----

----

| x                                             | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------|
|                                          |                                                                                               |
| For the quarterly period ended June 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                                                                                                                    |                                                                                                                                                    |
|  Item 1 - Financial Statements                                                                                                                    |                          3 |
|                                                                                                                                                   |                                                                                                                                                    |
| Peninsula Gaming, LLC:                                                                                                                                 |                                                                                                                                                    |
| `Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2010 and December 31, 2009                                                           |                     3                               |
|  Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2010 and 2009                            |                          4      |
|                                                                                                                                                   |                                                                                                                                                    |
| Condensed Consolidated Statement of Changes in Member's Deficit and Comprehensive Income (Unaudited) for the Six Months Ended June 30, 2010  |                          5      |
|  Condensed Consolidated Statement of Changes in Member's Deficit and Comprehensive Income (Unaudited) for the Six Months ended June 30, 2010      |  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                                                                                    |         22                                                                                                      |
|                                                                                                                                                   |                                                                                                                                                    |
| Item 4T - Controls and Procedures                                                                                                                      |           23                                                                                               |
|                                                                                                                                                   |                                                                                                                                                    |
| Part II - Other Information                                                                                                                       |           23                                                                                               |
|                                                                                                                                                   |                                                                                                                                                    |
| Item 1 - Legal Proceedings                                                                                                                             |           23                                                                                               |
|                                                                                                                                                   |                                                                                                                                                    |
| Item 6 - Exhibits                                                                                                                                      |           24                                                                                               |
|                                                                                                                                                   |                                                                                                                                                    |
| Signatures                                                                                                                                             |           25                                                                                               |

----

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

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

CONDENSED

|                                                                             |   | June 30,2010 |    |   | December 31,2009 |   |
|----------------------------------------------------------------------------------|--------|--------------|---------|--------|-----------------------|--------|
| ASSETS                                                                           |   |         |    |   |                  |   |
|                                                                             |   |         |    |   |                  |   |
| CURRENT ASSETS:                                                                  |   |         |    |   |                  |   |
| Cash and cash equivalents                                                        |   | $            | 35,357  |   |                  | $      | 34,537 |   |
| Restricted cash—purse settlements                                          |   |         | 6,309   |   |                  |   | 4,400 |   |
| Accounts receivable, net                                                         |   |         | 4,697   |   |                  |   | 3,147 |   |
| Receivables from affiliates                                                      |   |         | 43      |   |                  |   | 40 |   |
| Inventories                                                                      |   |         | 1,349   |   |                  |   | 1,520 |   |
| Prepaid expenses and other assets                                                |   |         | 6,251   |   |                  |   | 3,600 |   |
| Total current assets                                                             |   |         | 54,006  |   |                  |   | 47,244 |   |
| PROPERTY AND EQUIPMENT, NET                                                      |   |         | 283,615 |   |                  |   |  287,229 |   |
| OTHER ASSETS:                                                                    |   |         |    |   |                  |   |   |   |
| Deferred financing costs, net of amortization of $5,100 and $3,919, respectively |   |         | 24,777  |   |                  |   | 25,705 |   |
| Goodwill                                                                         |   |         | 85,308  |   |                  |   | 85,308 |   |
| Licenses and other intangibles                                                   |   |         | 78,329  |   |                  |   | 78,237 |   |
| Deposits and other assets                                                        |   |         | 3,806   |   |                  |   | 3,470 |   |
| Investment available for sale                                                    |   |         | 18,563  |   |                  |   | 14,741 |   |
| Total other assets                                                               |   |         | 210,783 |   |                  |   | 207,461 |   |
| TOTAL                                                                            |   | $            | 548,404 |   |                  | $      | 541,934 |   |
|                                                                             |   |         |    |   |                  |   |   |   |
| LIABILITIES AND MEMBER’S DEFICIT                                           |   |         |    |   |                  |   |   |   |
| CURRENT LIABILITIES:                                                             |   |         |    |   |                  |   |   |   |
| Accounts payable                                                                 |   | $            | 4,998   |   |                  | $      | 3,180 |   |
| Construction payable                                                             |   |         | 644     |   |                  |   | 3,155 |   |
| Purse settlement payable                                                         |   |         | 8,349   |   |                  |   | 6,070 |   |
| Accrued payroll and payroll taxes                                                |   |         | 6,111   |   |                  |   | 5,916 |   |
| Accrued interest                                                                 |   |         | 20,094  |   |                  |   | 21,455 |   |
| Other accrued expenses                                                           |   |         | 12,887  |   |                  |   | 12,343 |   |
| Payable to affiliates                                                            |   |         | 535     |   |                  |   | 290 |   |
| Current maturities of long-term debt and leases                                  |   |         | 1,830   |   |                  |   | 2,172 |   |
| Total current liabilities                                                        |   |         | 55,448  |   |                  |   | 54,581 |   |
|                                                                             |   |         |    |   |                  |   |   |   |
| LONG-TERM LIABILITIES:                                                           |   |         |    |   |                  |   |   |   |
| 8 3⁄8% senior secured notes, net of discount                                 |   |         | 235,148 |   |                  |   | 234,778 |   |
| 10 3⁄4% senior notes, net of discount                                         |   |         | 297,647 |   |                  |   | 297,317 |   |
| Term loan                                                                        |   |         | 4,388   |   |                  |   | 5,183 |   |
| Notes and leases payable, net of discount                                        |   |         | 40      |   |                  |   | 22 |   |
| Obligation under Minimum Assessment Agreement                                    |   |         | 18,691  |   |                  |   | 18,852 |   |
| Other liabilities                                                                |   |         | 970     |   |                  |   | 976 |   |
| Total long-term liabilities                                                      |   |         | 556,884 |   |                  |   | 557,128 |   |
| Total liabilities                                                                |   |         | 612,332 |   |                  |   | 611,709 |   |
|                                                                             |   |         |    |   |                  |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 6)                                           |   |         |    |   |                  |   |   |   |
| MEMBER’S DEFICIT:                                                          |   |         |    |   |                  |   |   |   |
| Common member’s interest                                                   |   |         | 9,000   |   |                  |   | 9,000 |   |
| Accumulated deficit                                                              |   |         | (74,651 | )      |                  |   | (76,780 | ) |
| Note receivable from owner                                                       |   |         | (1,733  | )      |                  |   | (1,723 | ) |
| Accumulated other comprehensive income (loss)                                    |   |         | 3,456   |   |                  |   | (272 | ) |
| Total member’s deficit                                                     |   |         | (63,928 | )      |                  |   | (69,775 | ) |
| TOTAL                                                                            |   | $            | 548,404 |   |                  | $      | 541,934 |   |

