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                                                                    EXHIBIT 10.2

                         HORSESHOE GAMING HOLDING CORP.
                       EXECUTIVE SUPPLEMENTAL MEDICAL PLAN

        Horseshoe Gaming Holding Corp. hereby adopts the Horseshoe Gaming
Holding Corp. Executive Supplemental Medical Plan ("Plan") for the purpose of
providing certain after-tax benefits to Eligible Executives, effective as of
January 1, 2002. The Plan provides a select group of key management and highly
compensated employees of the Company and Employers with an opportunity, in
accordance with the terms and conditions set forth herein, to be reimbursed for
certain medical expenses. By offering this Plan, the Company intends to build
management loyalty to the Company, its business, and its programs, and further
enhance existing benefit programs.

                                   ARTICLE I.

                     DEFINITIONS AND RULES OF INTERPRETATION

        Section 1.01 Definitions. Whenever used herein, the following terms
shall have the following meanings when the first letter of the term is
capitalized:

        (a) "Account" means a separate bookkeeping account maintained by or
under the direction of the Company for a Participant for the reimbursement of
Qualified Medical Expenses.

        (b) "COBRA" means the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended.

        (c) "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

        (d) "Company" means Horseshoe Gaming Holding Corp.

        (e) "Eligible Executive" means an executive-level employee of an
Employer who has been selected by the Board of the Company to participate in the
Plan.

        (f) "Employer" means the Company and any subsidiary or affiliate that
the Company has authorized to participate under this Plan for its executives.

        (g) "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

        (h) "Participant" means an Eligible Executive who has commenced
participation under Section 2.01, and has not subsequently become ineligible to
participate under Section 2.02.

        (i) "Plan Year" means the calendar year.

        (j) "Qualified Medical Expense" means any expense incurred for the
medical care of a Participant or his dependent, to the extent that (i) the
expense is not otherwise reimbursed or entitled to reimbursement through
insurance or otherwise, and (ii) the Participant or his


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dependent is legally obligated to pay for the expense. Qualified Medical Expense
does not include any premium paid for health coverage, or coverage for any
product that is advertised, marketed, or offered as long-term care insurance.

        Section 1.02 Rules of Interpretation. In interpreting the Plan, the
following rules apply:

        (a) The Plan is intended to be exempt from the reporting and disclosure
requirements of ERISA Part I, Title I by complying with ERISA Regulation Section
2520.104-24; therefore, eligibility is limited to a select group of management
or highly compensated employees. Otherwise, the Plan shall be construed,
enforced, and administered and the validity thereof determined in accordance
with applicable provisions of the Code and ERISA and, to the extent not
inconsistent with the Code or ERISA, in accordance with the laws of the State of
Illinois.

        (b) Words used herein in the masculine gender shall be construed to
include the feminine gender, and vice versa, and words used in the singular or
plural shall be construed as being in the plural or singular, where appropriate.

        (c) If a provision of the Plan is held illegal or invalid for any
reason, that provision shall be deemed null and void, but the invalidation of
that provision shall not otherwise impair or affect the Plan.

                                   ARTICLE II.

                          PARTICIPATION AND TERMINATION

        Section 2.01 Commencement of Participation. An Eligible Executive shall
become a Participant as of the first day after being notified by the Company
that he is eligible to participate in the Plan.

        Section 2.02 Cessation of Participation. A Participant shall cease to be
a Participant as of the earliest of (i) the effective date of the Plan's
termination, (ii) the date the Participant ceases to be an Eligible Executive,
or (iii) the date he is notified by the Company that he is no longer eligible to
participate in the Plan.

                                  ARTICLE III.

                                     ACCOUNT

        Section 3.01 Establishment of Account. The Company shall maintain an
Account for each Plan Year with respect to each Participant. Amounts credited to
a Participant's Account remain general assets of the Company until paid pursuant
to this Article. No interest or earnings shall be credited to a Participant's
Account.

        Section 3.02 Crediting of Account. The Company shall determine annually
the amount, if any, that shall be credited to the Account as of the beginning of
each Plan Year for each participant.

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        Section 3.03 Debiting of Account. The Participant's Account shall be
debited by the amount, and as of the date, of any payment under this Article for
a Participant's Qualified Medical Expenses incurred during a Plan Year.

        Section 3.04 Forfeiture of Account Balance. Any balance credited to a
Participant's Account after all reimbursements for the Plan Year have been made
hereunder shall be forfeited as of the last day of the Plan Year.

        Section 3.05 Claims for Qualified Medical Expenses Reimbursement. A
Participant may apply for reimbursement of Qualified Medical Expenses incurred
during the Plan Year while a Participant by submitting a written claim form to
the Company not later than March 31 after the end of the Plan Year in which the
Qualified Medical Expense was incurred. A claim shall be deemed to be filed upon
receipt by the Company. The claim for reimbursement may be made before or after
the Participant has paid the Qualified Medical Expense, but not before the date
on which the care or services that give rise to the Qualified Medical Expense
are provided. The Participant's claim form shall include any and all information
and/or documentation reasonably required by the Company.

        Section 3.06 Reimbursement of Qualified Medical Expenses. If a
Participant submits the claim form and documentation required by Section 3.05,
and the Company approves the claim, the Employer of the Participant shall
reimburse the Participant from the Participant's Account for Qualified Medical
Expenses incurred during the Plan Year at such times as the Company shall
prescribe, but no less frequently than monthly. The amount of any reimbursement
hereunder shall not exceed the amount credited to the Participant's Account at
the time of the reimbursement.

        Section 3.07 Cessation of Participation.

