LETTER AGREEMENT

Construction Agreement

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This Construction Agreement involves

PENN NATIONAL GAMING INC | CDG COMMERCIAL BUILDERS, INC.

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Title: LETTER AGREEMENT
Date: 4/8/2005
Industry: CASINO

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Exhibit 10

Exhibit 10.3

CDG COMMERCIAL BUILDERS, INC.
875 Berkshire Boulevard — Suite 102
Wyomissing, PA 19610

LETTER AGREEMENT

THIS AGREEMENT FOR THE CONSTRUCTION OF CERTAIN IMPROVEMENTS (the “Agreement”) is made this 5^th day of April, 2005, between Penn National Gaming, Inc. hereinafter, called “Owner”, having its principal place of business at 825 Berkshire Boulevard, Suite 200, Wyomissing, Pennsylvania 19610 and CDG Commercial Builders, Inc. hereinafter called “Contractor”, having its principal place of business at 875 Berkshire Boulevard, Suite 102, Wyomissing, Pennsylvania 19610.

The Owner and the Contractor agree to the following terms for construction of improvements as defined below (the “Improvements”) at the premises located at 855 Berkshire Blvd., Suite 200, Wyomissing, Pennsylvania 19610.

1. IMPROVEMENTS: Contractor shall supply materials, labor, permits for the installation, including test run, of an emergency generator unit per the Estimate Sheet — Fit Up attached hereto as Exhibit “A” (the “Improvements”).

2. PAYMENT SCHEDULE: Owner agrees to pay Contractor the total cost of $77,582.45 for the construction of the Improvements on the following schedule:

A.	At the execution of this Agreement	$	27,500.00

B.