Document:

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                                  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

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                  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

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                  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

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                           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,

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                           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.

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         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

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         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

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                                   EXHIBIT "A"

                                Legal Description

                                       8<PAGE>
                                  EXHIBIT 10.3

                               OPEN-END MORTGAGE,
                   SECURITY AGREEMENT AND FINANCING STATEMENT
             [To Secure up to $1,000,000.00 (exclusive of interest)]

        Scioto Downs, Inc., an Ohio corporation ("Mortgagor"), whose address is
6000 South High Street, Columbus, Ohio 43207, in consideration of One Million
Dollars ($1,000,000.00 paid or to be paid to or on behalf of Mortgagor by MTR
Gaming Group, Inc., a Delaware corporation ("Mortgagee"), whose address is State
Route 2, P.O. Box 356, Chester, WV 26034, hereby grants with mortgage covenants
to Mortgagee, its successors and assigns forever, the approximately 173 acre
parcel of land in the State of Ohio, County of Franklin, and Township of
Hamilton, commonly known as 6000 South High Street, as more fully described on
the Exhibit A attached to this Mortgage and made a part hereof (the "Property").

        Mortgagor also grants to Mortgagee all of the rents, issues, and profits
which may arise or be had from the Property and the estate, right, title, and
interest, either in law or in equity, which Mortgagor now has or may hereafter
acquire in and to all the Property; all buildings and improvements now existing
or hereafter constructed or placed on the Property; all fixtures of whatever
kind and nature including without limitation all heating, lighting, sprinkling,
plumbing, air conditioning, and ventilating machinery and equipment which is
physically affixed or annexed to the Property; all attached carpeting, wall and
floor coverings; all pipes, conduits, pumps, boilers, tanks, motors, engines and
furnaces; and all parts, accessories, attachments, additions, and other
replacements thereof, of every kind and description, located at or on the
Property.

        The Property and the buildings, improvements, and other items enumerated
in the preceding paragraph are sometimes hereinafter referred to as the
"Premises".

        Pursuant to the terms and conditions of a Merger Agreement entered into
as of December 23, 2002, as amended (the "Merger Agreement), by and between
Mortgagee, Mortgagor and Racing Acquisition Corp. (a wholly owned subsidiary of
the Mortgagee), Mortgagee will acquire all of the issued and outstanding stock
of the Mortgagor.

        The Mortgagor has requested that the Mortgagee extend credit to the
Mortgagor, pursuant to the terms and conditions of a Loan Agreement (the "Loan
Agreement") and Promissory Note (the "Note") of even date herewith, in the
maximum principal amount of One Million Dollars ($1,000,000.00) (hereinafter
called the "Loan"), and the Mortgagor hereby mortgages the Premises to secure
the Loan.

        This Mortgage secures, in such order or priority as Mortgagee may elect:
payment, performance and observance of Borrower's indebtedness and obligations
under the Loan and under each and every instrument and document now or hereafter
evidencing or securing the Loan (hereinafter collectively called the "Loan
Documents"), including, without limitation the Loan Agreement and Note.

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        In addition to any other debt or obligation secured hereby, this
Mortgage shall secure unpaid balances of advances made, with respect to the
Premises, for the payment of taxes, assessments, insurance premiums or costs
incurred for the protection of the Premises.

        This Mortgage is intended to be a security agreement pursuant to the
Uniform Commercial Code as enacted in Ohio with respect to any of the above
described collateral that may be subjected to a security interest under such
code. Upon the occurrence of any event of default hereunder, Mortgagee shall
have the remedies of a secured party under the Uniform Commercial Code and, at
Mortgagee's sole option, may also invoke the remedies provided in this Mortgage.
All or part of the above described collateral that may be so subjected to a
security interest under such Code is or may become a fixture related to the
Premises. Upon filing, this Mortgage shall also be effective as a financing
statement filed as a fixture filing with respect to such collateral.

        The parties hereto intend that, in addition to any other debt or
obligation secured hereby, this Mortgage shall secure unpaid balances of loan
advances made by Mortgagee to Borrower after this Mortgage is delivered to the
Recorder for record, whether made pursuant to an obligation of Mortgagee or
otherwise. Such loan advances are and will be evidenced by the Note or the Loan
Documents. The maximum amount of unpaid loan indebtedness secured by this
Mortgage (which shall consist of unpaid balances of loan advances made either
before or after, or both before and after, this Mortgage is delivered to the
Recorder for record), exclusive of interest thereon, which may be outstanding at
any time is One Million Dollars ($1,000,000.00).

