MTR Gaming Group Announces Favorable Resolution of Final Challenge to

    Business Editors

    CHESTER, W.V.--(BUSINESS WIRE)--Jan. 4, 2005--MTR Gaming Group, Inc. (Nasdaq National Market:MNTG) today announced that the Pennsylvania Supreme Court denied a Petition for Allowance of Appeal filed by Pittsburgh Palisades, which aimed to challenge the Racing Commission's July 17, 2003 reinstatement of MTR's license to build Presque Isle Downs.
    Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group, stated, "We are very pleased to put this final legal challenge behind us, and look forward to moving ahead with the development of Presque Isle Downs at our licensed site in Summit Township."

    About MTR Gaming Group

    MTR Gaming Group, Inc., through subsidiaries, owns and operates the Mountaineer Race Track & Gaming Resort in Chester, West Virginia; Scioto Downs in Columbus, Ohio; the Ramada Inn and Speedway Casino in North Las Vegas, Nevada; Binion's Horseshoe Hotel & Casino in Las Vegas, Nevada, which the Company operates jointly with an affiliate of Harrah's through March 11, 2005; and holds a license to build Presque Isle Downs, a thoroughbred racetrack with pari-mutuel wagering in Erie, Pennsylvania. The Company also owns a 50% interest in the North Metro Harness Initiative, LLC which is pursuing a license to construct and operate a harness racetrack and card room 30 miles north of downtown Minneapolis. Additionally, the Company has entered into a definitive agreement to acquire a 90% interest in Jackson Trotting Association, LLC, which operates Jackson Harness Raceway in Jackson, Michigan. The Mountaineer facility, the Company's primary source of revenues, currently encompasses a thoroughbred racetrack with off-track betting and export simulcasting, 3,220 slot machines, 359 hotel rooms, golf course, spa & fitness center, theater and events center, convention center and fine dining and entertainment. MTR is included on the Russell 2000(R) and Russell(R) 3000 Indexes. For more information, please visit www.mtrgaming.com.

    Except for historical information, this press release contains forward-looking statements concerning, among other things, the construction and opening of Presque Isle Downs. Such statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and/or for actual results to differ materially. Those risks and uncertainties include but are not limited to costs and risks attending construction, disruption in developing our planned Pennsylvania operations and other facilities we may expand and/or acquire, closing on certain parcels of the Erie site currently under option, extensive regulation by gaming and racing authorities, regulatory approval of our building plans for Presque Isle Downs and regulatory approval of our motion to extend the time for commencing racing operations at Presque Isle Downs, our compliance with environmental laws and potential exposure to environmental liabilities, successful cross-marketing of the Company's Ohio and planned Pennsylvania operations with Mountaineer and other factors described in the Company's periodic reports filed with the Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements, except as may be required by law.

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CONTACT: MTR Gaming Group, Inc. Edson R. (Ted) Arneault, 304/387-8300 www.mtrgaming.com or Investor Relations Counsel: The Equity Group Inc. Lauren Barbera, 212/836-9610 lbarbera@equityny.com or Loren G. Mortman 212/836-9604 www.theequitygroup.com

KEYWORD: WEST VIRGINIA INDUSTRY KEYWORD: GAMING SOURCE: MTR Gaming Group, Inc.

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