MTR GAMING GROUP 50% JOINT VENTURE GRANTED
LICENSE TO BUILD RACETRACK IN MINNESOTA
CHESTER, WV – January 20, 2005 – MTR Gaming
Group, Inc. (Nasdaq National Market:MNTG) today announced
that the Minnesota Racing Commission granted North Metro
Harness Initiative, LLC’s application to construct
and operate a harness racetrack in Columbus Township, Anoka
County, MN. In June of 2004, MTR’s wholly owned subsidiary,
MTR-Harness, Inc., acquired a 50% interest in North Metro
and became a Managing Member for $10,000 (plus transaction
costs) and a commitment to invest up to $7.5 million upon
receipt of all required licenses.
Anoka County is approximately 30 miles north of downtown
Minneapolis and 40 miles from the Mall of America. North
Metro plans to build the facility on a 165-acre site currently
under option. The track would be the second of only two
racetracks permitted by law in the seven-county Minneapolis
metropolitan area. Minnesota law permits licensed racetracks
to operate a card room with up to 50 tables offering “non-banked”
games (those in which the players play only against each
other instead of against the house), subject to completion
of the racetrack’s first 50-day live race meet and
regulatory approval of a card room plan of operation. Accordingly,
North Metro intends to commence card room operations at
the earliest practicable date.
Commenting on the granting of the license, Edson R. (Ted)
Arneault, President and Chief Executive Officer of MTR Gaming,
said, “We are pleased with the Racing Commission’s
decision and the opportunity to operate a racetrack and
card room in the Twin Cities market. The project fits squarely
within our strategy to diversify MTR’s operations
and leverage our management team by building or acquiring
ground-up pari-mutuel and gaming ventures with an attractive
entry cost.”
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.
Except for historical information, this
press release contains forward-looking statements concerning,
among other things, North Metro Harness’ plans to
construct and operate a harness racetrack and card room.
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 include but are not limited to zoning, closing
on the real property for the site, which is currently under
option (including the ability of the sellers to convey clear
title), feasibility studies, unforeseen engineering, environmental,
or geological problems, work stoppages, weather interference,
including floods, construction delays and other risks associated
with building a racing operation, delays caused by any legal
challenges raised by the project’s opponents, regulatory
approval of a card room plan of operation, and other factors
described in the Company’s periodic reports filed
with the Securities and Exchange Commission. The Company
does not intend to update publicly any forward-looking statements,
except as may be required by law.
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