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Dover Downs Results Down

The Company's gross revenues decreased 6.5% to $48,355,000 compared with $51,710,000 for the first quarter of 2002. The decrease in gaming revenues, which include video lottery win and harness racing commissions, was offset by an increase in other revenues of $2,226,000, primarily related to higher occupancy levels at the Dover Downs Hotel and Conference Center compared with the first quarter of 2002. The hotel opened with approximately 100 rooms on February 15, 2002 and added rooms throughout the quarter with the entire 232-room facility opened as of April 6, 2002.

Net earnings were $4,007,000 or $.15 per diluted share compared with $5,168,000 or $.19 per diluted share for the first quarter of 2002.

The Company noted that the approximate 13% decrease in slot win for the first quarter of 2003 compared with the first quarter of 2002 is consistent with the 13% decline experienced in December 2002. While severe weather and the current state of the economy have had an impact on operations, management believes the declines are primarily the result of the Delaware Clean Indoor Air Act, which has prohibited smoking in the casino since November 27, 2002.

Occupancy levels in the Dover Downs Hotel were strong throughout the quarter, as the Company continued to market the hotel principally to slots customers.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc., stated, "Operationally, we are happy with the success of our marketing strategies, our hotel statistics and the effort being put forth by our employees. The significant pressure being put on our business as a result of the Delaware Clean Indoor Air Act is something we will have to deal with for the foreseeable future. We are in the process of reviewing all of our operations to identify spending items that can be curtailed. Since November, staffing has been reduced by approximately 100 positions, and we will have more cutbacks in the near-term. It is unfortunate, but we will be doing whatever we can to preserve our margins in light of the impact this legislation has had on our business."

The Company previously announced that it had purchased for cash and retired 120,245 shares of its $.10 par value common stock during the quarter.

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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