<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

          / X /   Annual Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                  For the fiscal year ended February 28, 2007
                                      or
          /   /  Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                         Commission File Number: 0-20840

                            PRESIDENT CASINOS, INC.
              (Exact name of registrant as specified in its charter)
               Delaware                                  51-0341200
    (State or other jurisdiction of                   (I.R.S. Employer
     incorporation or organization)                  Identification No.)
                P.O. Box 220645, St. Louis, Missouri  63122-0645
                      Address of principal executive offices
                                 314-622-3018
               Registrant's telephone number, including area code

      Securities registered pursuant to Section 12(b) of the Act:  None
         Securities registered pursuant to Section 12(g) of the Act:
                       Common Stock, $.06 par value
                     Preferred Stock Purchase Rights

  Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. [ ] Yes [X] No

  Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes [X] No

  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes [X]    No [ ]

  Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Registration S-K is not contained herein, and will not be contained, to
the best of the registrant's knowledge, in the definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or
amendment to this Form 10-K. [X]

  Indicate by check mark whether the Registrant is a large accelerated filer,
an accelerated filer or a non-accelerated filer.

Large accelerated filer [ ]  Accelerated filer [ ]  Non-accelerated filer [X]

  Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  Yes [X]     No [ ]

  As of August 31, 2006, the aggregate market value of the voting stock held
by non-affiliates of the Registrant was approximately $894,387.*

<PAGE> 2
  As of June 12, 2007, the number of shares outstanding of the Registrant's
Common Stock was approximately 5,033,161.

* Calculated by excluding all shares that may be deemed to be beneficially
owned by executive officers and directors of the Registrant, without conceding
that all such persons are "affiliates" of the Registrant for purposes of the
federal securities laws.

                 DOCUMENTS INCORPORATED BY REFERENCE - None.


<PAGE> 3
                          PRESIDENT CASINOS, INC.
                         (DEBTORS-IN-POSSESSION)
                                FORM 10-K
                                  INDEX
                                                                     Page
                                                                     ----
PART I.

Item 1.  Business.....................................................  1
Item 1A. Risk Factors.................................................  6
Item 1B. Unresolved Staff Comments....................................  8
Item 2.  Properties...................................................  8
Item 3.  Legal Proceedings............................................  8
Item 4.  Submission of Matters to a Vote of Security Holders..........  8

PART II.

Item 5.  Market for Registrant's Common Equity and
         Related Stockholder Matters..................................  9
Item 6.  Selected Consolidated Financial Data......................... 10
Item 7.  Management's Discussion and Analysis of Financial
         Condition and Result of Operations........................... 11
Item 7A. Quantitative and Qualitative Discloses About Market Risk..... 22
Item 8.  Financial Statements and Supplementary Data.................. 22
Item 9.  Changes and Disagreements with Independent Registered Public
         Accounting Firm on Accounting and Financial Disclosure....... 22
Item 9A. Controls and Procedures...................................... 22
Item 9B. Other Information............................................ 23

PART III.

Item 10.  Directors, Executive Officers and Corporate Governance...... 24
Item 11.  Executive Compensation...................................... 25
Item 12.  Security Ownership of Certain Beneficial Owners and
          Management and Related Stockholder Matters.................. 34
Item 13.  Certain Relationships and Related Transactions and
          Director Independence....................................... 35
Item 14.  Principal Accountant Fees and Services...................... 36

PART IV.

Item 15.  Exhibits and Financial Statement Schedules.................. 37

Signatures............................................................F-35

<PAGE> 4
Cautionary Statement about Forward Looking Statements and Risk Factors

  This Annual Report on Form 10-K and certain information provided
periodically in writing and orally by the Company's designated officers and
agents contain certain statements which constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.  The terms
Company, we, our and us refer to President Casinos, Inc.  The words expect,
believe, goal, plan, intend, estimate, and similar expressions and variations
thereof are intended to specifically identify forward-looking statements.
Those statements appear in this Annual Report on Form 10-K and the documents
incorporated herein by reference, and include statements regarding the intent,
belief or current expectations of the Company, its directors or its officers
with respect to, among other things:

    o   future effects from the Company's filing for Chapter 11 protection
        which occurred in June and July 2002;

    o   our future prospects;

    o   our financing plans and our ability to obtain satisfactory operating
        and working capital;

    o   results of litigation; and

    o   effect of changes in accounting due to recently issued accounting
        standards.

