Dover Motorsports (DVD) 8-K Reports Results for the Second Quarter

Exhibit 99.1

FOR IMMEDIATE RELEASE	For further information, call:
	Patrick J. Bagley, Sr. Vice President-Finance
Dover, Delaware, July 26, 2007	(302) 883-6530

DOVER MOTORSPORTS, INC.

REPORTS RESULTS FOR THE SECOND QUARTER

Dover Motorsports, Inc. (NYSE-Symbol: DVD) today reported its results for the second quarter ended June 30, 2007.

For the quarter ended June 30, 2007 revenues were $40,806,000 compared with $45,003,000 in the second quarter of 2006. Earnings before income taxes were $11,285,000 compared with $15,012,000 in the comparable quarter of the prior year.

The Company promoted seven major events over five weekends in the second quarter of both 2007 and 2006. Adverse weather affected four of the five event weekends in 2007. Dover’s Spring NASCAR NEXTEL Cup race was rained out on Sunday for the first time in 32 years. The impact of postponing our June Cup race from Sunday to Monday, together with the previously reported decrease in our television broadcast rights fees under the initial years of NASCAR’s new broadcast agreement, adversely affected our results. Decreased revenues from admissions, sponsorship, program sales, concessions and merchandise as well as higher expenses from an extra day’s activities resulted in a decrease in profitability. Results from Dover’s Spring Friday and Saturday events were not impacted by weather and were comparable to the prior year.

For the quarter ended June 30, 2007 operating and marketing expenses were $23,780,000 compared with $23,272,000 in the comparable quarter of 2006. Higher advertising and promotional activities and the additional cost of operating the Dover facility over a four day weekend contributed to the increase in operating expense. General and administrative expenses of $3,135,000 in the second quarter of 2007 were 1% lower than the $3,173,000 for the same quarter last year.

The income tax provision for the quarter ended June 30, 2007 was $5,692,000 compared with $6,683,000 in the prior year. The effective tax rate for the second quarter was 50.4% in 2007 compared with 44.5% in the prior year. The higher rate in 2007 was due to the impact of a reversal of a tax contingency accrual in 2006 and a decrease in the Company’s estimated 2007 annual consolidated pre-tax earnings. The tax rates in both years were affected by state income tax expenses attributable to valuation allowances established on certain state net operating losses.

Net earnings for the quarter ended June 30, 2007 were $5,593,000 or $.16 per diluted share compared with $8,329,000 or $.23 per diluted share for the same period last year. The lower TV broadcast rights fees and the higher effective income tax rate each affected earnings by $.02 per diluted share.

For six months ended June 30, 2007, revenues were $41,688,000 compared with $45,804,000 in the prior year. The Company promoted seven major events in the first half of both years. Net earnings were $2,033,000 or $.06 per diluted share compared with $3,936,000 or $.11 per diluted share in the comparable period of the prior year.

For the first half of 2007 cash provided by operations was $4,801,000 compared with $7,178,000 in the prior year. At June 30, 2007, indebtedness was $49,007,000 compared with $51,204,000 that was outstanding a year earlier.

Capital spending, primarily from the Monster Makeover project, was $8,745,000 in the first half of 2007 compared with $2,038,000 in the prior year. The Company expects capital spending of $1,500,000 to $2,000,000 during the second half of the year.

* * *

This release contains or may contain forward-looking statements based on management’s beliefs and assumptions. Such statements are subject to various risks and uncertainties which could cause results to vary materially. Please refer to the Company’s SEC filings for a discussion of such factors.

Dover Motorsports, Inc. is a leading promoter of motorsports events in the United States. Its motorsports subsidiaries operate four motorsports tracks in three states and promote motorsports events under the auspices of three of the premier sanctioning bodies in motorsports – NASCAR, IRL, and NHRA. The Company owns and operates Dover International Speedway in Dover, Delaware; Nashville Superspeedway near Nashville, Tennessee; Gateway International Raceway near St. Louis, Missouri; and Memphis Motorsports Park in Memphis, Tennessee.

