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Mtr Gaming Group, Inc. Business Information, Profile, and History

State Route 2 South
Chester, West Virginia 26034
U.S.A.

Company Perspectives:

We are optimistic about the prospects for our expansion opportunities , which leverage the Company's expertise in the gaming and racing mar kets and should provide additional long-term value for shareholders.

History of Mtr Gaming Group, Inc.

MTR Gaming Group, Inc. owns and operates thoroughbred and harness rac etracks, casinos, and properties called "racinos," which are racetrac ks offering forms of gambling other than pari-mutuel wagering. The co mpany's flagship property is the Mountaineer Racetrack & Gaming R esort in Chester, West Virginia, 35 miles west of Pittsburgh. The Mou ntaineer property is a year-round thoroughbred racetrack with a 359-r oom hotel, golf course, theater and events center, convention center, and more than 3,000 slot machines. MTR also owns Scioto Downs, a har ness racing facility in Columbus, Ohio; the Ramada Inn in Reno, Nevad a; the Speedway Casino and Binion's Gambling Hall & Hotel in Las Vegas; and a license to build Presque Isle Downs, a thoroughbred race track in Erie, Pennsylvania. MTR holds a 50 percent interest in North Metro Harness Initiative, LLC, which has a license to construct a ha rness racetrack 30 miles north of Minneapolis. The company also has s igned a definitive agreement to acquire a 90 percent stake in Jackson Trotting Association, which owns and operates Jackson Harness Racewa y in Jackson, Michigan.

Origins

MTR struggled mightily during its first decade in business, trying in vain for years to find a business model that worked. The company ope rated under several different names and it delved into several differ ent markets, floundering financially and strategically until its path crossed with a former tax accountant named Edson "Ted" Arneault.

The years before Arneault's arrival were pocked by the failings of a rudderless company. MTR was incorporated in March 1988 as Secamur Cor poration, starting out as a wholly owned subsidiary of Buffalo Equiti es, Inc. until Buffalo Equities spun the company off to its sharehold ers in January 1989. Secamur was not on its own for long, gaining a n ew parent company six months later when Pacific International Industr ies, Inc. acquired it. Pacific International, only 11 months older th an Secamur, was attempting to carve a niche for itself in Southern Ca lifornia's contract security guard market. Its name was changed to Ex calibur Security Services, Inc., but the experiment soon failed. Exca libur Security filed a voluntary petition with the U.S. Bankruptcy Co urt for the Central District of California in December 1990, giving i ts management time to develop a new strategy. In May 1991, the compan y sold its moribund security guard business and decided to focus on t he odd business mix of acquiring gambling and oil and gas properties. The bankruptcy court approved the plan in December 1991, an event ma rked by a name change to Excalibur Holding Corporation. It was while the newly named company was beginning its new corporate life as an ac quirer of gambling and oil and gas properties that Arneault entered t he scene. Within a few short years, the company's strategic scope was narrowed and Arneault emerged as the chief architect of its executio n.

Arneault wore many hats during his professional career. Aside from hi s experience as a tax accountant, he ran an oil and gas company at on e point and served as a partner in a jewelry chain, a knife company, and a steel processing plant. In 1992, a friend asked him to assist i n the sale of a thoroughbred racetrack in Chester, West Virginia, nam ed Mountaineer Park. Arneault agreed and served in the capacity of a consultant, helping to sell the property to an interested suitor, Exc alibur Holding. After the sale, Arneault remained a consultant, offer ing advice on the installation of slot machines at the racetrack. Not long afterwards, Excalibur Holding's management decided to shelve pl ans to acquire any additional oil and gas properties and to focus exc lusively on the gaming industry, a sharpening in strategic focus that prompted another name change. In August 1993, Excalibur Holding chan ged its name to Winners Entertainment, Inc., a change in identity tha t occurred at roughly the same time the company was engulfed in contr oversy that threatened its existence.

