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                                                                   EXHIBIT 10.21



                             MUTUAL GENERAL RELEASE

        KNOW ALL MEN BY THESE PRESENTS, that Mr. Nobutaka Mutaguchi
("Mutaguchi") and any and all organizations and companies Mutaguchi is
affiliated with or has worked for and each of their respective past, present and
future subsidiaries, affiliates, officers, directors, employees, agents,
stockholders, partners, managers, representatives, members, heirs, executors,
administrators, successors and assigns (collectively referred to herein as the
"Mutaguchi Releasing Parties"), in consideration of the sum of One Million One
Hundred and Fifty Thousand Dollars ($1,150,000.00) (the "Horseshoe Payment"),
received by Mutaguchi from Horseshoe Gaming, L.L.C., a Delaware limited
liability company ("Horseshoe"), with its principal office at 4024 South
Industrial Road, Las Vegas, NV 80103, and this Mutual General Release executed
by Horseshoe, Horseshoe Gaming, Inc., a Nevada corporation ("HGI"), Horseshoe
GP, Inc., a Nevada corporation ("HGP"), Robinson Property Group, L.P., a
Mississippi limited partnership ("RPG"), New Gaming Capital Partnership, L.P., a
Nevada limited partnership ("NGCP"), Horseshoe Entertainment, L.P., a Louisiana
limited partnership ("HE") and Mr. Jack B. Binion ("Binion"), hereby releases
and forever discharges to the fullest extent permissible by law Horseshoe, HGI,
HGP, RPG, NGCP, HE, Binion and each of their respective past, present and future
subsidiaries, affiliates, officers, directors, employees, agents, stockholders,
partners, managers, representatives, members, heirs, executors, administrators,
successors and assigns, both individually and in their official capacities
(collectively referred to herein as "Horseshoe Released Parties"), from any and
all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, complaints, charges,
commissions, contracts, controversies, agreements, promises, variances,
trespasses, damages, judgments, executions, liabilities, obligations, claims,
and demands whatsoever, at law, admiralty or in equity, whether known or
unknown, suspected or unsuspected, which the Mutaguchi Releasing Parties or the
Mutaguchi Releasing Parties' heirs, executors, administrators, successors and
assigns, ever had, may now have or hereafter can, shall or may have against the
Horseshoe Released Parties or any of them with respect to events, matters or
transactions occurring from the beginning of the world to the date of this
Mutual General Release (collectively "Horseshoe Released Claims"). Each of the
Mutaguchi Releasing Parties hereby agrees to indemnify and hold harmless each of
the Horseshoe Released Parties against any claim that a Mutaguchi Releasing
Party is owed any amounts by any of the Horseshoe Released Parties on account of
a Horseshoe Released Claim.

        Horseshoe, HGI, HGP, RPG, NGCP, HE, Binion and each of their respective
past, present and future subsidiaries, affiliates, officers, directors,
employees, agents, stockholders, partners, managers, representatives, members,
heirs, executors, administrators, successors and assigns (collectively referred
to herein as the "Horseshoe Releasing Parties"), in consideration of the sum of
Ten Dollars ($10.00) (the "Mutaguchi Payment"), received by Horseshoe from
Mutaguchi and this Mutual General Release executed by Mutaguchi, hereby releases
and forever discharges to the fullest extent permissible by law, Mutaguchi and
any and all organizations and companies Mutaguchi is affiliated with or has
worked for and each of their respective past, present and future subsidiaries,
affiliates, officers, directors, employees, agents, stockholders, partners,
managers, representatives, members, heirs, executors, administrators, successors
and assigns (collectively

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referred to herein as "Mutaguchi Released Parties"), from any and all actions,
causes of action, suits, debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties, covenants, complaints, charges, commissions,
contracts, controversies, agreements, promises, variances, trespasses, damages,
judgments, executions, liabilities, obligations, claims, and demands whatsoever,
at law, admiralty or in equity, whether known or unknown, suspected or
unsuspected, which the Horseshoe Releasing Parties or the Horseshoe Releasing
Parties' heirs, executors, administrators, successors and assigns, ever had, may
now have or hereafter can, shall or may have against the Mutaguchi Released
Parties or any of them with respect to events, matters or transactions occurring
from the beginning of the world to the date of this Mutual General Release
(collectively "Mutaguchi Released Claims"). Each of the Horseshoe Releasing
Parties hereby agrees to indemnify and hold harmless each of the Mutaguchi
Released Parties against any claim that a Horseshoe Releasing Party is owed any
amounts by any of the Mutaguchi Released Parties on account of a Mutaguchi
Released Claim.

