CANCELLATION AGREEMENT

                                     between

                      NEX MANAGEMENT (PROPRIETARY) LIMITED

                                       and

                  CENTURY CASINOS CALEDON (PROPRIETARY) LIMITED





                                     <PAGE>






TABLE OF CONTENTS

1        INTERPRETATION..............................................1

2        INTRODUCTION................................................4

3        SUSPENSIVE CONDITIONS.......................................4

4        CANCELLATION OF HOTEL MANAGEMENT AGREEMENT..................6

5        WARRANTIES..................................................6

6        ADDITIONAL OBLIGATIONS.....................................11

7        FULL AND FINAL SETTLEMENT..................................12

8        BREACH.....................................................13

9        DISPUTES...................................................13

10       GOVERNING LAW AND JURISDICTION.............................14

11       DOMICILIUM AND NOTICES.....................................14

12       GENERAL....................................................16

13       COSTS......................................................17


ANNEXURE A - ROUND ROBIN  RESOLUTION  TO BE PASSED BY THE BOARD OF  DIRECTORS OF
     FORTES KING

ANNEXURE B - ROUND ROBIN  RESOLUTION  TO BE PASSED BY THE BOARD OF  DIRECTORS OF
     CCAL



                                     <PAGE>





                             CANCELLATION AGREEMENT

                                    between

                      NEX MANAGEMENT (PROPRIETARY) LIMITED

                                      and

                 CENTURY CASINOS CALEDON (PROPRIETARY) LIMITED


1  INTERPRETATION

     In this  agreement,  clause  headings are for  convenience and shall not be
     used in its  interpretation  and,  unless the context  clearly  indicates a
     contrary intention, -

1.1  an expression which denotes -

     1.1.1 any gender includes the other genders;

     1.1.2 a natural person  includes an artificial or juristic  person and vice
     versa;

     1.1.3 the singular includes the plural and vice versa;

1.2  the following  expressions  shall bear the meanings  assigned to them below
     and cognate expressions bear corresponding meanings -

     1.2.1  "this agreement" - this document, as amended from time to time;

     1.2.2 "CCA" - Century Casinos Africa (Proprietary) Limited (Registration No
     1996/010501/07);



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     1.2.3 "CCAL" - Century Casinos Caledon  (Proprietary) Limited (Registration
     No 1996/010708/07);

     1.2.4  "CCI"  -  Century  Casinos  Inc  (FEI  No  84-1271317),   a  company
     incorporated in the State of Delaware, United States of America;

     1.2.5  "Century group" - CCI and its subsidiaries from time to time;

     1.2.6  "closing  date" - the second  business day  following  fulfilment or
     waiver of the last of the suspensive conditions;

     1.2.7 "Fortes King" - Nex Management  (Proprietary)  Limited  (Registration
     number  1980/000096/07)  (formerly  Fortes King  Hospitality  (Proprietary)
     Limited);

     1.2.8  "Fortes  King group" - Caledon  Overberg  Investments  (Proprietary)
     Limited (Registration number  1996/006728/07,  Caledon Hotel Spa and Casino
     Resort  (Proprietary)  Limited  (Registration number  1996/011658/07),  the
     Senator Trust (Master's Reference No. T1175/93),  Fortes King Trust (Master
     reference   number   T2875/96)  and   Overberger   Country  Hotel  and  Spa
     (Proprietary) Limited (Registration number 1996/010670/07);

     1.2.9  "hotel business" - the hotel business carried on by CCAL;

     1.2.10 "hotel management agreement" - the agreement, dated 3 December 1999,
          between Fortes King and CCAL in terms of which Fortes King manages the
          hotel business;

     1.2.11 "parties" - Fortes King and CCAL;

     1.2.12 "RSA" - the Republic of South Africa;



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     1.2.13  "signature  date" - date of  signature  of  this  agreement  by the
     signatory which signs it last;

     1.2.14 "suspensive  conditions" - the suspensive  conditions  stipulated in
     3.1;

     1.2.15  "warranties" - collectively  the  warranties,  representations  and
     undertakings given in terms of this agreement;

1.3  any reference to any statute,  regulation or other  legislation  shall be a
     reference  to that  statute,  regulation  or  other  legislation  as at the
     signature date, and as amended or substituted from time to time;