The deal that allowed the installation of slot machines at Mountainee r Park had been struck with the state lottery commission. It formed t he basis of Winners Entertainment's new business strategy: add casino -style gambling to the racing venue to increase profits and revenue. Unfortunately for Winners Entertainment's management, the lottery dir ector was convicted of insider trading and fraud several weeks after the acquisition of Mountaineer Park was completed. In the investigati on into the director's malfeasance, it was discovered that the testin g of slot machines at Mountaineer Park had no legal standing, which p rompted the state supreme court to order for their removal, significa ntly lessening the value of the property to Winners Entertainment.

Arneault, still serving as a consultant, decided to fight for Winners Entertainment's cause. He dug in, renting a room in the state capita l at the Charleston Marriott, and began lobbying for state approval o f slot machines. He spent three months working out of his hotel room, first asking the court for a stay on the initial agreement before pe titioning state representatives to legalize slot machines. He asked t hat slot machines be allowed at all four racetracks in West Virginia, arguing that establishment of slot machines would create new jobs an d improve the local economy. As the October 29, 2001 issue of Forb es noted, "The odds could hardly have been worse: Get a Bible Bel t state to support gaming legislation in the wake of a lottery scanda l." Despite the negative publicity surrounding his lobbying efforts, Arneault prevailed in March 1994, when the state legislature passed t he bill by a narrow margin.

Arneault Taking the Helm in 1995

Arneault's troubles did not end after he fought for the passage of ga ming legislation. Winners Entertainment had hired a management firm, American Gaming, to oversee the operation of Mountaineer Park, but af ter American Gaming chewed through a $10 million loan with not mu ch to show for the expenditure, Winners Entertainment cut its ties to the management firm. For a replacement, Winners Entertainment's mana gement turned to Arneault, who accepted the titles of chairman and ch ief executive officer in April 1995. The company lost $5.3 millio n during Arneault's first year as a senior executive, but he had a pl an for reversing the company's financial fortunes. Arneault wanted to build a casino near the racetrack to lure more serious gamblers, the first part of an overall plan to turn Mountaineer Park into a full-s cale entertainment resort. Arneault's vision led to another name chan ge in October 1996, when Winners Entertainment, Inc. became MTR Gamin g Group, Inc.

Arneault succeeded in turning MTR into a profitable company soon afte r focusing its efforts on racing, gaming, and entertainment. In 1996, revenues increased 61 percent to $40 million, but the most impre ssive financial result was the $1.1 million the company recorded in net income, a figure that offered evidence Arneault was steering M TR in the right direction. Arneault was beginning the process of turn ing Mountaineer Park into the "Mountaineer Race Track & Gaming Re sort," a project that entailed adding scores of new slot machines, th e primary reason for the encouraging financial results in 1996, and a host of other attractions. The expansion project took years to compl ete, as Arneault built the company's signature property on 2,600 acre s of land on the banks of the Ohio River, intending to lure customers from neighboring Ohio and Pennsylvania to MTR's gaming and entertain ment complex in Chester. While the mammoth construction project was u nderway, Arneault began acquiring other properties for MTR, shaping t he company into a geographically diversified company. First, he sold the last of the company's remaining oil and gas properties in 1998, t he same year he established a presence in Nevada. Through two subsidi aries, Speakeasy Gaming of Las Vegas, Inc. and Speakeasy Gaming of Re no, Inc., MTR acquired the Cheyenne Hotel & Casino in Las Vegas f or $5.5 million and the Reno Ramada in Reno for $8 million. T he Cheyenne Hotel & Casino property included a 131-room hotel and casino that Arneault intended to expand and to design with a motor-r acing theme to attract patrons from the Las Vegas Motor Speedway, loc ated five miles away from the Cheyenne property. The Reno Ramada was a 262-room hotel with an adjoining casino earmarked for a $500,00 0 expansion project. After the expansion of the hotel and casino, the property was renamed the "Speakeasy Hotel & Casino."

