MTR Gaming Group, Inc.

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MTR Gaming Group, Inc. (NasdaqNM:MNTG)

State Route 2, South, P.O. Box 358
Chester, WV 26034

Phone: (304) 387-5712
Fax: (304) 387-2167
WEB: www.mtrgaming.com
Email: info@mtrgaming.com
Employees (last reported count): 1,860

MTR Gaming Group Inc., incorporated in 1988, owns and operates the Mountaineer Racetrack & Gaming Resort (Mountaineer Park) in Chester, West Virginia, the Ramada Inn and Speedway Casino (the Speedway Property) in North Las Vegas, Nevada, through wholly owned subsidiaries. Mountaineer Park operates approximately 2,500 gaming machines, of which 1,744 are coin drop machines; the Speedway Property operates approximately 400 slot machines, eight blackjack tables, a craps table and one roulette wheel. In March 2003, the Company sold the Ramada Inn (the Reno Property) in Reno, Nevada. The Reno Property has an 8,000-square-foot area that was used for gaming, as well as a 7,900-square-foot convention facility housed in a separate building.

In June of 2001, through its newly formed wholly owned subsidiary, Presque Isle Downs, Inc., the Company filed an application with the Pennsylvania State Horse Racing Commission for a license to conduct thoroughbred horse racing and pari-mutuel wagering in Erie, Pennsylvania. MTR's plans call for construction of a horse racing facility featuring dirt and turf racing, as well as concerts, nightly entertainment and fine and casual dining. The new track, to be named Presque Isle Downs, would be built on land that the Company has under option. MTR selected Erie because it is already a resort and tourist destination, was previously the site of a licensed thoroughbred track and presents opportunities for cross marketing with Mountaineer Park, which is approximately 150 miles from Erie. Construction of the new track is subject to a number of contingencies, including licensing, zoning, closing on the real property upon exercise of the various option contracts (including the ability of the sellers to convey clear title), feasibility studies and other customary due diligence. Accordingly, there can be no assurance that the Company's plans to build the track in Erie will be executed.

Mountaineer Park

Mountaineer Park is situated on the Ohio River at the northern tip of West Virginia's northwestern panhandle in Hancock County, approximately 40 miles south of Youngstown, Ohio, 85 miles from Cleveland, Ohio, and 35 miles west of Pittsburgh, Pennsylvania. Mountaineer Park owns approximately 1,694 acres of real property in Hancock County, of which approximately 231 are located at the site of the racetrack, hotel, convention center, health club and events center. In addition, approximately 175 acres comprise Mountaineer's Woodview Golf Course located approximately seven miles south of the Mountaineer complex in the town of New Cumberland, and the remainder of the acreage is available for future development.

Mountaineer Park's revenues and profits are driven primarily by its video lottery operations, as well as pari-mutuel wagering, and, to a lesser extent, its lodging, food and beverage operations, automated teller machine (ATM) access fees, convention center, events center and recreational facilities fees. Mountaineer Park operates approximately 2,500 gaming machines, of which 1,744 are coin drop machines.

Mountaineer Park offers live thoroughbred horse racing on dirt and grass surfaces before expansive clubhouse and grandstand viewing areas with enclosed seating (770 seats and 2,850 seats, respectively) for year-round racing. In August of 2000, Mountaineer Park also began exporting its signal to other outlets in the United States and the Caribbean. Those outlets (approximately 250 off-track wagering facilities) simulcast Mountaineer Park's races and conduct pari-mutuel wagering. Mountaineer Park also conducts pari-mutuel wagering on horse and greyhound dog racing simulcast via closed circuit television from other racetracks around the country. The stable area accommodates approximately 1,250 horses and is located adjacent to the main track.

Mountaineer Park's lodge has 101 hotel rooms and a dining room that seats 125 patrons for casual dining. The Speakeasy Gaming Saloon (encompassing approximately 130,000 square feet), the buffeteria and the new convention center were annexed to the lodge. MR expects its new 260-room hotel addition and retail plaza to open during the second quarter of 2002.

Mountaineer Park's principal direct competitors are Wheeling Downs, Thistledown and Northfield Park, and The Meadows.

The Speedway Property

In May of 1998, MTR, through its wholly owned subsidiary, Speakeasy Gaming of Las Vegas, Inc. (Speakeasy Las Vegas), purchased a 131-room hotel and casino property and an adjacent 1/2-acre parcel purchased thereafter to augment parking (previously known as the Cheyenne Hotel & Casino) and renamed it the Ramada Inn and Speedway Casino (the Speedway Property). Since acquiring the Speedway Property, the Company has renovated 118 of the hotel rooms, refurbished the restaurant and constructed a 15,600-square-foot addition that houses the casino, and constructed a new swimming pool and parking lots that now accommodate 474 cars. The Speedway Property sits on approximately 6.1 acres and consists of one two-story building and one three-story building.

The Speedway Property is located in North Las Vegas. The Speedway Property is approximately five miles from the Las Vegas Motor Speedway and three miles from Nellis Air Force Base. MTR operates approximately 400 slot machines, eight blackjack tables, a craps table and one roulette wheel at the Speedway Property. The Company has the necessary licenses to conduct non-restricted gaming at the Speedway Property, until October of 2003, at which time it will have to seek renewal in order to continue to operate gaming.

The Reno Property

In May of 1998, the Company purchased a 262-room hotel and casino (previously known as the Reno Ramada Plaza Hotel) and renamed it the Ramada Inn and Speakeasy Casino (the Reno Property). An 11-story tower houses 236 of the Reno Property's hotel rooms. A separate three-story structure that contained 26 rooms was demolished during 2001 to create additional surface parking. The Reno Property is located in Reno, Nevada, and has parking for approximately 274 cars. The Reno Property has an 8,000-square-foot area that was used for gaming. MTR operated the casino until July 2001, at which time casino operations ceased. The Company elected not to pursue renewal of its gaming license.

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