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MTR Gaming Minnesota Project Updated

CHESTER, West Virginia -- (PRESS RELEASE) -- MTR Gaming Group, Inc. (Nasdaq National Market:MNTG) today announced that the Minnesota Racing Commission denied North Metro Harness Initiative's application to construct and operate a harness racetrack in Columbus Township, Anoka County, MN, in a five to three vote, citing concerns that the new harness track and card room would take business away from the state's existing thoroughbred track and card room. MTR's wholly owned subsidiary, MTR-Harness, Inc., acquired a 50% interest in North Metro Harness Initiative, LLC for $10,000 (plus transaction costs) and a commitment to invest up to $7.5 million if the project became licensed.

The Minnesota Racing Commission's Chairwoman stated, "If there is ever a time to license another racetrack in Minnesota, it is now and it is with this applicant." Despite their positive views toward the application and the applicant, however, the Chairwoman and certain other commissioners felt that a statutory limitation on competition tied their hands. The town board, Anoka County officials and area business leaders likewise supported the application. MTR and its partner continue to believe that the project will be in the best interest of Minnesota racing and that the statute permits a second track, notwithstanding the creation of some competition with the existing thoroughbred track. North Metro will therefore likely seek judicial review.

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