PRESS RELEASE

HARRISBURG: The Pennsylvania Gaming Control Board, charged by statute with overseeing the implementation and regulation of expanded gaming in the Commonwealth, today agreed to accept applications for “Conditional Category 1” operating licenses through Oct. 31, 2005. Application forms, and instructions for completing the applications, will be posted on the Board’s Web site, www.pgcb.state.pa.us, within a week.

“Beginning the licensing process for Conditional Category 1 operators is an important step toward bringing expanded gaming and its benefits to the people of Pennsylvania,” said Tad Decker, chairman of the Board. “Over the past several months, we have focused on creating the regulatory framework that will govern gaming. Now, we’re moving closer to the actual licensing of gaming facilities.”

Act 71 of 2004, which authorized expanded gaming and created the Board, permits the issuance of seven “Category 1” operating licenses that must be associated with either a licensed thoroughbred-racing track or a licensed harness-racing track. A track operator may pursue a “Conditional Category 1” license that allows the operator to begin gaming operations before the applicant is fully compliant with all of Act 71’s licensing requirements. The operator must, however, become fully compliant with those requirements before the conditional license becomes a permanent Category 1 license.

The Gaming Control Board did not set a date for acting on any Conditional Category 1 applications it receives.

The Pennsylvania Horse Racing Commission has issued thoroughbred-racing licenses to three facilities that will be eligible to apply for either form of Category 1 gaming license. The Pennsylvania Harness Racing Commission has also licensed three facilities that will be eligible. The final gaming-eligible license will be issued by the Harness Racing Commission.

Separately, the Board agreed to accept applications for permanent Category 1 licenses, as well as the five Category 2 and two Category 3 licenses, from Nov. 1, 2005, through Dec. 28, 2005. The Board did not set a date for acting on these applications.