<PAGE>
 
                                                                   EXHIBIT 10.91
                                  EXHBIT V-C

                       CASINO PROPERTIES PLEDGE AGREEMENT


     This CASINO PROPERTIES PLEDGE AGREEMENT (this "AGREEMENT") is dated as of
July 29, 1997 and entered into by and between CASINO PROPERTIES, INC., a Nevada
corporation ("PLEDGOR"), and SUNAMERICA LIFE INSURANCE COMPANY, an Arizona
corporation, as agent for and representative of (in such capacity herein call
"SECURED PARTY") the holders of Notes from time to time ("HOLDERS") party to the
Note Purchase Agreement (as hereinafter defined) ("SECURED PARTY").


                            PRELIMINARY STATEMENTS

     A. Pledgor is the legal and beneficial owner of the shares of stock (the
"PLEDGED SHARES") described in Part A of Schedule I annexed hereto and issued by
                                         ----------
the corporations named therein.

     B. Secured Party, Holders, Sahara Las Vegas Corp., a Nevada corporation
("COMPANY") and Santa Fe Gaming Corporation (formerly named Sahara Gaming
Corporation), a Nevada corporation, have entered into an Amended and Restated
Note Purchase Agreement dated as of July 29, 1997 (said Amended and Restated
Note Purchase Agreement, as amended to the date hereof and as it may hereafter
be amended, supplemented or otherwise modified from time to time, being the
"NOTE PURCHASE AGREEMENT", the terms defined therein and not otherwise defined
herein being used herein as therein defined), pursuant to which a certain Holder
has made certain commitments, subject to the terms and conditions set forth in
the Note Purchase Agreement, to purchase Additional Notes from Company.

     C. Pledgor has executed and delivered as of the date hereof a Guaranty
dated as of July 29, 1997 (said Guaranty, as amended to the date hereof and as
it may hereafter be amended, supplemented or otherwise modified from time to
time, being the "GUARANTY") in favor of Secured Party for the benefit of
Holders, pursuant to which Pledgor has guarantied the prompt payment and
performance when due of all obligations of Company under the Note Purchase
Agreement.

     D. It is a condition precedent to the amendment and restatement of the
Existing Note Purchase Agreement effected by the Note Purchase Agreement and the
consummation of the transactions contemplated thereby that Pledgor shall have
granted the security interests and undertaken the obligations contemplated by
this Agreement.

     NOW, THEREFORE, in consideration of the premises and in order to induce a
certain Holder to purchase any Additional Notes under the Note Purchase

                                       1
<PAGE>
 
Agreement and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Pledgor hereby agrees with Secured
Party as follows:

     SECTION 1. PLEDGE OF SECURITY.  Pledgor hereby pledges to Secured Party,
                ------------------
and hereby grants to Secured Party a security interest in, all of Pledgor's
right, title and interest in and to the following (the "PLEDGED COLLATERAL"):

     (a) the Pledged Shares and the certificates representing the Pledged Shares
and any interest of Pledgor in the entries on the books of any financial
intermediary pertaining to the Pledged Shares, and all dividends, cash,
warrants, rights, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Pledged Shares;

     (b) all additional shares of, and all securities convertible into and
warrants, options and other rights to purchase or otherwise acquire, stock of
any issuer of the Pledged Shares from time to time acquired by Pledgor in any
manner (which shares shall be deemed to be part of the Pledged Shares), the
certificates or other instruments representing such additional shares,
securities, warrants, options or other rights and any interest of Pledgor in the
entries on the books of any financial intermediary pertaining to such additional
shares, and all dividends, cash, warrants, rights, instruments and other
property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such additional
shares, securities, warrants, options or other rights; and

     (c) to the extent not covered by clauses (a) through (b) above, all
proceeds of any or all of the foregoing Pledged Collateral. For purposes of this
Agreement, the term "PROCEEDS" includes whatever is receivable or received when
Pledged Collateral or proceeds are sold, exchanged, collected or otherwise
disposed of, whether such disposition is voluntary or involuntary, and includes,
without limitation, proceeds of any indemnity or guaranty payable to Pledgor or
Secured Party from time to time with respect to any of the Pledged Collateral.

