<PAGE>

                                 EMPLOYMENT AGREEMENT


     This Employment Agreement (this "Agreement") is made and entered into as
of the 13th day of January, 1998, by and between Casino Data Systems, a Nevada
corporation ("CDS") and Mike Perez ("Employee").  For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
CDS and Employee hereby agree as follows:

1.   EMPLOYMENT; SERVICES.

     1.1    CDS hereby hires and employs Employee, and Employee hereby accepts
            such hiring and employment, for the position of Chief Financial
            Officer and for the purpose of performing those services (the
            "Services") which are usual and customary for a Chief Financial
            Officer.  Employee shall use diligent efforts and shall devote such
            time and energies as may be reasonably required to perform the
            Services to the best of his ability.

     1.2    During the term of this Agreement, Employee shall not (i) work as
            an employee of or independent consultant or contractor for, or
            provide any other services for hire or benefit to, any third party
            that competes with CDS or its related entities, or (ii) engage in
            any activity that in any way competes with the interests of CDS,
            whether Employee is acting by himself or as an officer, director,
            shareholder, partner, fiduciary, or otherwise, unless Employee
            shall first receive the written consent of a majority of the Board
            of Directors (the "Board").

     1.3    Employee shall report only to the Chief Executive Officer.

2.   TERM.

     2.1    The term of this Agreement shall commence on January 13, 1998 (the
            "Effective Date") and shall expire on January 13, 2002, unless
            terminated earlier pursuant to one or more of the following
            provisions:

            2.1.1    CDS shall have the right to terminate this Agreement and
                     the Services by delivery of written notice to Employee not
                     less than thirty (30) days prior to the delivery of such
                     notice.  In such case, this Agreement shall terminate
                     thirty (30) days following the date of delivery of such
                     notice.

            2.1.2    Employee shall have the right to terminate this Agreement
                     and the Services by delivery of written notice to CDS at
                     any time.  In such case, this Agreement shall terminate
                     thirty (30) days following the date of delivery of such
                     notice.

            2.1.3    This Agreement shall terminate upon Employee's death.

     2.2    In the event that any of the following events occurs:

            (a)      This Agreement is terminated by CDS without "Good Cause"
                     (defined below), or

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            (b)      Employee resigns for "Good Reason" (defined below) prior
                     to the expiration of this Agreement's term,

            then, in addition to all Base Salary, prorated Bonus and benefits
            due to the effective date of termination, CDS shall also pay to
            Employee additional Base Salary, prorated Bonus and benefits: (i)
            if such termination or resignation occurs on or before January 13,
            1999, for one additional year after the effective date of such
            termination or resignation; or (ii) if such termination or
            resignation occurs after January 13, 1999, either for six
            additional months after the effective date of such termination or
            resignation or until the normal expiration date of this Agreement,
            whichever time period is shorter.

     2.3    If this Agreement is terminated by CDS prior to the end of its term
            for Good Cause or if Employee resigns for other than Good Reason,
            then CDS shall pay Employee's Salary, prorated Bonus and benefits
            only through the effective date of termination of employment.

     2.4    As used herein, "Good Cause" shall mean any of the following:

            (a)      Employee persists in taking actions reasonably considered
                     to be in material breach of this Agreement by CDS after
                     notice that such actions are a material breach of his
                     obligations hereunder; or

            (b)      Employee is guilty of any grave misconduct or willful
                     material neglect in any discharge of any of his material
                     duties hereunder to the serious detriment of CDS; or

            (c)      Employee is convicted of any serious criminal offense
                     which, in the reasonable opinion of the Chief Executive
                     Officer, affects his position as an employee of CDS; or

            (d)      Employee has, at any time during or following the
                     Effective Date, engaged in any conduct or has engaged in
                     relationships with other persons that would, in the
                     reasonable opinion of the Chief Executive Officer,
                     jeopardize any existing or future gaming licenses held or
                     sought by CDS.

     2.5    As used herein, "Good Reason" shall mean that a "Change in Control"
            as defined in Section 11.12 of the CDS 1993 Stock Option and
            Compensation Plan, as amended (the "Plan") has occurred and
            thereafter one or more of the following occurs:

            (a)      Employee has been demoted; or

            (b)      Employee has incurred a substantial reduction in his
                     authority or responsibility; or

            (c)      There has been a material change in Employee's working
                     hours or working days to non-normal working hours or
                     non-normal working days; or

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            (d)      Employee has incurred material reduction in his
                     remuneration either as base pay or benefits.

