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Argosy Gaming Estimates Impact of Illinois Casino Tax Increase

2 June 2003

ALTON, Illinois – (Press Release) -- Argosy Gaming Company (NYSE: AGY) today announced that the Illinois legislature passed a bill that would increase the admission taxes and adjusted gross receipt taxes for a two-year period, or until the tenth license in Illinois is open, whichever occurs first. If signed by the Governor into law, the new tax rates are scheduled to become effective July 1, 2003.

Argosy estimates that the change in tax rates, prior to any operational changes, will have an impact on 2003 diluted earnings per share of approximately $0.25-$0.30, which represents the anticipated incremental taxes for the second half of the year.

Argosy is currently evaluating plans to minimize the effect of the increased tax burden through cost savings measures. Potential actions could include reducing the amount spent on marketing, implementing admission fees at the properties and reducing hours of operation to benefit from a corresponding decline in operational costs. Through these actions, Argosy hopes to reduce the impact to EPS by 15-25%.

Argosy Gaming Company is a leading owner and operator of riverboat casinos and related entertainment and hotel facilities in the midwestern and southern United States. Argosy owns and operates the Alton Belle Casino in Alton, Illinois, serving the St. Louis metropolitan market; the Argosy Casino- Riverside in Missouri, serving the greater Kansas City metropolitan market; the Argosy Casino-Baton Rouge in Louisiana; the Argosy Casino-Sioux City in Iowa; the Argosy Casino-Lawrenceburg in Indiana, serving the Cincinnati and Dayton metropolitan markets; and the Empress Casino Joliet in Illinois serving the greater Chicagoland market.

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