     SECTION 2.  SECURITY FOR OBLIGATIONS.  This Agreement secures, and the
                 ------------------------                                  
Pledged Collateral is collateral security for, the prompt payment or performance
in full when due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including the payment of amounts
that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. (S)362(a)), of all obligations and
liabilities of every nature of Pledgor now or hereafter existing under or
arising out of or in connection with the Note Purchase Agreement, the Guaranty
and the other Basic Documents and all extensions or renewals thereof, whether
for principal, interest (including without limitation interest that, but for the
filing of a petition in bankruptcy with respect to Pledgor, would accrue on such
obligations), fees, expenses, indemnities or otherwise,

                                       2
<PAGE>
 
whether voluntary or involuntary, direct or indirect, absolute or contingent,
liquidated or unliquidated, whether or not jointly owed with others, and whether
or not from time to time decreased or extinguished and later increased, created
or incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from Secured Party or any Holder as a preference,
fraudulent transfer or otherwise (all such obligations and liabilities being the
"UNDERLYING DEBT"), and all obligations of every nature of Pledgor now or
hereafter existing under this Agreement (all such obligations of Pledgor,
together with the Underlying Debt, being the "SECURED OBLIGATIONS").

     SECTION 3.  DELIVERY OF PLEDGED COLLATERAL.  All certificates or
                 ------------------------------                      
instruments representing or evidencing the Pledged Collateral shall be delivered
to and held by or on behalf of Secured Party pursuant hereto and shall be in
suitable form for transfer by delivery or, as applicable, shall be accompanied
by Pledgor's endorsement, where necessary, or duly executed instruments of
transfer or assignment in blank, all in form and substance satisfactory to
Secured Party.  Secured Party shall have the right, at any time in its
discretion and without notice to Pledgor, to transfer to or to register in the
name of Secured Party or any of its nominees any or all of the Pledged
Collateral, subject only to the revocable rights specified in Section 7(a).  In
addition, Secured Party shall have the right at any time to exchange
certificates or instruments representing or evidencing Pledged Collateral for
certificates or instru ments of smaller or larger denominations.

     SECTION 4.  REPRESENTATIONS AND WARRANTIES.  Pledgor represents and
warrants as follows:

     (a) Due Authorization, etc. of Pledged Collateral.  All of the Pledged
         ---------------------------------------------                     
Shares have been duly authorized and validly issued and are fully paid and non-
assessable.

     (b) Description of Pledged Collateral.  The Pledged Shares constitutes
         ---------------------------------                                 
the percentage of the issued and outstanding shares of stock of the Persons set
forth on Schedule I annexed hereto, and there are no outstanding warrants,
options or other rights to purchase, or other agreements outstanding with
respect to, or property that is now or hereafter convertible into, or that
requires the issuance or sale of, any Pledged Shares.

     (c) Ownership of Pledged Collateral.  Pledgor is the legal, record and
         -------------------------------                                   
beneficial owner of the Pledged Collateral free and clear of any Lien except for
the security interest created by this Agreement and Permitted Liens.

     (d) Governmental Authorizations.  No authorization, approval or other
         ---------------------------                                      
action by, and no notice to or filing with, any governmental authority or
regulatory body is required for either (i) the pledge by Pledgor of the Pledged
Collateral pursuant to this Agreement and the grant by Pledgor of the security

                                       3
<PAGE>
 
interest granted hereby, (ii) the execution, delivery or performance of this
Agreement by Pledgor, or (iii) the exercise by Secured Party of the voting or
other rights, or the remedies in respect of the Pledged Collateral, provided for
in this Agreement (except as may be required in connection with a disposition of
Pledged Collateral by laws affecting the offering and sale of securities
generally).

     (e) Perfection.  Assuming Secured Party's continued possession of the
         ----------                                                       
certificates representing the Pledged Shares, the pledge of the Pledged
Collateral pursuant to this Agreement creates a valid and perfected first
priority security interest in the Pledged Collateral, securing the payment of
the Secured Obligations.

     (f) Margin Regulations.  The pledge of the Pledged Collateral pursuant
         ------------------                                                
to this Agreement does not violate Regulation G, T, U or X of the Board of
Governors of the Federal Reserve System.

     SECTION 5.  TRANSFERS AND OTHER LIENS; ADDITIONAL PLEDGED COLLATERAL; ETC.
                 --------------------------------------------------------------
Pledgor shall:

     (a) not, except as expressly permitted by the Note Purchase Agreement,
(i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Pledged Collateral, (ii) create or
suffer to exist any Lien upon or with respect to any of the Pledged Collateral,
except for the security interest under this Agreement, or (iii) permit any
issuer of Pledged Shares to merge or consolidate unless all the outstanding
capital stock of the surviving or resulting corporation is, upon such merger or
consolidation, pledged hereunder and no cash, securities or other property is
distributed in respect of the outstanding shares of any other constituent
corporation;

