834162--3/16/2010--MTR_GAMING_GROUP

related topics

{capital, credit, financial}

{debt, indebtedness, cash}

{acquisition, growth, future}

{condition, economic, financial}

{regulation, change, law}

{stock, price, share}

{investment, property, distribution}

{cost, regulation, environmental}

{financial, litigation, operation}

{property, intellectual, protect}

{personnel, key, retain}

Risks Related to Our Business We depend on Mountaineer and Presque Isle Downs for the majority of our revenues, and, therefore, any risks faced by those operations could have a material impact on our results of operations. We face significant competition from other gaming and racing facilities, and increased competition could have a material adverse effect on us; recent passage of a referendum authorizing four casinos in Ohio will create significant new competition. We are subject to extensive regulation by gaming and racing authorities. Potential Changes in Regulatory Environment. The future of slot gaming and video lottery at Scioto Downs is uncertain. We will require additional debt financing for implementation of table gaming at Presque Isle Downs. We depend on agreements with our horsemen and pari-mutuel clerks to operate our business. We are required to schedule a minimum number of live racing days in West Virginia and Pennsylvania. Our gaming operations are dependent on our linkage of slot machines to state central systems. We may face disruption in developing and integrating facilities we may expand or acquire, including financing, construction and other development risk. Our intellectual property rights may be inadequate to protect our business. We are or may become involved in legal proceedings that could impact our financial condition. We depend on our key personnel. Our business may be materially and adversely affected by recession or economic downturn; the seasonal nature of our business could also materially and adversely affect our cash flows. We are subject to environmental laws and potential exposure to environmental liabilities. The evolution of the slot machine manufacturing industry could impose additional costs on us. Risks Related to Our Capital Structure Our substantial level of debt could adversely affect our financial condition and prevent us from fulfilling obligations under our Senior Secured and Senior Subordinated Notes and our other debt. The indenture governing the Senior Secured and Senior Subordinated Notes and our other debt agreements contain covenants that significantly restrict our operations. Our outstanding Senior Subordinated Notes will mature in June 2012. Our Amended and Restated Credit Facility will mature in March 2010. To service our debt, we will require a significant amount of cash. If we fail to generate sufficient cash flow from future operations, we may have to refinance all or a portion of our debt or seek to obtain additional financing. Risks Related to Our Common Stock If the price of our common stock declines below $1.00 per share for a sustained period, our common stock may be delisted from the NASDAQ Global Select Market.

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834162--3/16/2010--MTR_GAMING_GROUP_INC