----

NSUL

|                                         |   | Three MonthsEndedJune 30, 2010 |     |   | Three MonthsEndedJune 30, 2009 |    |     | Six MonthsEndedJune 30, 2010 |   |    | Six MonthsEndedJune 30, 2009 |   |
|----------------------------------------------|--------|-----------------------------------------------|----------|--------|-----------------------------------------------|---------|----------|---------------------------------------------|--------|---------|---------------------------------------------|--------|
| REVENUES:                                    |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |
| Casino                                       |   |  $                                       | 75,625   |   |                                          |  $ | 63,898   |                                        |   |  $ | 149,544                                     |   |   |  $ | 129,655 |   |
| Racing                                       |   |                                          | 5,343    |   |                                          |    | 5,828    |                                        |   |    | 7,865                                       |   |   |   | 8,854 |   |
| Video poker                                  |   |                                          | 1,093    |   |                                          |    | 1,395    |                                        |   |    | 2,281                                       |   |   |   | 2,979 |   |
| Food and beverage                            |   |                                          | 6,804    |   |                                          |    | 6,215    |                                        |   |    | 13,202                                      |   |   |   | 11,993 |   |
| Other                                        |   |                                          | 3,015    |   |                                          |    | 2,717    |                                        |   |    | 5,793                                       |   |   |   | 5,058 |   |
| Less promotional allowances                  |   |                                          | (9,412)  |   |                                          |    | (6,610)  |                                        |   |    | (18,218)                                    |   |   |   | (13,126) |   |
| Total net revenues                           |   |                                          | 82,468   |   |                                          |    | 73,443   |                                        |   |    | 160,467                                     |   |   |   | 145,413 |   |
|                                         |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| EXPENSES:                                    |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| Casino                                       |   |                                          | 31,057   |   |                                          |    | 26,560   |                                        |   |    | 61,665                                      |   |   |   | 53,950 |   |
| Racing                                       |   |                                          | 4,770    |   |                                          |    | 5,041    |                                        |   |    | 7,212                                       |   |   |   | 7,925 |   |
| Video poker                                  |   |                                          | 875      |   |                                          |    | 1,034    |                                        |   |    | 1,754                                       |   |   |   | 2,096 |   |
| Food and beverage                            |   |                                          | 4,488    |   |                                          |    | 4,269    |                                        |   |    | 8,467                                       |   |   |   | 8,570 |   |
| Other                                        |   |                                          | 2,171    |   |                                          |    | 1,973    |                                        |   |    | 3,869                                       |   |   |   | 3,457 |   |
| Selling, general and administrative          |   |                                          | 13,706   |   |                                          |    | 11,705   |                                        |   |    | 27,150                                      |   |   |   | 24,467 |   |
| Depreciation and amortization                |   |                                          | 7,459    |   |                                          |    | 5,908    |                                        |   |    | 14,826                                      |   |   |   | 11,973 |   |
| Pre-opening expense                          |   |                                          | 16       |   |                                          |    | -        |                                        |   |    | 25                                          |   |   |   | - |   |
| Development expense                          |   |                                          | (20)     |   |                                          |    | 126      |                                        |   |    | 28                                          |   |   |   | 208 |   |
| Affiliate management fees                    |   |                                          | 1,523    |   |                                          |    | 1,421    |                                        |   |    | 2,960                                       |   |   |   | 2,739 |   |
| (Gain) loss on disposal of assets            |   |                                          | 29       |   |                                          |    | (56)     |                                   |   |    | 38                                          |   |   |   | 25 |   |
| Total expenses                               |   |                                          | 66,074   |   |                                          |    | 57,981   |                                        |   |    | 127,994                                     |   |   |   | 115,410 |   |
|                                         |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| INCOME FROM OPERATIONS                       |   |                                          | 16,394   |   |                                          |    | 15,462   |                                        |   |    | 32,473                                      |   |   |   | 30,003 |   |
|                                         |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                      |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| Interest income                              |   |                                          | 453      |   |                                          |    | 499      |                                        |   |    | 991                                         |   |   |   | 1,007 |   |
| Interest expense, net of amounts capitalized |   |                                          | (14,900) |   |                                          |    | (10,933) |                                        |   |    | (29,755)                                    |   |   |   | (22,183) |   |
| Total other expense                          |   |                                          | (14,447) |   |                                          |    | (10,434) |                                        |   |    | (28,764)                                    |   |   |   | (21,176) |   |
|                                         |   |                                          |     |   |                                          |    |     |                                        |   |    |                                        |   |   |   |   |   |
| NET INCOME                                   |   |  $                                       | 1,947    |   |                                          |  $ | 5,028    |                                        |   |  $ | 3,709                                       |   |   |  $ | 8,827 |   |

