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MTR Gaming Allowed to Expedite License Appeal

The appeal was filed in December 2002 by MEC Pennsylvania Racing Inc., a subsidiary of Magna Entertainment Corp. that conducts harness racing, following the September 2002 unanimous decision of the Pennsylvania State Horse Racing Commission to grant MTR the license. As previously announced, MTR believes that the Pennsylvania State Horse Racing Commission acted in accordance with all applicable laws, regulations and procedures and that the appeal is without merit. Therefore, the Company has continued with the permitting process for the Erie racetrack as well as the design and engineering of the facility.

In this regard, MTR secured 225 acres of land under option for the facility, submitted a preliminary site plan, and received approval for the rezoning of the property. Most recently, Summit Township supervisors approved the relocation of Footmill Road, which will allow the Company to position the facility to minimize environmental impact. While MTR believes this is an important step toward development of the facility, it is still seeking further necessary approvals. Additionally, prudence dictates that MTR not commence construction until the appeal is favorably resolved, as to which there can be no assurances.

The Company also commented on the impact that the unusually harsh winter weather is having on patronage at its Mountaineer Race Track & Gaming Resort in Chester, WV. During January through the first week of February, the Company estimates that the weather has led to a reduction of slot revenue in the amount of approximately $1.8 million. This estimate is based upon the difference between slot revenue for the current period and the slot revenue the Company would have expected applying recent year-over-year growth rates. Notwithstanding the weather, however, Mountaineer's slot revenue for the week ending February 8, 2003 was $4.6 million, or $222.32 per machine per day.

The Company also noted that the implementation of cost cutting measures previously announced is having the desired effect. Management believes the program will yield significant cost reductions during fiscal 2003.

MTR Gaming Group, Inc. owns and operates the Mountaineer Race Track & Gaming Resort in Chester, West Virginia, which currently encompasses a thoroughbred racetrack with off-track betting and export simulcasting, 3,000 slot machines, 359 hotel rooms, golf course, spa & fitness center, theater and events center, convention center and fine dining and entertainment. The Company also operates the Ramada Inn and Speedway Casino in North Las Vegas, and a hotel in Reno, Nevada. MTR recently obtained a license to build a new thoroughbred racetrack with parimutuel wagering in Erie, Pennsylvania (judicial review pending), and signed a Merger Agreement with Scioto Downs, Inc. for Scioto to become a wholly owned subsidiary of MTR (subject to various customary conditions as reported on Form 8-K filed with the Securities and Exchange Commission on December 24, 2002).

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