MTR GAMING GROUP PROVIDES UPDATE ON MINNESOTA
PROJECT
CHESTER, WV – October 25, 2004 – MTR Gaming
Group, Inc. (Nasdaq National Market:MNTG) today announced
that the Minnesota Racing Commission denied North Metro
Harness Initiative’s application to construct and
operate a harness racetrack in Columbus Township, Anoka
County, MN, in a five to three vote, citing concerns that
the new harness track and card room would take business
away from the state’s existing thoroughbred track
and card room. MTR’s wholly owned subsidiary, MTR-Harness,
Inc., acquired a 50% interest in North Metro Harness Initiative,
LLC for $10,000 (plus transaction costs) and a commitment
to invest up to $7.5 million if the project became licensed.
The Minnesota Racing Commission’s Chairwoman stated,
“If there is ever a time to license another racetrack
in Minnesota, it is now and it is with this applicant.”
Despite their positive views toward the application and
the applicant, however, the Chairwoman and certain other
commissioners felt that a statutory limitation on competition
tied their hands. The town board, Anoka County officials
and area business leaders likewise supported the application.
MTR and its partner continue to believe that the project
will be in the best interest of Minnesota racing and that
the statute permits a second track, notwithstanding the
creation of some competition with the existing thoroughbred
track. North Metro will therefore likely seek judicial review.
About MTR Gaming Group
MTR Gaming Group, Inc., through subsidiaries, owns and operates
the Mountaineer Casino Racetrack and Resort in Chester,
West Virginia; Scioto Downs in Columbus, Ohio; the Ramada
Inn and Speedway Casino in North Las Vegas, Nevada; Binion’s
Horseshoe Hotel & Casino in Las Vegas, Nevada, which
the Company operates jointly with an affiliate of Harrah’s;
and holds a license (request for judicial review pending)
to build Presque Isle Downs, a thoroughbred racetrack with
pari-mutuel racing in Erie, Pennsylvania. The Company also
owns a 50% interest in the North Metro Harness Initiative,
LLC which is pursuing an application with the Minnesota
Racing Commission to construct and operate a harness racetrack
and card room 30 miles north of downtown Minneapolis. The
Mountaineer facility, the Company’s primary source
of revenues, currently encompasses a thoroughbred racetrack
with off-track betting and export simulcasting, 3,220 slot
machines, 359 hotel rooms, golf course, spa & fitness
center, theater and events center, convention center and
fine dining and entertainment. 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. Such statements are based on
the Company’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. The Company does
not intend to update publicly any forward-looking statements,
except as may be required by law.
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