coverage and
 commentary."
     "PlayboyRacingUSA.com is our second online gaming initiative and the first
 that will be available to U.S. citizens due to the acceptance of horseracing
 wagering in many U.S. states," said Christie Hefner, Chairman of Playboy.com.
 "This allows us to fully leverage Playboy.com's 4.4 million monthly unique
 visitors which combined with Penn National's operational expertise will allow
 us to create a significant high-margin revenue addition to Playboy.com."
     Peter M. Carlino, Chief Executive Officer of Penn National, said, "By
 teaming with Playboy we are creating an exciting growth opportunity that
 leverages Penn National's substantial pari-mutuel expertise, industry presence
 and systems, with Playboy's tremendous brand and marketing strengths,
 including its large and demographically appropriate online and offline
 audiences.  We look forward to a close working partnership and the formal
 launch of the service in the third quarter."
     Since 1993, industry sources have reported steady annual increases in
 total on-track and off-track handle (gross wagers) for the U.S. thoroughbred
 racing industry.  Total handle in the U.S. alone was $14.2 billion in the year
 2000, an increase of 3.6% over the prior year.  Penn National estimates that
 online pari-mutuel betting amounted to only a few percentage points of total
 handle in 2000.  However, given the rapid growth in online access and the
 availability of online betting in approximately 37 U.S. states, plus a fast-
 developing international market, the growth of online pari-mutuel wagering is
 expected to dramatically outpace the industry for several years.
     In February, Playboy announced separate plans to launch
 PlayboySportsBook.com -- which will provide fixed odds wagering on various
 world-wide sporting events -- and said that it expects to add casino games to
 its online gaming initiatives in the coming year.
 
     About Playboy.com
     Playboy.com; a wholly owned subsidiary of Playboy Enterprises, Inc.
 (NYSE:   PLA), an international multimedia entertainment company; is the #1
 lifestyle and entertainment destination Web site for men.  Playboy.com
 operates Playboy-branded Web sites targeting the entertainment and lifestyle
 interests of young men, including: Playboy.com ( http://www.playboy.com ), an
 advertising and e-commerce-supported Web site that offers a range of
 entertainment, information and e-commerce; Playboy Cyber Club
 ( http://cyber.playboy.com ), a members-only subscription site featuring
 premium Playboy content and exclusive online events; the Playboy Store
 ( http://www.playboystore.com ), which sells Playboy-branded products; and
 Playboy Auctions (http://auctions.playboy.com), which auctions Playboy-branded
 merchandise and admission to exclusive Playboy events, and allows fans to
 auction their own Playboy memorabilia and collectibles.  Playboy.com also
 operates SpiceTV.com ( http://www.SpiceTV.com ), a site featuring premium
 adult entertainment under the Spice brand.
 
     This release contains "forward-looking statements" as to expectations,
 beliefs, plans, objectives and future financial performance, and assumptions
 underlying or concerning the foregoing.  Such forward-looking statements
 involve risks and uncertainties which could cause actual results or outcomes
 to differ materially from those expressed in the forward-looking statements.
 The following are some of the important factors that could cause actual
 results or outcomes to differ materially from those discussed in the forward-
 looking statements: (1) government actions or initiatives, including (a)
 attempts to limit or otherwise regulate the sale of adult-oriented materials,
 including print, video and online materials or businesses such as casino
 gaming, (b) regulation of the advertisement of tobacco products, or (c)
 substantive changes in postal regulations or rates, (2) further increases in
 paper prices, (3) changes in distribution technology and/or unforeseen delays
 in the implementation of such technology by the cable and satellite industries
 that might affect the company's plans and assumptions regarding carriage of
 its program services, (4) increased competition for advertisers from other
 publications and media or any significant decrease in spending by advertisers
 generally or with respect to the adult male market, (5) increased competition
 for transponders and channel space, and any decline in the company's access
 to, and acceptance by, cable and DTH systems, (6) the effects of the
 consolidation taking place nationally in the single-copy magazine distribution
 system, (7) marketing issues facing direct marketing stamp sheet agents, (8)
 new competition in the adult cable television market, (9) uncertainty of
 market acceptance of the Internet as a medium for information, entertainment,
 e-commerce and advertising, an increasingly competitive environment for
 advertising sales, the impact of competition from other content and
 merchandise providers, as well as the Company's reliance on third parties for
 technology and distribution for its online business, and (10) potential
 adverse effects of unresolved Year 2000 problems including external key
 suppliers.
 
     About Penn National
     Penn National has been a leader in development and operation of racetracks
 in the U.S.  At the same time, Penn National has been on the leading edge of
 technology development in the pari-mutuel industry.  Penn National's
 groundbreaking achievements include being the first telephone account wagering
 company in the U.S., and the first company to simulcast its races to other
 jurisdictions for patrons to wager.  In November of 2000, Penn National Gaming
 became one of the first major U.S. racing companies to launch an on-line
 wagering platform across the Internet at its ebetusa.com website. Penn
 National owns and operates two Mississippi casinos, the Casino Magic hotel,
 casino, golf resort and marina in Bay St. Louis, and the Boomtown Biloxi
 casino in Biloxi as well as three racetracks and eleven off-track wagering
 (OTW) facilities located in Pennsylvania (two tracks and eleven OTWs) and West
 Virginia (one track).  The West Virginia track, Charles Town Races, presently
 features 1,974 gaming machines that will soon be increased to 2,000.  Penn
 National is also currently in a merger agreement with CRC Holdings, Inc. where
 Penn National will be the surviving parent corporation owning the Casino Rouge
 in Baton Rouge, Louisiana and a management contract for the operation of a
 casino complex north of Toronto, Canada.
 
     In addition to historical facts or statements of current condition, this
 press release may contain forward-looking statements that involve risks and
 uncertainties.  You may identify some of these forward-looking statements by
 the use of words in the statements such as "anticipate," "estimate," "expect,"
 "project," "intend," "plan," "believe" or words and terms of similar meaning.
 The Company describes certain of these risks and uncertainties in its filings
 with the Securities and Exchange Commission, including its Annual Reports on
 Form 10-K, its most recent quarterly reports on Form 10-Q and its Current
 Reports on Form 8-K.  These risks and uncertainties could cause the Company's
 actual results and experience to differ materially from anticipated results
 and expectations expressed in any forward-looking statements.  Given these
 risks and uncertainties, any or all forward-looking statements may prove to be
 incorrect.  Therefore, you should not rely on any such factors or forward-
 looking statements.  Furthermore, the Company does not intend (and is not
 obligated) to update publicly any forward-looking statements.  The cautionary
 advice in this paragraph is permitted by the Private Securities Litigation
 Reform Act of 1995.
 
 SOURCE  Playboy.com