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

In Thousands, Except Per Share Amounts

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Revenues:
Admissions	$	15,760		$	16,613		$	15,847		$	16,698
Event-related		10,494			12,117			11,278			12,807
Broadcasting		14,512			16,244			14,512			16,244
Other		40			29			51			55
		40,806			45,003			41,688			45,804
Expenses:
Operating and marketing		23,780			23,272			26,174			25,490
General and administrative		3,135			3,173			6,306			6,192
Depreciation and amortization		1,565			2,397			3,094			4,780
		28,480			28,842			35,574			36,462
Operating earnings		12,326			16,161			6,114			9,342
Interest income		32			11			75			23
Interest expense		(1,073	)		(1,160	)		(2,002	)		(2,286	)
Earnings before income tax expense		11,285			15,012			4,187			7,079
Income tax expense		5,692			6,683			2,154			3,143
Net earnings	$	5,593		$	8,329		$	2,033		$	3,936
Net earnings per common share:
Basic	$	0.16		$	0.23		$	0.06		$	0.11
Diluted	$	0.16		$	0.23		$	0.06		$	0.11
Weighted average shares outstanding:
Basic		35,876			35,999			35,871			36,049
Diluted		35,991			36,198			35,963			36,211

DOVER MOTORSPORTS, INC.

CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

	June 30, 2007			June 30, 2006			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	1,330		$	1,249		$	298
Accounts receivable		14,766			15,101			2,935
Inventories		334			290			244
Prepaid expenses and other		4,653			4,202			1,808
Receivable from Dover Downs Gaming & Entertainment, Inc.		—			—			9
Income taxes receivable		101			158			—
Deferred income taxes		217			495			193
Total current assets		21,401			21,495			5,487
Property and equipment, net		158,187			218,285			152,502
Restricted cash		2,673			2,104			3,684
Other assets, net		1,278			1,346			1,261
Goodwill		—			2,487			—
Total assets	$	183,539		$	245,717		$	162,934
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,065		$	2,642		$	1,938
Accrued liabilities		4,768			5,549			3,400
Payable to Dover Downs Gaming & Entertainment, Inc.		38			1			—
Income taxes payable		—			—			478
Current portion of bonds payable		—			695			695
Deferred revenue		19,755			20,058			10,008
Current liabilities of discontinued operation		—			103			—
Total current liabilities		28,626			29,048			16,519
Revolving line of credit		44,800			46,300			39,000
Bonds payable		4,207			4,209			4,211
Liability for pension benefits		664			—			771
Other liabilities		—			21			—
Noncurrent income taxes payable		9,296			—			—
Deferred income taxes		20,493			50,610			28,173
Total liabilities		108,086			130,188			88,674
Stockholders’ equity:
Common stock		1,657			1,637			1,635
Class A common stock		1,967			1,992			1,977
Additional paid-in capital		99,599			100,032			99,412
(Accumulated deficit) retained earnings		(27,126	)		12,296			(28,071	)
Accumulated other comprehensive loss		(644	)		(428	)		(693	)
Total stockholders’ equity		75,453			115,529			74,260
Total liabilities and stockholders’ equity	$	183,539		$	245,717		$	162,934

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

	Six Months Ended June 30,
	2007			2006
Operating activities:
Net earnings	$	2,033		$	3,936
Adjustments to reconcile net earnings to net cash provided by operating activities of continuing operations:
Depreciation and amortization		3,094			4,780
Amortization of credit facility fees		91			97
Stock-based compensation		247			235
Deferred income taxes		1,285			2,061
Changes in assets and liabilities:
Accounts receivable		(11,831	)		(12,735	)
Inventories		(90	)		(60	)
Prepaid expenses and other		(2,949	)		(2,482	)
Income taxes receivable/payable		(579	)		(448	)
Accounts payable		2,127			1,165
Accrued liabilities		1,368			128
Payable to/receivable from Dover Downs Gaming & Entertainment, Inc.		47			(14	)
Deferred revenue		9,747			10,536
Other liabilities		211			(21	)
Net cash provided by operating activities of continuing operations		4,801			7,178
Net cash used in operating activities of discontinued operation		—			(41	)
Investing activities:
Capital expenditures		(8,745	)		(2,038	)
Restricted cash		1,011			1,096
Net cash used in investing activities		(7,734	)		(942	)
Financing activities:
Borrowings from revolving line of credit		20,300			17,300
Repayments of revolving line of credit		(14,500	)		(20,100	)
Repayments of bonds payable		(699	)		(874	)
Dividends paid		(1,088	)		(1,093	)
Repurchase of common stock		(54	)		(1,141	)
Excess tax benefit on stock awards		6			16
Other		—			(7	)
Net cash provided by (used in) financing activities		3,965			(5,899	)
Net increase in cash and cash equivalents		1,032			296
Cash and cash equivalents, beginning of period		298			953
Cash and cash equivalents, end of period	$	1,330		$	1,249