        (a) A Participant who ceases to be a Participant, as provided in Section
2.02, shall be entitled to reimbursement of Qualified Medical Expenses incurred
before he or she ceased to be a Participant to the same extent as if he or she
were still a Participant.

        (b) To the extent required by Code Section 4980B, if a person ceases to
be a Participant and agrees to pay the premium for COBRA continuation coverage,
the person shall be treated as a Participant to the extent required by law, and
coverage under the Account shall continue as long as such premiums are paid, if
applicable, but not beyond the end of the Plan Year in which the COBRA
qualifying event occurs, subject to the terms and conditions of the Plan.

                                   ARTICLE IV.

                           ADMINISTRATION OF THE PLAN

        Section 4.01 Plan Administrator. The Company shall be the plan
administrator under ERISA. Plan administration shall be under the direction of
the Company's board of directors, which shall have full, discretionary authority
to control and manage the operation and administration of the Plan, and all
power necessary or convenient to enable it to exercise such authority. The
Company may designate a person, committee, or organization to perform certain


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administrative functions. Any such individual, committee, or organization shall
hold office until removed by the Company. The Company or its designee may
provide rules and regulations, not inconsistent with the provisions hereof, for
the operation and management of the Plan, and may amend or rescind such rules or
regulations.

        Section 4.02 Questions of Interpretation. The Company and/or its
designee shall have full, discretionary authority to carry out its duties under
the Plan, including but not limited to, the authority to determine eligibility
under the Plan, to construe the terms of the Plan, and to determine all
questions of fact or law arising hereunder. All such determinations and
interpretations shall be final, conclusive, and binding on all persons affected
thereby. Benefits under the Plan will be paid only if the Company and/or its
designee decides in its discretion that a Participant is entitled to payment.

                                   ARTICLE V.

                            AMENDMENT AND TERMINATION

        The Company shall have the right, in its sole discretion, to amend or
terminate the Plan, in whole or in part, at any time, and to any extent it deems
advisable. The amendment or termination of the Plan shall be effective upon the
date of approval or such later date as the Company may determine in connection
therewith. To the extent allowed by the ERISA or the Code, any such modification
and/or amendment may be effective retroactively.

                                   ARTICLE VI.

                                  MISCELLANEOUS

        Section 6.01 HIPAA Compliance. The Plan shall comply with the Health
Insurance Portability and Accountability Act of 1996 ("HIPAA"), as amended, and
any regulations issued thereunder, to the extent required thereunder.

        Section 6.02 Limitation of Rights and Obligations. Neither the
establishment, maintenance, or amendment of the Plan, nor any act or omission
resulting from the operation of the Plan, shall confer upon any Participant,
beneficiary, or other person a right or claim against the Company that is not
specifically expressed or provided in the Plan, or create any responsibility or
liability of the Company for the validity or effect of the Plan.

        Section 6.03 Misrepresentation. Any material misrepresentation by a
Participant making application for coverage or receipt of benefits shall render
the coverage under the Plan null and void, and the Participant shall cease to be
eligible for any benefits under the Plan.

        Section 6.04 Notice. Any notice given under the Plan shall be sufficient
if given to the Company, when addressed to its office; or if given to a
Participant, when addressed to the Participant at his or her address as it
appears in the records of the Company.

        Section 6.05 Disclaimer of Liability. Nothing contained herein shall
confer upon a Participant any claim, right, or cause of action, either at law or
in equity, against the Plan, or the


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Company, for the acts or omissions of any provider of services or supplies for
any benefits provided under the Plan.

        Section 6.06 Right of Recovery. If the Company or its designee makes any
payment that according to the terms of the Plan should not have been made, it
may recover that incorrect payment, whether or not it was made due to the
Company's error, from the person to whom it was made or from any other
appropriate party. If any such incorrect payment is made directly to a
Participant, the Company may deduct it when making future payments directly to
that Participant.

        Section 6.07 Receipt and Release. Payment to a Participant shall, to the
extent thereof, be in full satisfaction of the claim of such Participant being
paid thereby.

        Section 6.08 Benefits Solely from General Assets. The benefits provided
hereunder shall be paid solely from the general assets of the Company or an
Employer. The Company shall not maintain any fund, or segregate any amount, for
the benefit of any Participant. No Participant or other person shall have any
claim against, right to, or security or other interest in, any fund, account, or
asset of the Company or any Employer from which any payment under the Plan may
be made.

        Section 6.09 Participant Incapacitation. When any Participant is under
legal disability or, in the Company's opinion, is incapacitated so as to be
unable to manage his affairs, the Company may pay the Participant's benefits to
his legal representative for his benefit. The payment of benefits pursuant to
this Section shall completely discharge the liability of the Company for the
benefits.

        Section 6.10 Participant Death. In the event of a Participant's death,
the Participant's spouse (or, if none, the Participant's executor or the
Company) may apply on the Participant's behalf for reimbursement of Qualified
Medical Expenses incurred before such death.

        Section 6.11 Counterparts. The Plan may be executed in any number of
counterparts, each of which shall be deemed to be an original.

        Section 6.12 Entire Plan. The Plan document constitutes the only legally
governing document for the Plan.

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        IN WITNESS WHEREOF, the Company has caused this instrument to be
executed by its duly authorized officers this 13th day of February, 2002, to be
effective as of the date identified above.


                                    "COMPANY"
                                    HORSESHOE GAMING HOLDING CORP.


                                    By: /s/ Kirk Saylor
                                        ----------------------------------------
                                        (Signature)

                                        Kirk Saylor
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                                        (Printed)

                                        CFO
                                    --------------------------------------------
                                        (Office)