<PAGE>
                                  EXHIBIT 10.2


               EXCLUSIVE OPTION TO PURCHASE REAL ESTATE AGREEMENT

         On this 5th day of May, 2003 ("Effective Date"), this Exclusive Option
to Purchase Real Estate Agreement ("Agreement") is granted to Scioto Downs, Inc.
("Buyer"), by Mara Enterprises, Inc., an Ohio corporation ("Seller"), to
purchase the approximately 37 acre parcel of real property and any appurtenances
thereto located in the State of Ohio, County of Franklin, Township of Hamilton,
as more fully described in Exhibit "A" attached hereto and made a part hereof
(the "Property"), subject to the terms and conditions hereof.

         1.       Grant of Exclusive Option. In consideration of the sum of Ten
                  Dollars ($10.00) and other good and valuable consideration
                  receipt of which is hereby acknowledged by Seller, Seller
                  hereby grants to Buyer the exclusive right and option to
                  purchase the Property (the "Option to Purchase").

         2.       Term. The Option to Purchase shall expire on the earlier of
                  (a) Five (5) years from the closing date of the acquisition by
                  MTR Gaming Group, Inc. ("MTR") of all of the issued and
                  outstanding stock of Buyer [the "Acquisition"], (b) Six (6)
                  months following the death of LaVerne A. Hill, or (c) December
                  31, 2008.

         3.       Exercise of Option. Buyer shall exercise the Option to
                  Purchase by sending written notice thereof to Seller by
                  registered or certified mail or by delivering written notice
                  thereof to Seller by personal service.

         4.       Purchase Price and Terms. The Purchase Price for the Property
                  (the "Purchase Price") shall be the fair market value of the
                  Property ("Fair Market Value") . In the event that Seller and
                  Buyer are unable to agree upon Fair Market Value, each of
                  Seller and Buyer shall obtain an appraiser. These appraisers
                  shall appraise the Property and also jointly designate a third
                  appraiser to appraise the Property. For purposes of this
                  Agreement, Fair Market Value shall be the average of the two
                  closest appraisals. The parties shall share all appraisal fees
                  equally.

         5.       [Intentionally Omitted]

         6.       Evidence of Title. As a condition of Buyer's exercise of the
                  Option to Purchase, Buyer shall obtain at Buyer's expense a
                  title insurance policy from a nationally recognized company of
                  Buyer's choosing which shall insure to Buyer good and
                  merchantable title in fee simple, free and clear of all liens
                  and encumbrances, with access to publicly dedicated and
                  accepted highways and streets, without additional charge or
                  premium. At Closing, Seller shall transfer title to the
                  Property to Buyer by General Warranty Deed, free and clear of
                  all liens and encumbrances, with release of dower, if
                  applicable, with tender of the Purchase Price being evidence
                  of Buyer's

                                       1

<PAGE>

                  performance hereunder. Documentary stamps, transfer or
                  conveyance fees shall be paid by Seller, and the costs of
                  recording the Deed shall be paid by Buyer. If the title to all
                  or part of the Property to be conveyed is defective or
                  unmerchantable, if access to a publicly dedicated highway or
                  street is unavailable, or if any part of the Property is
                  subject to liens, encumbrances, easements, conditions or
                  restrictions that affect Buyer's intended use of the Property,
                  or in the event of any encroachment, Seller shall have thirty
                  (30) days after written notice thereof, within which to obtain
                  access to a publicly dedicated highway and/or street or to
                  remove such defect, lien, encumbrance, easement, condition,
                  restriction, or encroachment. If Seller is unable to remedy or
                  remove, or to secure title insurance for a reasonable cost
                  against such defect, lien, encumbrance, easement, condition,
                  restriction or encroachment within said thirty (30) day
                  period, Buyer may elect to either: a) terminate this Agreement
                  or b) agree in writing to waive such defect, lien,
                  encumbrance, easement, condition, restriction or encroachment
                  and to proceed with the purchase of the Property Seller agrees
                  to indemnify, reimburse, protect, defend, and hold Buyer
                  harmless from any cost or damage, including reasonable legal
                  costs and fees, incurred or resulting from Seller refusing to
                  close or not being able to close under the terms and
                  conditions of this Agreement for any reason whatsoever,
                  without prejudice to Buyer's additional rights, if any, at law
                  or equity or both. Neither this Agreement or the acts of the
                  parties hereto shall be deemed to create a joint venture,
                  partnership, or other arrangement by which any party might be
                  deemed to be an agent of or liable for the acts of the other
                  party.