     (b) (i) cause each issuer of Pledged Shares that is a Subsidiary of
Pledgor not to issue any stock or other securities in addition to or in
substitution for the Pledged Shares issued by such issuer, except to Pledgor,
(ii) pledge hereunder, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional shares of stock or other securities of each
issuer of Pledged Shares, and (iii) pledge hereunder, immediately upon its
acquisition (directly or indirectly) thereof, any and all shares of stock issued
to or otherwise acquired by Pledgor of any Person that, after the date of this
Agreement, becomes, as a result of any occurrence, a direct Subsidiary of
Pledgor;

     (c) promptly deliver to Secured Party all written notices received by it as
holder of the Pledged Collateral; and

     (d) pay promptly when due all taxes, assessments and governmental
charges or levies imposed upon, and all claims against, the Pledged Collateral,
except to the extent the validity thereof is being contested in good faith;
provided that Pledgor shall in any event pay such taxes, assessments, charges,
--------                                                                      
levies or claims not

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<PAGE>
 
later than five days prior to the date of any proposed sale under any judgement,
writ or warrant of attachment entered or filed against Pledgor or any of the
Pledged Collateral as a result of the failure to make such payment.

     SECTION 6.  FURTHER ASSURANCES; PLEDGE AMENDMENTS.
                 ------------------------------------- 
     (a) Pledgor agrees that from time to time, at the expense of Pledgor,
Pledgor will promptly execute and deliver all further instruments and documents,
and take all further action, that may be necessary or desirable, or that Secured
Party may request, in order to perfect and protect any security interest granted
or purported to be granted hereby or to enable Secured Party to exercise and
enforce its rights and remedies hereunder with respect to any Pledged
Collateral.  Without limiting the generality of the foregoing, Pledgor will:
(i) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
desirable, or as Secured Party may reasonably request, in order to perfect and
preserve the security interests granted or purported to be granted hereby and
(ii) at Secured Party's request, appear in and defend any action or proceeding
that may affect Pledgor's title to or Secured Party's security interest in all
or any part of the Pledged Collateral.

     (b) Pledgor further agrees that it will, upon obtaining any additional
shares of stock or other securities required to be pledged hereunder as provided
in Section 5(b) or (c), promptly (and in any event within five Business Days)
deliver to Secured Party a Pledge Amendment, duly executed by Pledgor, in
substantially the form of Schedule II annexed hereto (a "PLEDGE AMENDMENT"), in
                          -----------                                          
respect of the additional Pledged Shares to be pledged pursuant to this
Agreement.  Pledgor hereby authorizes Secured Party to attach each Pledge
Amendment to this Agreement and agrees that all Pledged Shares listed on any
Pledge Amendment delivered to Secured Party shall for all purposes hereunder be
considered Pledged Collateral; provided that the failure of Pledgor to execute a
                               --------                                         
Pledge Amendment with respect to any additional Pledged Shares pledged pursuant
to this Agreement shall not impair the security interest of Secured Party
therein or otherwise adversely affect the rights and remedies of Secured Party
hereunder with respect thereto.

     SECTION 7.  VOTING RIGHTS; DIVIDENDS; ETC.
                 ------------------------------

     (a) So long as no Event of Default shall have occurred and be continuing:

         (i)    Pledgor shall be entitled to exercise any and all voting and
    other consensual rights pertaining to the Pledged Collateral or any part
    thereof for any purpose not inconsistent with the terms of this Agreement or
    the Note Purchase Agreement; provided, however, that Pledgor shall not
                                 --------  -------                        
    exercise or refrain from exercising any such right if Secured Party shall
    have notified Pledgor that, in Secured Party's judgment, such action would
    have a material

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<PAGE>
 
    adverse effect on the value of the Pledged Collateral or any part thereof;
    and provided, further, that Pledgor shall give Secured Party at least five
        --------  -------                                                     
    Business Days' prior written notice of the manner in which it intends to
    exercise, or the reasons for refraining from exercising, any such right.  It
    is understood, however, that neither (A) the voting by Pledgor of any
    Pledged Shares for or Pledgor's consent to the election of directors at a
    regularly scheduled annual or other meeting of stockholders (or by written
    consent) or with respect to incidental matters at any such meeting nor (B)
    Pledgor's consent to or approval of any action otherwise permitted under
    this Agreement and the Note Purchase Agreement shall be deemed inconsistent
    with the terms of this Agreement or the Note Purchase Agreement within the
    meaning of this Section 7(a)(i), and no notice of any such voting or consent
    need be given to Secured Party;

