MTR Gaming reports results

3 April 2007

CHESTER, West Virginia – (PRESS RELEASE) -- MTR Gaming Group, Inc. (NasdaqGS:MNTG) today announced financial results for the fourth quarter and year ended December 31, 2006. See attached tables (including Reconciliation of Non-GAAP Measures to GAAP).

For the fourth quarter, net revenues were $86.7 million, up 5% from $82.4 million in the same period of 2005. EBITDA was $10.2 million, compared to $9.5 million in the fourth quarter of 2005, despite $856,000 in increased EBITDA losses at Binion's, $1.4 million in development and pre-opening costs associated with Presque Isle Downs, and $690,000 of expenses related to MTR's support of a slot referendum in Ohio. Net income was $518,000 or $0.02 per diluted share, versus $41,000 or $0.00 per diluted share in the fourth quarter of last year.

Net revenues at the Company's flagship property, The Mountaineer Race Track & Gaming Resort, increased 8% to $68.0 million, and the property generated EBITDA of $15.4 million, a 12% increase from the fourth quarter of 2005.

As previously announced, MTR opened its Presque Isle Downs & Casino on February 28, 2007. For the fourth quarter, MTR recorded an EBITDA loss of $1.4 million related to development and pre-opening costs at the property. Situated on a 272-acre site, approximately 58 acres of which are dedicated to the public as open space, Presque Isle currently consists of a 140,000 square foot Clubhouse with 2,000 slot machines, fine and casual dining, bars, and approximately 3,225 parking spaces. The state-of-the-art thoroughbred horse racing facility is slated to open in September of this year.

Binion's accounted for $14.0 million of net revenues in the fourth quarter of 2006, versus $15.0 million in the comparable period in 2005, and experienced an EBITDA loss of $1.5 million in 2006, versus an EBITDA loss of $660,000 in 2005, primarily due to lower net revenues. The Company continues to work toward optimizing operations in order to capitalize on the facility's position within the Downtown Las Vegas gaming and entertainment market. The Company's Speedway Casino in North Las Vegas accounted for net revenues of $3.0 million and an EBITDA contribution of $558,000 for the quarter. As previously announced, MTR has entered into a definitive agreement to sell the Speedway for $18,175,000 in cash. The transaction is subject to customary conditions, including the approval of the Nevada Gaming Commission and the City of North Las Vegas.

For the year ended December 31, 2006, MTR's net revenues were $372.8 million, a 7% increase from $350.0 million in 2005. EBITDA was $48.6 million versus $50.0 million in the prior year, due in large part to Binion's operating results, pre-opening costs associated with Presque Isle Downs, and expenses related to MTR's support of a slot referendum in Ohio, somewhat offset by improved performance at Mountaineer. Net income was $4.4 million or $0.16 per diluted share, compared to $7.8 million or $0.27 per diluted share in 2005. The decrease in net income reflects the factors that contributed to the EBITDA decline, as well as higher net interest expense associated with the issuance of $125 million of Senior Subordinated Notes in May 2006, and an increase in the Company's overall effective income tax rate as a result of certain non-deductible expenses incurred in 2006.

Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group, stated, "This is an exciting time for MTR. Over the past several years, we have committed human and capital resources to several growth initiatives, Presque Isle Downs being the largest. The property is now generating revenues, and we have been very pleased with the attendance and play levels. For the first 26 days of operation, Presque Isle Downs generated gaming revenues of approximately $16.8 million, and an average net win per unit per day of $324. While these figures may reflect the initial enthusiasm surrounding the opening of the facility, they were achieved despite the cold and snow of the Erie winter. We expect Presque Isle to generate significant levels of revenues and profits, thus substantially diversifying MTR's operations."