----

 GAMING

|                                           |    | COMMONMEMBER’SINTEREST |   |   | ACCUMU-LATEDDEFICIT |    |            |  NOTERECEIVABLE FROM OWNER |                | ACCUMULATED OTHER COMPRE-HENSIVE LOSS                                                                               |   |    | TOTALMEMBER’S DEFICIT |   |   | COMPRE-HENSIVE INCOME (LOSS) |            |
|------------------------------------------------|---------|------------------------------|--------|--------|---------------------|---------|-----------------|---------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------|--------|---------|----------------------------------|--------|--------|------------------------------|-----------------|
|                                           |    |                         |   |   |                |    |            |                            |                |                                                                                                                |   |    |                             |   |   |                         |            |
| BALANCE, DECEMBER 31, 2009                     |  $ |                         | 9,000  |   |                |  $ | (76,780)        |                            |    $ |                   (1,723) |   |  $ | (272)                            |   |   |  $                      | (69,775)        |   |   |   |   |   |
| Net income                                     |    |                         |   |   |                |    |  3,709     |                            |                |                                                                                                                |   |    |                             |   |   |                         |  3,709     |   |   |  $ |  3,709 |   |
| Unrealized gain on available for sale security |    |                         |   |   |                |    |            |                            |                |                                                                                                                |   |    |   3,728                     |   |   |                         |   3,728    |   |   |   |   3,728 |   |
| Loan to owner                                  |    |                         |   |   |                |    |            |                            |                |   (10)                                                                                                         |   |    |                             |   |   |                         |   (10)     |   |   |   |   - |   |
| Member distributions                           |    |                         |   |   |                |    |   (1,580)  |                            |                |                                                                                                                |   |    |                             |   |   |                         |   (1,580)  |   |   |   |   - |   |
| Comprehensive income                           |    |                         |   |   |                |    |            |                            |                |                                                                                                                |   |    |                             |   |   |                         |            |   |   | $ |   7,437 |   |
| BALANCE, JUNE 30, 2010                         |    | $                            | 9,000  |   |                | $       |   (74,651) |                            |   $            |   (1,733)                                                                                                      |   |  $ |   3,456                     |   |   | $                            |   (63,928) |   |   |   |   |   |