  You are cautioned that any such forward looking statements are not
guarantees of future performance and involve risks and uncertainties, and that
actual results may differ materially from those projected in the forward
looking statements as a result of various factors. The factors that might
cause such differences include, among others, the following:

    o   future operating and net losses that may be incurred by the Company;

    o   the inability of the Company to obtain sufficient cash from
        resources to fund ongoing litigation;

    o   the ability of the Company to develop, prosecute, confirm and
        consummate plans of reorganization with respect to the Chapter 11
        case;

    o   risks associated with third parties proposing and obtaining
        confirmation of one or more plans of reorganization, or seeking
        and obtaining approval for the appointment of a Chapter 11 trustee
        or converting the case to Chapter 7 case;

    o   factors set forth in this Annul Report on Form 10-K under the
        headings Business, Risk Factors,  Legal Proceedings and
        Management's Discussion and Analysis of Financial Condition and
        Results of Operations;

    o   the Company's stock price;

    o   general economic, business and market conditions; and

    o   other factors including those identified in the Company's filings
        made from time-to-time with the Securities and Exchange Commission.

<PAGE> 5
  The Company undertakes no obligation to publicly update or revise forward
looking statements to reflect events or circumstances after the date of this
Annual Report on Form 10-K or to reflect the occurrence of unanticipated
events.

<PAGE> 6
                                    PART I

Item 1.  Business.

General

  President Casinos, Inc. (the "Company") was incorporated in the State of
Delaware in June 1992 and completed the initial public offering of its Common
Stock in December 1992.  The Company is the successor to businesses operated
in St. Louis, Missouri since 1985 and Biloxi, Mississippi since August 1992.
The address of the Company's executive offices is P.O. Box 220645, St. Louis,
Missouri 63122-0645.

  As described below, the Company formerly owned and operated dockside gaming
casinos in Biloxi, Mississippi and St. Louis, Missouri, which operations were
sold in April 2005 and December 2006, respectively, in connection with the
Company's pending bankruptcy proceedings, as described below.  Following the
consummation of the sale of the Company's St. Louis gaming operations, the
Company no longer owns any operating entities and its assets consist primarily
of cash, certain deferred tax assets and certain pending litigation claims.
The Company's business activities currently consist of managing its existing
litigation matters, discharging its liabilities and administering the
bankruptcy reorganization plans of its former Biloxi and St. Louis operations.
Based on various assumptions regarding the potential recoveries from its
outstanding litigation claims, discharge of its remaining liabilities and
utilization of its deferred tax assets, in the future the Company may consider
the advisability of pursuing new business opportunities with the Company's
remaining assets or, in the alternative, a liquidation.  In the event that the
Company's remaining assets (including any litigation recoveries which the
Company may receive) are not sufficient to discharge the Company's liabilities
or begin new business operations, the Company will be forced to liquidate.
The Company currently has no definitive plans, arrangements or understandings
with respect to any prospective business combination or other transaction.

  The Company previously owned and operated gaming facilities in Biloxi,
Mississippi, through the date of the sale by the Company of the assets of its
Biloxi operations on April 15, 2005.  These former operations are summarized
as follows:

    Operating entity                  - The President Riverboat Casino-
                                        Mississippi, Inc.
    Vessel                            - "President Casino-Broadwater"
    Opening of casino                 - August 13, 1992
    Opening of replacement facility   - June 30, 1995
    Sale of casino and hotel          - April 15, 2005

  In addition to its former Biloxi gaming operations, the Company owned and
managed certain hotel and ancillary facilities associated with its casino
operations in Biloxi, which were included in the sale of the Biloxi assets.

                                   1<PAGE> 7
  The Company previously owned and operated gaming facilities in St. Louis,
Missouri, through the date of the sale by the Company of the capital stock of
its St. Louis operations on December 20, 2006.  This former operation is
summarized as follows:

    Operating entity                  - President Riverboat Casino-
                                        Missouri, Inc.
    Vessel                            - "Admiral"
    Opening of casino without slots   - May 27, 1994
    Opening of casino with slots      - December 9, 1994
    Sale of casino                    - December 20, 2006

Bankruptcy Proceedings

--Overview

  As used herein, the term "Company" refers to President Casinos, Inc., its
wholly-owned subsidiaries, a 95%-owned limited partnership and a limited
liability company in which a wholly-owned subsidiary of President Casinos,
Inc. owns a Class A ownership interest and in which an entity wholly-owned by
a former Chairman of President Casinos, Inc. owns a Class B unit and has a
preferred right to certain cash flows.  As described below, President Casinos,
Inc. and certain of its subsidiaries are currently in bankruptcy proceedings.

  On June 20, 2002, President Casinos, Inc. ("PCI") and its then subsidiary,
President Riverboat Casino-Missouri, Inc. ("President Missouri"), filed
voluntary petitions for reorganization under Chapter 11 of Title 11, United
States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for
the Southern District of Mississippi (the "Mississippi Bankruptcy Court").  On
July 9, 2002, President Casinos, Inc.'s subsidiary The President Riverboat
Casino-Mississippi, Inc. ("President Mississippi") filed a voluntary
reorganization petition in the same court.  On July 11, 2002, substantially
all of President Casinos, Inc.'s other operating subsidiaries, including
Vegas, Vegas, Inc. ("Vegas"), Broadwater Hotel, Inc. ("BHI"), PRC Management,
Inc. ("Management"), PRC Holdings Corporation ("Holdings"), TCG/Blackhawk,
Inc. ("Blackhawk"), and President Riverboat Casino-New York, Inc. ("President
New York") filed voluntary reorganization petitions under Chapter 11 in the
same Mississippi Bankruptcy Court.  Subsequently, orders were entered by the
Mississippi Bankruptcy Court transferring venue of all of the bankruptcy
cases, except President New York to the United States Bankruptcy Court for the
Eastern District of Missouri (the "Missouri Bankruptcy Court," and together
with the Mississippi Bankruptcy Court, the "Bankruptcy Courts,") where the
latter proceedings are now pending and being administered.

