----

----

| x                                                  | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|----------------------------------------------------|----------------------------------------------------------------------------------------------------|
|                                               |                                                                                               |
| For the quarterly period ended September 30, 2010. |
|                                               |                                                                                               |
| or                                                 |
|                                               |                                                                                               |
| o                                                  | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

|   |   | PENINSULA GAMING, LLC                                         |   | PENINSULA GAMING CORP.                                        |
|--------|--------|---------------------------------------------------------------|--------|---------------------------------------------------------------|
|   |   | (Exact name of registrantsas specified in their charter)      |   | (Exact name of registrantsas specified in their charter)      |
|   |   |                                                          |   |                                                          |
|   |   | DELAWARE                                                      |   | DELAWARE                                                      |
|   |   | (State or other jurisdiction ofincorporation or organization) |   | (State or other jurisdiction ofincorporation or organization) |
|   |   |                                                          |   |                                                          |
|   |   | 20-0800583                                                    |   | 25-1902805                                                    |
|   |   | (I.R.S. EmployerIdentification No.)                           |   | (I.R.S. EmployerIdentification No.)                           |

----

|                                                                                                                                                              | Page                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| Part I - Financial Information                                                                                                                               |   3                                                                                                                                                |
|  Item 1 - Financial Statements                                                                                                                               |                         3       |
|                                                                                                                                                              |                                                                                                                                                    |
| Peninsula Gaming, LLC:                                                                                                                                            |                                                                                                                                                    |
|  Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2010 and December 31, 2009                                                            |                     3                               |
|  Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2010 and 2009                            |                          4      |
|                                                                                                                                                              |                                                                                                                                                    |
| Condensed Consolidated Statement of Changes in Member's Deficit and Comprehensive Income (Unaudited) for the Nine Months Ended September 30, 2010  |                          5      |
|  Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months ended September 30, 2010 and 2009                                      |  6                                                                                                                                                 |
|  Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                            |                          7 |
|                                                                                                                                                              |                                                                                                                                                    |
| Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                              |           14                                                                                          |
|                                                                                                                                                              |                                                                                                                                                    |
| Item 3 - Quantitative and Qualitative Disclosures About Market Risk                                                                                               |         23                                                                                                      |
|                                                                                                                                                              |                                                                                                                                                    |
| Item 4T - Controls and Procedures                                                                                                                                 |           23                                                                                               |
|                                                                                                                                                              |                                                                                                                                                    |
| Part II - Other Information                                                                                                                                  |           24                                                                                               |
|                                                                                                                                                              |                                                                                                                                                    |
| Item 1 - Legal Proceedings                                                                                                                                        |           24                                                                                               |
|                                                                                                                                                              |                                                                                                                                                    |
| Item 6 - Exhibits                                                                                                                                                 |           24                                                                                               |
|                                                                                                                                                              |                                                                                                                                                    |
| Signatures                                                                                                                                                        |           25                                                                                               |

----

|   | PART I. FINANCIAL INFORMATION |
|--------|------------------------------------|

|   | ITEM 1. FINANCIAL STATEMENTS |
|--------|------------------------------|

NSO

|                                                                             |   | September 30, 2010 |    |   | December 31,2009 |   |
|----------------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| ASSETS                                                                           |   |               |    |   |                  |   |
|                                                                             |   |               |    |   |                  |   |
| CURRENT ASSETS:                                                                  |   |               |    |   |                  |   |
| Cash and cash equivalents                                                        |   | $                  | 23,572  |   |                  | $      | 34,537 |   |
| Restricted cash—purse settlements                                          |   |               | 4,870   |   |                  |   | 4,400 |   |
| Accounts receivable, net                                                         |   |               | 3,361   |   |                  |   | 3,147 |   |
| Receivables from affiliates                                                      |   |               | 40      |   |                  |   | 40 |   |
| Inventories                                                                      |   |               | 1,341   |   |                  |   | 1,520 |   |
| Prepaid expenses and other assets                                                |   |               | 5,247   |   |                  |   | 3,600 |   |
| Total current assets                                                             |   |               | 38,431  |   |                  |   | 47,244 |   |
| PROPERTY AND EQUIPMENT, NET                                                      |   |               | 277,126 |   |                  |   |  287,229 |   |
| OTHER ASSETS:                                                                    |   |               |    |   |                  |   |   |   |
| Deferred financing costs, net of amortization of $5,716 and $3,919, respectively |   |               | 24,163  |   |                  |   | 25,705 |   |
| Goodwill                                                                         |   |               | 85,308  |   |                  |   | 85,308 |   |
| Licenses and other intangibles                                                   |   |               | 78,369  |   |                  |   | 78,237 |   |
| Deposits and other assets                                                        |   |               | 5,603   |   |                  |   | 3,470 |   |
| Investment available for sale                                                    |   |               | 18,581  |   |                  |   | 14,741 |   |
| Total other assets                                                               |   |               | 212,024 |   |                  |   | 207,461 |   |
| TOTAL                                                                            |   | $                  | 527,581 |   |                  | $      | 541,934 |   |
|                                                                             |   |               |    |   |                  |   |   |   |
| LIABILITIES AND MEMBER’S DEFICIT                                           |   |               |    |   |                  |   |   |   |
| CURRENT LIABILITIES:                                                             |   |               |    |   |                  |   |   |   |
| Accounts payable                                                                 |   | $                  | 3,758   |   |                  | $      | 3,180 |   |
| Construction payable                                                             |   |               | -       |   |                  |   | 3,155 |   |
| Purse settlement payable                                                         |   |               | 6,255   |   |                  |   | 6,070 |   |
| Accrued payroll and payroll taxes                                                |   |               | 6,654   |   |                  |   | 5,916 |   |
| Accrued interest                                                                 |   |               | 6,901   |   |                  |   | 21,455 |   |
| Other accrued expenses                                                           |   |               | 11,785  |   |                  |   | 12,343 |   |
| Payable to affiliates                                                            |   |               | 719     |   |                  |   | 290 |   |
| Current maturities of long-term debt and leases                                  |   |               | 1,680   |   |                  |   | 2,172 |   |
| Total current liabilities                                                        |   |               | 37,752  |   |                  |   | 54,581 |   |
|                                                                             |   |               |    |   |                  |   |   |   |
| LONG-TERM LIABILITIES:                                                           |   |               |    |   |                  |   |   |   |
| 8 3⁄8% senior secured notes, net of discount                                 |   |               | 235,339 |   |                  |   | 234,778 |   |
| 10 3⁄4% senior notes, net of discount                                         |   |               | 297,820 |   |                  |   | 297,317 |   |
| Term loan                                                                        |   |               | 3,981   |   |                  |   | 5,183 |   |
| Notes and leases payable, net of discount                                        |   |               | 32      |   |                  |   | 22 |   |
| Obligation under Minimum Assessment Agreement                                    |   |               | 18,127  |   |                  |   | 18,852 |   |
| Other liabilities                                                                |   |               | 961     |   |                  |   | 976 |   |
| Total long-term liabilities                                                      |   |               | 556,260 |   |                  |   | 557,128 |   |
| Total liabilities                                                                |   |               | 594,012 |   |                  |   | 611,709 |   |
|                                                                             |   |               |    |   |                  |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 6)                                           |   |               |    |   |                  |   |   |   |
| MEMBER’S DEFICIT:                                                          |   |               |    |   |                  |   |   |   |
| Common member’s interest                                                   |   |               | 9,000   |   |                  |   | 9,000 |   |
| Accumulated deficit                                                              |   |               | (78,855 | )      |                  |   | (76,780 | ) |
| Note receivable from owner                                                       |   |               | -       |   |                  |   | (1,723 | ) |
| Accumulated other comprehensive income (loss)                                    |   |               | 3,424   |   |                  |   | (272 | ) |
| Total member’s deficit                                                     |   |               | (66,431 | )      |                  |   | (69,775 | ) |
| TOTAL                                                                            |   | $                  | 527,581 |   |                  | $      | 541,934 |   |