----

GA

|                                                                                          |   | Six MonthsEndedJune 30,2010 |    |   | Six MonthsEndedJune 30,2009 |   |
|-----------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|----------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                         |   |                             |    |   |                             |   |
| Net income                                                                                    |   | $                                | 3,709   |   |                             | $      | 8,827 |   |
| Adjustments to reconcile net income to net cash flows from operating activities:              |   |                             |    |   |                             |   |   |   |
| Depreciation and amortization                                                                 |   |                             | 14,826  |   |                             |   | 11,973 |   |
| Non-cash interest                                                                             |   |                             | 2,454   |   |                             |   | 2,705 |   |
| Non-cash equity based and other compensation                                                  |   |                             | 244     |   |                             |   | 613 |   |
| Loss on disposal of assets                                                                    |   |                             | 38      |   |                             |   | 25 |   |
| Changes in operating assets and liabilities:                                                  |   |                             |    |   |                             |   |   |   |
| Restricted cash — purse settlements                                                     |   |                             | (1,909  | )      |                             |   | (2,493 | ) |
| Receivables                                                                                   |   |                             | (2,440  | )      |                             |   | (2,549 | ) |
| Receivables from affiliates                                                                   |   |                             | (3      | )      |                             |   | - |   |
| Inventories                                                                                   |   |                             | 171     |   |                             |   | (451 | ) |
| Prepaid expenses and other assets                                                             |   |                             | (1,971  | )      |                             |   | 774 |   |
| Accounts payable                                                                              |   |                             | 4,009   |   |                             |   | 2,694 |   |
| Accrued expenses                                                                              |   |                             | (1,164  | )      |                             |   | 840 |   |
| Payable to affiliates                                                                         |   |                             | 245     |   |                             |   | 522 |   |
| Net cash flows from operating activities                                                      |   |                             | 18,209  |   |                             |   | 23,480 |   |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                         |   |                             |    |   |                             |   |   |   |
| Increase in cash value of life insurance for premiums paid                                    |   |                             | (126    | )      |                             |   | (195 | ) |
| Business acquisition and licensing costs                                                      |   |                             | (222    | )      |                             |   | (1,246 | ) |
| Deposit under purchase agreement                                                              |   |                             | -       |   |                             |   | (10,000 | ) |
| Construction project development costs                                                        |   |                             | (7,310  | )      |                             |   | (15,054 | ) |
| Purchase of property and equipment                                                            |   |                             | (6,154  | )      |                             |   | (4,785 | ) |
| Proceeds from sale of property and equipment                                                  |   |                             | 145     |   |                             |   | 669 |   |
| Net cash flows from investing activities                                                      |   |                             | (13,667 | )      |                             |   | (30,611 | ) |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                         |   |                             |    |   |                             |   |   |   |
| Deferred financing costs                                                                      |   |                             | (733    | )      |                             |   | (17 | ) |
| Principal payments on debt                                                                    |   |                             | (1,155  | )      |                             |   | (5,222 | ) |
| Proceeds from senior credit facilities                                                        |   |                             | 8,000   |   |                             |   | 29,700 |   |
| Payments on senior credit facilities                                                          |   |                             | (8,000  | )      |                             |   | (22,000 | ) |
| Loan to owner                                                                                 |   |                             | (10     | )      |                             |   | — |   |
| Member distributions                                                                          |   |                             | (1,824  | )      |                             |   | (11,635 | ) |
| Net cash flows from financing activities                                                      |   |                             | (3,722  | )      |                             |   | (9,174 | ) |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          |   |                             | 820     |   |                             |   | (16,305 | ) |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                              |   |                             | 34,537  |   |                             |   | 38,705 |   |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                    |   | $                                | 35,357  |   |                             | $      | 22,400 |   |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                            |   |                             |    |   |                             |   |   |   |
| Cash paid during the period for interest                                                      |   | $                                | 28,407  |   |                             | $      | 19,570 |   |
|                                                                                          |   |                             |    |   |                             |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                         |   |                             |    |   |                             |   |   |   |
| Property and equipment acquired, but not paid                                                 |   | $                                | 1,009   |   |                             | $      | 2,311 |   |
| Property and equipment acquired in exchange for obligation under Minimum Assessment Agreement |   |                             | -       |   |                             |   | 1,989 |   |
| Unrealized gain on available for sale investment                                              |   |                             | 3,728   |   |                             |   | 7,975 |   |
| Liability settled in exchange for property and equipment                                      |   |                             | -       |   |                             |   | 4,104 |   |

----

NOTE

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

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

|                                                                   |   | June 30, 2010        |   |
|------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                   |   | Gross Carrying Value |   |   | Accumulated Amortization |   |   | Net Book Value |   |
|  Intangible assets with indefinite lives:                         |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Gaming licenses                          |   | $                    | 72,368 |   |   | $ | - |   |   | $ | 72,368 |   |
|      Tradename                                |   |                 | 2,454  |   |   |   | - |   |   |   | 2,454 |   |
|      Horse racing license                     |   |                 | 1,308  |   |   |   | - |   |   |   | 1,308 |   |
| Intangible assets with finite lives:                                   |   |                 |   |   |   |   |   |   |   |   |   |   |
|      Tradename                                |   |                 | 2,135  |   |   |   | (142) |   |   |   | 1,993 |   |
|      Customer relationships and customer list |   |                 | 242    |   |   |   | (36) |   |   |   | 206 |   |
| Total                                                                  |   | $                    | 78,507 |   |   | $ | (178) |   |   | $ | 78,329 |   |

|                                                                   |   | 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 |   |

----

|                                  |   | June 30,2010 |      |   | December 31,2009 |   |
|---------------------------------------|--------|--------------|-----------|--------|-----------------------|--------|
| Land and land improvements            |   | $            | 19,727    |   |                  | $      | 19,701 |   |
| Buildings, riverboat and improvements |   |         | 254,690   |   |                  |   | 244,419 |   |
| Furniture, fixtures and equipment     |   |         | 100,635   |   |                  |   | 96,062 |   |
| Computer equipment                    |   |         | 12,978    |   |                  |   | 12,004 |   |
| Vehicles                              |   |         | 795       |   |                  |   | 677 |   |
| Construction in progress              |   |         | 765       |   |                  |   | 6,916 |   |
| Subtotal                              |   |         | 389,590   |   |                  |   | 379,779 |   |
| Accumulated depreciation              |   |         | (105,975) |   |                  |   | (92,550) |   |
| Property and equipment, net           |   | $            | 283,615   |   |                  | $      | 287,229 |   |

|                                                                                                                                                                                                                |   | June 30,2010 |    |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-----------------------|--------|
| 8 3/8% senior secured notes due August 15, 2015, net of discount of $4,852 and $5,222, respectively, secured by substantially all the assets of the Company and its subsidiaries and the equity of the Company |   | $            | 235,148 |   |                  | $      | 234,778 |   |
| 10 3/4% senior unsecured notes due August 15, 2017, net of discount of $7,353 and $7,683, respectively                                                                                                         |   |         | 297,647 |   |                  |   | 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          |   |         | 5,952   |   |                  |   | 6,697 |   |
| Notes payable and capital lease obligations, net of discount of $3 and $16, respectively, interest rates at 6.4% - 14.4%, due 2010 – 2015                                                                          |   |         | 306     |   |                  |   | 680 |   |
|  Total debt                                                                                                                                                                                                         |   |         | 539,053 |   |                  |   | 539,472 |   |
| Less current portion                                                                                                                                                                                                     |   |         | (1,830) |   |                  |   | (2,172) |   |
|  Total long term debt                                                                                                                                                                                               |   | $            | 537,223 |   |                  | $      | 537,300 |   |