  On April 15, 2005, the Company completed a sale of its properties and
operations in Mississippi (the "Mississippi Properties") with the approval of
the Missouri Bankruptcy Court.  Included in the sale were substantially all of
the properties owned by President Mississippi, Vegas, BHI and President
Broadwater Hotel, LLC ("PBHLLC") (a non-wholly owned subsidiary that had
previously been though a separate bankruptcy proceeding).  Thereafter, on May
27, 2005, the Missouri Bankruptcy Court confirmed a Chapter 11 Plan of
Liquidation for President Mississippi, Vegas and BHI (the "Mississippi Plan"),
pursuant to which the Company continues to distribute the proceeds from the
sale of the Mississippi Properties to holders of claims that have been allowed
and approved by the Missouri Bankruptcy Court.

                                     2



<PAGE> 8
  On December 4, 2006, the Missouri Bankruptcy Court confirmed a Plan of
Reorganization for President Missouri (the "Missouri Plan"), which enabled the
Company to complete a previously approved sale of the stock of President
Missouri on December 20, 2006.  As a result of the sale, President Missouri is
no longer owned by or affiliated with the Company.  PCI acts as the trustee
under a Distribution Trust established under the Missouri Plan for the
distribution of the proceeds from the sale of the stock of President Missouri
to holders of claims that have been allowed and approved by the Missouri
Bankruptcy Court.

  PCI, Management, Holdings and Blackhawk have not yet filed plans of
reorganization and continue to operate as debtors-in-possession.  The
bankruptcy of President New York has been dismissed.

  As a result of the sales of the Mississippi Properties and the stock of
President Missouri, the Company no longer owns any operating entities and its
assets consist primarily of cash, certain deferred tax assets and certain
pending litigation claims.  The Company's business activities currently
consist of managing its existing litigation matters, discharging its
liabilities and administering the bankruptcy reorganization plans of its
former Biloxi and St. Louis operations.

  The descriptions of the Company's business, financial condition and
prospects contained in this Annual Report on Form 10-K are qualified in their
entirety by the foregoing description of the significant risks associated with
the Company's bankruptcy proceedings.

-- Formerly Owned Mississippi Properties and Operations

  On April 15, 2005, the Company, with the prior approval of the Missouri
Bankruptcy Court, completed a sale of substantially all of the real and
personal property associated with the Company's Biloxi operations (the
"Mississippi Properties") to Broadwater Development, LLP and Silver Slipper
Casino Venture, LLC for approximately $82.0 million.

  The sale of the Mississippi Properties closed effective April 15, 2005 and
on May 27, 2005 the Missouri Bankruptcy Court confirmed a Plan of Liquidation
(the "Mississippi Plan of Liquidation") for President Mississippi, Vegas and
BHI.  The Mississippi Plan of Liquidation became effective on June 7, 2005.
Pursuant to the Mississippi Plan of Liquidation, the proceeds from the sale of
the Mississippi Properties, along with the proceeds of certain other assets,
have been distributed to the creditors of President Mississippi, Vegas, BHI
and PBHLLC (the latter of which is a non-wholly owned subsidiary of the
Company that had previously been though a separate bankruptcy proceeding),
including the holders of the Company's Notes (the "Noteholders") and J. Edward
Connelly Associates, Inc. ("JECA") and certain assignees of JECA.  JECA, an
entity controlled by John E. Connelly, the Company's former Chairman and Chief
Executive Officer, holds a Class B membership interest in PBLLC.  The Company
anticipates that under the Mississippi Plan of Liquidation, creditors of the
Mississippi Affiliates, with the exception of the Noteholders, will be paid in
full, subject to final determination and settlement of claims and expenses.

  On June 7, 2005, the effective date of the Mississippi Plan of Liquidation,
the Company paid $25.6 million of indebtedness due to the Noteholders.  Of
this amount, approximately $12.6 million was applied to principal,
approximately $12.6 million was applied to accrued interest and approximately

                                    3

<PAGE> 9
$0.4 million was applied to accrued trustee and legal fees incurred by the
Noteholders.  Additionally, the Company redeemed $14.4 million of JECA's Class
B membership interest in PBLLC.  During August 2005, the Company made a second
distribution from the proceeds consisting of $1.4 million to the Noteholders
and $1.4 million toward the redemption of JECA's Class B membership interest.
During February 2006, the Company made a third distribution from the proceeds
consisting of $0.35 million to the Noteholders and $0.35 million toward a
redemption of JECA's Class B membership interest.  During February 2007, the
Company made a fourth distribution from the proceeds consisting of $1.0
million toward the redemption of JECA's Class B membership interest.

