MEMORANDUM OF AGREEMENT

1. The parties agree that the provisions of the Previous Agreement shall be and remain in the Successor Agreement except as modified by the following provisions and language:

2. 3 year term — December 1, 2004 to December 31, 2007.

3. Any closings or changes to the number of scheduled workdays not caused by the Union in violation of the applicable law or the no-strike clause shall cause a proportional change in the number of days required for any criteria to be met under the Successor Agreement.

4. Article IV — Grievances — change “5 calendar days” to “7 calendar days”

5. Article XXIV — Uniforms — change to replace 1c with the following:

6. Article XXI — Death in the Family — amend to “three (3) consecutive working days off commencing within seven (7) calendar days” and add “grandchildren” to definition of family.

7. Article I — Recognition — amend to reflect that the work of the Turf Club Attendant shall be unit work, except so long as the current employee in that position continues to perform that work she will not be forced to join the union.

8. Article VII, Sec. 4 & 5 — amend from “$7.50” to “$10.00”

9. Article VII, 5(b)(4) — parties agree: no change in telebet shift length; and Employer will offer to create a “Call-in-List” to cover times when the employer needs additional operators on short notice, after shape-up is exhausted from regular procedures.

10. Article XII — Wages

11. Article XV — Vacation — Amended to read:

12. Article XIX — amend Sec. 4 to read: In the event the Employer (1) sells all or a controlling interest in any of the PNRC racing operations or (2) leases any of the PNRC racing operations to a third party, then the execution and adoption of this agreement by the relevant third party shall be prerequisite to the actions described in (1) and (2) of this paragraph. During

the term of the Successor Agreement to protect and preserve the work of the employees currently working under the Previous Agreement, the Employer agrees, to the extent permitted by law, to require that as a prerequisite to subcontracting current bargaining unit work, the entity performing the subcontracted work shall be required to assume the Successor Agreement with respect to the subcontracted work. If this prerequisite and assumption is not legally enforceable, then the Employer agrees to refrain from subcontracting current bargaining unit work to any subcontractor which does not observe the wages, hours and other economic conditions of employment equivalent to those established by the agreement, to the extent permissible by law. For clarity, this subcontracting restriction only applies to work currently performed by the bargaining unit, which is (1) admissions personnel in the racing division, (2) telebet operators in the racing division and (3) mutual personnel in the racing division. Further, the union acknowledges that any and all portions beyond the three enumerated positions in this paragraph may be subcontracted by Employer within the sole discretion of the Employer.

13. Schedule C — Telebet Production — amend last sentence of first page of C to delete the words “… not … nor & but …” and replace with the work “… used … and …& and …”

Collective Bargaining Agreement

PENN NATIONAL GAMING INC | PENNSYLVANIA NATIONAL TURF CLUB, INC

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Title: MEMORANDUM OF AGREEMENT
Date: 3/30/2005
Industry: CASINO Sector: SERVIC

Exhibit 10

Exhibit 10.16

MEMORANDUM OF AGREEMENT

PENNSYLVANIA NATIONAL TURF CLUB, INC. / MOUNTAINVIEW RACING ASSOCIATION (collectively, the “Employer”), wholly owned subsidiaries of Penn National Gaming Inc. and SPORTS ARENA EMPLOYEES’ UNION, LOCAL NO. 137 (the “Union”) have engaged in negotiations for a successor collective bargaining agreement (“Successor Agreement”) to the one which expired on September 30, 2002 (“Previous Agreement”) and by mutual agreement the Previous Agreement has been extended by the parties. Pending ratification as set forth below, the parties hereby agree as follows:

“No vests required; No Blue Jeans; only solid colors for pants & skirts; Employees may be required to wear name tags with only the employee’s first name and last initial”; and

Delete second sentence of Article XXIV, Sec. 1a; and

Delete 2a & 2^nd sentence of 2c; and

Delete all of 2d.

Sec. 5 — amend to $10.00

Sec. 13 — amend to reflect a “hire” rate of 90% of regular rate and then each such employee shall go to 100% of rate on or after the one (1) year anniversary of their hire — effective upon ratification.

In Addition, the parties agree to conform Article VIII to this preceding language.

All seniority shifts count

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