Arneault's decision to establish a presence in Nevada yielded mixed r esults, but his efforts to turn the Mountaineer property into a full- fledged resort mitigated the difficulties experienced in Reno and Las Vegas. By 2001, the Mountaineer property had been developed into a s prawling complex with a 140,000-square-foot slots casino, seven bars, a 70,000-square-foot arena for live entertainment, and a 100-room ho tel. In August 2001, a 28,000-square-foot convention center and a spa and fitness center opened, while the expansion of the hotel, expecte d to be completed in April 2002, was underway, adding 260 rooms. The property was driving the company's revenue growth, helping push reven ues to $218 million by the end of 2001, nearly ten times the tota l recorded during Arneault's first year as the company's leader. "The scene is more NASCAR than diamond pinkie rings," an analyst remarked in a June 22, 2001 interview with Investor's Business Daily, offering his impression of the Mountaineer property. Arneault, in the same article, offered his description of MTR's signature property. " I like to consider us a middle-class outfit," he said. "We're not loo king for the Las Vegas whales. Our whales would probably be keeper ba ss."

The resort in Chester stood as a remarkable success story for MTR, en abling the company to accomplish what it had been unable to accomplis h in the pre-Arneault years: record significant revenue growth and po st steady profits. The foray into Nevada had been made because of unc ertainty about how the expansion effort in Chester would evolve, but during the first years of the new decade the operations in Nevada pre sented their own uncertainty. The company closed the casino in Reno i n May 2001 after it and the hotel lost $1.4 million during the fi rst half of the year, a blemish on its otherwise impressive earnings record. Aside from correcting the lackluster operations in Nevada, Ar neault's greatest challenge was protecting Mountaineer Race Track &am p; Gaming Resort from a new threat on the horizon. Both Pennsylvania and Ohio were discussing legislation to legalize gaming, the promulga tion of which promised to take business away from the company's compl ex in Chester. "The biggest threat for this company," an analyst said in a February 8, 2002 interview with Investor's Business Daily, I> "is the potential for legalized gaming in Pennsylvania and Ohio." Arneault responded to the threat by preparing for entry into Pennsylv ania and Ohio, one phase of an expansion strategy that saw MTR greatl y broaden its geographic scope of operations during the first half of the decade.

Expansion in the 21st Century

By early 2002, Arneault was preparing to take MTR to far greater heig hts. He had filed an application with Pennsylvania's racing commissio n for approval to build a new thoroughbred racetrack. MTR received ap proval to build a racetrack in Erie, Pennsylvania, a facility it anti cipated naming Presque Isle Downs, but the scope of the project incre ased after Pennsylvania passed a law legalizing slot machines in July 2004. Arneault filed to gain a gaming license from the Pennsylvania Gaming Control Board, holding off construction of Presque Isle Downs until he received a gaming license. Meanwhile, Arneault made a move i nto Ohio, purchasing Scioto Downs in Columbus in July 2003. A harness horse racing facility, Scioto Downs featured pari-mutuel wagering. N ext, Arneault increased MTR's presence in Nevada, undaunted by the tr oubles experienced after the acquisition of the Cheyenne Hotel & Casino and Reno Ramada in 1998. In March 2004, MTR acquired Binion's Horseshoe, a hotel and casino located in downtown Las Vegas, for $ ;20 million. One year later, the company began independently operatin g the property, renamed "Binion's Gambling Hall & Hotel," after c oncluding its joint operating agreement with an affiliate of Harrah's . Several months after making his initial investment in the Binion's property, Arneault added Minnesota to MTR's ever expanding geographic profile by acquiring a 50 percent interest in North Metro Harness In itiative in June 2004. In January 2005, the Minnesota Racing Commissi on awarded North Metro a license to build, pending judicial review, a harness racetrack in Anoka County, 30 miles north of Minneapolis. Wh ile plans were being developed to build a racetrack and card-room ope rations in Minnesota, Arneault expanded further, signing a definitive agreement to acquire a 90 percent stake in Jackson Trotting Associat ion, LLC. Jackson Trotting operated the Jackson Harness Raceway in Ja ckson, Michigan, 70 miles away from Detroit.

