Century Casinos Reports Q2 2009 Earnings Including Gain on South African Sale

Second Quarter 2009

For the second quarter of 2009, net operating revenue from continuing operations was $11,884,000 and consolidated Adjusted EBITDA* was $1,563,000. This represents a 14% decrease in net operating revenue from continuing operations over the same quarter of last year ($13,873,000 in the second quarter of 2008) and a 33% decrease in consolidated Adjusted EBITDA* ($2,338,000 in the second quarter of 2008). The Company experienced a decline in net operating revenue at its properties in Colorado, primarily due to a decrease in its casino's (Womacks) market share in Cripple Creek and a decline in the overall gaming market in Central City. In addition, net operating revenue in Edmonton, Canada, as reported in U.S. dollars, was 16% lower than the same period in 2008, but only declined by 3% in the local currency (Canadian dollar). The reported results were negatively affected by a 16% decrease in the average exchange rate between the U.S. dollar and Canadian dollar in the second quarter of 2009 compared to the second quarter of 2008. Management attributes the decline in net operating revenue in Edmonton to decreased table game revenue.

Including discontinued operations, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $18,903,000, or $0.80 per basic share and fully diluted share, for the second quarter of 2009. During the second quarter of 2009, the Company reported a gain of $19,848,000, or $0.84 per basic and fully diluted share, on the previously reported disposition of Century Casinos Africa ("CCA"). The Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $835,000, or $0.04 per basic and fully diluted share, for the second quarter of 2008.

Operating losses from continuing operations were $307,000 in the second quarter of 2009 compared to earnings of $289,000 for the second quarter of 2008. The Company reported a loss from continuing operations of $1,045,000, or a loss of $0.05 per basic and fully diluted share, for the second quarter of 2009, compared to a loss of $126,000, or $0.00 per basic and fully diluted share, for the second quarter of 2008. In addition to the decline in operating earnings from continuing operations, the Company's loss from continuing operations increased due to an increase in taxes, offset by the realization of foreign exchange gains on the exchange of foreign currency. During the third quarter of 2008, the Company established a valuation allowance on its U.S. deferred taxes. The tax effect on net operating income or losses incurred in the U.S. will reduce or increase this valuation allowance. As a result, during the second quarter of 2009, the Company did not recognize tax benefits on operating losses incurred in the U.S. This increased the Company's tax expense by $668,000 when comparing the three months ended June 30, 2009 to the three months ended June 30, 2008. As of June 30, 2009, the Company has accumulated deferred tax assets of $4.9 million which can be applied against the tax on potential future U.S. income. Gains realized on the exchange of foreign currency increased earnings by approximately $264,000, primarily due to gains realized on loans that are no longer deemed to be permanently invested.

Six months ended June 30, 2009

For the six months ended June 30, 2009, net operating revenue from continuing operations was $23,883,000 and consolidated Adjusted EBITDA* was $3,662,000. This represents a 13% decrease in net operating revenue from continuing operations over the same six months of last year ($27,403,000 for the six months ended June 30, 2008) and a 15% decrease in consolidated Adjusted EBITDA* ($4,284,000 for the six months ended June 30, 2008), due to declines in net operating revenue at the Company's properties in Colorado, primarily due to a decrease in its casino's (Womacks) market share in Cripple Creek and a decline in the overall gaming market in Central City. In addition, net operating revenue in Edmonton, Canada, as reported in U.S. dollars, was 15% lower than the same period in 2008, but increased by 2% in the local currency (Canadian dollar). The reported results were negatively affected by a 24% decrease in the average exchange rate between the U.S. dollar and Canadian dollar for the six months ended June 30, 2009, compared to the same period in 2008.

Including discontinued operations, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $19,248,000, or $0.82 per basic share and fully diluted share, for the six months ended June 30, 2009. During the six months ended June 30, 2009, the Company reported a gain of $19,848,000, or $0.84 per basic and fully diluted share, on the disposition of CCA and a gain of $915,000, or $0.04 per basic and fully diluted share, on the previously reported disposition of the Century Casino Millennium. The Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $1,376,000, or $0.06 per basic and fully diluted share, for the first six months of 2008.