----

NDE

|                                         |   | Three MonthsEndedSeptember 30, 2010 |    |   | Three MonthsEndedSeptember 30, 2009 |   |    | Nine MonthsEndedSeptember 30, 2010 |   |   | Nine MonthsEndedSeptember 30, 2009 |    |
|----------------------------------------------|--------|----------------------------------------------------|---------|--------|----------------------------------------------------|--------|---------|---------------------------------------------------|--------|--------|---------------------------------------------------|---------|
| REVENUES:                                    |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |
| Casino                                       |   | $                                                  | 75,480  |   |                                               | $      | 63,915  |                                              |   | $      | 225,022                                           |    |   | $ | 193,569 |   |
| Racing                                       |   |                                               | 4,571   |   |                                               |   | 4,832   |                                              |   |   | 12,436                                            |    |   |   | 13,685 |   |
| Video poker                                  |   |                                               | 1,089   |   |                                               |   | 1,190   |                                              |   |   | 3,370                                             |    |   |   | 4,170 |   |
| Food and beverage                            |   |                                               | 6,941   |   |                                               |   | 5,586   |                                              |   |   | 20,143                                            |    |   |   | 17,580 |   |
| Other                                        |   |                                               | 3,540   |   |                                               |   | 2,965   |                                              |   |   | 9,333                                             |    |   |   | 8,023 |   |
| Less promotional allowances                  |   |                                               | (9,673  | )      |                                               |   | (7,233  | )                                                 |   |   | (27,890                                           | )  |   |   | (20,358 | )  |
| Total net revenues                           |   |                                               | 81,948  |   |                                               |   | 71,255  |                                              |   |   | 242,414                                           |    |   |   | 216,669 |   |
|                                         |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| EXPENSES:                                    |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| Casino                                       |   |                                               | 30,304  |   |                                               |   | 25,790  |                                              |   |   | 91,969                                            |    |   |   | 79,739 |   |
| Racing                                       |   |                                               | 4,223   |   |                                               |   | 4,368   |                                              |   |   | 11,435                                            |    |   |   | 12,294 |   |
| Video poker                                  |   |                                               | 906     |   |                                               |   | 950     |                                              |   |   | 2,660                                             |    |   |   | 3,047 |   |
| Food and beverage                            |   |                                               | 4,555   |   |                                               |   | 4,089   |                                              |   |   | 13,022                                            |    |   |   | 12,658 |   |
| Other                                        |   |                                               | 2,512   |   |                                               |   | 2,233   |                                              |   |   | 6,380                                             |    |   |   | 5,691 |   |
| Selling, general and administrative          |   |                                               | 14,035  |   |                                               |   | 8,902   |                                              |   |   | 41,185                                            |    |   |   | 33,370 |   |
| Depreciation and amortization                |   |                                               | 7,315   |   |                                               |   | 5,872   |                                              |   |   | 22,142                                            |    |   |   | 17,845 |   |
| Pre-opening expense                          |   |                                               | 8       |   |                                               |   | -       |                                              |   |   | 33                                                |    |   |   | - |   |
| Development expense                          |   |                                               | -       |   |                                               |   | 496     |                                              |   |   | 28                                                |    |   |   | 704 |   |
| Affiliate management fees                    |   |                                               | 1,535   |   |                                               |   | 1,356   |                                              |   |   | 4,493                                             |    |   |   | 4,094 |   |
| Loss on disposal of assets                   |   |                                               | 17      |   |                                               |   | 1,958   |                                              |   |   | 54                                                |    |   |   | 1,983 |   |
| Total expenses                               |   |                                               | 65,410  |   |                                               |   | 56,014  |                                              |   |   | 193,401                                           |    |   |   | 171,425 |   |
|                                         |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| INCOME FROM OPERATIONS                       |   |                                               | 16,538  |   |                                               |   | 15,241  |                                              |   |   | 49,013                                            |    |   |   | 45,244 |   |
|                                         |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| OTHER INCOME (EXPENSE):                      |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| Interest income                              |   |                                               | 680     |   |                                               |   | 498     |                                              |   |   | 1,672                                             |    |   |   | 1,505 |   |
| Interest expense, net of amounts capitalized |   |                                               | (14,929 | )      |                                               |   | (13,437 | )                                                 |   |   | (44,684                                           | )  |   |   | (35,621 | ) |
| Loss on early retirement of debt             |   |                                               | -       |   |                                               |   | (22,475 | )                                                 |   |   | -                                                 |    |   |   | (22,475 | ) |
| Total other expense                          |   |                                               | (14,249 | )      |                                               |   | (35,414 | )                                            |   |   | (43,012                                           | )  |   |   | (56,591 | ) |
|                                         |   |                                               |    |   |                                               |   |    |                                              |   |   |                                              |    |   |   |   |   |
| NET INCOME (LOSS)                            |   | $                                                  | 2,289   |   |                                               | $      | (20,173 | )                                                 |   | $      | 6,001                                             |    |   | $ | (11,347 | ) |

