Southwest Casino Corporation Reports Third Quarter 2008 Results

Southwest Casino Corporation reported a net loss of $6.3 million for the quarter ended September 30, 2008, compared with a net loss of $655,732 for the same period in 2007. Basic loss per share for the third quarter was $0.21, compared with a basic loss of $0.02 per share for the third quarter of 2007. Revenue for the third quarter of 2008 was $4.0 million compared with revenue of $4.8 million for the same period in 2007.

The increase in net loss of approximately $5.7 million was primarily due to Southwest's $1.0 million share of the loss at North Metro Harness Initiative, LLC and a reduction in the value of that asset by an additional $4.6 million due to the October 19, 2008 transfer of Southwest's membership interest in North Metro to the agent for North Metro's construction lenders. The reduction in revenue was primarily due to the termination of Southwest's management agreement with the Cheyenne and Arapaho Tribes of Oklahoma on August 17, 2007.

For the nine months ended September 30, 2008, Southwest reported a loss of $10.8 million on revenue of $11.6 million compared to a loss of $719,279 on revenue of $15.4 million during the first nine months of 2007. This amounts to a loss of $0.38 per share during the first nine months of 2008 compared with a loss of $0.03 per share during the same period in 2007. The increase in losses during 2008 was due primarily to Southwest's $3.5 million share of losses at North Metro, the reduction of the value of Southwest's investment in North Metro by $4.6 million and a $3.8 million decrease in revenue that was offset by a $1.4 million reduction in operating expenses.

"Although not reflected in our financial results, we continue to be pleased with our consulting and management relationship with Palace Resorts and the progress toward opening the casino in the Dominican Republic that we will manage for them," said James Druck, Southwest's CEO. "We expect that casino to open in Spring 2009. We are also excited about the passage of Amendment 50 in Colorado which, if approved by voters in Cripple Creek, will allow us to increase betting limits, offer new games and operate 24-hours-per-day, as well as give serious consideration to expansion, including additional hotel rooms, at our Gold Rush Hotel and Casino and Gold Digger's casino. We were disappointed in the sale of our interest in North Metro Harness Initiative, LLC to its lenders in October, but we believe their commitment to adequately capitalize the property and assist in its operations will allow Running Aces Harness Park to thrive and become the community asset we envisioned and, of course, help preserve the jobs of Running Aces' hard working employees. We believe the property will benefit from our consulting services and sincerely hope that we will exercise our option to reacquire our ownership interest in the property next year."

In addition to announcing third quarter results, Southwest announced that the Company has adopted a plan to significantly reduce operating expenses during 2009. Southwest's founders and executive officers, James Druck, CEO, Thomas Fox, President and COO, and Jeffrey Halpern, Vice President, have each agreed to reduce their cash salary payments by more than 50% effective January 1, 2009. In addition, all other corporate and management employees will have their cash salary payments reduced by an average of more than 25%. Southwest's directors have agreed to waive all meeting fees and only be paid the existing quarterly retainer.

In an effort to retain personnel in light of these reductions, Southwest will accrue the unpaid portion of employees' wages for payment when cash is available in the future and has reduced the exercise price of options held by employees and directors to $0.20 per share. The reduction in option exercise price does not apply to options issued to the company's founders and executive officers.

"We have assembled a very talented team of people here at Southwest," said Mr. Druck, "and while cuts in cash outlays are required at this time, we wanted to provide strong incentive to team members to stick with Southwest and help us capitalize on the many opportunities in the gaming industry that will result from the current economic turmoil. I believe the fundamental human desire for entertainment and escape from our daily realities will soon regenerate activity in our industry, and keeping our team together while implementing this cost-cutting plan will position Southwest to take advantage of that."

The following table summarizes Southwest Casino Corporation's results for the third quarter:

Q3 2008 Q3 2007 Revenue $ 4,013,653 $ 4,780,617 Net (Loss) Income ($6,316,780 ) ($ 655,732 ) Earnings (Loss) per share: basic ($0.21 ) ($0.02 )

The following table summarizes Southwest Casino Corporation's results for the nine months ended September 30:

2008 2007 Revenue $ 11,590,022 $ 15,379,015 Net (Loss) Income ($10,793,191 ) ($719,279 ) Earnings (Loss) per share basic ($0.38 ) ($0.03 )

About Southwest Casino Corporation

Southwest Casino Corporation develops, owns, operates, manages and provides consulting services to casinos, gaming facilities and leisure facilities. Southwest owns and operates two casinos, the Gold Rush Hotel and Casino and Gold Digger's Casino in Cripple Creek, Colorado. Southwest also provides consulting services to Palace Resorts in connection with the development of a casino at its luxury resort under construction in Punta Cana, Dominican Republic and has entered into an agreement to manage the casino after it opens in Spring 2009. Southwest's corporate offices are located at 2001 Killebrew Drive, Suite 350, Minneapolis, Minnesota 55425.

This Press Release does not constitute an offer of to sell or solicitation of an offer to buy any securities.

This Press Release contains forward-looking statements, including statements regarding Southwest's beliefs about its ongoing business development efforts. These forward-looking statements involve risks and uncertainties that could cause the statements to be incorrect or cause actual results to differ materially. Many of these risks are specifically identified in the Risk Factors Section of our Quarterly Report on Form 10-Q filed August 14, 2008. Other risks applicable to these forward-looking statements are also described in our periodic reports filed with the Securities and Exchange Commission. Southwest does not undertake to update any forward-looking statements it makes; but may choose from time to time to update them and, if it does, will disseminate the updates to the investing public.

SOURCE: Southwest Casino Corporation

Southwest Casino Corporation Thomas E. Fox, 952-853-9990 President or Investor Relations: Strategic Growth International Stan Altschuler, 212-838-1444 saltschuler@sgi-ir.com or Richard Cooper, 212-838-1444 rcooper@sgi-ir.com www.sgi-ir.com