After a decade of leading MTR, Arneault achieved much, inheriting a f loundering company and giving it a precise strategic direction to pur sue. The company's financial gains during his first decade of leaders hip were enormous, with annual revenues increasing from $25 milli on to $315 million. Profitability, once a perennial struggle for the company, was achieved with regularity, averaging roughly $15 million per year between 2000 and 2004. The second half of the decade promised to be a busy period for the company, with properties in Pen nsylvania, Minnesota, and Michigan slated to debut. As Arneault worke d toward adding these properties to MTR's fold, his success in Cheste r offered a blueprint for expansion in the years ahead.

Principal Subsidiaries: Mountaineer Park, Inc.; Speakeasy Gami ng of Las Vegas, Inc.; Speakeasy Gaming of Freemont, Inc.; Speakeasy Freemont Street Experience Operating Company; Scioto Downs, Inc.; Pre sque Isle Downs, Inc.; MTRCHarness, Inc.; Jackson Racing, Inc.

Principal Competitors: Colonial Holdings, Inc.; Magna Entertai nment Corp.; Penn National Gaming, Inc.

Related information about MTR

or ???) is the main rapid transit railway system in Hong Kong. Since the MTR service first opened in 1979, the network has expanded to encompass seven lines and 53 stations along 91.0 km "Mass Transit Railway", Transport Department (Hong Kong Government), retrieved 16 March 2006. Constructed and operated by MTR Corporation Limited, the MTR system is a very popular mode of public transport in Hong Kong, with an average of 2.46 million"MTR Patronage Figures for February 2006", MTR Corporation Limited, retrieved 16 March 2006 journeys recorded each day.

Much of this popularity is due to the efficiency and affordability of the MTR. For example, a taxi ride from Tsing Yi in the New Territories to Causeway Bay on Hong Kong Island costs around HK$200, while the same trip on the MTR costs HK$11.80, and HK$5.70 on concessionary fare.Based on "MTR Journey Planner", MTR Corporation Limited, retrieved 16 March 2006. The integration of the Octopus contactless smart card system into the MTR system in September 1997 has particularly enhanced the ease of use of the MTR.

Construction of the MTR was prompted by a government-commissioned study released in 1967. The Hong Kong Government commissioned the study in the 1960s to find solutions to the growing traffic problem caused by expansion of the colony's economy.Freeman, Fox, Wilbur Smith & Associates (1967), Hong Kong Mass Transport Study, as shown in map above mentioned. Construction started soon after release of the study, and the first line was opened in 1979. For example, when a person is travelling on the Kwun Tong Line towards Tiu Keng Leng, getting off at Yau Tong would allow him to change trains across the platfrom for the Tseung Kwan O Line towards North Point. The four lines were to be the Kwun Tong Line, Tsuen Wan Line, Island Line, and East Kowloon Line.Freeman, Fox, Wilbur Smith & Associates (1970), Hong Kong Mass Transport Further Study. However, the lines that were eventually constructed were somewhat different compared with the lines that were originally proposed by the "Hong Kong Mass Transport Study".

In 1972, the Hong Kong government authorised construction of the Initial System, a 20-kilometre system that roughly translates to the Kwun Tong Line today (except the line now extends to Tiu Keng Leng). A consortium from Japan signed an agreement to construct the system in early 1974, but in December of the same year it pulled out from the agreement, stemming from fears of the Arab oil crisis."The History", Hong Kong Mass Transit InfoCenter, retrieved 19 March 2006

Modified Initial System (Kwun Tong Line / Tsuen Wan Line)

Several weeks later, in early 1975, a government agency known as the Mass Transport Provisional Authority was established to take charge of the project. (This was the company succeeded by the MTR Corporation Limited on 30 June 2000)

Construction of the Modified Initial System (now part of Kwun Tong Line and Tsuen Wan Line) commenced in November 1975. On 1 October 1979, the northern section was opened, with trains running from Shek Kip Mei to Kwun Tong. The route from Tsim Sha Tsui to Shek Kip Mei was opened in December of the same year.