3.   COMPENSATION.

     3.1    From and after the Effective Date, CDS shall pay to Employee a
            gross base salary (the "Base Salary") equal to Two Hundred Thousand
            Dollars ($200,000.00) per annum, which Base Salary shall be payable
            in twenty-six equal installment of Seven Thousand Six Hundred
            Ninety-two and 31/100 Dollars ($7,692.31).  Such installments shall
            be paid in arrears every two (2) weeks.  The Base Salary may be
            increased by the Chief Executive Officer.

     3.2    Employee shall receive an annualized bonus (the "Bonus") of up to
            50% of his Base Salary payable at such time and manner designated
            by the Board.  The Bonus shall be dependent upon Employee's
            satisfaction of certain criteria mutually agreed upon by Employee
            and the Chief Executive Officer.  The Chief Executive Officer and
            Employee will review and, if mutually agreed, revise the criteria
            for the Bonus at least annually.

     3.3    Employee shall be reimbursed his reasonable relocation expenses in
            the amount not to exceed Twenty Thousand Dollars ($20,000).
            Relocation expenses shall include the cost of family travel to
            locate a new residence, sales commissions and other expenses of
            selling his current residence, all moving and moving-related
            expenses, and any mortgage "points" payable at the closing with
            respect to his new residence.

     3.4    CDS shall withhold all relevant income taxes, unemployment
            insurance, Social Security contributions, workers' compensation
            insurance, and other customary amounts from Employee's Base Salary
            and Bonus, if any, prior to distribution of the net proceeds
            therefrom to Employee.

     3.5    Employee shall be eligible for any other benefits as may be
            provided by CDS from time to time for its executive employees,
            pursuant to CDS' policies and eligibility requirements with respect
            thereto.  Such benefits may be amended, changed, or terminated from
            time to time by the Board, in its sole and absolute discretion,
            provided that CDS takes such action with respect to all employees
            similarly situated as Employee and does not discriminate against
            Employee in any such action.

     3.6    CDS shall have the right to purchase "key man" insurance covering
            Employee at any time.  Any such policy and the proceeds therefrom
            shall at all times remain the property of CDS, which shall at all
            times be the designated beneficiary thereunder and neither Employee
            nor his estate, heirs, or beneficiaries shall have any right, title
            or interest therein or thereto.

4.   NON-COMPETITION.

     4.1    This non-competition provision shall remain in effect until:

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            (a)      Employee dies; or

            (b)      Employee's employment with CDS is terminated without Good
                     Cause or is terminated by Employee for Good Reason; or

            (c)      Two years after the date of the termination of Employee's
                     employment by CDS for Good Cause or the termination of
                     Employee's employment by Employee without Good Reason; or

            (d)      Two years after the termination of Employee's employment
                     with CDS by reason of the expiration of this Agreement and
                     Employee's election not to renew this Agreement for other
                     than Good Reason.

            The term of this non-competition provision shall expire as
            specified in the applicable subparagraph above upon the happening
            of the first of any of the above events to occur.

     4.2    During the term of this non-competition provision, Employee shall
            not, either directly or indirectly, for or by himself or for or in
            conjunction with any other person, company, or other entity,
            whether as an employee, independent contractor, consultant,
            shareholder, owner, or otherwise, engage in any activity in any
            location or place in the world if such activity directly or
            indirectly competes with the business of CDS.  Without limiting the
            generality of the foregoing, during the term of this non-competition
            provision, Employee shall not call upon any customer or potential
            customer of CDS or any related entity of CDS, perform any of the
            Services or other activities which he performed while in the
            employ of CDS for a competitor of CDS or its related entities,
            solicit orders for any products or services similar to those
            products or services offered by CDS, sell any products or services
            competing with the products or services of CDS, divert or take away
            any customer or business opportunity of CDS or any related entity
            of CDS, entice or hire away any employee from CDS or any related
            entity of CDS, or otherwise compete with CDS in any manner during
            the term of this Agreement.