         (ii)   Pledgor shall be entitled to receive and retain, and to
    utilize free and clear of the lien of this Agreement (but subject to the
    provisions of the Note Purchase Agreement), any and all dividends, principal
    and interest paid in respect of the Pledged Collateral; provided, however,
                                                            --------  ------- 
    that any and all

                (A) dividends, principal and interest paid or payable other
         than in cash in respect of, and instruments and other property
         received, receivable or otherwise distributed in respect of, or in
         exchange for, any Pledged Collateral,

                (B) dividends and other distributions paid or payable in cash
         in respect of any Pledged Collateral in connection with a partial or
         total liquidation or dissolution or in connection with a reduction of
         capital, capital surplus or paid-in-surplus, and

                (C) cash paid, payable or otherwise distributed in redemption
         of or in exchange for any Pledged Shares,

    shall be, and shall forthwith be delivered to Secured Party to hold as,
    Pledged Collateral and shall, if received by Pledgor, be received in trust
    for the benefit of Secured Party, be segregated from the other property or
    funds of Pledgor and be forthwith delivered to Secured Party as Pledged
    Collateral in the same form as so received (with all necessary
    indorsements); and

         (iii)  Secured Party shall promptly execute and deliver (or cause to be
    executed and delivered) to Pledgor all such proxies, dividend payment orders
    and other instruments as Pledgor may from time to time reasonably request
    for the purpose of enabling Pledgor to exercise the voting and other
    consensual rights which it is entitled to exercise pursuant to paragraph (i)
    above and to receive the dividends, principal or interest payments which it
    is authorized to receive and retain pursuant to paragraph (ii) above.

                                       6
<PAGE>
 
     (b) Upon the occurrence and during the continuation of an Event of Default:

         (i)    upon written notice from Secured Party to Pledgor, all rights
    of Pledgor to exercise the voting and other consensual rights which it would
    otherwise be entitled to exercise pursuant to Section 7(a)(i) shall cease,
    and all such rights shall thereupon become vested in Secured Party who shall
    thereupon have the sole right to exercise such voting and other consensual
    rights;

         (ii)   all rights of Pledgor to receive the dividends and interest
    payments which it would otherwise be authorized to receive and retain
    pursuant to Section 7(a)(ii) shall cease, and all such rights shall
    thereupon become vested in Secured Party who shall thereupon have the sole
    right to receive and hold as Pledged Collateral such dividends and interest
    payments; and

         (iii)  all dividends, principal and interest payments which are
    received by Pledgor contrary to the provisions of paragraph (ii) of this
    Section 7(b) shall be received in trust for the benefit of Secured Party,
    shall be segregated from other funds of Pledgor and shall forthwith be paid
    over to Secured Party as Pledged Collateral in the same form as so received
    (with any necessary indorsements).

     (c) In order to permit Secured Party to exercise the voting and other
consensual rights which it may be entitled to exercise pursuant to Section
7(b)(i) and to receive all dividends and other distributions which it may be
entitled to receive under Section 7(a)(ii) or Section 7(b)(ii), (i) Pledgor
shall promptly execute and deliver (or cause to be executed and delivered) to
Secured Party all such proxies, dividend payment orders and other instruments as
Secured Party may from time to time reasonably request and (ii) without limiting
the effect of the immediately preceding clause (i), Pledgor hereby grants to
Secured Party an irrevocable proxy to vote the Pledged Shares and to exercise
all other rights, powers, privileges and remedies to which a holder of the
Pledged Shares would be entitled (including, without limitation, giving or
withholding written consents of shareholders, calling special meetings of
shareholders and voting at such meetings), which proxy shall be effective,
automatically and without the necessity of any action (including any transfer of
any Pledged Shares on the record books of the issuer thereof) by any other
Person (including the issuer of the Pledged Shares or any officer or agent
thereof), upon the occurrence of an Event of Default and which proxy shall only
terminate upon the payment in full of the Secured Obligations.

     SECTION 8.  SECURED PARTY APPOINTED ATTORNEY-IN-FACT.  Pledgor hereby
                 ----------------------------------------                 
irrevocably appoints Secured Party as Pledgor's attorney-in-fact, with full
authority in the place and stead of Pledgor and in the name of Pledgor, Secured
Party

                                       7
<PAGE>
 
or otherwise, from time to time in Secured Party's discretion to take any action
and to execute any instrument that Secured Party may deem necessary or advisable
to accomplish the purposes of this Agreement, including without limitation:

     (a) to file one or more financing or continuation statements, or
amendments thereto, relative to all or any part of the Pledged Collateral
without the signature of Pledgor (to the extent permitted by applicable law);

     (b) during the continuance of any Event of Default, to ask, demand,
collect, sue for, recover, compound, receive and give acquittance and receipts
for moneys due and to become due under or in respect of any of the Pledged
Collateral;

     (c) during the continuance of any Event of Default, to receive,
endorse and collect any instruments made payable to Pledgor representing any
divi dend, principal or interest payment or other distribution in respect of the
Pledged Collateral or any part thereof and to give full discharge for the same;
and

     (d) during the continuance of any Event of Default, to file any claims
or take any action or institute any proceedings that Secured Party may deem
necessary or desirable for the collection of any of the Pledged Collateral or
otherwise to enforce the rights of Secured Party with respect to any of the
Pledged Collateral.