----

PEN

|                                           |   | COMMONMEMBER’SINTEREST |   |   | ACCUMU-LATEDDEFICIT |   |    |      NOTERECEIVABLE FROM OWNER |   |   | ACCUMU-LATED OTHER COMPRE-HENSIVEINCOME (LOSS) |   |   | TOTALMEMBER’S DEFICIT |   |   | COMPRE-HENSIVE INCOME |   |
|------------------------------------------------|--------|------------------------------|--------|--------|---------------------|--------|---------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------|--------|
|                                           |   |                         |   |   |                |   |    |                                               |   |   |                                           |   |   |                             |   |   |                  |   |
| BALANCE, DECEMBER 31, 2009                     |   | $                            | 9,000  |   |                | $      | (76,780 | )                                                  |   | $      | (1,723                                         | )      |   | $                                | (272   | )      |                  | $      | (69,775 | ) |   |   |   |
| Net income                                     |   |                         |   |   |                |   | 6,001   |                                               |   |   |                                           |   |   |                             |   |   |                  |   | 6,001 |   |   | $ | 6,001 |   |
| Unrealized gain on available for sale security |   |                         |   |   |                |   |    |                                               |   |   |                                           |   |   |                             | 3,696  |   |                  |   | 3,696 |   |   |   | 3,696 |   |
| Loan to owner                                  |   |                         |   |   |                |   |    |                                               |   |   | (10                                            | )      |   |                             |   |   |                  |   | (10 | )  |   |   | - |   |
| Repayment of loan by owner                     |   |                         |   |   |                |   |    |                                               |   |   | 1,733                                          |   |   |                             |   |   |                  |   | 1,733 |   |   |   | - |   |
| Member distributions                           |   |                         |   |   |                |   | (8,076  | )                                                  |   |   |                                           |   |   |                             |   |   |                  |   | (8,076 | )  |   |   | - |   |
| Comprehensive income                           |   |                         |   |   |                |   |    |                                               |   |   |                                           |   |   |                             |   |   |                  |   |   |   |   | $ | 9,697 |   |
| BALANCE, SEPTEMBER 30, 2010                    |   | $                            | 9,000  |   |                | $      | (78,855 | )                                                  |   | $      | -                                              |   |   | $                                | 3,424  |   |                  | $      | (66,431 | ) |   |   |   |   |

----

PE

|                                                                                          |   | Nine MonthsEndedSeptember 30,2010 |           |   | Nine MonthsEndedSeptember 30,2009 |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------------|--------|----------------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                         |   |                                        |           |   |                                   |   |
| Net income (loss)                                                                             |   | $                                           | 6,001          |   |                                   | $      | (11,347) |   |
| Adjustments to reconcile net income (loss) to net cash flows from operating activities:  |   |                                        |           |   |                                   |   |   |   |
| Depreciation and amortization                                                                 |   |                                        | 22,142    |   |                                   |   | 17,845 |   |
| Non-cash interest                                                                             |   |                                        | 3,382          |   |                                   |   | 3,944 |   |
| Loss on early retirement of debt                                                              |   |                                        |  -        |   |                                   |   |  22,475 |   |
| Non-cash equity based and other compensation                                                  |   |                                        | 374            |   |                                   |   | (2,124) |   |
| Loss on disposal of assets                                                                    |   |                                        | 54             |   |                                   |   | 1,983 |   |
| Changes in operating assets and liabilities:                                                  |   |                                        |           |   |                                   |   |   |   |
| Restricted cash — purse settlements                                                     |   |                                        | (470)          |   |                                   |   | (292) |   |
| Receivables                                                                                   |   |                                        | (1,095)        |   |                                   |   | (1,509) |   |
| Inventories                                                                                   |   |                                        | 179            |   |                                   |   | (126) |   |
| Prepaid expenses and other assets                                                             |   |                                        | (371)          |   |                                   |   | 1,778 |   |
| Accounts payable                                                                              |   |                                        | 773            |   |                                   |   | (854) |   |
| Accrued expenses                                                                              |   |                                        | (15,351)       |   |                                   |   | 1,518 |   |
| Payable to affiliates                                                                         |   |                                        | 429            |   |                                   |   | (149) |   |
| Net cash flows from operating activities                                                      |   |                                        | 16,047         |   |                                   |   | 33,142 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                         |   |                                        |           |   |                                   |   |   |   |
| Increase in cash value of life insurance for premiums paid                                    |   |                                        | (229)          |   |                                   |   | (328) |   |
| Advances under note receivable to related party                                               |   |                                        |  (2,300)  |   |                                   |   |  - |   |
| Business acquisition and licensing costs                                                      |   |                                        | (329)          |   |                                   |   | (1,361) |   |
| Deposit under purchase agreement                                                              |   |                                        | -              |   |                                   |   | (10,000) |   |
| Construction project development costs                                                        |   |                                        | (8,265)        |   |                                   |   | (16,648) |   |
| Purchase of property and equipment                                                            |   |                                        | (6,864)        |   |                                   |   | (6,438) |   |
| Proceeds from sale of property and equipment                                                  |   |                                        | 159            |   |                                   |   | 675 |   |
| Net cash flows from investing activities                                                      |   |                                        | (17,828)       |   |                                   |   | (34,100) |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                         |   |                                        |           |   |                                   |   |   |   |
| Deferred financing costs                                                                      |   |                                        | (737)          |   |                                   |   | (15,117) |   |
| Principal payments on debt                                                                    |   |                                        | (1,720)        |   |                                   |   | (392,347) |   |
| Proceeds from senior notes                                                                    |   |                                        | -              |   |                                   |   | 531,537 |   |
| Proceeds from senior credit facilities                                                   |   |                                        | 16,000         |   |                                   |   | 29,700 |   |
| Payments on senior credit facilities                                                          |   |                                        |  (16,000) |   |                                   |   |  (60,200) |   |
| Loan to owner                                                                                 |   |                                        | (10)           |   |                                   |   | - |   |
| Proceeds from repayment of loan by owner                                                      |   |                                        |  1,733    |   |                                   |   |  - |   |
| Member distributions                                                                          |   |                                        | (8,450)        |   |                                   |   | (2,670) |   |
| Net cash flows from financing activities                                                      |   |                                        | (9,184)        |   |                                   |   | 90,903 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                          |   |                                        | (10,965)       |   |                                   |   | 89,945 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                              |   |                                        | 34,537         |   |                                   |   | 38,705 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                    |   | $                                           | 23,572         |   |                                   | $      | 128,650 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                            |   |                                        |           |   |                                   |   |   |   |
| Cash paid during the period for interest                                                      |   | $                                           | 55,170         |   |                                   | $      | 33,393 |   |
|                                                                                          |   |                                        |           |   |                                   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                         |   |                                        |           |   |                                   |   |   |   |
| Property and equipment acquired, but not paid                                                 |   | $                                           | 91             |   |                                   | $      | 2,059 |   |
| Property and equipment acquired in exchange for obligation under Minimum Assessment Agreement |   |                                        | -              |   |                                   |   | 1,989 |   |
| Unrealized gain on available for sale investment                                              |   |                                        | 3,696          |   |                                   |   | 6,773 |   |
| Liability settled in exchange for property and equipment                                      |   |                                        | -              |   |                                   |   | 4,104 |   |