----

|                          |   | Total Carrying Value at June 30, 2010 |   |   | Fair Value Measurements at June 30, 2010 |    |   | Total Carrying Value at December 31, 2009 |   |    | Fair Value Measurements at December 31, 2009                                                                                               |   |
|-------------------------------|--------|---------------------------------------|--------|--------|------------------------------------------|---------|--------|-------------------------------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Investment available for sale |   |  $                               | 18,563 |   |                                     |  $ | 18,563 |                                      |   |  $ |                       14,741 |   |   |  $ |                            14,741 |   |

----

|                                                                                       | Three Months Ended June 30, 2010 |    | Three Months Ended June 30, 2009 |                               |
|--------------------------------------------------------------------------------------------|----------------------------------|---------|----------------------------------|------------------------------------|
|                                                                                       | Investment available for sale    |    |                             |  Investment availablefor sale |   | Derivative liability, not designated as a hedging instrument |   |
| Balance at beginning of the reporting period                                               |                             |  $ |   18,563                    |                               |   |   |  $ | 11,973 |   |   |  $ | (929) |   |
| Total gains (losses) (realized or unrealized):                                             |                             |    |                             |                               |   |   |   |   |   |   |   |   |   |
|      Included in earnings                                         |                             |    |   48                        |                               |   |   |   | 42 |   |   |   | (32) |   |
|      Included in other comprehensive income (loss)                |                             |    |   (48)                      |                               |   |   |   | 3,872 |   |   |   | - |   |
| Transfers in or out of Level 3                                                             |                             |    |   -                         |                               |   |   |   | - |   |   |   | - |   |
| Purchases, sales, issuances and settlements                                                |                             |    |   -                         |                               |   |   |   | - |   |   |   | 135 |   |
| Ending balance at June 30, 2010 and 2009                                                   |                             | $       |   18,563                    |                               |   |   | $ | 15,887 |   |   | $ | (826) |   |
|                                                                                       |                             |    |                             |                               |   |   |   |   |   |   |   |   |   |
|  Gains (losses) included in earnings attributable to the change                       | Included in interest income      |    |                             | Included in interest income        |   | Included in interest expense |   |
|      in unrealized gains or losses relating to assets/liabilities |                             |    |                             |                               |   |   |   |   |   |   |   |   |   |
|      still held at the reporting date                             |                             | $       |   48                        |                               |   |   | $ | 42 |   |   | $ | (32) |   |

|                                                                                       | Six Months Ended June 30, 2010 |    | Six Months Ended June 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                                         |                           |    |   94                      |                               |   |   |   | 84 |   |   |   | (171) |   |
|      Included in other comprehensive income (loss)                |                           |    |   3,728                   |                               |   |   |   | 7,975 |   |   |   | - |   |
| Transfers in or out of Level 3                                                             |                           |    |   -                       |                               |   |   |   | - |   |   |   | - |   |
| Purchases, sales, issuances and settlements                                                |                           |    |   -                       |                               |   |   |   | - |   |   |   | 135 |   |
| Ending balance at June 30, 2010 and 2009                                                   |                           | $       |   18,563                  |                               |   |   | $ | 15,887 |   |   | $ | (826) |   |
|                                                                                       |                           |    |                           |                               |   |   |   |   |   |   |   |   |   |
|  Gains (losses) included in earnings attributable to the change                       | Included in interest income    |    |                           | Included in interest income        |   | Included in interest expense |   |
|      in unrealized gains or losses relating to assets/liabilities |                           |    |                           |                               |   |   |   |   |   |   |   |   |   |
|      still held at the reporting date                             |                           | $       |   94                      |                               |   |   | $ | 84 |   |   | $ | (171) |   |

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

----

----

|               |   | Net Revenues FromExternal CustomersThree Months Ended June 30, |   |   | Net Revenues From External CustomersSix Months Ended June 30, |    |
|--------------------|--------|-----------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|---------|
|               |   | 2010                                                                                    |   |   | 2009                                                                                   |    |   | 2010 |   |   | 2009 |   |
| Diamond Jo Dubuque |   |  $                                                                                 | 17,192 |   |                                                                                   |  $ | 17,933 |   |   |  $ | 34,463 |   |   |  $ | 37,666 |   |
| Diamond Jo Worth   |   |                                                                                    | 22,181 |   |                                                                                   |    | 21,644 |   |   |   | 43,367 |   |   |   | 41,709 |   |
| Evangeline Downs   |   |                                                                                    | 30,962 |   |                                                                                   |    | 33,866 |   |   |   | 58,338 |   |   |   | 66,038 |   |
| Amelia Belle       |   |                                                                                    | 12,133 |   |                                                                                   |    | — |   |   |   | 24,299 |   |   |   | — |   |
| Total              |   |  $                                                                                 | 82,468 |   |                                                                                   |  $ | 73,443 |   |   |  $ | 160,467 |   |   |  $ | 145,413 |   |