Covenants of Mortgagor

        Mortgagor, for itself and its successors and assigns, hereby covenants
with Mortgagee, its successors and assigns, that Mortgagor holds a valid fee
simple interest in the Premises; that it has the right to bargain and sell the
same in the manner and form as set forth in this Mortgage; that the Premises are
free from all liens and encumbrances whatsoever except real estate taxes and
assessments not presently due and payable, zoning laws, a mortgage in favor of
National City Bank securing outstanding indebtedness having a principal amount
of less than Two Million Six Hundred Thousand Dollars ($2,600,000.00), and
easements and restrictions of record; that Mortgagor will warrant and defend the
Premises and the appurtenances thereto to Mortgagee, its successors and assigns,
forever, against all claims and demands whatsoever except the above described
exceptions; and hereby covenants and agrees:

        1. To pay before they become delinquent all taxes (both general and
special), assessments, water rents, fines or impositions, and governmental
charges levied or assessed against the Premises or any part thereof or interest
therein, and upon request of Mortgagee, to promptly deliver to Mortgagee
receipts showing such payments.

        2. To keep all buildings and other improvements now existing or
hereafter erected on the Premises insured against loss or damage by fire and
such other hazards (i.e., all risk coverage), casualties, and contingencies as
may be reasonably required by Mortgagee and to provide comprehensive public
liability insurance in such amounts as Mortgagee may reasonably require. All
policies of insurance shall be in forms, from companies, and in amounts
satisfactory

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to Mortgagee and any other person holding a mortgage on the Premises, and shall
include standard mortgagee clauses and loss payable clauses in favor of and in
form acceptable to Mortgagee and a provision for each such insurer to give
Mortgagee 30 days prior written notice of the insurer's intention to cancel such
policy. All premiums relating to such insurance shall be paid promptly and
Mortgagee shall be furnished with evidence of the existence of such insurance
and the current status of premiums thereon. In the case of pending expiration of
any such policy, a renewal thereof with receipt for the premium on such policy
shall be delivered to Mortgagee on or before the date of expiration. In the
event of loss, Mortgagor shall give immediate notice by mail to Mortgagee. If
any portion of the Premises shall be damaged or partially or totally destroyed
while this Mortgage is in effect, the net proceeds payable from any insurance
policy as a result of such damage or destruction shall be used, at the option of
Mortgagee, either (a) to reduce the indebtedness secured by this Mortgage,
whether due or not, or (b) to repair, rebuild, or restore the Premises pursuant
to such arrangements for periodic disbursements of portions of such proceeds as
Mortgagee may require in order to assure that all such repairs, rebuilding, and
restoration is accomplished in a good, timely, and workmanlike manner, free and
clear of all mechanics' or other liens.

        3. To keep and maintain all buildings, improvements, appurtenances,
fixtures, and other property now or hereafter comprising a part of the Premises
in good repair and in as good condition as the same now are or may hereafter be
put and to comply with all laws, ordinances, regulations, and requirements of
all legally constituted authorities respecting the Premises and the use of the
Premises.

        4. To keep the Premises free and clear from all mechanics' liens,
statutory liens, tax liens, and liens of any other type whatsoever during the
continuance of this Mortgage and to execute and deliver inferior mortgages or
modifications of inferior mortgages only after receiving the express written
authorization from Mortgagee. If any liens or encumbrances referred to in the
preceding sentence are placed against the Premises, or foreclosure proceedings
of any junior lien or encumbrance of any kind are instituted, Mortgagee may, at
its option, declare the Note secured by this Mortgage due and payable
immediately and institute such proceedings as it may determine necessary or
advisable to protect its interest in the Premises. The foregoing prohibition
against liens and encumbrances shall not apply to the lien of real estate taxes
and assessments that are treated in paragraph 1 above.

        5. Not to commit, suffer, or permit any waste on, of, or to the
Premises, nor use or permit the use of any portion thereof for any unlawful act,
or any action that might diminish or impair the value of the Premises or the
lien or security of this Mortgage.

        6. Not to remove, demolish, or alter any building, improvement, or other
item described in the second paragraph on page one of this Mortgage now or
hereafter comprising a part of the Premises except when incident to the
improvement of the Premises or for the replacement of fixtures with items of
like kind and value.

