FOR IMMEDIATE RELEASE
MTR GAMING GROUP TO CLOSE RENO CASINO
CHESTER, WV - July 25, 2001 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced that over the next
week its Speakeasy Gaming of Reno unit will close the casino
and one of the restaurants at its Reno property, and lay
off approximately 60 employees. The hotel and other food
and beverage service will remain open, with approximately
40 staff members servicing the facility.
The Company has recorded operating losses at its Reno facility
since it began operating the property in late 1999. In the
first quarter of 2001, the operating loss was approximately
$800,000 (unaudited). The closure of the casino should reduce
operating losses to approximately $50,000 per month while the
Company continues to explore opportunities to reposition and/or
sell the facility, and learns whether the Municipal Events
Center proposed for the two-block area across the street from
the property will be built.
Commenting, Edson R. (Ted) Arneault, President and CEO of
MTR Gaming Group, stated, "We will continue to pursue
the feasibility of reducing our capital investment in the Reno
property by selling the hotel to a time-share developer and
retaining the right to operate the casino. If we determine
that the reduced capital investment, captive clientele generated
by a successful time-share program, and foot traffic created
by a new Events Center could reasonably produce profitable
casino operations, we would evaluate reopening the casino.
We will also consider an outright sale of the property."
About MTR Gaming Group
MTR Gaming Group owns and operates the Mountaineer Casino Racetrack and Resort in Chester, West Virginia, which currently encompasses
a thoroughbred racetrack with off-track betting and export
simulcasting, 3,200 slot machines, 359 hotel rooms, golf course,
spa & fitness center, theater and events center, convention
center and fine dining and entertainment. The Company also
owns and operates the Ramada Inn and Speedway Casino in North
Las Vegas, and holds a license to build a new thoroughbred
racetrack with parimutuel wagering in Erie, Pennsylvania. MTR
is included on the Russell 2000® and Russell® 3000
Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this
press release contains forward-looking statements concerning,
among other things, the acquisition of Scioto Downs, Inc.
Such statements are based on MTR’s current plans and
expectations. Such statements are subject to a number of
risks and uncertainties that could cause the statements made
to be incorrect and/or for actual results to differ materially.
Those risks and uncertainties are described in the Company’s
periodic reports filed with the Securities and Exchange Commission,
and with respect to the Scioto Downs acquisition are described
in the Merger Agreement, as amended, which is attached as
exhibits to the Company’s reports on Forms 8-K filed
December 24, 2002,
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