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Horseshoe Gaming Responds to Illinois Gaming Board Decision

Although the Illinois Gaming Board approved the acquisition of Empress Casino Joliet by Horseshoe Gaming last Nov. 30, 1999, the IGB, by its actions today, chose not to renew Empress' owner's license and found Jack Binion, the chairman and chief executive officer of Horseshoe Gaming, ``unsuitable.''

This action is particularly distressing in light of the fact that both Horseshoe Gaming and Mr. Binion are licensed and in good standing in Nevada, Indiana, Mississippi and Louisiana. Horseshoe Gaming is the nation's largest privately held gaming company and is sixth largest overall. It employs approximately 9,000 people, of which about 2,500 are Illinois residents. The company has annual revenue of approximately $1 billion. Mr. Binion has held a gaming license in Nevada for more than 40 years. Neither he nor the company has ever been denied a license in any jurisdiction.

As a result of the IGB's November approval of the acquisition, Horseshoe Gaming borrowed approximately $600 million to purchase all Empress properties. As part of its actions on November 30, the IGB also approved the pledging of all of the assets and capital stock of Empress Casino Joliet as provided under its $375 million credit facility. Moreover, and in direct response to the IGB's November 30 order, Horseshoe relocated its corporate headquarters and dozens of its key employees and their families to Joliet. Horseshoe, in fact, has met and exceeded its commitments to the state of Illinois as set forth by the IGB on November 30.

Horseshoe Gaming will continue to operate while exploring all of its options to protect its employees, assets and the reputation of Horseshoe Gaming, including seeking an administrative hearing on this decision.

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