        7. Not to sell, assign, convey, lease, or sublease all or any part of
the Premises, or any legal or equitable interest therein, without the prior
written consent of Mortgagee. If Mortgagee consents to a change of ownership,
Mortgagee may, without notice to Mortgagor, deal with such

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successor or successors in interest of Mortgagor with reference to this Mortgage
and the debt secured by this Mortgage in the same manner as with Mortgagor, may
forbear to sue, or may extend time for payment of the debt secured by this
Mortgage without discharging or in any way affecting the liability of Mortgagor
under this Mortgage or the debt secured under this Mortgage, or may make such
other arrangements with such successor or successors in interest regarding the
payment of the obligation secured under this Mortgage as Mortgagee in its
judgment shall consider necessary or advisable without releasing or discharging
Mortgagor from any obligations or liabilities which it may have under the Note
or any other Loan Documents.

        8. To execute and deliver to Mortgagee and to any subsequent holder from
time to time, upon demand, any further instrument or instruments, including, but
not limited to, mortgages, security agreements, financing statements,
assignments, and substitution notes, so as to reaffirm or to perfect the
evidence of the obligation secured by this Mortgage and the lien of Mortgagee on
all or any part of the Premises intended to be hereby mortgaged

        9. That the Premises are in compliance with all "Environmental Laws" (as
defined below); that there are no conditions existing currently or likely to
exist during the term of the Note which require or are likely to require
cleanup, removal, remedial action, or other response pursuant to Environmental
Laws by the Mortgagor; that Mortgagor is not a party to any litigation or
administrative proceeding, nor so far as is known by the Mortgagor is any
litigation or administrative proceeding threatened against it, which asserts or
alleges that Mortgagor violated any Environmental Laws; that neither the
Premises nor the Mortgagor is subject to any judgment, decree, order, or
citation related to or arising out of any Environmental Laws; and that no
permits or licenses are required under any Environmental Laws relative to the
Premises. In the event that such statements later prove to be false,
irrespective of Mortgagor's knowledge, such shall be an event of default under
this Mortgage.

        For purposes of this Mortgage: (a) "Environment" or "Environmental"
shall mean any water or water vapor, any land including land surface or
subsurface, air, fish, wildlife, biota and all other natural resources; and (b)
"Environmental Laws" shall mean all federal, state, and local environmental
laws, statutes, ordinances, and codes relating to the protection of public
health or the Environment and/or governing the use, storage, treatment,
generation, transportation, processing, handling, management, production, or
disposal of solid wastes, toxic substances, hazardous wastes, hazardous
substances, petroleum, petroleum based products, radio-nuclides, or other
radioactive materials and the rules, regulations, policies, guidelines,
interpretations, decisions, orders, and directives of federal, state, and local
government agencies and authorities with respect thereto, including without
limitation, the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous
Materials Transportation Act, as amended (49 U.S.C. Section 1801, et seq.), the
Solid Waste Disposal Act, as amended (42 U.S.C. Section 6901, et seq.), the
Toxic Substances Control Act, as amended (15 U.S.C. Section 2601, et seq.), the
Clean Air Act of 1970, as amended (42 U.S.C. Section 7401, et seq.), the Water
Pollution Control Act, as amended (33 U.S.C. Section 1251, et seq.), the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Section 136, et seq.), the
Atomic Energy Act (23 U.S.C. Section 2011, et seq.), and Chapter 3745 of the
Ohio Administrative Code.

                                       4
<PAGE>

        Mortgagor covenants and agrees to comply with all applicable
Environmental Laws; to provide to the Mortgagee, immediately upon receipt,
copies or any correspondence, notice, pleading, citation, indictment, complaint,
order, decree, or other document from any source asserting or alleging a
circumstance or condition which requires or may require a cleanup, removal,
remedial action, or other response by or on the part of the Mortgagor under
Environmental Laws or which seeks criminal or punitive penalties from Mortgagor
for an alleged violation of Environmental Laws; and to advise the Mortgagee in
writing as soon as Mortgagor becomes aware of any condition or circumstance
which makes the warranties contained in this mortgage incomplete or inaccurate.
Any failure of Mortgagor to comply with the Environmental Laws shall be an event
of default under this Mortgage. The covenants and obligations of Mortgagor under
this section shall survive any foreclosure of this Mortgage.