----

NO

|   | 1. Organization and Basis of Presentation |
|--------|-------------------------------------------|

|   | 2. Summary of Significant Accounting Policies |
|--------|-----------------------------------------------|

|                                                                   |   | September 30, 2010   |   |
|------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                   |   | Gross Carrying Value |   |   | Accumulated Amortization |   |   | Net Book Value |   |
|  Intangible assets with indefinite lives:                         |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Gaming licenses                          |   | $                    | 72,475 |   |   | $ | - |   |   | $ | 72,475 |   |
|      Tradename                                |   |                 | 2,454  |   |   |   | - |   |   |   | 2,454 |   |
|      Horse racing license                     |   |                 | 1,308  |   |   |   | - |   |   |   | 1,308 |   |
| Intangible assets with finite lives:                                   |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Tradename                                |   |                 | 2,135  |   |   |   | (196) |   |   |   | 1,939 |   |
|      Customer relationships and customer list |   |                 | 242    |   |   |   | (49) |   |   |   | 193 |   |
| Total                                                                  |   | $                    | 78,614 |   |   | $ | (245) |   |   | $ | 78,369 |   |

|                                                                   |   | December 31, 2009    |   |
|------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                   |   | Gross Carrying Value |   |   | Accumulated Amortization |   |   | Net Book Value |   |
|  Intangible assets with indefinite lives:                         |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Gaming licenses                          |   | $                    | 72,146 |   |   | $ | - |   |   | $ | 72,146 |   |
|      Tradename                                |   |                 | 2,454  |   |   |   | - |   |   |   | 2,454 |   |
|      Horse racing license                     |   |                 | 1,308  |   |   |   | - |   |   |   | 1,308 |   |
| Intangible assets with finite lives:                                   |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Tradename                                |   |                 | 2,135  |   |   |   | (36) |   |   |   | 2,099 |   |
|      Customer relationships and customer list |   |                 | 242    |   |   |   | (12) |   |   |   | 230 |   |
| Total                                                                  |   | $                    | 78,285 |   |   | $ | (48) |   |   | $ | 78,237 |   |

----

|                                  |   | September 30, 2010 |      |   | December 31,2009 |   |
|---------------------------------------|--------|--------------------|-----------|--------|-----------------------|--------|
| Land and land improvements            |   | $                  | 19,747    |   |                  | $      | 19,701 |   |
| Buildings, riverboat and improvements |   |               | 254,747   |   |                  |   | 244,419 |   |
| Furniture, fixtures and equipment     |   |               | 101,558   |   |                  |   | 96,062 |   |
| Computer equipment                    |   |               | 13,226    |   |                  |   | 12,004 |   |
| Vehicles                              |   |               | 782       |   |                  |   | 677 |   |
| Construction in progress              |   |               | 126       |   |                  |   | 6,916 |   |
| Subtotal                              |   |               | 390,186   |   |                  |   | 379,779 |   |
| Accumulated depreciation              |   |               | (113,060) |   |                  |   | (92,550) |   |
| Property and equipment, net           |   | $                  | 277,126   |   |                  | $      | 287,229 |   |

|                                                                                                                                                                                                                |   | September 30, 2010 |    |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| 8 3/8% senior secured notes due August 15, 2015, net of discount of $4,661 and $5,222, respectively, secured by substantially all the assets of the Company and its subsidiaries and the equity of the Company |   | $                  | 235,339 |   |                  | $      | 234,778 |   |
| 10 3/4% senior unsecured notes due August 15, 2017, net of discount of $7,180 and $7,683, respectively                                                                                                         |   |               | 297,820 |   |                  |   | 297,317 |   |
| Term loan under a loan and security agreement of PGL, DJL and EVD with American Trust & Savings Bank, interest rate at 6.5%, due in installments through December 1, 2013, secured by certain assets of DJL          |   |               | 5,571   |   |                  |   | 6,697 |   |
| Notes payable and capital lease obligations, net of discount of $0 and $16, respectively, interest rates at 6.4% - 14.4%, due 2010 – 2015                                                                          |   |               | 122     |   |                  |   | 680 |   |
|  Total debt                                                                                                                                                                                                         |   |               | 538,852 |   |                  |   | 539,472 |   |
| Less current portion                                                                                                                                                                                                     |   |               | (1,680) |   |                  |   | (2,172) |   |
|  Total long term debt                                                                                                                                                                                               |   | $                  | 537,172 |   |                  | $      | 537,300 |   |

----

|                          |   | Total Carrying Value at September 30, 2010 |   |   | Fair Value Measurements at September 30, 2010 |    |   | Total Carrying Value at December 31, 2009 |   |    | Fair Value Measurements at December 31, 2009                                                                                               |   |
|-------------------------------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------|---------|--------|------------------------------------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Investment available for sale |   |  $                                         | 18,581 |   |                                          |  $ | 18,581 |                                           |   |  $ |                       14,741 |   |   |  $ |                            14,741 |   |

----

|                                                                      | Three Months Ended September 30, 2010 |   | Three Months EndedSeptember 30, 2009 |   |
|--------------------------------------------------------------------------------|---------------------------------------|--------|--------------------------------------|--------|
|                                                                           | Investment availablefor sale          |   |   Investment availablefor sale  |   | Derivative liability, not designated as a hedging instrument |   |
| Balance at beginning of the reporting period                                   |                                  | $      | 18,563                               |   |   | $ | 15,887 |   |   | $ | (826 | ) |
| Total gains (losses) (realized or unrealized):                                 |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
|      Included in earnings                             |                                  |   | 50                                   |   |   |   | 44 |   |   |   | 826 |   |
|      Included in other comprehensive income (loss)    |                                  |   | (32                                  | )      |   |   | (1,202 | ) |   |   | - |   |
| Transfers in or out of Level 3                                                 |                                  |   | -                                    |   |   |   | - |   |   |   | - |   |
| Purchases, sales, issuances and settlements                                    |                                  |   | -                                    |   |   |   | - |   |   |   | - |   |
| Ending balance at September 30, 2010 and 2009                                  |                                  | $      | 18,581                               |   |   | $ | 14,729 |   |   | $ | - |   |
|                                                                           |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
|  Gains included in earnings attributable to the change                    | Included ininterest income            |   | Included in interest income          |   |   |   |   |   |
|      in unrealized gains or losses relating to assets |                                  |   |                                 |   |   |   |   |   |   |   |   |   |
|      still held at the reporting date                 |                                  | $      | 50                                   |   |   | $ | 44 |   |   |   |   |   |

