Southwest Casino Corporation announced that on June 6, 2006 the Minnesota
Court of Appeals affirmed a decision by the Ramsey County District Court
granting summary judgment in favor of the Minnesota Racing Commission and
North Metro Harness Initiative, LLC. The Court of Appeals upheld the
District Court’s decision to dismiss claims that the Racing Commission
violated Minnesota’s Open Meeting law when deciding to grant licenses to
North Metro to develop and operate a harness racetrack and card room in
Columbus Township, Anoka County, Minnesota. Southwest Casino Corporation
owns a 50% membership interest in North Metro. MTR-Harness, Inc., a
subsidiary of MTR Gaming Group, Inc. (Nasdaq:MNTG) also owns a 50%
membership interest. The Appellate Court’s decision may be appealed to the
Minnesota Supreme Court.

The Minnesota Racing Commission voted to grant the licenses to North Metro
in January of 2005, but an anti-gambling citizens group opposed to the
development filed two lawsuits against the Commission in attempts to
overturn the licenses and block the project. Today’s Court of Appeals
decision could be appealed to the Minnesota Supreme Court, which would then
have discretion to decide whether to hear the case. The Minnesota Supreme
Court has not yet ruled on a request for review of a previous Court of
Appeals decision upholding the Racing Commission’s decision to grant racing
licenses to North Metro.

Regarding yesterday’s Court of Appeals decision, Jim Druck, CEO of Southwest
Casino Corporation said, “We are once again delighted. The Court of Appeals
has again confirmed what we always believed, that the Minnesota Commission
acted properly when it decided to grant racing licenses to North Metro and
that those licenses are valid and appropriate. While the litigation process
continues, we are pleased to be another step closer to starting
construction.”