-- President Broadwater Hotel, LLC Bankruptcy Proceedings

  PBLLC, a limited liability company in which Broadwater Hotel, Inc., a
wholly-owned subsidiary of the Company ("BHI"), has a Class A ownership
interest, was a debtor-in-possession in a Chapter 11 bankruptcy proceeding
from April 19, 2001 until approximately May 28, 2003.  PBLLC emerged from
bankruptcy under a plan of reorganization dated October 16, 2001, as modified
on February 28, 2003, and confirmed by the United States Bankruptcy Court for
the Southern District of Mississippi on May 14, 2003.  Under the confirmed
Plan of Reorganization, unsecured creditors of PBLLC received 100% of their
allowed claims and PBHLLC's obligations to its secured lender were modified
with respect to the debt amount, the interest rate and the due date.  On April
15, 2005, the modified indebtedness owed to the secured lender, including all
accrued interest thereon, was fully satisfied by PBLLC from the proceeds of
the sale of the Company's Biloxi assets.

-- Formerly Owned St. Louis Properties and Operations

  On December 20, 2006, the Company, with the prior approval of the Missouri
Bankruptcy Court, completed a sale of the capital stock of President Missouri
to Pinnacle Entertainment, Inc. for approximately $31.5 million, subject to
certain working capital adjustments.  The proceeds of the sale were placed in
a distribution trust (the "Missouri Distribution Trust") to be distributed in
accordance with a plan of reorganization for President Missouri that was
confirmed by the Missouri Bankruptcy Court on December 4, 2006 (the "Missouri
Plan of Reorganization").

  Pursuant to the Missouri Plan of Reorganization, all priority and
administrative claims and claims of unsecured trade creditors have been paid
in full from the Missouri Distribution Trust.  In addition, holders of the
Company's outstanding notes have been paid the amount of their claims less
$10.0 million, or $50.7 million from the Distribution Trust.  An aggregate of
$5.0 million of the $10.0 million has been permanently waived by the
noteholders, and the remaining $5.0 million has been deferred.  The deferred
amount will be payable from one-half of any future amounts in excess of $5.0
million recovered by the Company pursuant to certain specified pending
litigation.  In addition, under the Missouri Plan of Reorganization, a portion
of the first $5.0 million from such litigation will be used to pay the
outstanding minority interest of JECA and its assignees with the balance to be
distributed to the Company.

                                    4
<PAGE> 10
Discontinued Operations

Segments

  Prior to the Company's determination to sell the businesses discussed in the
preceding section, management previously viewed its operations in two
operating segments:  Biloxi Operations and St. Louis Operations, each of which
is discussed more fully below.  Prior to the sale of the Company's Leasing
Operations, Corporate Leasing Operations were considered to be a third
operating segment.  Revenues, results of operations and identifiable assets of
each of the Company's discontinued operations can be found in Note 9 of the
accompanying consolidated financial statements.

  --St. Louis, Missouri Operations

  The Company previously operated a dockside gaming casino on board the vessel
"Admiral" in St. Louis through its wholly-owned subsidiary, President
Missouri.  See "Bankruptcy Proceedings--St. Louis Operations" regarding the
sale of the St. Louis operations.

  --Biloxi, Mississippi Operations

  The Company previously operated a dockside gaming casino in Biloxi,
Mississippi through its wholly-owned subsidiary, President Mississippi.  See
"Substantial Indebtedness; Bankruptcy Proceedings--Biloxi Operations"
regarding the sale of the Biloxi operations.

Former Operations

  --Leasing Operations

  The Company previously owned vessels that were no longer utilized in the
Company's gaming operations, through its wholly owned subsidiary President New
York.  The Company chartered these vessels from time to time to various third
parties.  On May 2, 2003, the M/V "Surfside Princess" was auctioned for $1.5
million and on April 7, 2004, the M/V "President Casino-Mississippi" was
auctioned for $0.5 million.  President New York has no other assets.

Recent Developments

  Effective April 4, 2006, the Board of Directors of the Company removed John
E. Connelly as a director and as the Chairman and Chief Executive Officer of
the Company as a result of Mr. Connelly no longer meeting the requirements of
the Amended By-Laws and elected Terrence L. Wirginis as Vice President and
Chairman of the Board and John S. Aylsworth as President, Chief Executive
Officer and Chief Operating Officer.  Effective May 25, 2006, Mr. Wirginis
resigned as director, Chairman of the Board and Vice President-Marine and
Development of the Company, and as an officer and director of the Company's
subsidiaries.