|                                                                           | Nine Months Ended September 30, 2010    |   | Nine Months EndedSeptember 30, 2009 |   |
|--------------------------------------------------------------------------------|-----------------------------------------|--------|-------------------------------------|--------|
|                                                                           | Investment available for sale |   |   Investment availablefor sale |   | Derivative liability, not designated as a hedging instrument |   |
| Balance at beginning of the year                                               |                                    | $      | 14,741                              |   |   | $ | 7,828 |   |   | $ | (790 | ) |
| Total gains (losses) (realized or unrealized):                                 |                                    |   |                                |   |   |   |   |   |   |   |   |   |
|      Included in earnings                             |                                    |   | 144                                 |   |   |   | 128 |   |   |   | 655 |   |
|      Included in other comprehensive income (loss)    |                                    |   | 3,696                               |   |   |   | 6,773 |   |   |   | - |   |
| Transfers in or out of Level 3                                                 |                                    |   | -                                   |   |   |   | - |   |   |   | - |   |
| Purchases, sales, issuances and settlements                                    |                                    |   | -                                   |   |   |   | - |   |   |   | 135 |   |
| Ending balance at September 30, 2010 and 2009                                  |                                    | $      | 18,581                              |   |   | $ | 14,729 |   |   | $ | - |   |
|                                                                           |                                    |   |                                |   |   |   |   |   |   |   |   |   |
|  Gains included in earnings attributable to the change                    | Included ininterest income              |   | Included in interest income    |   |   |   |   |   |
|      in unrealized gains or losses relating to assets |                                    |   |                                |   |   |   |   |   |   |   |   |   |
|      still held at the reporting date                 |                                    | $      | 144                                 |   |   | $ | 128 |   |   |   |   |   |

----

|   | 6. Commitments and Contingencies |
|--------|----------------------------------|

----

|               |   | Net Revenues FromExternal Customers Three Months Ended September 30, |   |   | Net Revenues From External Customers Nine Months Ended September 30, |    |
|--------------------|--------|-----------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------|---------|
|               |   | 2010                                                                                          |   |   | 2009                                                                                          |    |   | 2010 |   |   | 2009 |   |
| Diamond Jo Dubuque |   |  $                                                                                       | 17,681 |   |                                                                                          |  $ | 18,288 |   |   |  $ | 52,144 |   |   |  $ | 55,953 |   |
| Diamond Jo Worth   |   |                                                                                          | 22,792 |   |                                                                                          |    | 22,301 |   |   |   | 66,158 |   |   |   | 64,011 |   |
| Evangeline Downs   |   |                                                                                          | 29,071 |   |                                                                                          |    | 30,666 |   |   |   | 87,409 |   |   |   | 96,705 |   |
| Amelia Belle       |   |                                                                                          | 12,404 |   |                                                                                          |    | — |   |   |   | 36,703 |   |   |   | — |   |
| Total              |   |  $                                                                                       | 81,948 |   |                                                                                          |  $ | 71,255 |   |   |  $ | 242,414 |   |   |  $ | 216,669 |   |

|                                          |   | Segment Operating EarningsThree Months Ended September 30, (1) |           |   | Segment Operating EarningsNine Months Ended September 30, (1) |    |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------|----------------|--------|--------------------------------------------------------------------------------------------------|---------|
|                                          |   | 2010                                                                                              |           |   | 2009                                                                                             |    |   | 2010 |   |   | 2009 |   |
| Diamond Jo Dubuque                            |   |  $                                                                                           | 6,226          |   |                                                                                             |  $ | 6,440 |   |   |  $ | 17,966 |   |   |  $ | 18,799 |   |
| Diamond Jo Worth                              |   |                                                                                              | 9,716          |   |                                                                                             |    | 9,289 |   |   |   | 27,818 |   |   |   | 25,850 |   |
| Evangeline Downs                              |   |                                                                                              | 7,320          |   |                                                                                             |    | 7,706 |   |   |   | 23,335 |   |   |   | 27,294 |   |
| Amelia Belle                                  |   |                                                                                              | 3,916          |   |                                                                                             |    | — |   |   |   | 11,679 |   |   |   | — |   |
| Total Property Segment Operating Earnings (1) |   |                                                                                              | 27,178         |   |                                                                                             |    | 23,435 |   |   |   | 80,798 |   |   |   | 71,943 |   |
| General Corporate                             |   |                                                                                              | (1,765         | )      |                                                                                             |    | (1,343) |   |   |   | (5,035) |   |   |   | (4,485) |   |
| Total Segment Operating Earnings (1)          |   |                                                                                              |  25,413   |   |                                                                                             |    |  22,092 |   |   |   |  75,763 |   |   |   |  67,458 |   |
| Non-cash equity based compensation            |   |                                                                                              |  -        |   |                                                                                             |    |  2,831 |   |   |   |  - |   |   |   |  2,412 |   |
| Depreciation and amortization                 |   |                                                                                              |  (7,315)  |   |                                                                                             |    |  (5,872) |   |   |   |  (22,142) |   |   |   |  (17,845) |   |
| Pre-opening expense                           |   |                                                                                              |  (8)      |   |                                                                                             |    |  - |   |   |   |  (33) |   |   |   |  - |   |
| Development expense                           |   |                                                                                              |  -        |   |                                                                                             |    |  (496) |   |   |   |  (28) |   |   |   |  (704) |   |
| Affiliate management fees                     |   |                                                                                              |  (1,535)  |   |                                                                                             |    |  (1,356) |   |   |   |  (4,493) |   |   |   |  (4,094) |   |
| Loss on disposal of assets                    |   |                                                                                              |  (17)     |   |                                                                                             |    |  (1,958) |   |   |   |  (54) |   |   |   |  (1,983) |   |
| Interest expense, net                         |   |                                                                                              |  (14,249) |   |                                                                                             |    |  (12,939) |   |   |   |  (43,012) |   |   |   |  (34,116) |   |
| Loss on early retirement of debt              |   |                                                                                              |  -        |   |                                                                                             |    |  (22,475) |   |   |   |  - |   |   |   |  (22,475) |   |
| Net income (loss)                             |   |  $                                                                                           | 2,289     |   |                                                                                             |  $ |  (20,173) |   |   |  $ | 6,001  |   |   |  $ |  (11,347) |   |