         7.       Property Liens. Seller warrants there are no outstanding liens
                  or encumbrances of any kind on the Property other than those
                  of record as of the date hereof. Seller agrees not to mortgage
                  or encumber the Property after the date of this Agreement. In
                  the event Seller does so mortgage or encumber the Property
                  after the date of this Agreement, Buyer may avail itself of
                  all remedies at law or equity or both.

         8.       Taxes and Assessments. Seller shall pay or credit on the
                  Purchase Price all delinquent taxes, including penalty
                  interest, all assessments which are a lien on the Closing
                  Date, and all unpaid real estate taxes not yet due for years
                  prior to closing, and a portion of such taxes for year of
                  closing prorated through Closing Date based on a 365 day year
                  and if undetermined, on the most recently available tax rate
                  and valuation. It is the intention of both parties hereto in
                  making tax proration to allow Buyer a credit as close in
                  amount as possible to the amount which Buyer will be required
                  to remit to the appropriate county agency for the period of
                  time through the Closing Date, giving effect to applicable
                  exemptions, recently voted milage, and change in valuation,
                  whether or not certified. Seller warrants that as of the date
                  hereof no improvements or services have been installed or
                  furnished, or notification received from any public
                  authorities of future improvements of which any part of cost
                  may be assessed against the Property. Seller shall pay all
                  accrued water, sewer, rental street cleaning, gas, electric
                  and other utility charges in connection with the Property

                                       2

<PAGE>

                  as of the Closing Date. Any prepaid or committed utility,
                  zoning, municipal fees or permits affecting the Property will
                  be conveyed to Buyer at closing at no additional cost to
                  Buyer.

         9.       Possession. Seller shall be entitled to possession of the
                  Property until the Closing Date. On the Closing Date, the
                  Property is to be vacant and any leases will be terminated as
                  of the Closing Date. Seller shall be entitled to possession of
                  the Property until the Closing Date, provided, however, that
                  prior to the Closing Date, Buyer or Buyer's agent shall have
                  the right to enter upon the Property to make surveys, soil
                  tests, and other studies and examinations, provided Buyer
                  shall not unreasonably interfere with Seller's use of the
                  Property. Prior to Closing Date, in the event of damage or
                  destruction to or appropriation of the Property or portions
                  thereof or threats of said actions, for public use by any
                  governmental entity or agency possessing powers of
                  condemnation or eminent domain, Buyer shall have the right to
                  rescind this Agreement.

         10.      Representations and Warranties. Seller represents and warrants
                  that the following are true and correct in all material
                  respects as of the date hereof, and that such representations
                  and warranties will be true and correct in all material
                  respects as of the Closing Date:

                  a.       Governmental Approvals: After Buyer has given notice
                           of its intent to exercise its option subject to
                           governmental approval, Seller agrees that Buyer may
                           apply to the appropriate governmental authorities
                           having jurisdiction thereof to secure subdivision
                           approvals, site plan approvals, issuance of building
                           permits, curb cut approvals, and various other
                           approvals and permits, necessary or desirable for the
                           development of the Property. Seller agrees to execute
                           all necessary documents and take all reasonable
                           actions as shall be necessary, and otherwise
                           cooperate with Buyer in connection with such
                           applications; provided, however, that Seller shall
                           not be required to record any documents relating to
                           rezoning prior to Closing which would, in the
                           reasonable opinion of Seller or its attorney,
                           adversely affect the continued use or future value of
                           the Property.

                  b.       Assessments: Seller represents that as of the date
                           hereof, neither the Property nor any part thereof has
                           been affected, or is affected, by an assessment or
                           assessments which are or may become payable in annual
                           installments, whether or not the first is then a
                           charge or lien, or has been paid. In addition, there
                           have been no unconfirmed assessments affecting the
                           Property, with no ordinances having been adopted for
                           improvements affecting the Property, at or prior to,
                           the date hereof, and no improvements or work have
                           been commenced covering any improvements benefiting
                           the

