The Majestic Star Casino today announced that, by and through a wholly-owned subsidiary,
it has signed a definitive agreement for the Company to sell its Black
Hawk, Colorado casino to Legends Gaming, LLC, a company controlled by
William J. McEnery. Mr. McEnery was a founding partner and director of
Argosy Gaming Company. He was also a founding partner of Empress River
Entertainment Corp. which previously owned and operated Empress-brand
casinos in Joliet, Illinois and Hammond, Indiana. The purchase price is
$66,000,000, subject to adjustment. The purchase by Legends Gaming is
subject to licensure and regulatory approval and is expected to close
within six to nine months. The Company’s Black Hawk casino, a non-core asset and the smallest of the
Company’s casinos in terms of net revenues, operating income and assets,
consists of approximately 594 slot machines, 6 table games, a 392 space
parking garage, a restaurant and a bar.

“We are extremely pleased with the strategic opportunity presented by the
interest of Legends Gaming in the Colorado gaming market,” said Don H.
Barden, President and CEO of the Company.

“This type of transaction gives the Company increased financial
flexibility,” added Mr. Barden. “We could reinvest the net cash proceeds
in our other properties or pursue new gaming ventures which are becoming
increasingly attractive in various jurisdictions across the country.”

The Company will provide further information regarding the sale in
connection with its press release of its second quarter earnings in
approximately three weeks.
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