EXHIBIT 99.1



[LOGO OMITTED] MEC
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                                                     Magna Entertainment Corp.

                                                     337 Magna Drive
                                                     Aurora, Ontario,
                                                     Canada L4G 7K1



                  GREAT CANADIAN GAMING CORPORATION AND MAGNA
                  ENTERTAINMENT CORP. FINALIZE AGREEMENT FOR
                          PURCHASE OF FLAMBORO DOWNS

August 16, 2005, Richmond, British Columbia and Aurora, Ontario, Canada -
Great Canadian Gaming Corporation ("Great Canadian") (TSX: GCD) and Magna
Entertainment Corp. ("MEC") (NASDAQ: MECA; TSX: MEC.SV.A) today announced that
they have entered into a share purchase agreement providing for the
acquisition by Great Canadian of all of the outstanding shares of Ontario
Racing Inc., a wholly owned subsidiary of MEC, substantially on the terms set
forth in the agreement in principle reached between the parties as announced
on July 6, 2005. Ontario Racing Inc. owns and operates Flamboro Downs, a
standardbred racetrack, and is a siteholder for slot machines operated by the
Ontario Lottery and Gaming Corporation, in Flamborough, Ontario. The sale is
scheduled to close on September 30, 2005 and remains subject to customary
closing conditions, including regulatory approval.

About Flamboro Downs
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Flamboro Downs, located just 45 miles from Toronto, occupies approximately 230
acres in the town of Flamborough, Ontario. Offering year-round live harness
racing five days a week, and daily simulcast wagering on-track and at 4
teletheatres/off-track betting (OTB) locations, Flamboro Downs boasts the
third highest revenues of racetracks in the province of Ontario. The facility
has provided its guests with first class entertainment for more than 20 years,
and features a complement of 752 slot machines operated by the Ontario Lottery
and Gaming Corporation.

About Great Canadian Gaming Corporation
- ---------------------------------------

Great Canadian, home to approximately 5,000 employees, is a
multi-jurisdictional gaming and entertainment operator with facilities in
British Columbia, Nova Scotia, Ontario and Washington State. Great Canadian
operates casinos, thoroughbred and standardbred racecourses, a community
gaming centre and various food and beverage and entertainment facilities.





                                                                  Exhibit 99.1


About Magna Entertainment Corp.
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MEC is North America's largest owner and operator of horse racetracks, based
on revenue. It develops, owns and operates horse racetracks and related
pari-mutuel wagering operations, including off-track betting facilities.
Additionally, MEC owns and operates XpressBet(R), a national Internet and
telephone account wagering system, and Horse Racing TV(R), a 24-hour horse
racing television network, as well as RaceONTV(TM) and MagnaBet(TM)
internationally.

For more information contact:

For Great Canadian Gaming Corporation:

Thomas N. Bell
Vice President, Corporate Development and Investor Relations
Great Canadian Gaming Corporation
250-13775 Commerce Parkway
Richmond, British Columbia V6V 2V4
Telephone: (604) 303-1000
Facsimile: (604) 279-8605
Website: www.gcgaming.com
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For Magna Entertainment Corp.:

Brian J. Budden
Vice President, Corporate Development
Magna Entertainment Corp.
337 Magna Drive
Aurora, Ontario L4G 7K1
Telephone: (905) 726-7076
Website: www.magnaent.com
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