|                                          |   | Segment Operating EarningsThree Months Ended June 30, (1) |    |   | Segment Operating EarningsSix Months Ended June 30, (1) |    |
|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------------------------|---------|
|                                          |   | 2010                                                                                         |    |   | 2009                                                                                       |    |   | 2010 |   |   | 2009 |   |
| Diamond Jo Dubuque                            |   |  $                                                                                      | 5,829   |   |                                                                                       |  $ | 5,823 |   |   |  $ | 11,740 |   |   |  $ | 12,359 |   |
| Diamond Jo Worth                              |   |                                                                                         | 9,258   |   |                                                                                       |    | 8,761 |   |   |   | 18,102 |   |   |   | 16,561 |   |
| Evangeline Downs                              |   |                                                                                         | 8,104   |   |                                                                                       |    | 9,803 |   |   |   | 16,015 |   |   |   | 19,588 |   |
| Amelia Belle                                  |   |                                                                                         | 3,921   |   |                                                                                       |    | — |   |   |   | 7,763 |   |   |   | — |   |
| Total Property Segment Operating Earnings (1) |   |                                                                                         | 27,112  |   |                                                                                       |    | 24,387 |   |   |   | 53,620 |   |   |   | 48,508 |   |
| General Corporate                             |   |                                                                                         | (1,711  | )      |                                                                                       |    | (1,527 | ) |   |   | (3,270 | ) |   |   | (3,142 | ) |
| Total Segment Operating Earnings (1)          |   |                                                                                         | 25,401  |   |                                                                                       |    | 22,860 |   |   |   | 50,350 |   |   |   | 45,366 |   |
| Non-cash equity based compensation            |   |                                                                                         | — |   |                                                                                       |    | 1 |   |   |   | — |   |   |   | (418 | ) |
| Depreciation and amortization                 |   |                                                                                         | (7,459  | )      |                                                                                       |    | (5,908 | ) |   |   | (14,826 | ) |   |   | (11,973 | ) |
| Pre-opening expense                           |   |                                                                                         | (16     | )      |                                                                                       |    | — |   |   |   | (25 | ) |   |   | — |   |
| Development expense                           |   |                                                                                         | 20      |   |                                                                                       |    | (126 | ) |   |   | (28 | ) |   |   | (208 | )  |
| Affiliate management fees                     |   |                                                                                         | (1,523  | )      |                                                                                       |    | (1,421 | ) |   |   | (2,960 | ) |   |   | (2,739 | ) |
| Gain (loss) on disposal of assets             |   |                                                                                         | (29     | )      |                                                                                       |    | 56 |   |   |   | (38 | ) |   |   | (25 | ) |
| Interest expense, net                         |   |                                                                                         | (14,447 | )      |                                                                                       |    | (10,434 | ) |   |   | (28,764 | ) |   |   | (21,176 | ) |
| Net income                                    |   |  $                                                                                      | 1,947   |   |                                                                                       |  $ | 5,028 |   |   |  $ | 3,709 |   |   |  $ | 8,827 |   |

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

----

|               |   | Interest Expense, netThree Months Ended June 30, |            |   | Interest Expense, netSix Months Ended June 30, |    |
|--------------------|--------|--------------------------------------------------|-----------------|--------|------------------------------------------------|---------|
|               |   | 2010                                             |            |   | 2009                                           |    |   | 2010 |   |   | 2009 |   |
| General Corporate  |   |  $                                          |   (14,370) |   |                                           |  $ | - |   |   |  $ |   (28,594) |   |   |  $ | - |   |
| Diamond Jo Dubuque |   |                                             |  (573)     |   |                                           |    |  (3,689) |   |   |   |  (1,151) |   |   |   |  (7,287) |   |
| Diamond Jo Worth   |   |                                             |   489      |   |                                           |    | (2,925) |   |   |   |   968 |   |   |   | (5,938) |   |
| Evangeline Downs   |   |                                             |   4        |   |                                           |    | (3,820) |   |   |   |   8 |   |   |   | (7,951) |   |
| Amelia Belle       |   |                                             |   3        |   |                                           |    | - |   |   |   |   5 |   |   |   | - |   |
| Total              |   |  $                                          |   (14,447) |   |                                           |  $ | (10,434) |   |   |  $ |   (28,764) |   |   |  $ | (21,176) |   |

|               |   | Depreciation and AmortizationThree Months Ended June 30, |         |   | Depreciation and AmortizationSix Months Ended June 30, |    |
|--------------------|--------|----------------------------------------------------------|--------------|--------|--------------------------------------------------------|---------|
|               |   | 2010                                                     |         |   | 2009                                                   |    |   | 2010 |   |   | 2009 |   |
| General Corporate  |   |  $                                                  |  40     |   |                                                   |  $ | 29 |   |   |  $ | 62 |   |   |  $ | 56 |   |
| Diamond Jo Dubuque |   |                                                     | 2,312        |   |                                                   |    | 2,317 |   |   |   |  4,555 |   |   |   | 4,371 |   |
| Diamond Jo Worth   |   |                                                     |   1,557 |   |                                                   |    | 1,850 |   |   |   |   3,285 |   |   |   | 4,035 |   |
| Evangeline Downs   |   |                                                     | 2,015        |   |                                                   |    | 1,712 |   |   |   |   3,901 |   |   |   | 3,511 |   |
| Amelia Belle       |   |                                                     | 1,535        |   |                                                   |    | - |   |   |   | 3,023 |   |   |   | - |   |
| Total              |   |  $                                                  |  7,459  |   |                                                   |  $ | 5,908 |   |   |  $ |  14,826 |   |   |  $ | 11,973 |   |

