MTR GAMING GROUP SUBSIDIARY ACQUIRES
50% INTEREST IN NORTH METRO HARNESS INITIATIVE COMPANY
APPOINTS FORMER STATE RACING COMMISSIONER TO BOARD
CHESTER, WV – June 15, 2004 – MTR Gaming Group,
Inc. (Nasdaq National Market:MNTG) today announced that its
new wholly owned subsidiary, MTR-Harness, Inc., acquired a
50% interest in North Metro Harness Initiative, LLC, a subsidiary
of Southwest Casino and Hotel Corporation.
As previously announced when MTR entered into the letter of
intent, North Metro has filed an application with the Minnesota
Racing Commission to construct and operate a harness racetrack
and card room in Columbus Township, Anoka County, Minnesota
approximately 30 miles north of downtown Minneapolis and 40
miles from the Mall of America on a 165-acre site currently
under option. The proposed track would be the second of only
two racetracks permitted by law in the seven-county Minneapolis
metropolitan area.
MTR-Harness invested $10,000 in the company, and in the event
North Metro obtains the necessary regulatory licenses, MTR-Harness
will invest up to $7.5 million. Prior to licensing, Southwest
Casino will contribute all necessary capital required for the
license application. MTR-Harness is a Managing Member of North
Metro and will jointly make all decisions with Southwest.
Edson R. (Ted) Arneault, President and Chief Executive Officer
of MTR Gaming, said, “We are enthusiastic about moving
forward with this transaction. This prospective track fits
well with our growth strategy to build or acquire other middle-market
parimutuel businesses, further expanding and leveraging our
expertise in this area.”
Additionally, MTR announced that Richard Delatore, 64, has
joined the Company’s Board of Directors. Mr. Delatore
will also serve on the Audit Committee and Nominating Committee.
Mr. Delatore brings significant racing experience to MTR’s
Board, having served on the Ohio State Racing Commission from
1995 – 1999. Since May 2002, Mr. Delatore has been Vice
President at Schiappa & Company, a coal mining and hauling
business. Additionally, he has been active in numerous civic
organizations including serving on the Board of Commissioners
in Jefferson County, Ohio, and the Boards of Education of Steubenville
City, Ohio and Jefferson County Joint Vocational School since
1993.
Mr. Arneault, concluded, “Richard’s in-depth racing
knowledge and business experience make him an excellent addition
to the Board. We are confident that he will make important
contributions to the Company and look forward to benefiting
from his counsel.”
Thomas J. Brosig will not be standing for reelection, in order
to avoid conflicts of interest that could arise with other
gaming ventures for which he consults as MTR expands. Mr. Brosig
has served on the Board and as Chairman of the Audit Committee
since November of 2002. “I want to thank Tom for his
contributions and input to our Board,” said Ted Arneault.
After the Company’s annual meeting of shareholders on
July 22, Don Duffy, who has served on the Board since June
of 2001, will become Chairman of the Audit Committee. The Nominating
Committee will seek to fill the seventh and final board seat
with another independent candidate.
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 (judicial challenge pending) to build
Presque Isle Downs, a thoroughbred racetrack with pari-mutuel
racing in Erie, Pennsylvania. 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.
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