I'd be tempted to stay in Naramata near the wineries.
http://naramatabench.com/
Theo's is known for great greek food.
http://www.eatsquid.com/
Slack Alice's burnt down.
http://www.castanet.net/news/Pentict...k-s-seedy-past
There is a good sized casino on the waterfront now.
http://penticton.lakecitycasinos.com/
Salty's had a team of super-model servers last time I was there:
https://www.facebook.com/pages/Salty...67379116614749