|               |   | Total Assets  |                      |
|--------------------|--------|--------------------|---------------------------|
|               |   | June 30, 2010 |                      |   | December 31,2009 |   |
|               |   |               |                      |   |   |   |
| General Corporate  |   | $                  | 18,908                    |   |   | $ |          26,673 |   |
| Diamond Jo Dubuque |   |               | 171,991                   |   |   |   | 174,861 |   |
| Diamond Jo Worth   |   |               | 89,679                    |   |   |   | 82,692 |   |
| Evangeline Downs   |   |               | 151,512                   |   |   |   | 143,168 |   |
| Amelia Belle       |   |               | 116,314                   |   |   |   | 114,540 |   |
| Total              |   | $                  |    548,404 |   |   | $ |    541,934 |   |

|               |   | Cash Expenditures for Additions toLong-Lived Assets |   |
|--------------------|--------|------------------------------------------------------------------------------|--------|
|               |   | Six Months EndedJune 30, 2010                                           |   |   | Six Months Ended June 30, 2009 |   |
|               |   |                                                                         |   |   |   |   |
| General Corporate  |   | $                                                                            | 581    |   |   | $ | 153 |   |
| Diamond Jo Dubuque |   |                                                                         | 1,615  |   |   |   | 15,007 |   |
| Diamond Jo Worth   |   |                                                                         | 1,501  |   |   |   | 2,150 |   |
| Evangeline Downs   |   |                                                                         | 6,103  |   |   |   | 3,775 |   |
| Amelia Belle       |   |                                                                         | 3,886  |   |   |   | - |   |
| Total              |   | $                                                                            | 13,686 |   |   | $ | 21,085 |   |

----

|                                                                     |   | June 30, 2010 |    |   | December 31, 2009 |   |
|--------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------------|--------|
|                                                                     |   | Fair Value    |    |   | RecordedAmount              |   |   | Fair Value |   |   | RecordedAmount |   |
| Available for sale investment                                            |   | $                  | 18,563  |   |                        | $      | 18,563 |   |   | $ | 14,741 |   |   | $ | 14,741 |   |
| 8 3/8% senior secured notes                                         |   |               | 241,200 |   |                        |   | 235,148 |   |   |   | 241,200 |   |   |   | 234,778 |   |
| 10 3/4% senior unsecured notes                                           |   |               | 304,238 |   |                        |   | 297,647 |   |   |   | 308,050 |   |   |   | 297,317 |   |
| Term loan                                                                |   |               | 5,952   |   |                        |   | 5,952 |   |   |   | 6,697 |   |   |   | 6,697 |   |
| Notes payable, capital lease obligations and other financial instruments |   |               | 823     |   |                        |   | 820 |   |   |   | 1,289 |   |   |   | 1,272 |   |
| Obligation under Minimum Assessment Agreement                            |   |               | 25,327  |   |                        |   | 20,612 |   |   |   | 19,453 |   |   |   | 19,812 |   |

|                                                  |   |  Three Months Ended June 30, |   |   | Six Months Ended June 30, |
|-------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------|
|                                                  |   | 2010                                                  |   |   | 2009                                          |   |   | 2010 |   |   | 2009 |
| Net income                                            |   |  $                                               | 1,947  |   |                                          |  $ | 5,028 |   |   |  $ | 3,709 |   |   |  $ | 8,827 |
| Unrealized gain (loss) on available for sale security |   |                                                  | (48)   |   |                                          |   | 3,872 |   |   |   | 3,728 |   |   |   | 7,975 |
| Comprehensive income                                  |   |  $                                               | 1,899  |   |                                          |  $ | 8,900 |   |   |  $ | 7,437 |   |   |  $ | 16,802 |

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 June 30, |
|--------------------------------------------|--------|-----------------------------|
|                                       |   | 2010                        |   |   | 2009 |   |
|                                       |   | (Dollars in thousands)      |
| Net Revenues:                              |   |                        |   |   |   |   |   |   |
| Diamond Jo Dubuque                         |   | $                           | 17,192 |   |   | $ | 17,933 |   |
| Diamond Jo Worth                           |   |                        | 22,181 |   |   |   | 21,644 |   |
| Evangeline Downs                           |   |                        | 30,962 |   |   |   | 33,866 |   |
| Amelia Belle (1)                           |   |                        | 12,133 |   |   |   | - |   |
| Consolidated net revenues                  |   | $                           | 82,468 |   |   | $ | 73,443 |   |
| Income from Operations:                    |   |                        |   |   |   |   |   |   |
| Diamond Jo Dubuque                         |   | $                           | 3,505 |   |   | $ | 3,498 |   |
| Diamond Jo Worth                           |   |                        | 6,768 |   |   |   | 6,021 |   |
| Evangeline Downs                           |   |                        | 5,703 |   |   |   | 7,669 |   |
| Amelia Belle (1)                           |   |                        | 2,284 |   |   |   | - |   |
| General corporate                          |   |                        | (1,866 | ) |   |   | (1,726 | ) |
| Consolidated income from operations        |   | $                           | 16,394 |   |   | $ | 15,462 |   |
| Income from Operations Margins:            |   |                        |   |   |   |   |   |   |
| Diamond Jo Dubuque                         |   |                        | 20.4 | % |   |   | 19.5 | % |
| Diamond Jo Worth                           |   |                        | 30.5 | % |   |   | 27.8 | % |
| Evangeline Downs                           |   |                        | 18.4 | % |   |   | 22.6 | % |
| Amelia Belle (1)                           |   |                        | 18.8 | % |   |   | - |   |
| Consolidated income from operations margin |   |                        | 19.9 | % |   |   | 21.1 | % |