Operating losses from continuing operations were $131,000 for the six months ended June 30, 2009 compared to operating earnings of $223,000 for the six months ended June 30, 2008, primarily due to a decrease in earnings of $305,000 from the Company's equity investment in Poland. The Company reported a loss from continuing operations of $2,504,000, or a loss of $0.10 per basic and fully diluted share for the six months ended June 30, 2009 and a loss of $649,000, or a loss of $0.03 per basic and fully diluted share, for the same period in 2008. In addition to the decline in operating earnings from continuing operations, the Company's loss from continuing operations increased due to an increase in taxes and the realization of additional foreign exchange losses on the exchange of foreign currency. During the third quarter of 2008, the Company established a valuation allowance on its U.S. deferred taxes. The tax effect on net operating income or losses incurred in the U.S. will reduce or increase this valuation allowance. As a result, for the six months ended June 30, 2009, the Company did not recognize tax benefits on operating losses incurred in the U.S. This increased our tax expense by $1,532,000 when comparing the six months ended June 30, 2009 to the six months ended June 30, 2008. As of June 30, 2009, the Company has accumulated deferred tax assets of $4.9 million which can be applied against the tax on potential future U.S. income. Finally, losses realized on the exchange of foreign currency reduced earnings by approximately $380,000, primarily due to the transfer of currency between Canada and the U.S.

Update on sale of CCA

On December 19, 2008, the Company, through a subsidiary, entered into an agreement to sell all of the outstanding shares of CCA for a gross selling price of ZAR 460.0 million ($59.4 million) less the balance of third party South African debt and other agreed to amounts. Net proceeds of ZAR 253.5 million ($32.8 million) were paid to the Company at closing on June 30, 2009. CCA owned the Caledon Hotel, Spa & Casino and 60% of the Century Casino & Hotel in Newcastle, Africa. Transaction approval by the KwaZulu-Natal Gambling Board is still pending. If this approval is received, the Company will receive an additional ZAR 98.8 million (approximately $12.8 million). An additional ZAR 17.3 million ($2.2 million) held in retention may be payable to the Company within sixty days of closing if the net asset value ("NAV") of CCA at June 30, 2009 is greater than the NAV at December 31, 2008. If the NAV at December 31, 2008 exceeds the NAV at June 30, 2009 by more than the $2.2 million held in retention, the Company will reimburse the purchaser of CCA an amount equal to the excess. At closing, the Company recognized a gain of ZAR 163.1 million (approximately $19.8 million). An additional gain of ZAR 12.2 million (approximately $1.6 million) has been deferred until the approval by the KwaZulu-Natal Gambling Board has been obtained.

Net operating revenue from discontinued operations was $5,873,000 and $7,673,000 for the second quarter of 2009 and 2008, respectively. Earnings from discontinued operations were $20,777,000 and $1,030,000 for the second quarter of 2009 and 2008, respectively, including a $19,848,000 gain on the sale of CCA.

Net operating revenue from discontinued operations was $11,203,000 for the six months ended June 30, 2009 compared to $15,123,000 for the six months ended June 30, 2008. Earnings from discontinued operations were $22,679,000 and $2,205,000 for the six months ended June 30, 2009 and 2008, respectively. During the six months ended June 30, 2009, the Company recorded gains of $19,848,000 and $915,000 on the sales of CCA and the Century Casino Millennium, respectively.

Property Results (Continuing Operations)

Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton decreased by 16% to $4,843,000 for the second quarter of 2009 compared to $5,795,000 for the second quarter of 2008, due to a decline in table game revenue and a decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, net operating revenue decreased by 3% to CAD 5,651,000 for the second quarter of 2009 compared to CAD 5,851,000 for the second quarter of 2008. This decrease is the result of a decrease of 19% in table revenue, offset by an increase in slot revenue of 3%. Adjusted EBITDA* was $1,554,000 for the second quarter of 2009, a decrease of 31% from $2,264,000 for the second quarter of 2008, which management attributes to the same factors above. In Canadian dollars, Adjusted EBITDA* decreased by 21%, from CAD 2,287,000 for the three months ended June 30, 2008 to CAD 1,817,000 for the three months ended June 30, 2009.

Net operating revenue at the Century Casino & Hotel in Edmonton decreased by 15% to $9,639,000 for the six months ended June 30, 2009 compared to $11,352,000 for the six months ended June 30, 2008, due to a decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, net operating revenue increased by 2% to CAD 11,621,000 for the first six months 2009 compared to CAD 11,431,000 for the first six months of 2008. Adjusted EBITDA* was $3,329,000 for the first six months of 2009, a decrease of 20% from $4,176,000 for the first six months of 2008, which management attributes to the decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, Adjusted EBITDA* decreased by 4%, from CAD 4,205,000 for the first six months of 2008 to CAD 4,026,000 for the six months ended June 30, 2009.

Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased 15% to $2,441,000 for the second quarter of 2009 from $2,859,000 for the second quarter of 2008. This is mostly attributable to a 10% decrease in market share while the Company's share of the slot machines in the Cripple Creek market declined by 12%. The Cripple Creek gaming market as a whole declined 5%. Management believes that the opening of a larger casino in Cripple Creek in May 2008 has impacted our revenue. The Company is reviewing strategies to improve revenue at Womacks. Womacks' Adjusted EBITDA* for the second quarter of 2009 was $351,000 compared to $434,000 in the second quarter of 2008, a decrease of 19%. The decrease is primarily due to the decline in revenue. Staffing levels decreased overall when comparing period over period due to the Company's cost cutting measures, but such cost reductions were partially negated by the cost of new hires and various start up expenses associated with the new games and extended hours that were introduced as of July 2, 2009.

Net operating revenue at Womacks decreased 13% to $5,013,000 for the first six months of 2009 from $5,741,000 for the first six months of 2008. This is mostly attributable to a 14% decrease in market share while our share of the slot machines in the Cripple Creek market declined by 16%. The Cripple Creek gaming market as a whole declined 5%. The Company is reviewing strategies to improve revenue at Womacks. Womacks' Adjusted EBITDA* for the first six months of 2009 was $845,000 compared to $713,000 for the first six months of 2008, an increase of 19%. The increase is primarily due to cost cutting measures at the casino.

Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City decreased 10% to $4,178,000 for the second quarter of 2009 compared to $4,617,000 for the second quarter of 2008. The Central City gaming market as a whole declined 10%. Adjusted EBITDA* for the Century Casino & Hotel in Central City for the second quarter of 2009 decreased to $980,000 compared to $1,216,000 in the second quarter of 2008, a 19% decrease. As with Womacks, the decrease is primarily due to the decline in gaming revenue. Staffing levels decreased overall when comparing period over period due to the Company's cost cutting measures, but such cost reductions were partially negated by the cost of new hires and various start up expenses associated with the new games and extended hours that were introduced as of July 2, 2009.

Net operating revenue at the Century Casino and Hotel in Central City decreased 8% to $8,341,000 for the first six months of 2009 compared to $9,024,000 reported for the first six months of 2008. The Central City gaming market as a whole declined 10%. Adjusted EBITDA* for the Century Casino & Hotel in Central City decreased slightly to $2,043,000 for the first six months of 2009 compared to $2,051,000 for the first six months of 2008. Management believes that cost cutting measures at the casino have offset the decline in gaming revenue at the casino.

Cruise Ships - The Company's ship-based casinos contributed net operating revenue of $422,000 and Adjusted EBITDA* of $52,000 for the second quarter of 2009 compared to net operating revenue of $600,000 and Adjusted EBITDA* of $102,000 for the second quarter of 2008. The ship-based casinos contributed net operating revenue of $890,000 and Adjusted EBITDA* of $110,000 for the first six months of 2009 compared to net operating revenue of $1,283,000 and Adjusted EBITDA* of $252,000 during the first six months of 2008. Management believes that the cruise ships have significantly reduced their ticket prices in an effort to attract more passengers. Management believes that this has resulted in consumers with less discretionary income traveling on the ships, indirectly leading to less play at the Company's casinos. Management also attributes these declines to one of the cruise ships being in dry dock during the second quarter of 2009.

Corporate - Corporate operations reported negative Adjusted EBITDA* of $1,374,000 for the second quarter of 2009 compared to negative Adjusted EBITDA* of $1,678,000 for the second quarter of 2008. The lower negative Adjusted EBITDA* is primarily due to a decrease in general and administrative expenses of $228,000 resulting from a decrease in payroll expenses and travel expenses. In addition, earnings recorded from our equity investment in Casinos Poland have increased by $66,000. Our earnings from Casinos Poland increased due to an increase in gaming revenue offset by a decline in the average exchange rate between the U.S. dollar and the Polish zloty of 49.5% for the three months ended June 30, 2009 compared to the three months ended June 30, 2008. Our earnings in Casinos Poland increased by 167.1% from PLN 189,000 in the second quarter of 2008 to PLN 506,000 in the second quarter of 2009.

Corporate operations reported negative Adjusted EBITDA* of $2,665,000 for the first six months of 2009 compared to negative Adjusted EBITDA* of $2,908,000 for the first six months of 2008. The lower negative Adjusted EBITDA* is primarily due to a decrease in general and administrative expenses of $541,000 resulting from a decrease in payroll expenses, travel expenses and professional fees. These decreases were offset by a decline in earnings recorded from our equity investment in Casinos Poland of $305,000. Our earnings from Casinos Poland decreased due to a lower hold percentage on both slot and table games during the first quarter of 2009 and a decline in the average exchange rate between the U.S. dollar and the Polish zloty of 47.1% for the six months ended June 30, 2009 compared to the six months ended June 30, 2008. Our earnings in Casinos Poland decreased by 39.7% from PLN 1.3 million for the first six months of 2008 to PLN 784,000 for the first six months of 2009.

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