| (1) | Segment operating earnings is defined as net income (loss) plus non-cash equity based compensation, depreciation and amortization, pre-opening expense, development expense, affiliate management fees, loss on disposal of assets, interest expense, net, and loss on early retirement of debt. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | Interest Expense, netThree Months Ended September 30, |    |    | Interest Expense, netNine Months Ended   September 30, |   |
|--------------------|--------|-------------------------------------------------------|---------|---------|------------------------------------------------------------------|--------|
|               |   | 2010                                                  |    |    | 2009                                                             |   |   | 2010 |   |   | 2009 |   |
| General Corporate  |   | $                                                     | (14,219 | )       |                                                             | $      | (8,707 | ) |   | $ | (42,812 | ) |   | $ | (8,707 | ) |
| Diamond Jo Dubuque |   |                                                  | (574    | )  |                                                             |   | (1,785 | ) |   |   | (1,724 | )  |   |   | (9,073 | ) |
| Diamond Jo Worth   |   |                                                  | 492     |    |                                                             |   | (868 | ) |   |   | 1,459 |   |   |   | (6,806 | ) |
| Evangeline Downs   |   |                                                  | 49      |    |                                                             |   | (1,579 | ) |   |   | 57 |   |   |   | (9,530 | ) |
| Amelia Belle       |   |                                                  | 3       |    |                                                             |   | - |   |   |   | 8 |   |   |   | - |   |
| Total              |   | $                                                     | (14,249 | )       |                                                             | $      | (12,939 | ) |   | $ | (43,012 | ) |   | $ | (34,116 | ) |

|               |   | Depreciation and AmortizationThree Months Ended September 30, |   |   | Depreciation and AmortizationNine Months Ended   September 30, |   |
|--------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
|               |   | 2010                                                          |   |   | 2009                                                                     |   |   | 2010 |   |   | 2009 |   |
| General Corporate  |   |  $                                                       | 55     |   |                                                                     | $      | 26 |   |   | $ | 117 |   |   | $ | 82 |   |
| Diamond Jo Dubuque |   |                                                          | 2,313  |   |                                                                     |   |    2,245 |   |   |   | 6,868 |   |   |   | 6,616 |   |
| Diamond Jo Worth   |   |                                                          | 1,433  |   |                                                                     |   |     1,694 |   |   |   | 4,719 |   |   |   | 5,729 |   |
| Evangeline Downs   |   |                                                          | 1,970  |   |                                                                     |   |     1,907 |   |   |   | 5,871 |   |   |   | 5,418 |   |
| Amelia Belle       |   |                                                          | 1,544  |   |                                                                     |   | - |   |   |   | 4,567 |   |   |   | - |   |
| Total              |   |  $                                                       | 7,315  |   |                                                                     | $      |     5,872 |   |   | $ | 22,142 |   |   | $ | 17,845 |   |

|               |   | Total Assets       |    |
|--------------------|--------|-------------------------|---------|
|               |   | September 30, 2010 |    |   | December 31,2009 |   |
|               |   |                    |    |   |   |   |
| General Corporate  |   | $                       | 18,388  |   |   | $ |        26,673 |   |
| Diamond Jo Dubuque |   |                    | 166,501 |   |   |   | 174,861 |   |
| Diamond Jo Worth   |   |                    | 81,836  |   |   |   | 82,692 |   |
| Evangeline Downs   |   |                    | 145,912 |   |   |   | 143,168 |   |
| Amelia Belle       |   |                    | 114,944 |   |   |   | 114,540 |   |
| Total              |   | $                       | 527,581 |   |   | $ |    541,934 |   |

|               |   | Cash Expenditures for Additions toLong-Lived Assets |   |
|--------------------|--------|------------------------------------------------------------------------------|--------|
|               |   | Nine Months EndedSeptember 30, 2010                                     |   |   | Nine Months Ended September 30, 2009 |   |
|               |   |                                                                         |   |   |   |   |
| General Corporate  |   | $                                                                            | 579    |   |   | $ | 253 |   |
| Diamond Jo Dubuque |   |                                                                         | 1,851  |   |   |   | 15,570 |   |
| Diamond Jo Worth   |   |                                                                         | 1,529  |   |   |   | 3,108 |   |
| Evangeline Downs   |   |                                                                         | 7,180  |   |   |   | 5,516 |   |
| Amelia Belle       |   |                                                                         | 4,319  |   |   |   | - |   |
| Total              |   | $                                                                            | 15,458 |   |   | $ | 24,447 |   |

----

|                                                                     |   | September 30, 2010 |    |   | December 31, 2009 |   |
|--------------------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------------|--------|
|                                                                     |   | Fair Value         |    |   | RecordedAmount              |   |   | Fair Value |   |   | RecordedAmount |   |
| Available for sale investment                                            |   | $                       | 18,581  |   |                        | $      | 18,581 |   |   | $ | 14,741 |   |   | $ | 14,741 |   |
| Note receivable                                                          |   |                    | 2,531   |   |                        |   | 2,300 |   |   |   | - |   |   |   | - |   |
| 8 3/8% senior secured notes                                         |   |                    | 252,000 |   |                        |   | 235,339 |   |   |   | 241,200 |   |   |   | 234,778 |   |
| 10 3/4% senior unsecured notes                                           |   |                    | 321,775 |   |                        |   | 297,820 |   |   |   | 308,050 |   |   |   | 297,317 |   |
| Term loan                                                                |   |                    | 5,571   |   |                        |   | 5,571 |   |   |   | 6,697 |   |   |   | 6,697 |   |
| Notes payable, capital lease obligations and other financial instruments |   |                    | 647     |   |                        |   | 647 |   |   |   | 1,289 |   |   |   | 1,272 |   |
| Obligation under Minimum Assessment Agreement                            |   |                    | 24,581  |   |                        |   | 20,051 |   |   |   | 19,453 |   |   |   | 19,812 |   |

|                                                  |   Three Months Ended September 30, |   | Nine Months Ended September 30, |    |
|-------------------------------------------------------|-------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                  | 2010                                                        |   | 2009                                                |    | 2010 |   | 2009 |   |
| Net income (loss)                                     |                                                        | $      | 2,289                                               |    |   | $ | (20,173 | ) |   | $ | 6,001 |   |   | $ | (11,347 | ) |
| Unrealized gain (loss) on available for sale security |                                                        |   | (32                                                 | )  |   |   | (1,202 | ) |   |   | 3,696 |   |   |   | 6,773 |   |
| Comprehensive income (loss)                           |                                                        | $      | 2,257                                               |    |   | $ | (21,375 | ) |   | $ | 9,697 |   |   | $ | (4,574 | ) |

