SEC Form 5

FORM 5 [ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 oblibations may continue. See Instruction 1(b). [ ]Form 3 Holdings Reported [ ]Form 4 Transactions Reported

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* Carlino, Peter     M (Last)                       (First)                      (Middle)825 Berkshire Blvd Suite 200 (Street)Wyomissing, PA     19610 (City)                      (State)                      (Zip)USA

2. Issuer Name and Ticker     or Trading Symbol Penn National Gaming, Inc.   PENN 3. I.R.S. Identification     Number of Reporting     Person, if an entity     (voluntary)

4. Statement for     (Month/Year)     December 2000 5. If Amendment,     Date of Original      (Month/Year)

6. Relationship of Reporting Person(s) to Issuer (Check all applicable)            X          Director              X          10% Owner            X          Officer                             Other Officer/Other Description           Chairman of The Board 7. Individual or Joint/Group     Filing (Check Applicable Line) X   Individual Filing       Joint/Group Filing

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1. Title of Security     (Instr. 3)	2. Transaction Date     (Month/Day/Year)	3. Transaction     Code     (Instr. 8)	4. Securities Acquired (A) or Disposed (D) Of     (Instr. 3, 4, and 5)         Amount      |         A/D         |         Price	5. Amount of     Securities     Beneficially     Owned at     End of     Issuer's Fiscal     Year     (Instr. 3 and 4)	6. Owner-     ship     Form:     Direct(D)     or     Indirect (I)      (Instr. 4)	7. Nature of      Indirect      Beneficial      Ownership     (Instr. 4)

If the form is filed by more than one reporting person, see instruction 4(b)(v). (over) SEC 2270 (3-99)

Carlino, Peter M - December 2000

Form 5 (continued)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security     (Instr. 3)	2. Conver-     sion or     Exercise     Price of     Deri-     vative      Security	3. Transaction     Date     (Month/     Day/     Year)	4. Transaction     Code	5. Number of Derivative     Securities Acquired (A)     or Disposed (D) Of     (Instr. 3,4 and 5)	6. Date Exercisable(DE) and     Expiration Date(ED)     (Month/Day/Year)   (DE)     |     (ED)	7. Title and Amount of     Underlying Securities     (Instr. 3 and 4)	8. Price     of     Derivative     Security     (Instr.5)	9. Number of     Derivative     Securities     Beneficially     Owned     at End of     Year     (Instr.4)	10. Owner- ship Form of Deriv- ative Security: Direct (D) or Indirect (I)	11. Nature of       Indirect       Beneficial       Ownership        (Instr.4)
Employee Stock Option (Right to Buy)	$8.125	02/08/2000	A	(A) 75,000	02/08/2001 | 02/08/2010	Common Stock - 75,000		778,000	D

Explanation of Responses :

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.         See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note:   File three copies of this Form, one of which must be manually signed. If space is insufficient,             See Instruction 6 for procedure. Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.

________________________________            02-13-2001     ** Signature of Reporting Person                         Date /s/ Peter M. Carlino Peter M Carlino Page 2 SEC 2270 (3-99)