     SECTION 9.  SECURED PARTY MAY PERFORM.  If Pledgor fails to perform
                 -------------------------                              
any agreement contained herein, Secured Party may itself perform, or cause
performance of, such agreement, and the expenses of Secured Party incurred in
connection therewith shall be payable by Pledgor under Section 14(b).

     SECTION 10.  STANDARD OF CARE.  The powers conferred on Secured Party
                  ----------------                                        
hereunder are solely to protect its interest in the Pledged Collateral and shall
not impose any duty upon it to exercise any such powers.  Except for the
exercise of reasonable care in the custody of any Pledged Collateral in its
possession and the accounting for moneys actually received by it hereunder,
Secured Party shall have no duty as to any Pledged Collateral, it being
understood that Secured Party shall have no responsibility for (a) ascertaining
or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relating to any Pledged Collateral, whether or not
Secured Party has or is deemed to have knowledge of such matters, (b) taking any
necessary steps (other than steps taken in accordance with the standard of care
set forth above to maintain possession of the Pledged Collateral) to preserve
rights against any parties with respect to any Pledged Collateral, (c) taking
any necessary steps to collect or realize upon the Secured Obligations or any
guarantee therefor, or any part thereof, or any of the Pledged Collateral, or
(d) initiating any action to protect the Pledged Collateral against the
possibility of a decline in market value.  Secured Party shall be deemed to have
exercised reasonable care in the custody and preservation of Pledged Collateral
in its possession if such

                                       8
<PAGE>
 
Pledged Collateral is accorded treatment substantially equal to that which
Secured Party accords its own property consisting of negotiable securities.

     SECTION 11.  REMEDIES.
                  -------- 

     (a) If any Event of Default shall have occurred and be continuing, Secured
Party may exercise in respect of the Pledged Collateral, in addition to all
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the Uniform
Commercial Code as in effect in any relevant jurisdiction (the "CODE") (whether
or not the Code applies to the affected Pledged Collateral), and Secured Party
may also in its sole discretion, without notice except as specified below, sell
the Pledged Collateral or any part thereof in one or more parcels at public or
private sale, at any exchange or broker's board or at any of Secured Party's
offices or elsewhere, for cash, on credit or for future delivery, at such time
or times and at such price or prices and upon such other terms as Secured Party
may deem commercially reasonable, irrespective of the impact of any such sales
on the market price of the Pledged Collateral. Secured Party or any Holder may
be the purchaser of any or all of the Pledged Collateral at any such sale and
Secured Party, as agent for and representative of Holders (but not any Holder or
Holders in its or their respective individual capacities unless Requisite
Holders shall otherwise agree in writing), shall be entitled, for the purpose of
bidding and making settlement or payment of the purchase price for all or any
portion of the Pledged Collateral sold at any such public sale, to use and apply
any of the Secured Obligations as a credit on account of the purchase price for
any Pledged Collateral payable by Secured Party at such sale. Each purchaser at
any such sale shall hold the property sold absolutely free from any claim or
right on the part of Pledgor, and Pledgor hereby waives (to the extent permitted
by applicable law) all rights of redemption, stay and/or appraisal which it now
has or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted. Pledgor agrees that, to the extent notice of sale
shall be required by law, at least ten days' notice to Pledgor of the time and
place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. Secured Party shall not be obligated
to make any sale of Pledged Collateral regardless of notice of sale having been
given. Secured Party may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.
Pledgor hereby waives any claims against Secured Party arising by reason of the
fact that the price at which any Pledged Collateral may have been sold at such a
private sale was less than the price which might have been obtained at a public
sale, even if Secured Party accepts the first offer received and does not offer
such Pledged Collateral to more than one offeree. If the proceeds of any sale or
other disposition of the Pledged Collateral are insufficient to pay all the
Secured Obligations, Pledgor shall be liable for the deficiency and the fees of
any attorneys employed by Secured Party to collect such deficiency.