Regulatory Matters

  The Company is subject to certain federal, state and local safety and health
laws, regulations and ordinances that apply to non-gaming businesses
generally, such as the Americans with Disabilities Act, the Clean Air Act,
Clean Water Act, Occupational Safety and Health Act, Resource and Conservation

                                     5


<PAGE> 11
Recovery Act and the Comprehensive Environmental Response, Compensation and
Liability Act.  The Company has not made material expenditures with respect to
such laws and regulations.

  Employees

  As of February 28, 2007, the Company had 5 employees.

  Available Information

  The Company's Internet address is www.presidentinc.com.  The Company's
Annual Report on Form 10-K, its quarterly reports on Form 10-Q, current
reports on Form 8-K and any other documents filed with the Securities and
Exchange Commission ("SEC") are available free of charge on the Company's
website through a link with Edgar Archives Search.  These materials may also
be accessed directly through the SEC's website (www.sec.gov) or in the SEC's
Public Reference Room at 100 F Street, NE, Washington, D.C. 20549.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.

Item 1A.  Risk Factors

  In evaluating our company, careful consideration should be given to the risk
factors set forth below, as well as the other information set forth in this
Annual Report on Form 10-K.  Although these risk factors are many,
these factors should not be regarded as constituting the only risks present in
connection with the business.  Each of these risk factors could adversely
affect our business, operating results and/or financial condition.  In
addition to the following disclosures, please refer to the other information
contained in this report including the consolidated financial statements and
the related notes.

  We have no operating business and may be forced to liquidate.

  Following the consummation of the sale of the our St. Louis gaming
operations in December 2006, we no longer own any operating entities and our
assets consist primarily of cash, certain deferred tax assets and certain
pending litigation claims.  Our business activities currently consist of
managing our existing litigation matters, discharging our liabilities and
administering the bankruptcy reorganization plans of our former Biloxi and St.
Louis operations.  In the event that our remaining assets (including any
litigation recoveries which the we may receive) are not sufficient to
discharge our liabilities or begin new business operations, we will be forced
to liquidate.  We currently have no definitive plans, arrangements or
understandings with any prospective business combination or other transaction.

  We have limited resources and no revenues from operations.

  We have limited resources, no revenues from operations and our cash on hand
may not be sufficient to satisfy our cash requirements during the next twelve
months.  In addition, we do not have any operating business and we will not
achieve any revenues (other than interest income) for the foreseeable future.
Our financial statements disclose certain conditions that raise substantial
doubt regarding our ability to continue as a going concern.  If we are in fact
unable to continue as a going concern, stockholders may lose their entire
investment in our Common Stock.

                                    6

<PAGE> 12
  We filed for reorganization under Chapter 11 of the Bankruptcy Code and are
subject to the risks and uncertainties associated with Chapter 11 proceedings.

  For the duration of our Chapter 11 proceedings, our operations, including
our ability to continue as a going concern, are subject to the risks and
uncertainties associated with bankruptcy.  Risks and uncertainties associated
with our Chapter 11 proceedings are outlined under "Item 1.  Business --
Bankruptcy Proceedings" in this Annual Report on Form 10-K, and include the
following:

   o  the actions and decisions of our creditors and other third parties
      who have interests in our Chapter 11 proceedings may be
      inconsistent with our plans;

   o  our ability to obtain court approval with respect to motions in the
      Chapter 11 proceedings prosecuted from time to time;

   o  our ability to develop, prosecute, confirm and consummate plans of
      reorganization with respect to the Chapter 11 proceedings; and

   o  risks associated with third parties seeking and obtaining court
      orders to convert the case to Chapter 7 case.

  These risks and uncertainties could affect our business and operations in
various ways.  Because of the risks and uncertainties associated with our
Chapter 11 proceedings, the ultimate impact of events that occur during these
proceedings will have on our business, financial condition and results of
operations cannot be accurately predicted or quantified, and there is
substantial doubt about our ability to continue as a going concern.

  We are subject to litigation which, if adversely determined, could cause us
to incur substantial losses.

  We are, from time to time, during the normal course of operating our
business, subject to various litigation claims and legal disputes.  Some of
the litigation claims may not be covered under our insurance policies, or our
insurance carriers may seek to deny coverage.  As a result, we might required
to incur significant legal fees, which may have a material adverse effect on
our financial position.  In addition, because we cannot predict the outcome of
any action, it is possible that, as a result of current and/or future
litigation, we will be subject to adverse judgments or settlements that could
result in significant losses.  For discussion regarding litigation in which we
are involved, see "Note 11. Commitments and Contingent Liabilities" to our
Consolidated Financial Statements included in this Annual Report on Form 10-K.

  Our Common Stock has been thinly traded; liquidity may be limited.

