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MTR Gaming Group Granted Minnesota Racetrack License

MINNESOTA -- (PRESS RELEASE) -- MTR Gaming Group, Inc. (Nasdaq National Market:MNTG) today announced that the Minnesota Racing Commission granted North Metro Harness Initiative, LLC's application to construct and operate a harness racetrack in Columbus Township, Anoka County, MN. In June of 2004, MTR's wholly owned subsidiary, MTR-Harness, Inc., acquired a 50% interest in North Metro and became a Managing Member for $10,000 (plus transaction costs) and a commitment to invest up to $7.5 million upon receipt of all required licenses.

Anoka County is approximately 30 miles north of downtown Minneapolis and 40 miles from the Mall of America. North Metro plans to build the facility on a 165-acre site currently under option. The track would be the second of only two racetracks permitted by law in the seven-county Minneapolis metropolitan area. Minnesota law permits licensed racetracks to operate a card room with up to 50 tables offering "non-banked" games (those in which the players play only against each other instead of against the house), subject to completion of the racetrack's first 50-day live race meet and regulatory approval of a card room plan of operation. Accordingly, North Metro intends to commence card room operations at the earliest practicable date.

Commenting on the granting of the license, Edson R. (Ted) Arneault, President and Chief Executive Officer of MTR Gaming, said, "We are pleased with the Racing Commission's decision and the opportunity to operate a racetrack and card room in the Twin Cities market. The project fits squarely within our strategy to diversify MTR's operations and leverage our management team by building or acquiring ground-up pari-mutuel and gaming ventures with an attractive entry cost."

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