                                       9
<PAGE>
 
     (b) Pledgor recognizes that, by reason of certain prohibitions contained in
the Securities Act of 1933, as from time to time amended (the "SECURITIES ACT"),
and applicable state securities laws, Secured Party may be compelled, with
respect to any sale of all or any part of the Pledged Collateral conducted
without prior registration or qualification of such Pledged Collateral under the
Securities Act and/or such state securities laws, to limit purchasers to those
who will agree, among other things, to acquire the Pledged Collateral for their
own account, for investment and not with a view to the distribution or resale
thereof. Pledgor acknowledges that any such private sales may be at prices and
on terms less favorable than those obtainable through a public sale without such
restrictions (including, without limitation, a public offering made pursuant to
a registration statement under the Securities Act) and Pledgor agrees that any
such private sale shall be deemed to have been made in a commercially reasonable
manner and that Secured Party shall have no obligation to engage in public sales
and no obligation to delay the sale of any Pledged Collateral for the period of
time necessary to permit the issuer thereof to register it for a form of public
sale requiring registration under the Securities Act or under applicable state
securities laws, even if such issuer would, or should, agree to so register it.

     (c) If Secured Party determines to exercise its right to sell any or
all of the Pledged Collateral, upon written request, Pledgor shall and shall
cause each issuer (which is a Subsidiary of Pledgor) of any Pledged Shares to be
sold hereunder from time to time to furnish to Secured Party all such
information as Secured Party may request in order to determine the number of
shares and other instruments included in the Pledged Collateral which may be
sold by Secured Party in exempt transactions under the Securities Act and the
rules and regulations of the Securities and Exchange Commission thereunder, as
the same are from time to time in effect.

     SECTION 12.  APPLICATION OF PROCEEDS.  Except as expressly provided
                  -----------------------                               
elsewhere in this Agreement, all proceeds received by Secured Party in respect
of any sale of, collection from, or other realization upon all or any part of
the Pledged Collateral may, in the discretion of Secured Party, be held by
Secured Party as Pledged Collateral for, and/or then, or at any time thereafter,
applied in full or in part by Secured Party against, the Secured Obligations in
the following order of priority:

          FIRST:  To the payment of all costs and expenses of such sale,
    collection or other realization, including reasonable compensation to
    Secured Party and its agents and counsel, and all other expenses,
    liabilities and advances made or incurred by Secured Party in connection
    therewith, and all amounts for which Secured Party is entitled to
    indemnification hereunder and all advances made by Secured Party hereunder
    for the account of Pledgor, and to the payment of all costs and expenses
    paid or incurred by Secured Party in connection with the exercise of any
    right or remedy hereunder, all in accordance with Section 13;

                                       10
<PAGE>
 
          SECOND:  To the payment of all other Secured Obligations in such
    order as Secured Party shall elect; and

          THIRD:  To the payment to or upon the order of Pledgor, or to
    whosoever may be lawfully entitled to receive the same or as a court of
    competent jurisdiction may direct, of any surplus then remaining from such
    proceeds.

     SECTION 13.  INDEMNITY AND EXPENSES.
                  ---------------------- 

     (a) Pledgor agrees to indemnify Secured Party and each Holder from and
against any and all claims, losses and liabilities in any way relating to,
growing out of or resulting from this Agreement and the transactions
contemplated hereby (including, without limitation, enforcement of this
Agreement), except to the extent such claims, losses or liabilities result
solely from Secured Party's or such Holder's gross negligence or willful
misconduct as finally determined by a court of competent jurisdiction.

     (b) Pledgor shall pay to Secured Party upon demand the amount of any
and all costs and expenses, including the reasonable fees and expenses of its
counsel and of any experts and agents, that Secured Party may incur in
connection with (i) the administration of this Agreement, (ii) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Pledged Collateral, (iii) the exercise or enforcement of any of the
rights of Secured Party hereunder, or (iv) the failure by Pledgor to perform or
observe any of the provisions hereof.

     SECTION 14.  CONTINUING SECURITY INTEREST; TRANSFER OF NOTES.  This
                  -----------------------------------------------       
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (a) remain in full force and effect until the payment in full of all
Secured Obligations, (b) be binding upon Pledgor, its successors and assigns,
and (c) inure, together with the rights and remedies of Secured Party hereunder,
to the benefit of Secured Party and its successors, transferees and assigns.
Without limiting the gener ality of the foregoing clause (c), any Holder may
assign or otherwise transfer any Notes held by it to any other Person, and such
other Person shall thereupon become vested with all the benefits in respect
thereof granted to Holders herein or otherwise. Upon the payment in full of all
Secured Obligations, the security interest granted hereby shall terminate and
all rights to the Pledged Collateral shall revert to Pledgor. Upon any such
termination Secured Party will, at Pledgor's expense, execute and deliver to
Pledgor such documents as Pledgor shall reasonably request to evidence such
termination and Pledgor shall be entitled to the return, upon its request and at
its expense, against receipt and without recourse to Secured Party, of such of
the Pledged Collateral as shall not have been sold or otherwise applied pursuant
to the terms hereof.