                                       3

<PAGE>

                           Property as of the date hereof.

                  c.       Record Ownership: Seller is the record owner of fee
                           simple title to the Property.

                  d.       Liens and Encumbrances. The Property currently is (or
                           will be as of the Closing Date) free and clear of all
                           liens, mortgages, deeds of trust, encumbrances,
                           easements, leases, conditions or other matters
                           affecting title except those of record as of the date
                           hereof.

                  e.       No Adverse Ownership. No person other than Seller has
                           any right, title or interest in the Property other
                           than a leasehold interest as set forth on Exhibit B
                           attached hereto and made a part hereof.

                  f.       Preservation of Title: From the date hereof to the
                           earlier of the Closing Date or the expiration of the
                           Option, Seller shall not, without in each instance
                           first obtaining the written consent of Buyer which
                           may be withheld in its sole and absolute discretion:
                           (i) voluntarily grant, create, or assume any lien,
                           lease, encumbrance, easement, covenant, condition,
                           right-of-way or restriction upon the Property or (ii)
                           voluntarily take any action adversely affecting title
                           to the Property as it exists on the date hereof.

                  g.       Maintenance of the Property: From the date hereof to
                           the earlier of the Closing Date or the expiration of
                           the Option, Seller shall, at its expense, maintain
                           the Property and deliver the Property to Buyer at the
                           Closing Date in substantially the condition as it is
                           on the date hereof, reasonable wear and tear and
                           damage by fire or other casualty excepted.

                  h.       Compliance with Laws: As of the date of this Option
                           Agreement, there are no violations of the laws,
                           ordinances, rules, or regulations of any governmental
                           authority having jurisdiction of the Property, nor
                           does Seller have knowledge of any facts which if
                           known by any such authority would cause a violation
                           to be placed thereon, and any notice of violation
                           affecting the Property at the date of exercise of the
                           Option and/or the date of Closing shall be complied
                           with by Seller, at its sole cost and expense, so that
                           the Property shall be conveyed free of same.

                  i.       Environmental: Seller warrants and represents that:
                           (i) no Hazardous Materials are located on or in the
                           Property, including the surface, soil or subsurface
                           of the Property; (ii) Seller has received no notice
                           that Hazardous Materials contaminate or otherwise
                           affect the Property, and to its best knowledge, no
                           Hazardous Materials are present on any adjacent
                           Property; (iii) the Property has not been previously
                           used for the storage,

                                       4

<PAGE>

                           manufacture, repair or disposal of Hazardous
                           Materials, or machinery containing such Hazardous
                           Materials; (iv) no complaint, order, citation or
                           notice with regard to air emissions, water
                           discharges, noise emissions, Hazardous Materials, or
                           any other environmental, health, or safety matters
                           affecting the Property, or any portion thereof, from
                           any person, government or entity, has been received
                           by Seller; and (v) all federal, state and local
                           environmental laws and regulations affecting the
                           Property and Hazardous Materials have been fully
                           complied with, and no heating equipment, incinerator
                           or other burning equipment installed or located in or
                           on the Property violates any law, ordinance, order or
                           regulation of any governmental authority.

                  j.       Insolvency: Seller is not a party to any attachment,
                           execution proceedings, assignments for the benefit of
                           creditors, insolvency, receivership bankruptcy,
                           reorganization, or other proceedings pending against
                           Seller.

                  k.       Absence of Default: Neither the execution and
                           delivery of this Option and the documents referenced
                           herein nor the consummation of the transactions
                           contemplated herein nor compliance with the terms of
                           this Option and the documents referenced herein
                           conflict with or will result in the material breach
                           of any terms, conditions or provisions of, or
                           constitute a default under, any bond, note or other
                           evidence of indebtedness or any contract, indenture,
                           mortgage, deed of trust, loan, partnership Option,
                           lease or other Options or instruments to which Seller
                           or any of its affiliates is a party or affecting the
                           Property or by which Seller may be bound.

         12.               Condition of Property. Seller agrees that no soil or
                           trees will be removed from the Property after the
                           Effective Date.