1.4  if any provision in a definition is a  substantive  provision  conferring a
     right or imposing an obligation on either party then,  notwithstanding that
     it is only in a definition,  effect shall be given to that  provision as if
     it were a substantive provision in the body of this agreement;

1.5  where any term is defined  within a  particular  clause  other than this 1,
     that term shall bear the meaning  ascribed to it in that clause wherever it
     is used in this agreement;

1.6  where any number of days is to be  calculated  from a particular  day, such
     number shall be calculated as excluding such  particular day and commencing
     on the next day.  If the last day of such number so  calculated  falls on a
     day  which is not a  business  day,  the last day shall be deemed to be the
     next succeeding day which is a business day;

1.7  any reference to days (other than a reference to business days),  months or
     years shall be a reference to calendar days,  months or years,  as the case
     may be;

1.8  any term which  refers to a South  African  legal  concept or process  (for
     example, without limiting the aforegoing,  winding-up or curatorship) shall


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                                     <PAGE>

     be deemed to include a reference to the equivalent or analogous  concept or
     process in any other  jurisdiction  in which this agreement may apply or to
     the laws of which a party may be or become subject;

1.9  the use of the word "including"  followed by a specific example/s shall not
     be construed as limiting  the meaning of the general  wording  preceding it
     and the eiusdem generis rule shall not be applied in the  interpretation of
     such  general  wording  or  such  specific  example/s.

     The terms of this agreement having been negotiated,  the contra proferentem
     rule shall not be applied in the interpretation of this agreement.

2 INTRODUCTION

2.1  It is  recorded  that  certain  disputes  have  arisen  between the parties
     regarding  the rights and  obligations  of CCAL and Fortes King in terms of
     the hotel management agreement and the parties have threatened legal action
     against one another in relation thereto.

2.2  The parties  wish to record in writing  the basis upon which such  disputes
     shall be settled.

3 SUSPENSIVE CONDITIONS

3.1  This whole  agreement  (other  than 1, this 3 and 8 to 13  (inclusive),  by
     which the  parties  shall be bound) is  subject  to the  fulfilment  of the
     following  suspensive  conditions by no later than the sixtieth day ("first
     date") following the signature date -

     3.1.1 all such consents, approvals,  confirmations,  authorisations and the
     like  which are  required  from any  regulatory  authority  (including  the
     Western  Cape  Gambling  and  Racing  Board)  in  order to  implement  this
     agreement are granted in a form which is reasonably satisfactory to CCAL;


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     3.1.2 to the  extent  necessary,  PSG  Investment  Bank  Limited  gives its
     consent,  on terms reasonably  acceptable to CCAL, to the implementation of
     this agreement;

     3.1.3 the board of  directors of Fortes King  approves  and  ratifies  this
     agreement,  in the form contained in the draft resolution which is annexure
     A hereto,  and  Fortes  King  delivers  to CCAL a copy of such  resolution,
     certified as a true copy by any director of Fortes King;

     3.1.4 the board of directors of CCAL approves and ratifies this  agreement,
     in the form contained in the draft  resolution  which is annexure B hereto,
     and CCAL delivers to Fortes King a copy of such resolution,  certified as a
     true copy by any director of CCAL.

3.2  Each party shall use reasonable endeavours to procure the fulfilment of the
     suspensive conditions referred to in 3.1.

3.3  Either party shall have the right,  by giving written notice to that effect
     to the other  parties,  to extend the period for  fulfilment  of any of the
     suspensive conditions for a further sixty days following the first date.

3.4  The  suspensive  conditions are expressed to be for the benefit of both the
     parties and may  therefore  not be waived  other than by written  agreement
     between them.

3.5  If any suspensive  condition is not fulfilled for any reason  whatever,  is
     not fictionally deemed to have been fulfilled and is not waived in terms of
     3.4, then -

     3.5.1 this whole  agreement  (other than 1, this 3 and 8 to 13 (inclusive),
     by which the parties shall remain bound) shall be of no force or effect;


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                                     <PAGE>


     3.5.2 the  parties  shall be entitled to be restored as near as possible to
     the  positions in which they would have been,  had this  agreement not been
     entered into; and

     3.5.3 neither party shall have the claim against the other in terms of this
     agreement  except  for such  claims  (if any) as may arise from a breach of
     this 3 or from any other  provision of this  agreement by which the parties
     remain bound.