  Our Common Stock is quoted on the OTC Bulletin Board, which provides
significantly less liquidity than a securities exchange (such as the American
or New York Stock Exchange) or an automated quotation system (such as the
Nasdaq National Market or SmallCap Market).  Our Common Stock may not be
accepted for a listing on an automated quotation system or securities exchange
in the future.  There is currently a limited volume of trading in our Common
Stock, and on many days there has been no trading activity at all.  The
purchasers of shares of our Common Stock may find it difficult to resell their
shares at prices quoted in the market or at all.  The market price of shares

                                     7

<PAGE> 13
of our Common Stock has been and is likely to continue to be highly volatile.

Item 1B.  Unresolved Staff Comments.

  None.

Item 2.  Properties.

  The Company's principal executive offices are located in a building
partially leased by the Company.  The Company leases approximately 1,400
square feet for its principal executive offices.  The Company's mailing
address is P.O. Box 220645, St. Louis, Missouri 63122-0645 and telephone
number is (314) 622-3018.  Information about the Company's former gaming
operations locations appears under "Discontinued Operations - Segments" in
Item 1 of this report and is incorporated by reference herein.

Item 3.  Legal Proceedings.

Pending Bankruptcy Proceedings

  For information regarding the Company's bankruptcy proceedings, see the
disclosures under "Item 1.  Business; Bankruptcy Proceedings."

Litigation

  For information regarding certain pending legal proceedings, se the
disclosures under "Note 11.  Commitments and Contingencies" of the Company's
consolidated financial statements included in the Annual Report of Form 10-K.

Item 4.  Submission of Matters to a Vote of Security Holders.

  There were no matters submitted to a vote of security holders during the
fourth quarter of fiscal 2007.

                                    8<PAGE> 14
                                    PART II

Item 5.  Market for the Registrant's Common Equity and
         Related Stockholder Matters.

  The Company's Common Stock trades on the OTC Bulletin Board under the symbol
"PREZQ.OB."  The following table sets forth, for the fiscal quarters
indicated, the high and low sale or bid prices for the Common Stock, as
reported by the OTC Bulletin Board:

<TABLE>
<CAPTION>
                                                High       Low
                                               ------     -----

            <S>                               <C>         <C>

            Fiscal 2007
              First Quarter................   $ 0.15      $ 0.09
              Second Quarter...............   $ 0.80      $ 0.11
              Third Quarter................   $ 0.60      $ 0.20
              Fourth Quarter...............   $ 0.40      $ 0.25

            Fiscal 2006
              First Quarter................   $ 0.28      $ 0.15
              Second Quarter...............   $ 0.30      $ 0.25
              Third Quarter................   $ 0.80      $ 0.23
              Fourth Quarter...............   $ 0.23      $ 0.08

</TABLE>

  The market bid quotations reflect inter-dealer prices, without retail mark-
up, mark-down or commission and may not necessarily represent actual
transactions.  Bid quotations are derived from Commodity Systems, Inc. through
Yahoo.com Historical Quotes.

  On June 11, 2007, there were approximately 1,082 holders of record of the
Company's Common Stock.

  The Company has never paid any dividends on its Common Stock.  Currently,
all earnings, if any, are used for the operation of its business.  The payment
of dividends by the Company is restricted under the Company's pending
bankruptcy reorganization proceedings.  See "Management's Discussion and
Analysis of Financial Position and Results of Operations" for additional
information.

Stock Performance Graph

  The following table compares the cumulative total stockholder return on the
Company's Common Stock during the period from February 28, 2002 through
February 28, 2007, with the cumulative return on The Dow Jones US Gambling
Index (the "DJ Index") and The Standard & Poor's 500 Stock Index ("S&P 500")
assuming $100 was invested in the Company's Common Stock on February 28, 2002
and in each of the foregoing indices and assumes reinvestment of any
dividends.  No dividends have been paid on the Company's Common Stock during
the periods presented.  The comparisons are required by the Securities
Exchange Commission and are not intended to forecast or be indicative of
possible future performance of the Company's Common Stock.

                                     9

<PAGE> 15
<TABLE>
<CAPTION>
<S>                       <C>      <C>      <C>       <C>       <C>       <C>

                           02/02    02/03    02/04     02/05     02/06     02/07
                           -----    -----    -----     -----     -----     -----

President Casinos, Inc.   $100.00  $ 30.59  $ 21.18   $ 17.65   $ 10.59   $ 47.06

S&P 500                    100.00    77.32   107.10    114.57    124.20    139.07

Dow Jones US Gambling      100.00    92.02   173.12    202.33    230.83    312.63

</TABLE>

Item 6.  Selected Consolidated Financial Data.

  The following selected financial data of the Company is qualified by
reference to and should be read in conjunction with "Item 7.  Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
the consolidated financial statements and notes thereto included elsewhere
herein.  The selected consolidated statement of operations and balance sheet
data are derived from the Company's consolidated financial statements which
are included elsewhere herein.

