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Dover Downs to Purchase Common Stock

DOVER, Delaware – (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today commenced its previously announced tender offer to purchase up to 1,040,421 shares of its Common Stock and up to 1,607,506 shares of its Class A Common Stock at a fixed price of $12.00 per share.

The number of shares proposed to be purchased in the tender offer represents approximately 10% of the company's shares outstanding. Based on the closing price of the Company's Common Stock of $10.17 per share on the New York Stock Exchange on November 4, 2004, the last trading day before the tender offer was announced, the offer represents a premium of 18%.

The offer and withdrawal rights will expire at 5:00 P.M., New York City time, on Friday, December 10, 2004, unless extended. The Company expects to pay for tendered shares with available cash on hand and amounts borrowed under the Company's unsecured revolving credit facility, as recently amended.

The Company's Board of Directors has authorized this tender offer as a prudent use of financial resources given the Company's business, assets and current stock price, and an efficient means to provide value to stockholders. The offer represents an opportunity for the Company to return cash to stockholders who elect to tender their shares while at the same time increasing non-tendering stockholders' proportional interest in the Company. The Company believes the tender offer, if completed, will be accretive to earnings per share.

Neither the Company nor its Board of Directors, dealer manager, depositary or information agent is making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the tender offer. Stockholders must decide how many shares they will tender, if any.

The Dealer Manager for the tender offer is Raymond James & Associates, Inc. Mellon Investor Services LLC is the Information Agent and Depositary.

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