4 CANCELLATION OF HOTEL MANAGEMENT AGREEMENT

4.1 With effect from the closing date -

     4.1.1 the  parties  agree  that the  hotel  management  agreement  shall be
     cancelled.  Neither  of the  parties  thereto  shall  have any claim of any
     nature against the other arising out of or pursuant to such cancellation;

     4.1.2  Fortes  King  waives  any  rights  they  may  have in  terms  of the
     Memorandum  of  Agreement  between  CCAL,  CCA and  Fortes  King,  dated 20
     September  2001, and the Memorandum of Agreement dated 4 December 2002, and
     shall have no further obligations in terms of such agreements.

4.2  CCA,  by  its  signature  at the  foot  of  this  agreement  agrees  to the
     provisions of 4.1.2 and accepts the waiver contained therein.

5 WARRANTIES

5.1  Fortes King gives CCAL the warranties on the basis that -

     5.1.1 each such warranty shall be a separate and independent warranty which
     shall not be limited by  reference  to or  inference  from the


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                                     <PAGE>

     terms of any other warranty or by any other provision in this agreement;

     5.1.2 CCAL shall not be entitled to cancel this  agreement as a consequence
     of any breach by Fortes King of any of the warranties;

     5.1.3 a claim by CCAL in respect of any breach of any of the  warranties or
     in terms of any indemnity in terms of this agreement shall not entitle CCAL
     to make a claim  against  Fortes  King in  respect of more than one of such
     breach of  warranty or claim  under  indemnity  where such breach and claim
     arises from or is attributable to the same cause of action. It is recorded,
     for the sake of clarity, that CCAL shall be entitled, in its discretion, to
     determine  whether to proceed in respect of the breach of warranty or claim
     under indemnity;

     5.1.4 each warranty which is not stated to be given as at a particular date
     only or in respect of a  particular  period  only is,  notwithstanding  the
     tense used therein, given as at the signature date and the closing date;

     5.1.5 any  reference to the  knowledge or state of awareness of Fortes King
     in any warranty shall mean the actual knowledge of Fortes King, Leon Fortes
     and Kevin King.

5.2  Fortes King warrants that -

     5.2.1  none of  Fortes  King,  Leon  Fortes  or Kevin  King or any of their
     representatives  has  received or holds any funds  belonging  to CCAL which
     have not been accounted for and paid over to CCAL;


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                                     <PAGE>


     5.2.2  Fortes  King has not  assigned  nor  purported  to assign any of its
     rights or  obligations  in terms of the hotel  management  agreement to any
     other person;

     5.2.3 Fortes King has not bound nor purported to bind CCAL to any contracts
     whatever in relation to the hotel business -

          5.2.3.1 in respect of which Fortes King was required to obtain  CCAL's
          prior  written  approval in terms of the hotel  management  agreement,
          without obtaining such approval; and

          5.2.3.2 in terms of which  CCAL shall be obliged to make any  material
          payment or will have any other material  liability after the signature
          date  which  has  not  been  disclosed  in  writing  to  CCAL  or  its
          accountants;

     5.2.4  Fortes  King  has not  incurred  or  purported  to incur  any  other
     liability on behalf of CCAL and,  without  limiting the  generality  of the
     aforegoing, Fortes King has not -

          5.2.4.1  pledged  nor  purported  to pledge  the credit of CCAL in any
          manner whatsoever;

          5.2.4.2  borrowed  nor  purported  to borrow any money or execute  any
          promissory note on behalf of CCAL;

          5.2.4.3  encumbered nor purported to encumber any asset of CCAL,

     save as disclosed in writing to CCAL prior to the signature date;

     5.2.5 to the best of Fortes  King's  knowledge,  CCAL is not engaged in any
     litigation,  arbitration  or criminal  proceedings in relation to the


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                                     <PAGE>

     hotel  business  (other than  proceedings  for the collection of debts from
     trade  debtors in the ordinary  course of  business,  details of which have
     been disclosed in writing to CCAL and CCA). Fortes King is not aware of any
     facts, matters or circumstances which may give rise to any such litigation,
     arbitration or criminal proceedings after the signature date;