In 1980, the first harbour crossing was made by an MTR train as the Kwun Tong Line was extended even further to Chater station, now known as Central station. The line started service on 10 May 1982 with a total cost of construction (not adjusted for inflation) at HK$4.1 billion.

When service of this line started, the section of the Kwun Tong Line from Chater to Argyle, present-day Mong Kok station, was transferred to the Tsuen Wan Line. On 31 May 1985 the Island Line was opened with service between Admiralty and Chai Wan stations. Furthermore, each train was extended to eight cars.

On 23 May 1986, service reached Sheung Wan station. The Kwun Tong Line was extended across the harbour to Quarry Bay, which became an interchange station for the Kwun Tong Line and the Island Line. An intermediate station, Lam Tin, started operations on 1 October 1989.

Airport Express and Tung Chung Line

The decision was made in October 1989 to construct a new international airport at Chek Lap Kok on Lantau Island to replace the overcrowded Kai Tak International Airport."The Airport Railway Project", Heavy Iron Station, retrieved 19 March 2006 The government invited the MTR to build a train line, then known as the Lantau Airport Railway, to the airport. The Tung Chung Line was officially opened on 21 June 1998 by Hong Kong Chief Executive Tung Chee Hwa, and service commenced the next day. The Airport Express opened for service on 6 July 1998 along with the new Hong Kong International Airport.

The Airport Express line is the second most popular means of transport to the Hong Kong International Airport. MTR Annual Report 2005 Page 20

Quarry Bay Congestion Relief Works

The Quarry Bay Congestion Relief Works involved extending the Hong Kong Island end of the Kwun Tong Line from Quarry Bay to North Point via a 4.2 kilometre tunnel. Construction began in September 1997 and was completed in September 2001 at a cost of HK$3.0 billion."Quarry Bay Congestion Relief Works", Hong Kong Mass Transit InfoCenter, retrieved 19 March 2006

Tseung Kwan O Line

Construction of the Tseung Kwan O Line was approved on 18 August 1998 to serve new housing developments. It took over the train tracks running through the Eastern Harbour Tunnel from the Kwun Tong Line, and ran from Po Lam to North Point. Previously under-developed areas were opened up for development with more transport options."Tseung Kwan O Extension", Hong Kong Mass Transit InfoCenter, retrieved 19 March 2006

West Rail Interface Works

While the construction of the Tung Chung Line was still underway, the plan for building a railway corridor to serve the northwestern New Territories was conceived. Nam Cheong Station (an interchange station on the Tung Chung Line, jointly operated by the MTRC and KCRC) and 4-Tracking Works (the additional two tracks, 4 km in length, allow the Tung Chung Line trains to stop at Nam Cheong without obstructing the passage of Airport Express trains)."West Rail Interface Works, Kowloon Tong Station Interchange, and Mong Kok Station Enhancements", MTR Corporation Limited, retrieved 19 March 2006

The Works were completed in stages. A new pedestrian link to East Rail Kowloon Tong station southern concourse and a new entrance has been completed in June 2003 to cope with the increase in interchange passenger flow.

Modification to MTR Tsim Sha Tsui Station involved in upgrading station factilities and concourse layout to facilitate access from the pedestrian links of East Rail East Tsim Sha Tsui station. New entrances to the subway links were opened on 19 September 2004 (for KCR Mody Road subway) and 30 March 2005 (for Nathan Road subway, which connects to KCR Middle Road subway), with the whole scheme completed in May 2005.

