MTR GAMING GROUP COMMENTS ON HORSEMEN'S LAWSUIT
CHESTER, WV - February 4, 2003 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) announced that on February 3, 2003 its
wholly owned subsidiary, Mountaineer Park, Inc., was served
with a complaint filed by the Mountaineer Park Horsemen's Benevolent
and Protective Association ("HBPA") purportedly pursuant
to the Federal Interstate Horseracing Act.
Importantly, the Company does not expect the dispute to interfere
with Mountaineer's slot operations.
The suit alleges that a December 29, 2000 letter agreement
between the HBPA and Mountaineer with respect to the terms
and conditions of simulcasting became null and void as of February
1, 2003, because the parties did not agree - in the context
of the simulcasting agreement - to increase the number of live
racing days at Mountaineer from not fewer than a statutorily
mandated minimum of 210 to not fewer than 250 days requested
by the HBPA. The suit was filed in the U.S. District Court
for the Northern District of West Virginia, case number 5:03-CV-14,
and seeks an injunction prohibiting Mountaineer from engaging
in interstate off-track wagering until it reaches agreement
with the HBPA.
Mountaineer believes the suit is frivolous and will seek summary
judgment on the grounds that a separate contract between the
parties executed on the same date and in effect through December
31, 2003 with respect to live racing makes plain the HBPA's
agreement that Mountaineer "shall each year request a
license from the West Virginia Racing Commission to conduct
racing for not less than the minimum number of days [210] required
by state law." Mountaineer has satisfied this requirement.
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.
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