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

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

----

----

|                                           |   | Six Months Ended June 30, |
|------------------------------------------------|--------|---------------------------|
|                                           |   | 2010                      |   |   | 2009 |   |
|                                           |   | (Dollars in thousands)    |
| Net Revenues:                             |   |                      |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                         | 34,463 |   |   | $ | 37,666 |   |
| Diamond Jo Worth                               |   |                      | 43,367 |   |   |   | 41,709 |   |
| Evangeline Downs                               |   |                      | 58,338 |   |   |   | 66,038 |   |
| Amelia Belle (1)                               |   |                      | 24,299 |   |   |   | - |   |
| Consolidated net revenues                      |   | $                         | 160,467 |   |   | $ | 145,413 |   |
| Income from Operations:                        |   |                      |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   | $                         | 7,183 |   |   | $ | 7,989 |   |
| Diamond Jo Worth                               |   |                      | 13,012 |   |   |   | 10,817 |   |
| Evangeline Downs                               |   |                      | 11,336 |   |   |   | 15,081 |   |
| Amelia Belle (1)                               |   |                      | 4,546 |   |   |   | - |   |
| General corporate (2)                          |   |                      | (3,604) |   |   |   | (3,884) |   |
| Consolidated income from operations            |   | $                         | 32,473 |   |   | $ | 30,003 |   |
| Income from Operations Margins:                |   |                      |   |   |   |   |   |   |
| Diamond Jo Dubuque                             |   |                      | 20.8 | % |   |   | 21.2 | % |
| Diamond Jo Worth                               |   |                      | 30.0 | % |   |   | 25.9 | % |
| Evangeline Downs                               |   |                      | 19.4 | % |   |   | 22.8 | % |
| Amelia Belle (1)                               |   |                      | 18.7 | % |   |   | - |   |
| Consolidated income from operations margin (2) |   |                      | 20.2 | % |   |   | 20.6 | % |

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

| (2)   |   | General corporate operating loss was impacted by an expense for non-cash equity based compensation of $0.4 million for the six months ended June 30, 2009. |
|-----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Six months ended June 30, 2010 compared to six months ended June 30, 2009 |
|--------|---------------------------------------------------------------------------|

----

----

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

----

ITEM 3.

----

| Description                                                              |   | Maturity         |   | InterestRate   |       | CarryingValue             |   | FairValue                       |   |
|--------------------------------------------------------------------------|--------|------------------|--------|----------------|------------|---------------------------|--------|---------------------------------|--------|
| Available for sale investment                                            |   | 2011 - 2037      |   | 7.5            | %          | $   18,563 |   | $    18,563 | (1)    |
| 8 3⁄8% senior secured notes                                          |   | Aug 15, 2015     |   | 8.375          | %          | 235,148                   |   | 241,200                         | (2)    |
| 10 3⁄4% senior unsecured notes                                        |   | Aug 15, 2017     |   | 10.75          | %          | 297,647                   |   | 304,238                         | (2)    |
| Senior credit facility                                                   |   | January 15, 2014 |   |    6 | % (3) | -                         |   | -                               |   |
| Term loan                                                                |   | December 1, 2013 |   | 6.5            | %          | 5,952                     |   |     5,952   | (2)    |
| Notes payable, capital lease obligations and other financial instruments |   | 2010 - 2015      |   | 6.4% - 14.4    | %          | 820                       |   | 823                             | (2)    |
| Obligation under Minimum Assessment Agreement                            |   | 2011 - 2037      |   |   N       | /A         | 20,612                    |   | 25,327                          | (2)    |

ITEM 4T

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

ITEM 1.

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EXHI

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

| ExhibitNumber          |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.1    |   | First Amendment to Amended and Restated Loan Agreement, dated June 15, 2010 by and among Peninsula Gaming, LLC, Diamond Jo, LLC, The Old Evangeline Downs, L.L.C., Belle of Orleans, L.L.C. and Diamond Jo Worth, LLC, as borrowers, the lenders that are signatories thereto and Wells Fargo Foothill, Inc., as the arranger and agent for the lenders - incorporated by reference to Exhibit 10.1 of Peninsula Gaming, LLC's Form 8-K filed June 18, 2010. |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 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.                                                                                                                                                                                                                                                                |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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IGNA

|   |   | 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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