Disneyland Resort Line and AsiaWorld-Expo Extension

Disneyland Resort Line, previously known as Penny's Bay Rail Link, provides service to the Hong Kong Disneyland Resort which was opened on 12 September 2005. Service to Sunny Bay station on the Tung Chung Line started on 1 June 2005. The new line and Disneyland Resort station opened for service on 1 August 2005.

This 3.5 km single-track railway is an extension of the Tung Chung Line. These carriages were converted from the existing rolling stock to suit the recreational and adventurous nature of the 3.5 minute journey."MTR Disneyland Resort Line", MTR Corporation Limited, retrieved 17 April 2006

The new AsiaWorld-Expo station is an extension of the Airport Express to serve the new international exhibition centre, known as the AsiaWorld-Expo at Hong Kong International Airport. Additional trains will also be deployed on the Tung Chung line during major exhibitions and events."Projects in Progress (Hong Kong)", MTR Corporation Limited, retrieved 17 April 2006

MTR Corporation Limited

On 5 October 2000 the operator of the MTR network, MTR Corporation Limited, became Hong Kong's first privatised rail and metro company, which marked the start of the Hong Kong government's planned initiative to wind down its interests in various public utilities. Examples of this type of construction can be seen at Tsing Yi station, which is built next to the Maritime Square shopping centre, and directly underneath the Tierra Verde housing estate.

On April 11, 2006, MTR Corporation Limited signed a non-binding Memorandum of Understanding with the Hong Kong Government, the owner of Kowloon-Canton Railway Corporation (KCRC), to merge the operation of the two railway networks of Hong Kong. If evenutally approved, MTR Corporation Limited will take over the operation of the KCR network and combine the fare system of the two networks."MTR Corporation Signs Memorandum of Understanding with The Government on Terms of Proposed Rail Merger", MTR Corporation Limited press release, 11 April 2006"KCRC welcomes Government?s announcement on way forward for rail merger", Kowloon-Canton Railway Corporation press release, 11 April 2006

Safety on the MTR

Various campaigns and activities are taken to help ensure that the MTR is a safe system to travel on. Penalties ranging from fines to imprisonment have been imposed for such offenses. "Chapter 556B - Mass Transit Railway By-laws", Department of Justice (Hong Kong), retrieved 19 March 2006 Metallic balloons are also banned due to previous incidents on KCR and on MTR's Island Line where a metallic balloon interfered with the operation of the overhead power lines.

Police officers patrol on trains and stations, and police posts are available at some stations. 32-35.

Tung Chung Line, the Airport Express and Tseung Kwan O Line, except Quarry Bay station, had platform screen doors (PSDs) installed upon construction. HK$0.10 per passenger trip was levied on Octopus card users to help fund the HK$2 billion retrofit programme. The MTR Corporation said that part of the cost had to be assumed by passengers."Funding of platform screen door retrofit programme", Legislative Council, 5 January 2005.

Station facilities, amenities and services

With the high level of daily passenger traffic, facilities of MTR stations are built with durability and accessibility in mind. The elevators and escalators in stations are heavy duty, with the elevators installed by Otis Elevator Company/Fujitec and the escalators installed by Constructions Industrielles de la Mediterranée and Otis Elevator Company.

After extensive retrofits, the MTR system has become, in general, disabled-friendly — the trains have dedicated wheelchair space, the stations have special floor tiles to guide the blind safely on the platforms, and there are extra wide entry and exit gates for wheelchairs as well.

Unlike many other metro systems around the world, "main line" MTR stations do not have toilet facilities, although their installation has been contemplated.

Telecommunications network coverage

A full GSM (GSM-900 and GSM-1800), CDMA and TDMA mobile phone network is in place through out the MTR system of stations and tunnels. Passengers can stay connected underground.

