MTR GAMING GROUP ANNOUNCES FAVORABLE RULING
ON DISPUTE WITH HORSEMEN'S BENEVOLENT AND PROTECTIVE ASSOCIATION
COMPANY TO ANNOUNCE FOURTH QUARTER FINANCIAL RESULTS AFTER
MARKET CLOSE
CHESTER, WV - March 7, 2003 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced that the United States
District Court for the Northern District of West Virginia
has denied the request of the Mountaineer Park Horsemen's
Benevolent and Protective Association ("HBPA")
for a preliminary injunction prohibiting the Company's Mountaineer Casino Racetrack and Resort from continuing its simulcast
operations.
In a complaint filed February 3, 2003 pursuant to the Federal
Interstate Horse Racing Act, the HBPA had claimed that it had
terminated its consent to Mountaineer's simulcast operations
because Mountaineer had refused to guarantee a minimum of 250
days of live racing in 2003. Mountaineer maintained that a
separate, valid and effective agreement specifically dealing
with live racing had limited Mountaineer's obligation to 210
live race days (though in 2002, as a matter of business judgment,
it elected to conduct 230 live race days).
In a Memorandum Opinion and Order entered March 6, 2003, the
Court found that "…because the [simulcast] agreement
had nothing to do with the number of live racing days and because
there was in fact a separate agreement dealing with the number
of live racing days, the HBPA had no right to unilaterally
amend the simulcast agreement by requesting 250 live racing
days at Mountaineer." The Court therefore found that the
December 29, 2000 simulcast agreement remains in full force
and effect, and that Mountaineer is not in violation of the
Federal Interstate Horse Racing Act. The Court also denied
Mountaineer's motion for summary judgment as premature but
stated that Mountaineer may refile the motion after discovery.
MTR also announced that it will issue its financial results
(unaudited) for the fourth quarter and fiscal year ended December
31, 2002 this afternoon, after the close of the stock market.
Management will not conduct a conference call at this time
because SEC rules and regulations restrict certain corporate
communications surrounding securities offerings. As announced
on February 26, 2003, MTR is pursuing a private placement of
debt securities. The Company plans to hold a conference call
at a time to be determined following the completion of the
private placement.
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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