                                       11
<PAGE>
 
     SECTION 15.  SECURED PARTY AS COLLATERAL AGENT.
                  --------------------------------- 

     (a) Secured Party has been appointed to act as Secured Party hereunder
by Holders.  Secured Party shall be obligated, and shall have the right
hereunder, to make demands, to give notices, to exercise or refrain from
exercising any rights, and to take or refrain from taking any action (including,
without limitation, the release or substitution of Pledged Collateral), solely
in accordance with this Agreement and the Note Purchase Agreement.

     (b) Secured Party shall at all times be the same Person that is Collateral
Agent under the Note Purchase Agreement. Written notice of resignation by
Collateral Agent pursuant to subsection 8.7 of the Note Purchase Agreement shall
also constitute notice of resignation as Secured Party under this Agreement;
removal of Collateral Agent pursuant to subsection 8.7 of the Note Purchase
Agreement shall also constitute removal as Secured Party under this Agreement;
and appointment of a successor Collateral Agent pursuant to subsection 8.7 of
the Note Purchase Agreement shall also constitute appointment of a successor
Secured Party under this Agreement. Upon the acceptance of any appointment as
Collateral Agent under subsection 8.7 of the Note Purchase Agreement by a
successor Collateral Agent, that successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring or removed Secured Party under this Agreement, and the retiring
or removed Secured Party under this Agreement shall promptly (i) transfer to
such successor Secured Party all sums, securities and other items of Pledged
Collateral held hereunder, together with all records and other documents
necessary or appropriate in connection with the performance of the duties of the
successor Secured Party under this Agreement, and (ii) execute and deliver to
such successor Secured Party such amendments to financing statements, and take
such other actions, as may be necessary or appropriate in connection with the
assignment to such successor Secured Party of the security interests created
hereunder, whereupon such retiring or removed Secured Party shall be discharged
from its duties and obligations under this Agreement. After any retiring or
removed Collateral Agent's resignation or removal hereunder as Secured Party,
the provisions of this Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it under this Agreement while it was Secured
Party hereunder.

     SECTION 16.  AMENDMENTS; ETC.  No amendment, modification, termination
                  ---------------                                          
or waiver of any provision of this Agreement, and no consent to any departure by
Pledgor therefrom, shall in any event be effective unless the same shall be in
writing and signed by Secured Party and, in the case of any such amendment or
modification, by Pledgor.  Any such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which it was given.

     SECTION 17.  NOTICES.  Any notice or other communication herein
                  -------                                           
required or permitted to be given shall be in writing and may be personally
served, telexed or sent by telefacsimile or United States mail or courier
service and shall be

                                       12
<PAGE>
 
deemed to have been given when delivered in person or by courier service, upon
receipt of telefacsimile or telex, or four Business Days after depositing it in
the United States mail with postage prepaid and properly addressed.  For the
purposes hereof, the address of each party hereto shall be as set forth under
such party's name on the signature pages hereof or, as to either party, such
other address as shall be designated by such party in a written notice delivered
to the other party hereto.

     SECTION 18.  FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE. No
                  -----------------------------------------------------    
failure or delay on the part of Secured Party in the exercise of any power,
right or privilege hereunder shall impair such power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor shall any
single or partial exercise of any such power, right or privilege preclude any
other or further exercise thereof or of any other power, right or privilege.
All rights and remedies existing under this Agreement are cumulative to, and not
exclusive of, any rights or remedies otherwise available.

     SECTION 19.  SEVERABILITY.  In case any provision in or obligation
                  ------------                                         
under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

     SECTION 20.  HEADINGS.  Section and subsection headings in this
                  --------                                          
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

     SECTION 21.  GOVERNING LAW; TERMS.  THIS AGREEMENT AND THE RIGHTS AND
                  --------------------                                    
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEVADA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT
THAT THE CODE PROVIDES THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST
HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR PLEDGED
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEVADA. Unless otherwise defined herein or in the Note Purchase Agreement, terms
used in Articles 8 and 9 of the Uniform Commercial Code in the State of Nevada
are used herein as therein defined.