ITEM 

|   | Forward Looking Statements |
|--------|----------------------------|

|   | · | statements relating to our plans, intentions, expectations, objectives or goals; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | statements relating to our future economic performance, business prospects, revenue, income and financial condition, and any underlying assumptions relating to those statements; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the availability and adequacy of our cash flows to satisfy our obligations, including payment obligations under the 83⁄8% senior secured notes and 10 3⁄4% senior unsecured notes (collectively, the “PGL Notes”) and the PGL Credit Facility and additional funds required to support capital improvements and development; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | economic, competitive, demographic, business and other conditions in our local and regional markets; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | changes or developments in the laws, regulations or taxes in the gaming and horse racing industry; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | actions taken or omitted to be taken by third parties, including customers, suppliers, competitors, members and shareholders, as well as legislative, regulatory, judicial and other governmental authorities; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in business strategy, capital improvements, development plans, including those due to environmental remediation concerns, or changes in personnel or their compensation, including federal, state and local minimum wage requirements; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the loss of any license or permit, including the failure to obtain an unconditional renewal of a required gaming license on a timely basis; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the termination of our operating agreement with our “qualified sponsoring organizations,” the Dubuque Racing Association (“DRA”) and/or the Worth County Development Authority (“WCDA”), or the failure of the DRA and/or the WCDA to continue as our “qualified sponsoring organization;” |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the loss of our facilities due to casualty, weather, mechanical failure or any extended or extraordinary maintenance or inspection that may be required; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in federal or state tax obligations; |
|--------|--------|----------------------------------------------|

|   | · | potential exposure to environmental liabilities, changes or developments in the laws, regulations or taxes in the gaming or horse racing industry or a decline in the public acceptance of gaming or horse racing and other unforeseen difficulties associated with a new venture; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | adverse circumstances, changes, developments or events relating to or resulting from our ownership and control of DJL, DJW, EVD and ABC; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other factors discussed in our other filings with the SEC. |
|--------|--------|------------------------------------------------------------|

| 1.   | Diamond Jo Dubuque operations, which comprise the Diamond Jo casino operations in Dubuque, Iowa and serving the eastern Iowa, northwest Illinois and southwest Wisconsin gaming markets; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Diamond Jo Worth operations, which comprise the Diamond Jo casino operations in Northwood, Iowa serving north central Iowa and south central Minnesota; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | EVD operations, which comprise the casino, racetrack and OTB’s operated by EVD in Louisiana, serving the greater Lafayette, Louisiana area; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Amelia Belle operations, which comprise the Amelia Belle Casino in Amelia, Louisiana serving the southern Louisiana markets. |
|----------------|------------------------------------------------------------------------------------------------------------------------------|

----

|   | Results of Operations |
|--------|-----------------------|

----

|                                           |   | Three Months Ended September 30, |
|------------------------------------------------|--------|----------------------------------|
|                                           |   | 2010                             |   |   | 2009 |   |
|                                           |   | (Dollars in thousands)           |
| Net Revenues:                                  |   |                             |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                                | 17,681 |   |   | $ | 18,288 |   |
| Diamond Jo Worth                               |   |                             | 22,792 |   |   |   | 22,301 |   |
| Evangeline Downs                               |   |                             | 29,071 |   |   |   | 30,666 |   |
| Amelia Belle (1)                               |   |                             | 12,404 |   |   |   | - |   |
| Consolidated net revenues                      |   | $                                | 81,948 |   |   | $ | 71,255 |   |
| Income from Operations:                        |   |                             |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                                | 3,923 |   |   | $ | 4,159 |   |
| Diamond Jo Worth                               |   |                             | 7,336 |   |   |   | 6,653 |   |
| Evangeline Downs                               |   |                             | 4,972 |   |   |   | 3,552 |   |
| Amelia Belle (1)                               |   |                             | 2,258 |   |   |   |        - |   |
| General corporate (2)                          |   |                             | (1,951 | ) |   |   | 877 |   |
| Consolidated income from operations            |   | $                                | 16,538 |   |   | $ | 15,241 |   |
| Income from Operations Margins:                |   |                             |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   |                             | 22.2% |   |   |   | 22.7 | % |
| Diamond Jo Worth                               |   |                             | 32.2% |   |   |   | 29.8 | % |
| Evangeline Downs                               |   |                             | 17.1% |   |   |   | 11.6 | % |
| Amelia Belle (1)                               |   |                             | 18.2% |   |   |   | - |   |
| Consolidated income from operations margin (2) |   |                             | 20.2% |   |   |   | 21.4 | % |

| (1)   | We acquired Amelia Belle on October 22, 2009, and its operating results are included only from the acquisition date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

|   | Three months ended September 30, 2010 compared to three months ended September 30, 2009 |
|--------|-----------------------------------------------------------------------------------------|

----

----

|                                           |   | Nine Months Ended September 30, |
|------------------------------------------------|--------|---------------------------------|
|                                           |   | 2010                            |   |   | 2009 |   |
|                                           |   | (Dollars in thousands)          |
| Net Revenues:                             |   |                            |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                               | 52,144 |   |   | $ | 55,953 |   |
| Diamond Jo Worth                               |   |                            | 66,158 |   |   |   | 64,011 |   |
| Evangeline Downs                               |   |                            | 87,409 |   |   |   | 96,705 |   |
| Amelia Belle (1)                               |   |                            | 36,703 |   |   |   | - |   |
| Consolidated net revenues                      |   | $                               | 242,414 |   |   | $ | 216,669 |   |
| Income from Operations:                        |   |                            |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                               | 11,106 |   |   | $ | 12,148 |   |
| Diamond Jo Worth                               |   |                            | 20,349 |   |   |   | 17,470 |   |
| Evangeline Downs                               |   |                            | 16,308 |   |   |   | 18,633 |   |
| Amelia Belle (1)                               |   |                            | 6,804 |   |   |   | - |   |
| General corporate (2)                          |   |                            | (5,554 | ) |   |   | (3,007) |   |
| Consolidated income from operations            |   | $                               | 49,013 |   |   | $ | 45,244 |   |
| Income from Operations Margins:                |   |                            |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   |                            | 21.3% |   |   |   | 21.7 | % |
| Diamond Jo Worth                               |   |                            | 30.8% |   |   |   | 27.3 | % |
| Evangeline Downs                               |   |                            | 18.7% |   |   |   | 19.3 | % |
| Amelia Belle (1)                               |   |                            | 18.5% |   |   |   | - |   |
| Consolidated income from operations margin (2) |   |                            | 20.2% |   |   |   | 20.9 | % |

| (1)   | We acquired Amelia Belle on October 22, 2009, and its operating results are included only from the acquisition date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | Nine months ended September 30, 2010 compared to nine months ended September 30, 2009 |
|--------|---------------------------------------------------------------------------------------|