Currently, full 3G network coverage in all stations and tunnels for the MTR system has been provided by 3 Hong Kong, SmarTone-Vodafone and PCCW Mobile. Passengers with subscription services will be able to make video calls and access high speed video content on their mobile phones regardless whether the train is above ground or under ground."First 3G Operator to Connect to Four Major MTR line", www.3G.co.uk, retrieved 7 June 2005.

Shops and other services

Until recently, MTR stations only had branches of the Hang Seng Bank and Maxim's Cakes stores, owned by Jardine Matheson, and a handful of other shops. Services available at most stations include:

Hang Seng Bank branches and ATMs
Bank of China ATMs
7-Eleven or Circle K convenience stores

Apart from retailers, there are also dentists and medical clinics, drycleaners, and florists along the Tseung Kwan O Line. Standard services include payphones, vending machines (Coca-Cola only), and self-service photo-booths.

Free magazines and newspapers

Recruit was the first free magazine which was solely distributed in MTR stations since July 1992. and in 2005, there is another weekend newspaper Express Post (????), distributed every Saturday except public holidays.

The Metropop (????), also published by Metro International, started its distribution in MTR stations every Thursdays since April 27 2006, few months after the termination of Hui Kai Guide. Flight passengers can even have in-town check-in at the station, which offers a more convenient and time-saving routine.Complimentary service exclusively for Airport Express Passengers, MTR Corporation Limited, retrieved 17 April 2006

Fares and tickets

As of January 2005, there are two different fare classes on the MTR: Adult and concessionary. It was launched in September 1997 for use on both the MTR and the KCR and now is the most widely used electronic cash system for transactions in Hong Kong as many retailers are fitted with readers."Our History", Octopus Cards Ltd., retrieved 17 April 2006

The Octopus card uses radio frequency identification (RFID) technology so that users need only hold the card in front of the reader. This fare collection system has been so popular that many cities such as Singapore, London, Chicago, and Taipei have adopted the idea, launching their own version of smart cards, respectively named EZ-link, Oyster card, and EasyCard.

Except for the Airport Express, MTR fares are slightly lower when using an Octopus card compared to using single journey tickets. For example, the cost of the 3-minute journey from Admiralty to Tsim Sha Tsui across the Victoria Harbour is (as of 2005) HK$7.9 using the Octopus card, compared with HK$9.0 for a single-journey ticket.

Tourist pass

Two types of tourist passes are available: one allows unlimited rides for a single day (at HK$50), while the other allows three days of unlimited rides on the MTR, with a stored value of HK$20, refundable deposit of HK$50 and choice of either a single (HK$220) or return (HK$300) trip on the Airport Express.

Tourists are required to produce proof of tourist status, (e.g. passports or, in the case of Mainland travellers, entry permits) when purchasing the pass, and whenever requested by a ticket inspector during spot-checks."Hong Kong Tourist Transport Passes", MTR Corporation Limited, retrieved 17 April 2006

Other fares

The magnetic fare card system is used for single journey tickets. All trains are electric multiple units (EMUs), equipped with ATC and ATP, operating on 1432 mm rail gauge. Examples are the latitudinal seating arrangement, additional ventilation fans and 5 doors on each side per car.

The Tung Chung Line and the Airport Express use dedicated rolling stock designs specified to their respective lines. These two variations are built jointly by Adtranz (now Bombardier Transportations) and Construcciones y Auxiliar de Ferrocarriles between 1994?97. "Lantau Line and Airport Railway, Hong Kong", Railway Technology, retrieved 16 March 2006.