<TABLE>
<CAPTION>
                                      Years Ended February 28/29,
                                              2007       2006       2005       2004       2003
                                             ------     ------     ------     ------     ------
                                                     (in thousands, except share data)

<S>                                         <C>        <C>        <C>        <C>        <C>
Consolidated Statement of Operations Data:

Total operating revenues (1)..............  $    --    $     --   $    --    $    --    $    --

Operating loss............................  $ (2,141)  $ (2,611)  $ (2,644)  $ (2,904)  $ (3,248)

Income (loss) from continuing operations..  $  8,004   $ (3,649)  $ (5,742)  $ (4,535)  $ (8,580)

Income (loss) from discontinued
  operations (1)..........................  $  2,100   $ 37,990   $ 15,934   $  1,800   $   (499)

Net income (loss).........................  $ 10,104   $ 34,341   $ 10,192   $ (2,735)  $ (9,079)

Basic and diluted net income (loss) per
  share from continuing operations........   $  1.59    $ (0.72)   $ (1.14)   $ (0.90)   $ (1.70)
Basic and diluted net income (loss) per
  share from discontinued operations......   $  0.42    $  7.54    $  3.17    $  0.36    $ (0.10)
                                             --------   --------   --------   --------   --------
Basic and diluted net income
 (loss) per share.........................   $  2.01    $  6.82    $  2.03    $ (0.54)   $ (1.80)
                                             ========   ========   ========   ========   ========

Consolidated Balance Sheet Data:

Cash and cash equivalents.................  $  6,342   $ 28,077    $ 20,706  $ 18,362   $ 11,720
Restricted cash, cash equivalents
  and short-term investments..............       --         --        2,584     2,672      5,404
Assets of discontinued operations (1).....       914     38,511      93,237    95,568    102,734
Total assets..............................     7,407     66,760     116,705   116,818    120,834
Current liabilities.......................     2,178      7,728      47,992    14,096     58,429
Long-term debt............................       --         --          --     45,429        --
Minority interest (2).....................     2,253      3,531      19,020    17,653        679
Liabilities subject to compromise.........       688     63,317      91,850    91,989    111,340
Stockholders' equity (deficit)............     2,288     (7,816)    (42,157)  (52,349)   (40,614)
</TABLE>
                                      10

<PAGE> 16
(1)  On April 15, 2005, the Biloxi operations were sold for approximately
     $82,000 pursuant to an auction and sale approved by the United States
     Bankruptcy Court for the Eastern District of Missouri.

     On December 20, 2006, the Company sold the capital stock of President
     Missouri for approximately $31,500, pursuant to an auction and sale
     approved by the United States Bankruptcy Court for the Eastern District
     of Missouri.  Management's evaluation of the net realizable value of
     its assets, based on their intended future use and current market
     conditions, resulted in an impairment of long-lived assets of $3,950
     during fiscal year 2007.

     The Company sold one of two vessels accounted for in its leasing
     segment during May 2003 and the second vessel was foreclosed on by the
     lender which held a Preferred First Fleet Mortgage collateralizing debt
     owed to them.  Management's evaluation of the net realizable value of
     its assets, based on their intended future use and current market
     conditions, resulted in impairments of long-lived assets of $288 and
     $1,167, respectively, during fiscal years 2004 and 2003 on the two
     casino vessels.

     In accordance with Statement of Financial Accounting Standard No. 144
     "Accounting for the Impairment and Disposal of Long-Lived Assets," the
     St. Louis and Biloxi operations and leasing segment are accounted for
     as discontinued operations.  The results for fiscal 2003 and 2004
     have been revised to reflect these reclassifications.

(2)  As of February 28, 2003, $15,669 of minority interest related to
     J. Edward Connelly Associates, Inc.'s Class B Unit of PBLLC was
     classified as liabilities subject to comprise.

  Gaming operations commenced in Biloxi, Mississippi on August 13, 1992 and in
St. Louis, Missouri on May 27, 1994.  Hotel operations commenced in Biloxi,
Mississippi on July 27, 1997.  The assets of the Biloxi operations were sold
April 15, 2005.  The capital stock of President Missouri was sold December 20,
2006.

Item 7.  Management's Discussion and Analysis of Financial Condition and
Results of Operations.

  The following discussion, which covers fiscal years 2005 through 2007,
should be read in conjunction with the consolidated financial statements of
the Company and the notes thereto included elsewhere in this report.

  President Casinos, Inc., President Riverboat Casino-Missouri, Inc., The
President Riverboat Casino-Mississippi, Inc., Broadwater Hotel, Inc., PRC
Management, Inc., PRC Holdings Corporation, TCG/Blackhawk, Inc. and Vegas
Vegas, Inc. have each filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy Code.  See "Note 1.  Bankruptcy Proceedings" of
the Notes to Condensed Consolidated Financial Statements.

  The agreement to sell the Biloxi operations was consummated on April 15,
2005 and the sale of St. Louis operations was consummated on December 20,
2006.