     5.2.6 Fortes King is not aware of any facts, matters or circumstances which
     may give rise to -

          5.2.6.1 the  cancellation of any of the policies of insurance  entered
          into by CCAL in respect of the hotel  business or the  repudiation  of
          any claims  thereunder  or to such  policies not being  renewed in the
          future or only  being  renewed  subject to the  imposition  of onerous
          terms;

          5.2.6.2 any of CCAL's licences, consents, permits, approvals and other
          authorities in connection  with the hotel business being  cancelled or
          not being renewed in the future or only being  renewed  subject to the
          imposition of onerous terms;

          5.2.6.3  the  cancellation  of any of the  contracts  by which CCAL is
          bound in  respect  of the hotel  business  whether  as a result of any
          breach thereof by CCAL or otherwise;

     5.2.7 between the signature date and the closing date -

          5.2.7.1  Fortes  King shall not have  undertaken  or  implemented  any
          material  decision or  transaction  in relation to the hotel  business
          without the prior written consent of CCAL;

          5.2.7.2 Fortes King shall not have incurred any  liabilities on behalf
          of CCAL in relation to the hotel  business  other than in the ordinary
          course of conduct of the hotel business;


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          5.2.7.3  Fortes  King shall  have used all  reasonable  endeavours  to
          procure  that the  material  assets  utilised  in the  hotel  business
          ("material  hotel  assets")  shall  continue  to be in good  order and
          condition and fully operational apart from -

               5.2.7.3.1  any damage to or loss or  destruction  of such  assets
               beyond the  control of Fortes  King or which is caused by CCAL or
               any of its employees or John Mason; and

               5.2.7.3.2  fair  wear  and tear and  breakdowns  in the  ordinary
               course;

          5.2.7.4 none of the material hotel assets shall have been -

               5.2.7.4.1  sold or  otherwise  disposed of except in the ordinary
               course of business; or

               5.2.7.4.2 encumbered,

          by Fortes King;

          5.2.7.5  Fortes  King  shall  not  intentionally  or  through  its own
          negligence  (as  opposed  to  the  negligence  of  CCAL  or any of its
          employees  or John Mason)  have done or omitted to do  anything  which
          will -

               5.2.7.5.1  materially  prejudice  the  continued  goodwill of the
               hotel business;

               5.2.7.5.2 materially reduce the scope of the hotel business;


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               5.2.7.5.3 result in any material  business  associate  ceasing to
               transact  business with the hotel business or materially vary the
               terms upon which it transacts business with the hotel business;

          5.2.7.6 Fortes King shall not have -

               5.2.7.6.1 varied any term of any employment  contract with any of
               the employees of the hotel business ("employees");

               5.2.7.6.2 employed any further employees; and/or

               5.2.7.6.3 terminated the employment of any employees,

          without the prior written consent of CCAL;

          5.2.7.7 Fortes King shall not have given any notification, in terms of
          the Memorandum of Agreement  between CCAL, CCA and Fortes King,  dated
          20 September 2001, to declare the fees to be calculable and payable in
          respect of the hotel management agreement.


5.3  Fortes  King  indemnifies  CCAL  against  any loss which CCAL may suffer or
     incur as a result of or in  connection  with any  breach  of any  warranty,
     including  all  party  and  party,  attorney  and  own  client  and/or  any
     additional  legal costs of any nature whatever which CCAL may be obliged to
     pay or may reasonably incur in respect thereof.

6 ADDITIONAL OBLIGATIONS


6.1  CCAL indemnifies  Fortes King against any claim made against Fortes King by
     John Mason arising prior to the closing date, out of or in connection  with
     his employment by Fortes King within the hotel business.


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6.2  Fortes King  undertakes  that  neither it nor any member of the Fortes King
     group shall directly nor indirectly use the name "Century  Casinos Caledon"
     ("specified name") or any other name which is similar or closely related to
     the specified name including,  without limitation,  "the Overberger Country
     Hotel and Spa", "the Overberger Hotel and Spa",  "Caledon Country Hotel and
     Spa",  "Caledon Hotel Spa and Casino  Resort" and  "Overberger  Hotel".  By
     their  signatures  at the foot of this  agreement,  each of Leon Fortes and
     Kevin King agrees to be bound by the provisions of this 6.2.