         13.               Commissions. The parties agree that no brokers have
                           been involved in the negotiation of this transaction
                           and that no party is entitled to a commission from
                           either party hereto.

         14.               Survival Clause. Seller and Buyer agree that this
                           Agreement shall survive the Closing Date and the
                           delivery of the General Warranty Deed until all terms
                           and conditions hereof are satisfied in full.

         15.               Default. Buyer's liability for breach of this Option
                           Agreement shall be limited to forfeiture of all
                           monies then having been paid to Seller hereunder,
                           which the parties agree shall constitute full and
                           complete liquidated damages for any default hereunder
                           by Buyer. In the event that Seller defaults
                           hereunder, Buyer shall be entitled to: (i) seek
                           specific performance; and/ or, (ii) seek relief from
                           any court at law or in equity.

                                       5

<PAGE>

         16.               Notices. All notices required under this Agreement,
                           unless specifically defined elsewhere herein, shall
                           be given by registered or certified mail as follows:

                           Buyer:                         Seller:

                           Scioto Downs, Inc.             Mara Enterprises, Inc.
                           Attn: Edward T. Ryan           Attn: LaVerne A. Hill
                           6000 South High Street         ____________________
                           Columbus, OH 43207             ____________________

                  17.      Assignments. Buyer may assign its interest in this
                           Agreement prior to the Closing Date only to an entity
                           controlled by the Buyer without notice or approval of
                           Seller.

                  18.      Closing. The sale of the Property contemplated
                           hereunder shall close within thirty (30) days after
                           exercise of the Option to Purchase ("Closing Date").

                  20.      Successors and Assigns. This Agreement shall be
                           binding upon the successors, heirs, and assigns of
                           the parties hereto.

                  21       Governing Law. This Agreement shall be governed by
                           the laws of the State of Ohio without reference to
                           choice of laws rules.

                  22.      Exclusivity. This Agreement and the Option to
                           Purchase is exclusive to Buyer. Seller shall not
                           grant any options to purchase the Property nor shall
                           Seller sell the Property to any other buyers during
                           the term of this Agreement.

                  24.      Entire Agreement. This Agreement sets forth the
                           complete agreement between the parties hereto and
                           there are no other written or oral agreements not
                           contained herein.

                  IN WITNESS WHEREOF, the parties have set their hands hereunto
         by their respective duly authorized representative as of the Effective
         Date set forth above.

         BUYER                                  SELLER

         SCIOTO DOWNS, INC.                     MARA ENTERPRISES, INC.

         /s/ Edward T. Ryan                     /s/ LaVerne A. Hill
         ------------------                     -------------------
         By: Edward T. Ryan                     By: Laverne A. Hill
         Its: President                         Its: President

                                       6

<PAGE>

         State of Ohio
         County of Franklin, ss

                  Before me a notary public, in and for the State of Ohio,
         personally appeared the above-named Edward T. Ryan, the president of
         Scioto Downs, Inc., an Ohio corporation and the Buyer hereunder, who
         acknowledged that he did sign the foregoing instrument on behalf of
         said corporation and that the same is their free and voluntary act and
         deed on behalf of said corporation and their free and voluntary act and
         deed.

                  IN TESTIMONY WHEREOF, I have hereunto subscribed my name and
         affixed my official seal this 5th day of May, 2003.

                                                     /s/
                                                     _______________
                                                     NOTARY PUBLIC

         State of Ohio
         County of Franklin, ss

                  Before me a notary public, in and for the State of Ohio,
         personally appeared the above-named LaVerne A. Hill, the president of
         Mara Enterprises, Inc., an Ohio corporation and the Seller hereunder,
         who acknowledged that she did sign the foregoing instrument on behalf
         of said corporation and that the same is their free and voluntary act
         and deed on behalf of said corporation and their free and voluntary act
         and deed.

                  IN TESTIMONY WHEREOF, I have hereunto subscribed my name and
         affixed my official seal this 5th day of May, 2003.

                                                     /s/
                                                     _______________
                                                     NOTARY PUBLIC

                                       7

<PAGE>

                                   EXHIBIT "A"

                                Legal Description

                                       8