        The Mutaguchi Releasing Parties and Horseshoe Releasing Parties
(collectively referred to herein as the "Releasing Parties") acknowledge that,
in executing this Mutual General Release, they are not relying on any
representations, warranties, assurances, statements, or other information of any
kind provided or made by any of the Released Parties or their counsel. The
Releasing Parties are aware that they are releasing claims as to which they may
be currently unaware and only later may come to learn, but are nevertheless
willing to enter into this Mutual General Release. It is the intention of the
Releasing Parties that, notwithstanding the possibility that the Releasing
Parties or their counsel discover or gain a more complete understanding of the
facts, events or law which, if presently known or fully understood, would have
affected this Mutual General Release, this Mutual General Release shall be
deemed to have fully, finally, and forever settled all Mutaguchi Released Claims
and Horseshoe Released Claims, and the Horseshoe Payment and the Mutaguchi
Payment represents payment in full, of all amounts due to the Mutaguchi
Releasing Parties and the Horseshoe Releasing Parties by the Horseshoe Released
Parties and the Mutaguchi Released Parties, respectively, without regard to the
existence or subsequent discovery of different or additional facts, events or
law.

        The Releasing Parties hereby waive the provisions of Section 1542 of the
California Civil Code only to the extent it applies to the releases given by the
Releasing Parties in this Mutual General Release. Section 1542 of the California
Civil Code provides as follows:

               A general release does not extend to claims which the creditor
               does not know or suspect to exist in his favor at the time of
               executing the release, which if known by him must have materially
               affected his settlement with the debtor.

        This Mutual General Release shall be governed by and construed in
accordance with the laws of the State of New York without regard to provisions
of conflicts of laws.

        This Mutual General Release may not be changed orally.



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        IN WITNESS WHEREOF, each of Mutaguchi, on behalf of all of the Mutaguchi
Releasing Parties, and the other persons signatory hereto, on behalf of all of
the Horseshoe Releasing Parties, have executed or caused this Mutual General
Release to be executed on the ____ day of February 1999.


                                        ________________________________________
                                        Mr. Nobutaka Mutaguchi


                                        ________________________________________
                                        Mr. Jack B. Binion


                                        HORSESHOE GAMING, L.L.C.
                                        By: Horseshoe Gaming, Inc., its Manager


                                        ________________________________________
                                        Jack B. Binion
                                        Chief Executive Officer and
                                        Chairman of the Board


                                        HORSESHOE GAMING, INC.


                                        ________________________________________
                                        Jack B. Binion
                                        Chief Executive Officer and
                                        Chairman of the Board


                                        HORSESHOE GP, INC.


                                        ________________________________________
                                        Jack B. Binion
                                        President


                                        ROBINSON PROPERTY GROUP LIMITED
                                        PARTNERSHIP
                                        By: Horseshoe GP, Inc., its General 
                                            Partner



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                                        ________________________________________
                                        Jack B. Binion
                                        President


                                        NEW GAMING CAPITAL PARTNERSHIP, L.P.
                                        By: Horseshoe GP, Inc., its General 
                                            Partner


                                        ________________________________________
                                        Jack B. Binion
                                        President


                                        HORSESHOE ENTERTAINMENT, L.P.
                                        By: New Gaming Capital Partnership, 
                                            L.P.,  its  General Partner
                                        By: Horseshoe GP, Inc., its General 
                                            Partner


                                        ________________________________________
                                        Jack B. Binion
                                        President