6.3  By no later than the end of the third month  following  the  closing  date,
     Fortes King, Leon Fortes and Kevin King undertake to procure that the names
     of those  companies  within the  Fortes  King group that are the same as or
     similar to the names  referred to in 6.2, are changed to names which do not
     include or are similar to such names.

7 FULL AND FINAL SETTLEMENT

This agreement is in full and final settlement of -

7.1  all disputes between the parties;

7.2  all  liabilities,  obligations  and/or  claims which any of the parties may
     have against any of the other parties,

     arising  out of or in  connection  with  the  hotel  management  agreement.
     Accordingly,  with  effect from the  closing  date,  neither of the parties
     shall have any right of action  and/or  claim  whether  existing  as at the
     closing date or arising in the future,  against the other arising out of or
     in connection with the hotel management agreement.


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                                     <PAGE>

8 BREACH

Should either party ("defaulting party"), breach any provision of this agreement
and fail to remedy such breach within thirty days after receiving written notice
requiring  such  remedy,  then  the  other  party,  shall be  entitled,  without
prejudice to its other rights in law  including any right to claim  damages,  to
claim  immediate   specific   performance  of  all  of  the  defaulting  party's
obligations  whether or not otherwise then due for performance.  Notwithstanding
anything to the contrary  containing in this  agreement,  neither party shall be
entitled to cancel this agreement in any circumstances whatsoever.

9 DISPUTES

9.1  Save as  otherwise  provided  in this  agreement,  should  any  dispute  of
     whatever  nature  arise in regard to the  interpretation  or effect of, the
     validity, enforceability or rectification (whether in whole or in part) of,
     the  respective  rights  or  obligations  of the  parties  under  a  breach
     (including a breach of any warranty or indemnity,  the materiality  thereof
     and/or the amount of  compensation  payable in order to remedy such breach)
     either party shall be entitled,  by delivering written notice to any other,
     to require that the dispute be referred for final  resolution  in Cape Town
     in  accordance  with the rules of the  Arbitration  Foundation  of Southern
     Africa ("AFSA") by an arbitrator or arbitrators appointed by AFSA.

9.2  Notwithstanding  anything to the contrary contained in this 9, either party
     shall be entitled to apply for, and if successful, be granted, an interdict
     from any competent court having jurisdiction.

9.3  For the  purposes  of 9.2 and for the  purposes of having any award made by
     the arbitrator/s  being made an order of court,  each of the parties hereby
     submits itself to the  non-exclusive  jurisdiction  of the Cape  Provincial
     Division of the High Court of the RSA.


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9.4  This 9 is  severable  from the rest of this  agreement  and shall remain in
     effect even if this agreement is terminated for any reason.

10 GOVERNING LAW AND  JURISDICTION

     This agreement  shall in all respects  (including its existence,  validity,
     interpretation, implementation, termination and enforcement) be governed by
     the law of the RSA which is applicable  to  agreements  executed and wholly
     performed within the RSA.

11 DOMICILIUM AND NOTICES

11.1 The parties choose domicilium citandi et executandi  ("domicilium") for all
     purposes  relating to this  agreement,  including the giving of any notice,
     the payment of any sum, the serving of any process, as follows -

     11.1.1 Fortes King physical/postal - 64 Kloof Street Gardens Cape Town 8001
                        facsimile - +27 21 423 4407

     11.1.2 CCAL  physical/postal  - 1 Nerina  Avenue  Caledon South Africa 7230
                  facsimile  -  +27  28  214  1271

                  with a copy to Century Casinos Inc  physical/postal  - 200 -
                  220 E. Bennett Avenue Cripple Creek, CO USA 80813
                  facsimile - +1 719 689 5782


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                                     <PAGE>


11.2 Either party shall be entitled from time to time, by giving  written notice
     to the other, to vary its physical domicilium to any other physical address
     (not  being a post  office  box or  poste  restante),  to vary  its  postal
     domicilium to any other postal address and to vary its facsimile domicilium
     to any other facsimile number.

