MTR GAMING GROUP COMPLETES ACQUISITION OF SCIOTO
DOWNS
Company Comments on Pittsburgh Palisades’ Appeal to Reinstatement
of Erie License
Chester, WV – August 6, 2003 – MTR Gaming Group,
Inc. (Nasdaq National Market:MNTG) today announced that it
completed the acquisition of Scioto Downs, Inc. Scioto is now
a wholly owned subsidiary of MTR.
Scioto Downs owns and operates a harness horse racing facility
with pari-mutuel wagering 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.
Pursuant to the Merger Agreement, MTR paid $32.00 per share,
in cash, for the 595,767 outstanding shares of Scioto’s
common stock. Each Scioto shareholder could elect to receive,
instead of the $32.00 per share amount, an amount equal to
$17.00 plus, in certain circumstances set forth in the Merger
Agreement, ten (10) annual contingent earnout payments based
upon 10% of the growth of Scioto’s EBITDA (earnings before
interest, taxes, depreciation and amortization) compared to
the average of Scioto’s EBITDA for the three fiscal years
ending October 31, 2002. Scioto shareholders have until September
2, 2003 to deliver their compensation election.
Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group,
commented, “We are extremely pleased to announce the
completion of our acquisition of Scioto. The property is a
perfect fit with our strategy to diversify and leverage our
expertise by building or acquiring other middle-market gaming
and/or parimutuel businesses in states that border West Virginia.
We plan to capitalize on cross-marketing opportunities and
our combined experience in the industry to enhance Scioto’s
operating performance and look forward to updating you with
our progress.”
The Company also commented on an appeal filed by Pittsburgh
Palisades, L.L.C., regarding the July 17, 2003 unanimous decision
of the Pennsylvania State Horse Racing Commission to reinstate
the license it granted in November 2002 to MTR’s wholly
owned subsidiary, Presque Isle Downs, Inc., to conduct thoroughbred
horse racing and parimutuel wagering in Erie, PA.
MTR continues to believe that the Pennsylvania State Horse
Racing Commission acted in accordance with all applicable laws,
regulations and procedures and that the appeal is without merit.
The Company intends to intervene in the appeal and assist the
Commission in any way it can.
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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