5.   CONFIDENTIALITY; PROPRIETARY RIGHTS OF CDS; DISCLAIMER OF RIGHTS TO
     TECHNOLOGY AND INTELLECTUAL PROPERTY.

     5.1    At all times during the term of this Agreement and from and after
            the termination of this Agreement, whether such termination takes
            place in accordance with the provisions of this Agreement or for
            any other reason, and whether this Agreement is terminated for or
            without cause, Employee shall keep strictly confidential and secret
            any and all proprietary or confidential information related to CDS
            or CDS' business, whether such information is obtained by Employee
            in the course of his employment or otherwise.  Without limiting the
            generality of the foregoing, Employee shall not disclose to any
            other person, company, or entity (except in connection with
            Employee's duties and obligations consistent with the terms of this
            Agreement and the scope of the Services) any aspect of CDS'
            business methods, manufacturing processes, business secrets,
            business systems or products, customer names, prospective
            customers, accounting systems, computer software or hardware
            systems, or marketing or business plans.

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     5.2    The foregoing notwithstanding, Confidential Information does not
            include any of the following:

            (a)      information which through no wrongful act or failure to
                     act on the part of Employee becomes generally known or
                     available, or

            (b)      information which is furnished to others by CDS without
                     restriction on disclosure, or

            (c)      information which is hereafter furnished to Employee by
                     third parties as a matter of right and without restriction
                     on disclosure, or

            (d)      information which is known to others in the industry or is
                     ascertainable from other sources without a breach by the
                     other sources of any nondisclosure agreement on their
                     part.

     5.3             At all times during the term of this Agreement and from
                     and after the termination of this Agreement, Employee
                     shall hold in a fiduciary capacity for the benefit of CDS
                     and shall disclose fully to CDS immediately upon
                     origination, discovery, invention or acquisition, any and
                     all inventions, discoveries, improvements, apparatus,
                     processes, compounds, formulae, computer programs,
                     patents, licenses, copyrights and trademarks made,
                     invented, discovered, developed or secured by Employee
                     during his employment by CDS, solely or jointly with
                     others, or otherwise, and which may be directly or
                     indirectly useful in, or relate to, the manufacture,
                     production, sale, development, or use of any product or
                     service of CDS, and all of the foregoing shall be owned
                     exclusively by CDS.  Employee agrees and acknowledges that
                     the compensation paid to Employee under this Agreement is
                     full and adequate consideration for Employee's covenants
                     under this Section 5.3 and that Employee shall not be
                     entitled to receive any other compensation, fee,
                     commissions, royalty or other amount in connection
                     therewith.

6.   INDEMNITY; SURVIVAL.

     6.1    Employee and CDS shall indemnify, defend, and hold harmless the
            other from and against any and all loss, cost, damage, liability,
            or expense, as a result of reckless or malicious conduct of the
            other, or a willful breach of a duty of good faith.  This indemnity
            shall only apply to Employee's actions and duties as an employee of
            CDS.

     6.2    The provisions of Articles 4, 5 and 6 of this Agreement shall
            survive the termination of this Agreement.

7.   MISCELLANEOUS PROVISIONS.

     7.1    FILES.  All records contained in the files of CDS (other than
            Employee's personal financial information) shall be the property of
            CDS and Employee shall not remove such records upon the termination
            of Employee's employment with CDS.

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     7.2    ENTIRE AGREEMENT; AMENDMENTS.  This Agreement constitutes the
            entire agreement between the parties with respect to the subject
            matter hereof and supersedes all prior agreements between the
            parties with respect thereto.  This Agreement may not be altered,
            amended, changed, terminated or modified in any respect or
            particular unless the same shall be in writing and signed by the
            part to be charged.

     7.3    ATTORNEY'S FEES.  In the event of any action for breach of, to
            enforce the provisions of, or otherwise arising out of or in
            connection with this Agreement, the prevailing party in such
            action, as determined by the court in such action, shall be
            entitled to receive its reasonable attorneys' fees and costs form
            the other party.  If a party voluntarily dismisses an action, a
            reasonable sum as attorneys' fees shall be awarded to the other
            party.

     7.4    NEVADA LAW; JURISDICTION AND VENUE.  This Agreement shall be
            governed by and construed in accordance with the laws of the State
            of Nevada.  This parties hereby consent to the personal
            jurisdiction of any court of competent jurisdiction with the State
            of Nevada.  The exclusive venue for any action or proceeding
            relating to or arising out of this Agreement shall be Clark County,
            Nevada.

     7.5    BINDING EFFECT.  Employee acknowledges that Employee's obligations
            and duties under this Agreement are unique personal services
            benefiting CDS and shall not be delegated in any manner or respect
            nor shall this Agreement be assigned by Employee.  This Agreement
            may not be assigned by CDS without Employee's prior consent, except
            in connection with any sale or transfer of all or part of CDS'
            business, in which case no consent of Employee shall be required.
            This Agreement shall be binding upon and inure to the benefit of
            any permitted heirs, successors, and assigns.