11.3 Any notice given or payment made by either party to the other ("addressee")
     which is -

     11.3.1  delivered  by hand  between  the  hours of 09:00  and  17:00 on any
     business  day to the  addressee's  physical  domicilium  for the time being
     shall be deemed  to have  been  received  by the  addressee  at the time of
     delivery;

     11.3.2  posted  by  prepaid  registered  post  to  the  addressee's  postal
     domicilium  for the time being  shall be deemed  (unless  the  contrary  is
     proved by the  addressee)  to have been  received by the  addressee  on the
     fourteenth day after the date of posting.

11.4 Any  notice  given by  either  party  to the  other  which is  successfully
     transmitted by facsimile to the  addressee's  facsimile  domicilium for the
     time being shall be deemed (unless the contrary is proved by the addressee)
     to have been  received by the addressee on the day  immediately  succeeding
     the date of successful transmission thereof.

11.5 This 11 shall not operate so as to invalidate  the giving or receipt of any
     written notice which is actually  received by the addressee other than by a
     method referred to in this 11.

11.6 Any notice in terms of or in connection  with this agreement shall be valid
     and  effective  only if in writing and if received or deemed to be received
     by the addressee.


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12 GENERAL

12.1 This  agreement  constitutes  the sole record of the agreement  between the
     parties in relation to the subject  matter  hereof.  Neither party shall be
     bound by any  express,  tacit or implied  term,  representation,  warranty,
     promise or the like not recorded  herein.  This  agreement  supersedes  and
     replaces all prior commitments,  undertakings or  representations,  whether
     oral or  written,  between  the  parties in respect of the  subject  matter
     hereof on the basis that the undertakings,  warranties and  representations
     given  in this  agreement  shall  survive  the  cancellation  of the  hotel
     management agreement.

12.2 No addition to, variation, novation or agreed cancellation of any provision
     of this  agreement  shall be binding  upon the  parties  unless  reduced to
     writing and signed by or on behalf of the parties.

12.3 No  indulgence  or  extension  of time which  either party may grant to the
     other shall  constitute a waiver of or,  whether by estoppel or  otherwise,
     limit any of the existing or future  rights of the grantor in terms hereof,
     save in the event and to the extent  that the  grantor has signed a written
     document expressly waiving or limiting such right.

12.4 Without   prejudice  to  any  other  provision  of  this   agreement,   any
     successor-in-title,  including any  executor,  heir,  liquidator,  judicial
     manager,  curator  or  trustee,  of  either  party  shall  be bound by this
     agreement.

12.5 The signature by either party and any other  signatory to this agreement of
     a counterpart of this agreement  shall be as effective as if that party had
     signed  the same  document  as the  other  party  and  signatories  to this
     agreement.


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13 COSTS

Each  party  shall  bear and pay the  costs  incurred  by it in  respect  of and
incidental  to the  negotiation,  preparation,  drafting  and  execution of this
agreement.


Signed at Cape Town on 10th January, 2003

                                        For Nex Management (Proprietary) Limited

                                                                 /s/ Leon Fortes
                                             -----------------------------------
                                  who warrants that he is duly authorised hereto




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                                     <PAGE>


Signed at Cape Town on 10th January, 2003

                               For Century Casinos Caledon (Proprietary) Limited

                                                            /s/ Peter Hoetzinger
                                             -----------------------------------
                                  who warrants that he is duly authorised hereto



We, the undersigned,  Century Casinos Africa (Proprietary) Limited, agree to the
provisions of 4.1.2 and accept the waiver contained therein

Signed at Cape Town on 10th January, 2003

                                For Century Casinos Africa (Proprietary) Limited

                                                            /s/ Peter Hoetzinger
                                             -----------------------------------
                                  who warrants that he is duly authorised hereto


We,  the  undersigned,  Leon  Fortes  and Kevin  King,  agree to be bound by the
provisions of clauses 6.2 and 6.3 of this agreement and choose as domicilium for
all purposes under this agreement, the addresses set forth in 11.1.1.



Signed at Cape Town on 10th January, 2003


                                                                 /s/ Leon Fortes
                                             -----------------------------------
                                                                     Leon Fortes


Signed at Cape Town on 10th January, 2003

                                                                  /s/ Kevin King
                                             -----------------------------------
                                                                      Kevin King