The plan would result in an operating entity known as Penn National Gaming, or PNG, and a real estate investment trust referred to as PropCo.
Penn National Gaming Inc. shareholders would receive PropCo common stock through a tax-free dividend, it said in a news release stated.
PropCo would then declare a taxable dividend totaling about $1.4 billion of accumulated earnings and profits to be compliant with REIT qualification requirements, according to the release.
The company anticipates a registration statement filing related to the transaction in the second quarter next year, the release stated.
Penn National also said Thursday it has put in a proposal for an up-for-grabs casino license in Philadelphia.
The Pennsylvania Gaming Control Board said today it has received six applications for the license, including the one Penn National said it has proposed, for a $480 million Hollywood Casino Philadelphia.
Penn National Gaming operates, owns or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. It operates 29 facilities in the United States and Canada, including Hollywood Casino in East Hanover Township, Dauphin County.
Shares are traded on the NASDAQ under the ticker symbol PENN.