     7.6    VALIDITY.  Wherever possible, each provision of this Agreement
            shall be interpreted in such a manner as to be valid based upon
            applicable law.  But, if any provision or part of any provision of
            this Agreement shall be held by a court of competent jurisdiction
            to be invalid or prohibited thereunder, such provision or part of
            any such provision shall be ineffective only to the extent of such
            invalidity or prohibition, without invalidating the remainder of
            such provision or the remaining provisions of this Agreement.

     7.7    HEADINGS.  The headings of the paragraphs of this Agreement are
            inserted solely for convenience of reference and are not a part of
            and are not intended to govern, limit or aid in the construction of
            any term or provision of this Agreement.

     7.8    NOTICES.  Any notice required or permitted to be given under this
            Agreement shall be in writing and delivered in person to the other
            party, or sent by certified United States Mail, with postage
            prepaid.

     7.9    WAIVER.  The failure of either party to enforce any of its rights
            or remedies in connection with a breach of this Agreement by the
            other party or in any other case shall not be deemed to be a waiver
            of said first party's rights or remedies with respect thereto or
            with

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            respect to any other breach of this Agreement by the other
            party.  No such waiver of rights or remedies shall exist unless the
            same shall be in writing and signed by the party to be charged.

     7.10   REMEDIES. Employee acknowledges that CDS' remedy at law for any
            breach or threatened breach by Employee of Articles 4 and 5 hereof
            will be inadequate.  Therefore, CDS shall be entitled to injunctive
            and other equitable relief restraining Employee from violating those
            requirements, in addition to any other remedies that may be
            available to CDS under this Agreement or applicable law.

     IN WITNESS WHEREOF, CDS and Employee have executed this Agreement as of the
date first set forth above.

                                   CASINO DATA SYSTEMS,
                                        a Nevada corporation

/s/ Mike Perez                     By:  /s/ Kenneth S. Hardesty
------------------------------         --------------------------------------
Mike Perez                         Its:    C E O
                                       ---------------------------------




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             Amendment to the Employment Agreement of Michael Perez

1.  With respect to Section 2.5, this section is expanded to include the
    following as an event which would qualify as "Good Reason";

    "The termination of the CEO, whether by resignation with or without good
    cause or good reason, shall be considered an event which would justify
    resignation by the CFO for "Good Reason".

2.  The total amount of relocation expenses in section 3.3 is changed to "not
    to exceed Thirty Thousand Dollars ($30,000)".

3.  The Board of Directors has agreed to grant to Michael Perez options to
    purchase 100,000 shares of common stock of the company at a price of
    $3.13. However, since only 60,000 shares are left in the option pool,
    this section clarifies that Casino Data Systems agrees to grant to Michael
    Perez the right and option to purchase an aggregate of 100,000 shares of
    common stock of the company at a purchase price of $3.13 vesting as set
    forth in the following schedule:

<TABLE>
<CAPTION>

         Total shares vested               Vesting Date
        ---------------------            -----------------
        <S>                              <C>
              25,000                      January 13, 1999
              50,000                      January 13, 2000
              75,000                      January 13, 2001
             100,000                      January 13, 2002

</TABLE>


    The 40,000 shares not available for immediate grant from the current pool
    of options available for grant, will be granted upon an increase in the
    option pool at the same price of $3.13 and the same vesting schedule
    above.

4.  The definition of "Change of Control" for purposes regarding the
    provision for the acceleration of vesting privileges will be defined as
    the events set forth in provisions (1), (2), and (3) in section 11.12
    of the CDS 1993 Stock Option and Compensation Plan, as amended and WILL
    NOT BE SUBJECT TO DETERMINATION by "the board of directors and a majority
    of the Continuing Directors" as currently written in the first paragraph
    of this section.

5.  The 30 day waiting period for health benefits is waived and benefits will
    be effective from the date of employment.

6.  During the first year of employment the company will provide 2 weeks of
    paid vacation.

       In Witness Whereof, CDS and Employee have executed this Amendment to
    the Employment Agreement as of the date set forth below:


                                       CASINO DATA SYSTEMS,
                                         a Nevada corporation


      /s/ Michael Perez                By: /s/ Kenneth S. Hardesty
      ------------------------------      ----------------------------
       Michael Perez                      Its: Chief Executive Officer
                                          ----------------------------

                                       DATE:   1/3/98
                                            --------------------------