WYOMISSING - Racetrack and casino operator Penn National Gaming said today that its second-quarter earnings fell 3.4 percent on weak economic conditions, narrowly missing Wall Street estimates.

Profit slipped to $37 million, or 42 cents per share, from $38.3 million, or 43 cents per share, last year.

The company said revenue fell slightly, to $620.6 million from $625.2 million. Penn National had previously guided for quarterly revenue of $621.8 million.

Analysts surveyed by Thomson Financial forecast earnings of 43 cents per share on sales of $626.6 million.

Penn National cited smoking bans in two states, competitive pressures in some markets and an economic downturn.

The $6.1 billion purchase of Penn National by two private-equity firms was off earlier this month. But unlike most jilted targets, Penn National was to receive a hefty consolation prize of $1.475 billion in cash from the two investment groups and their banks.