New York-listed gaming and racing operator Penn National Gaming has confirmed that its long-standing chairman Peter Carlino will be stepping down later this month.

Penn National said that its recent acquisition of Pinnacle Entertainment had resulted in a change of the company’s asset composition, which will make Carlino ineligible to concurrently serve as a director of both the company and Gaming and Leisure Properties (GLPI), the real estate investment trust spun off from Penn National in November 2013.

As a result, Carlino has resigned from the Penn National board, effective 12 June, and will be replaced by David Handler, who has served on the board since 1994 and is a partner at independent financial advisory and private equity firm Centerview Partners.

Carlino has served as Penn National chairman since the company’s initial public offering in 1994. He also served as CEO until November 2013, when the company spun off GLPI, where he continues to serve as chairman and CEO.

Carlino’s departure will reduce the size of the company’s board from eight to seven members, with Carlino appointed chairman emeritus in a non-voting capacity.

Shares in Penn National Gaming Inc (NSQ:PENN) closed down 4.56 per cent at $18.85 per share in New York Friday.