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Dover Downs reports results

DOVER, Delaware -- (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2008.

The Company's revenues fell 1.4% to $59,789,000 compared with $60,631,000 for the first quarter of 2007. Gaming revenues were lower during the quarter, while other revenues were up 3.6%.

Interest expense increased $411,000 during the quarter, primarily from borrowings related to share buybacks and the fact that interest related to the Dover Downs Hotel expansion is no longer being capitalized. Depreciation expense increased $639,000, primarily related to the expansion of the Dover Downs Hotel.

Net earnings were $5,321,000 compared with net earnings of $6,881,000 for the first quarter of 2007. Net earnings per diluted share for the quarter were $.17 compared with $.21 last year.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc. stated, "The overall state of the economy and the general reticence of consumers to spend on discretionary items clearly impacted our business during the quarter. We remain confident that our expansion programs will benefit us when the economy rebounds."

Construction remains on budget and on schedule for a summer opening of the Colonnade, the Company's Phase VI Casino Expansion, which will add nearly 70,000 square feet to the Dover Downs Casino. The expansion will feature a stunning new main entrance to the casino, a new gaming floor with room for more than 500 additional slot machines and the new Dover Downs Fire and Ice Lounge -- an upscale lounge/nightclub that will seat about 200 guests and provide an exciting venue to see live entertainment or watch sporting events. The Colonnade will also feature three new restaurants -- Public House, Doc Magrogan's Oyster House and Marabella's Italian restaurant, as well as four retail shops including Godiva Chocolatier, Swarovski, Fashions of The Colonnade and The Colonnade Marketplace.

Renovation of the original Dover Downs Hotel was completed after the end of the quarter. The Company had 424 average room nights available during the quarter with occupancy levels of just over 82%.

The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.05 per share. The dividend is payable on June 10, 2008 to shareholders of record at the close of business on May 10, 2008.

Also during the quarter, the Company repurchased 83,500 shares of common stock at an average price of $9.34 per share, not including nominal brokerage commissions.

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