The other lines are operated using a mixture of the other two variations, known as the "M-Train" and the "K-Stock". The "M-Stock" (or CM-Stock") of "M-Train" are the oldest trains on the MTR, built originally by Metro Cammell (now Alstom)"Metro in Hong Kong", Alstom Transportations, retrieved 16 March 2006 and refurbished by United Goninan"United Group Limited secures $40 million Hong Kong rail maintenance contract", United Goninan, from Internet Archive. The "K-Stock" are built jointly by Mitsubishi Heavy Industries and ROTEM"Electric Multiple Unit - For Hong Kong MTR Limited", Rotem's XG EMU , retrieved 16 March 2006, and a further order of 32 cars is due to be in service on the Tung Chung Line by 2007."New trains ordered for Tung Chung Line, Hong Kong", Rotem press release, retrieved 16 March 2006"Additional Tung Chung Line Trains", MTR Corporation Limited, retrieved 19 March 2006

The Disneyland Resort Line uses driverless "M-Trains" with their appearance overhauled to suit the atmosphere and theme of the line. Windows on each carriage and the handrails inside are made into the shape of Mickey Mouse's head, and there are bronze-made Disney characters decorating the interior of the carriages.

Depots

Depots are located at Kowloon Bay (for Kwun Tong Line), Tsuen Wan (for Tsuen Wan Line), Heng Fa Chuen (for Island Line), and Dream City (for Tseung Kwan O Line). Tung Chung Line, Airport Express, and Disneyland Resort Line trains are serviced at Siu Ho Wan between Tung Chung and Sunny Bay. Artworks are exhibited in different forms on the network, including "arttube", open art gallery, community art galleries, roving art, living art, and art in station architecture."art in mtr", MTR Corporation Limited, retrieved 17 April 2006

By incorporating elements of art into the railway network, the travelling environment for the passengers is not only enhanced, but also makes their journeys even more pleasant and enjoyable.

The future

Main articles: Future of the MTR, West Island Line and South Island Line, Sha Tin to Central Link

Several future projects on the MTR have been put forward by MTR Corporation Limited to the Hong Kong Government, with some already under under construction. The network is also set to be significantly expanded with the merger of MTR Corporation Limited with the government-owned Kowloon-Canton Railway Corporation (KCRC), with the non-binding Memorandum of Understanding signed on 11 April 2006 to grant MTR Corporation operation of the existing KCR network with a service concession of 50 years. The new Sha Tin to Central Link that was originally awarded to KCRC would now also be operated by MTR Corporation Limited, which will run from Tai Wai Station in Tai Wai to Central.

Provisions are made to upgrade the existing infrastructure of the MTR. Airport Station on the Airport Express will have a new platform to serve departure passengers for Hong Kong International Airport's Skyplaza. New subway links to the stations are also being made for better access, and an extension for the Tseung Kwan O Line to create a branch line to Tseung Kwan O South has been gazetted. A further proposal to extend the existing Kwun Tong Line to Whampoa Garden, together in a tie-up with the Sha Tin to Central Link expansion have been made in April 2006.

The West Island Line and South Island Line, first put forward to the government by MTR Corporation Limited on 21 January 2003, only received approval on 30 June 2005 after its heavily-modified fourth proposal. This consisted of West Island Line extending the Island Line to Kennedy Town, South Island Line (East section) from Admiralty to Ap Lei Chau and South Island Line (West section) that connects the previous two lines. Consultation is underway and the whole extension should be completed and operational by 2012."West Island Line & South Island Line", MTR Corporation Limited, 17 April 2006

References

Chronology

Key Dates:
1988: MTR is incorporated as Secamur Corporation.
1992: Edson "Ted" Arneault facilitates the sale of Mountaineer Park to Excalibur Holding Corp., a company that changes its name to MTR Gaming Group, Inc. four years later.
1995: Arneault is named chairman and chief executive officer o f the company.
1998: Two properties are acquired in Nevada, one in Reno and t he other in Las Vegas.
2003: MTR acquires Scioto Downs in Columbus, Ohio.
2004: MTR acquires Binion's Horseshoe, a hotel and casino in L as Vegas.
2005: MTR acquires a 90 percent interest in the Jackson Harnes s Raceway in Jackson, Michigan.

Additional topics

Company HistorySports Organizations & Sports Teams

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