Failure to Comply with Obligations

        Upon the failure of Mortgagor: (a) to perform any obligation to be
performed by Mortgagor under this Mortgage or under any other mortgage that
encumbers the Premises, or to pay any taxes, assessments, insurance premiums, or
other payments provided for under this Mortgage, (b) to pay the cost and expense
of maintaining the Premises in the state of repair and condition required by
this Mortgage, (c) to defend its title to the Premises, or (d) to discharge and
pay when due any lien or title claimed to rank equal to or have priority over
the lien of this Mortgage, Mortgagee, or its successors and assigns, may pay
such taxes, assessments, insurance premiums, or payment, perform such
obligations, and pay the cost and expense of such repair or maintenance, or the
cost and expense of defending or clearing such title or performing any such
obligation, including reasonable attorneys' fees, and any and all amounts paid
out by Mortgagee in connection therewith, with interest at the applicable rate
under the Note from time to time, payable monthly, shall be deemed to have been
paid to protect the Premises and shall be and become additional indebtedness
secured by this Mortgage and shall be paid to Mortgagee, or its successors and
assigns, by Mortgagor immediately upon demand.

        Unless otherwise agreed, all payments received by Mortgagor are to be
applied in the following order: costs, expenses, reasonable attorney's fees,
interest, and then principal. In the event this Mortgage secures more than one
note or other evidence of indebtedness, then any payment may be applied in such
order as Mortgagee may determine.

Condemnation

        If any portion of the Premises is condemned under any power of eminent
domain, or acquired for a public use, at any time, the net proceeds of any
condemnation award paid as a result of such condemnation or acquisition shall be
used, at the option of Mortgagee, either (a) to reduce the indebtedness secured
by this Mortgage, whether due or not, or (b) to repair, rebuild, or restore the
Premises pursuant to such arrangements for periodic disbursements of portions of
such proceeds as Mortgagee may require in order to assure that all such repairs,
rebuilding, and restoration is accomplished in a good, timely, and workmanlike
manner, free and clear of all mechanics' or other liens.

Default

                                       5
<PAGE>

        If default is made by Mortgagor : (a) in the payment of any installment
of principal or interest and principal of the Note as provided in the Note; (b)
in the payment of taxes, assessments, insurance premiums or other payments
required under this Mortgage; or (c) in the due and punctual performance of any
of the terms, agreements, covenants, conditions, and representations of the
Note, this Mortgage, or any Loan Document, or any other document relating
thereto; or if any change shall occur in the equitable or legal ownership of the
Premises; or if Mortgagor : (i) shall make an assignment for the benefit of
creditors; (ii) have a receiver or trustee appointed for the Premises, for
Mortgagor, or for all or any substantial portion of Mortgagor's property; (iii)
admits in writing its inability to pay its debts generally as they become due;
(iv) has an order for relief entered in any case commenced by or against it
under the federal bankruptcy laws, as now or hereafter in effect; (v) commences
a proceeding under any other federal or state bankruptcy, insolvency,
reorganization, or other similar law, or has such a proceeding commenced against
it or has the proceeding remain undismissed and unstayed for 60 days; (vi)
defaults under the Merger Agreement; or (vii) defaults under the Management
Agreement; and, in the case of a default in any matter described in terms (b) or
(c) of this paragraph upon 5 days' written notice from Mortgagee to Mortgagor
(during which period Mortgagor shall have the right to cure such default), the
Note and all sums or amounts payable to Mortgagee shall, at the option of
Mortgagee, be and become immediately due and payable, all such amounts shall
bear interest at the default rate set forth in the Note, payable monthly until
paid, and this Mortgage shall become subject to foreclosure. In the event of
foreclosure, the Premises may be sold in its entirety, or as two or more
parcels, at the sole discretion of Mortgagee.

        Mortgagee's declaration of a default pursuant to items (i) through (vii)
of the preceding paragraph and the exercise of remedies upon any such
declaration shall be subject to any applicable limitations of federal bankruptcy
law affecting or precluding such declaration or exercise during the pendency of
or immediately following any bankruptcy, liquidation, or reorganization
proceeding.

