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Dover Downs Gaming Q4, Fiscal Year Results Up

The Company's gross revenues increased 14.7% to $51,604,000 compared with $44,996,000 for the fourth quarter of 2001. The revenue increase consists of a $1,951,000 increase in gaming revenues, which include video lottery win and harness racing commissions, and an increase in other revenues of $4,657,000, primarily related to the Dover Downs Hotel and Conference Center.

Net earnings were $4,238,000 or $.16 per diluted share compared with $4,654,000 or $.17 per diluted share for the fourth quarter of 2001.

The Company noted that hotel occupancy levels remained strong throughout the quarter and that slot revenue had increased almost 13% in October and November before declining approximately 13% in December. The Company believes the December decline was primarily the result of the Delaware Clean Indoor Air Act, which was effective for the entire month.

For the year ended December 31, 2002, gross revenues increased 17.2% to $219,806,000 compared with $187,615,000 for 2001. The revenue increase consists of an $18,658,000 increase in gaming revenues, which include video lottery win and harness racing commissions, and an increase in other revenues of $13,533,000, primarily related to the Dover Downs Hotel and Conference Center.

Net earnings were $21,442,000 or $.80 per diluted share compared with $21,095,000 or $.79 per diluted share for 2001.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8.8% compared with 2001 to $42,246,000. The Company noted that EBITDA increased much more significantly in the second and third quarters of the year and declined in the first quarter when the hotel was in its pre- opening phase and in the fourth quarter when the Delaware Clean Indoor Air Act affected results. An increase in depreciation expense of $2,965,000 also impacted net earnings.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc., stated, "We were happy with the growth trends we saw in both our revenue and cash flows from April, when the Dover Downs Hotel and Conference Center was completely opened, through November. December's operating results were clearly impacted by the State smoking ban. House Bill 15, which proposes amending the legislation to allow smoking in bars, casinos and other properties where patrons must be at least 21 years of age, has been introduced in the Delaware House of Representatives. Given the State's projected deficit and how this legislation has impacted not only State revenues but other small businesses as well, we are hopeful that the legislation will be amended."

Dover Downs Gaming & Entertainment, Inc. began trading on the New York Stock Exchange on April 1, 2002, the first day after the effective date of the tax-free spin-off by Dover Motorsports, Inc. of its gaming business. The Company's results of operations for periods prior to April 1, 2002 are included in the financial statements of Dover Motorsports, Inc. as a discontinued operation, but have been presented separately for informational purposes.

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