----

----

|   | Cash Flows from Operating, Investing and Financing Activities |
|--------|---------------------------------------------------------------|

----

----

ITEM

| Description                                                              |   | Maturity         |   | InterestRate   |       | CarryingValue             |   | FairValue                       |   |
|--------------------------------------------------------------------------|--------|------------------|--------|----------------|------------|---------------------------|--------|---------------------------------|--------|
| Available for sale investment                                            |   | 2011 - 2037      |   | 7.5            | %          | $   18,581 |   | $    18,581 | (1)    |
| Note receivable                                                          |   | 2010 - 2014      |   | 14.5           | %          | 2,300                     |   | 2,531                           | (2)    |
| 8 3⁄8% senior secured notes                                          |   | Aug 15, 2015     |   | 8.375          | %          | 235,339                   |   | 252,000                         | (2)    |
| 10 3⁄4% senior unsecured notes                                        |   | Aug 15, 2017     |   | 10.75          | %          | 297,820                   |   | 321,775                         | (2)    |
| Senior credit facility                                                   |   | January 15, 2014 |   |    6 | % (3) | -                         |   | -                               |   |
| Term loan                                                                |   | December 1, 2013 |   | 6.5            | %          | 5,571                     |   |     5,571   | (2)    |
| Notes payable, capital lease obligations and other financial instruments |   | 2010 - 2015      |   | 6.4% - 14.4    | %          | 647                       |   | 647                             | (2)    |
| Obligation under Minimum Assessment Agreement                            |   | 2011 - 2037      |   |   N       | /A         | 20,051                    |   | 24,581                          | (2)    |

ITE

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|   | PART II. OTHER INFORMATION |
|--------|---------------------------------|

LEGA

EXHIBITS

| (a) | Exhibits |
|-----|----------|

| ExhibitNumber |   | Description                                                                                                                                                                                   |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                          |
| 31.1          |   | Certification of M. Brent Stevens, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 15d-l4 of the Securities Exchange Act, as amended.   |
|          |   |                                                                                                                                                                                          |
| 31.2          |   | Certification of Natalie A. Schramm, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 15d-14 of the Securities Exchange Act, as amended. |
|          |   |                                                                                                                                                                                          |

----

SIGN

|   |   | PENINSULA GAMING, LLC            |
|--------|--------|----------------------------------|
|   |   |                             |
|   |   | By:                              | /s/ M. BRENT STEVENS |   |
|   |   |                             | M. Brent Stevens |
|   |   |                             | Chief Executive Officer |
|   |   |                             |   |
|   |   | By:                              | /s/ JONATHAN SWAIN |   |
|   |   |                             | Jonathan Swain |
|   |   |                             | Chief Operating Officer |
|   |   |                             |   |
|   |   | By:                              | /s/ NATALIE A. SCHRAMM |   |
|   |   |                             | Natalie A. Schramm |
|   |   |                             | Chief Financial Officer |
|   |   |                             |
|   |   | PENINSULA GAMING CORP.           |
|   |   |                             |
|   |   | By:                              | /s/ M. BRENT STEVENS |   |
|   |   |                             | M. Brent Stevens |
|   |   |                             | Chief Executive Officer |
|   |   |                             |   |
|   |   | By:                              | /s/ NATALIE A. SCHRAMM |   |
|   |   |                             | Natalie A. Schramm |
|   |   |                             | Chief Financial Officer |
|   |   |                             |
|   |   | THE OLD EVANGELINE DOWNS, L.L.C. |   |
|   |   |                             |   |
|   |   | By:                              | /s/ M. BRENT STEVENS |   |   |
|   |   |                             | M. Brent Stevens |   |
|   |   |                             | Chief Executive Officer |   |
|   |   |                             |   |   |
|   |   | By:                              | /s/ JONATHAN SWAIN |   |   |
|   |   |                             | Jonathan Swain |   |
|   |   |                             | Chief Operating Officer |   |
|   |   |                             |   |   |
|   |   | By:                              | /s/ NATALIE A. SCHRAMM |   |   |
|   |   |                             | Natalie A. Schramm |   |
|   |   |                             | Chief Financial Officer |   |
|   |   |                             |   |
|   |   | DIAMOND JO, LLC                  |
|   |   |                             |
|   |   | By:                              | /s/ M. BRENT STEVENS |   |
|   |   |                             | M. Brent Stevens |
|   |   |                             | Chief Executive Officer |
|   |   |                             |   |
|   |   | By:                              | /s/ JONATHAN SWAIN |   |
|   |   |                             | Jonathan Swain |
|   |   |                             | Chief Operating Officer |
|   |   |                             |   |
|   |   | By:                              | /s/ NATALIE A. SCHRAMM |   |
|   |   |                             | Natalie A. Schramm |
|   |   |                             | Chief Financial Officer |

----

|   |   | DIAMOND JO WORTH, LLC |
|--------|--------|-----------------------|
|   |   |                  |
|   |   | By:                   | /s/ M. BRENT STEVENS |   |
|   |   |                  | M. Brent Stevens |
|   |   |                  | Chief Executive Officer |
|   |   |                  |   |
|   |   | By:                   | /s/ JONATHAN SWAIN |   |
|   |   |                  | Jonathan Swain |
|   |   |                  | Chief Operating Officer |
|   |   |                  |   |
|   |   | By:                   | /s/ NATALIE A. SCHRAMM |   |
|   |   |                  | Natalie A. Schramm |
|   |   |                  | Chief Financial Officer |

|   |   | BELLE OF ORLEANS, L.L.C. |
|--------|--------|--------------------------|
|   |   |                     |
|   |   | By:                      | /s/ M. BRENT STEVENS |   |
|   |   |                     | M. Brent Stevens |
|   |   |                     | Chief Executive Officer |
|   |   |                     |   |
|   |   | By:                      | /s/ JONATHAN SWAIN |   |
|   |   |                     | Jonathan Swain |
|   |   |                     | Chief Operating Officer |
|   |   |                     |   |
|   |   | By:                      | /s/ NATALIE A. SCHRAMM |   |
|   |   |                     | Natalie A. Schramm |
|   |   |                     | Chief Financial Officer |

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