MTR GAMING GROUP PROVIDES UPDATE ON RECENT DEVELOPMENTS
CHESTER, WV - February 14, 2003 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced that it was granted a
motion to expedite the appeal of its license to conduct thoroughbred
horse racing and parimutuel wagering in Erie, PA. The Commonwealth
Court has scheduled the appeal hearing for May 2003.
The appeal was filed in December 2002 by MEC Pennsylvania
Racing Inc., a subsidiary of Magna Entertainment Corp. that
conducts harness racing, following the September 2002 unanimous
decision of the Pennsylvania State Horse Racing Commission
to grant MTR the license. As previously announced, MTR believes
that the Pennsylvania State Horse Racing Commission acted in
accordance with all applicable laws, regulations and procedures
and that the appeal is without merit. Therefore, the Company
has continued with the permitting process for the Erie racetrack
as well as the design and engineering of the facility.
In this regard, MTR secured 225 acres of land under option
for the facility, submitted a preliminary site plan, and received
approval for the rezoning of the property. Most recently, Summit
Township supervisors approved the relocation of Footmill Road,
which will allow the Company to position the facility to minimize
environmental impact. While MTR believes this is an important
step toward development of the facility, it is still seeking
further necessary approvals. Additionally, prudence dictates
that MTR not commence construction until the appeal is favorably
resolved, as to which there can be no assurances.
The Company also commented on the impact that the unusually
harsh winter weather is having on patronage at its Mountaineer Casino Racetrack and Resort in Chester, WV. During January
through the first week of February, the Company estimates that
the weather has led to a reduction of slot revenue in the amount
of approximately $1.8 million. This estimate is based upon
the difference between slot revenue for the current period
and the slot revenue the Company would have expected applying
recent year-over-year growth rates. Notwithstanding the weather,
however, Mountaineer's slot revenue for the week ending February
8, 2003 was $4.6 million, or $222.32 per machine per day.
The Company also noted that the implementation of cost cutting
measures previously announced is having the desired effect.
Management believes the program will yield significant cost
reductions during fiscal 2003.
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.
About Scioto Downs
Scioto Downs owns and operates a harness horse racing facility
in Columbus, OH. Major racing programs conducted at Scioto’s
facilities include the Little Brown Jug Preview, the Scarlet
O’Hara, the Pink Bonnet, the Ohio Sires Stakes events
and Ohio Fair stakes events.
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,
March 5, 2003, and May 7, 2003. MTR’s plans to build
a racetrack in Erie, Pennsylvania remain subject to the possibility
of a legal challenge to the July 17, 2003 decision of the Pennsylvania
State Horse Racing Commission reinstating the license (which
was originally granted in late 2002) and the risks associated
with land acquisition,development, construction and integration
of new operations. The Company does not intend to update publicly
any forward-looking statements, except as may be required by
law.
|