Rights of Note Holder

        The legal holder of the Note secured by this Mortgage may, at any time,
by written agreement with Mortgagor or any successor in interest, and without
notice to any other person, renew or extend the time for payment of the
indebtedness secured by this Mortgage, or any part thereof, or increase or
decrease the rate of interest thereon, without thereby affecting this Mortgage
or its priority over any junior liens or encumbrances, and without releasing any
person from liability. The rights and remedies afforded Mortgagee under this
Mortgage are cumulative and the holder of the Note secured by this Mortgage may
recover judgment thereon, issue execution therefor, and resort to every other
right or remedy available at law or in equity, without first exhausting, and
without affecting or impairing the security of any right or remedy afforded by
this Mortgage. The unenforceability or invalidity of any one or more provisions,
clauses, sentences, or paragraphs of this Mortgage shall not render any other
provision, clause, sentence, or paragraph contained in this Mortgage
unenforceable or invalid. Mortgagee is further authorized to do all things
provided to be done by a mortgagee under Section 1311.14 of the Ohio Revised
Code.

                                       6
<PAGE>

Waiver of Rights

        Mortgagee's failure to exercise any option to accelerate the maturity of
the principal debt or any other sums secured by this Mortgage under any
provision of the Note or this Mortgage shall not constitute or be deemed a
waiver of Mortgagee's right to exercise such option or accelerate such maturity
with respect to any past or any subsequent violation of any term or condition of
the Note or this Mortgage. Any person authorized by Mortgagee shall have the
right to enter upon and inspect the Premises at all reasonable times; provided
that Mortgagor shall be given reasonable advance notice of any such entry and
the right of entry shall be subject to the rights of tenants of space within the
Premises.

Transfers or Encumbrances of the Premises or Beneficial Interests in Mortgagor

        Without the prior written consent of Mortgagee, Mortgagor shall not (a)
create or suffer to be created any charge, lien or encumbrance upon the
Premises, or any part thereof or interest therein, excepting the lien of this
Mortgage, any encumbrances permitted by Mortgagee in writing and any utility
easements necessary for the purposes of providing utility services to the
Premises, (b) sell, convey, lease (except for permitted tenant leases) or
transfer the Premises, or any part thereof or interest therein, legal or
equitable, or (c) permit or acquiesce in the transfer of any ownership interest
in Mortgagor.

Use of Premises

        Mortgagor shall not make, suffer or permit any use of the Premises other
than in compliance with all applicable zoning ordinances and restrictions, as
the same may be amended from time.

WAIVER OF JURY TRIAL

        MORTGAGOR HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS
ARISING OUT OF THIS MORTGAGE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

        This Mortgage and all terms, conditions, provisions and covenants hereof
shall inure to the benefit of and shall bind the successors and assigns of the
parties to this Mortgage.

        PROVIDED, that if Borrower or Mortgagor, as the case may be, shall well
and truly pay the Note according to its terms, together with all interest,
taxes, assessments, and other sums, amounts or charges which may be payable to
Mortgagee and if the terms, covenants, provisions and conditions contained in
this Mortgage, the Note, and any other Loan Documents are fully and punctually
kept and performed by Borrower or Mortgagor, as the case may be, as required
under this Mortgage, then this Mortgage shall be void; otherwise it shall remain
in full force and effect forever. Notwithstanding the foregoing, this Mortgage
shall be void, and Mortgagor shall execute a release with respect thereto, upon
the acquisition by Mortgagor of Borrower pursuant to the terms and conditions of
the Merger Agreement.

                                       7
<PAGE>

        IN WITNESS WHEREOF, Mortgagor has executed this Mortgage on May 5, 2003.

                                    MORTGAGOR:

                                    SCIOTO DOWNS, INC.
                                    an Ohio corporation

                                    ________________________________
                                    By:  Edward T. Ryan
                                    Its: President and Chief Executive Officer

STATE OF OHIO,
FRANKLIN COUNTY: ss.

        The foregoing instrument was acknowledged before me on May 5, 2003, by
Edward T. Ryan, the president and chief executive officer of Scioto Downs, Inc.,
an Ohio corporation, on behalf of said corporation.

        _______________________________________
        Notary Public - State of Ohio

        My commission expires:___________________

This document was prepared by: Todd William Collis, Esq., Crabbe Brown & James,
LLP, 500 South Front Street, Suite 1200, Columbus, Ohio 43115

                                       8
<PAGE>

                                    EXHIBIT A

                            REAL PROPERTY DESCRIPTION

                                       9

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