      SECTION 22.  CONSENT TO JURISDICTION AND SERVICE OF PROCESS.  ALL
                   ----------------------------------------------      
JUDICIAL PROCEEDINGS BROUGHT AGAINST PLEDGOR ARISING OUT OF OR RELATING TO THIS
AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
IN THE STATE OF NEVADA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT

                                       13
<PAGE>
 
PLEDGOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY
ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.  Pledgor hereby
agrees that service of all process in any such proceeding in any such court may
be made by registered or certified mail, return receipt requested, to Pledgor at
its address provided in Section 17, such service being hereby acknowledged by
Pledgor to be sufficient for personal jurisdiction in any action against Pledgor
in any such court and to be otherwise effective and binding service in every
respect.  Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of Secured Party to bring
proceedings against Pledgor in the courts of any other jurisdiction.

     SECTION 23.  WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY
                  --------------------                             
APPLICABLE LAW, PLEDGOR AND SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT. The scope of this waiver is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the
subject matter of this transaction, including without limitation contract
claims, tort claims, breach of duty claims, and all other common law and
statutory claims.  Pledgor and Secured Party each acknowledge that this waiver
is a material inducement for Pledgor and Secured Party to enter into a business
relationship, that Pledgor and Secured Party have already relied on this waiver
in entering into this Agreement and that each will continue to rely on this
waiver in their related future dealings.  Pledgor and Secured Party further
warrant and represent that each has reviewed this waiver with its legal counsel,
and that each knowingly and voluntarily waives its jury trial rights following
consultation with legal counsel.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT.  In the event of litigation, this Agreement may be filed as a written
consent to a trial by the court.

     SECTION 24.  COUNTERPARTS.  This Agreement may be executed in one or
                  ------------                                           
more counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.



                  [Remainder of page intentionally left blank]

                                       14
<PAGE>
 
     IN WITNESS WHEREOF, Pledgor and Secured Party have caused this Agreement to
be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.


                                        CASINO PROPERTIES, INC.


                                        By: /s/ Paul W. Lowden
                                            ------------------------------------
                                            Title: President
                                                   -----------------------------



                                        By: /s/ Thomas K. Land
                                           -------------------------------------
                                            Title: Treasurer and Asst. Secretary
                                                   -----------------------------


                                        SUNAMERICA LIFE INSURANCE COMPANY, 
                                        as Secured Party


                                        By: Stephen P. Hanover
                                            ------------------------------------
                                           Title: Authorized Agent
                                                  ------------------------------

                                      S-1
<PAGE>
 
                                  SCHEDULE I


     Attached to and forming a part of the Casino Properties Pledge Agreement
dated as of July 29, 1997 between Casino Properties, Inc., as Pledgor, and
SunAmerica Life Insurance Company, as Secured Party.



                                     Part A
<TABLE>
<CAPTION>
 
                            Class      Stock                    Number     
                             of      Certificate     Par         of        Percentage
Stock Issuer                Stock        Nos.       Value       Shares      Interest
------------                -----    -----------    -----       ------     --------- 
<S>                         <C>      <C>            <C>         <C>        <C>
Sahara Las Vegas Corp.      Common         5        $10.00          5          8.77%
Hacienda Hawaiian           
  Properties, Inc.          Common       021        no par          10          100%
 
</TABLE>

                                       I-1
<PAGE>
 
                                  SCHEDULE II

                                PLEDGE AMENDMENT


     This Pledge Amendment, dated ____________, 19__, is delivered pursuant
to Section 6(b) of the Pledge Agreement referred to below.  The undersigned
hereby agrees that this Pledge Amendment may be attached to the Casino
Properties Pledge Agreement dated July 29, 1997, between the undersigned and
SunAmerica Life Insurance Company, as Secured Party (the "PLEDGE AGREEMENT,"
capitalized terms defined therein being used herein as therein defined), and
that the Pledged Shares listed on this Pledge Amendment shall be deemed to be
part of the Pledged Shares and shall become part of the Pledged Collateral and
shall secure all Secured Obligations.


                                          CASINO PROPERTIES, INC.



                                          By: 
                                             ___________________________
                                          Title: 
                                                ________________________



<TABLE>
<CAPTION>
 
 
Stock Issuer      Class        Stock                 Number      
                   of      Certificate      Par       of       Percentage
Stock Issuer      Stock         Nos.       Value    Shares      Interest
------------      -----    -----------     -----    ------     ----------
<S>               <C>        <C>            <C>     <C>        <C>
 
  
</TABLE>

                                       II-1