  As a result of the Company's relatively high degree of leverage and the need

                                    11


<PAGE> 17
for significant capital expenditures at its St. Louis property, the Company
was unable to pay the regularly scheduled interest payments of $6.4 million
that were each due and payable March 15, and September 15, 2000.  Under the
indentures pursuant to which the $75.0 million 13.0% Senior Exchange Notes
(the "Senior Exchange Notes") and the $25.0 million 12% Secured Notes (the
"Secured Notes" and collectively with the Senior Exchange Notes, the "Notes")
were issued, an Event of Default occurred on April 15, 2000.  Additionally,
the Company was unable to pay the $25.0 million principal payment due
September 15, 2000 on the Senior Exchange Notes.  The holders of at least 25%
of the Senior Exchange Notes and the Secured Notes were notified of the
defaults and instructed the Indenture Trustee to accelerate the Notes and on
August 11, 2000, the holders declared the unpaid principal and interest to be
due and payable.

  On October 10, 2000, the Company sold the assets of its Davenport, Iowa
operations for aggregate consideration of $58.2 million in cash.  On November
22, 2000, the Company entered into an agreement with a majority of the holders
of the Senior Exchange Notes and a majority of the holders of the Secured
Notes.  The agreement provided for a proposed restructuring of the Company's
debt obligations under the Notes and the application of certain of the
proceeds received by the Company from the sale of the Company's Davenport
assets.  Approximately $43.0 million of the proceeds from the sale were
deposited with a trustee.  Of this amount, $12.8 million was used to pay
missed interest payments due March 15, 2000 and September 15, 2000 on the
Notes; $25.0 million was used to partially redeem the Notes; and $5.2 million
was used to pay interest due March 15, 2001 on the Notes.  Subsequently, the
Company was unable to make the principal and interest payments due September
15, 2001.

  On April 15, 2005, the Company sold the assets of its Biloxi, Mississippi
operations for aggregate consideration of $82.0 million in cash.  The sale was
pursuant to an auction and sale process approved by the Missouri Bankruptcy
Court.  From the proceeds, the Company paid $37.1 million to the lender of the
PBLLC debt to satisfy the outstanding principal and interest obligations in
full.  The Company paid the Noteholders and their assignees $27.3 million to
partially satisfy its obligation and redeemed $16.1 million of Mr. Connelly's
Class B membership interest.

  On March 16, 2004, the Company sold the 179-room Broadwater Tower Hotel for
$6.5 million.  The Company's other hotel, the 333-room President Broadwater
Resort, was not included in this transaction.  The net proceeds of the
transaction were used to reduce the debt of PBLLC.  In connection with the
transaction the Company also entered into a lease agreement with the new
owners whereby the Company continued to operate the Broadwater Tower Hotel.

  On August 9, 2004, the Company entered into an agreement with Penn National
Gaming, Inc. for the purchase of its St. Louis operations.  The agreement was
submitted to the Missouri Bankruptcy Court for review and was amended on
September 17, 2004.  Under the terms of the agreement, the stock of President
Missouri was to be sold for approximately $28.0 million, subject to working
capital adjustments and subject to higher and better offers.  On October 7,
2004, an auction was held in accordance with Section 363 of the Bankruptcy
Code.  Pursuant to an agreement submitted September 30, 2004, Columbia Sussex
Corporation, Inc. was the winning over-bidder for the purchase of all of the
President Missouri's outstanding stock for a purchase price of approximately
$57.0 million, subject to closing adjustments.  On October 13, 2004, the

                                    12

<PAGE> 18
Missouri Bankruptcy Court entered an order approving the sale of the stock of
the Company to Columbia Sussex.  The closing of the transaction was contingent
upon approval by the Missouri Gaming Commission and other closing conditions.
On October 25, 2005, Columbia Sussex notified the Company that it had
withdrawn its application for licensing with the Missouri Gaming Commission.

  On February 24, 2006, the Company entered into an agreement with Pinnacle
Entertainment, Inc. for the purchase of the stock of President Missouri for
approximately $31.5 million, subject to working capital adjustments.  On
December 20, 2006, the sale was consummated.

  Following the consummation of the sale of the Company's St. Louis gaming
operations, the Company no longer owns any operating entities and its assets
consist primarily of cash, certain deferred tax assets and certain pending
litigation claims.  The Company's business activities currently consist of
managing its existing litigation matters, discharging its liabilities and
administering the bankruptcy reorganization plans of its former Biloxi and St.
Louis operations.

  The Company is currently evaluating, based on various assumptions regarding
the potential recoveries from its outstanding litigation claims, discharge of
its remaining liabilities and utilization of its deferred tax assets, the
advisability of pursuing new business opportunities with the Company's
remaining assets or, in the alternative, a liquidation.  In the event that the
Company's remaining assets (including any litigation recoveries which the
Company may receive) are not sufficient to discharge the Company's liabilities
or begin new business operations, the Company will be forced to liquidate.

Overview

  The Company's operating results were affected by a number of factors,
including competitive pressures, changes in regulations governing the
Company's activities, the economic environment and general weather conditions.

  As a result of the sale of the Biloxi operations in April 2005 and the sale
of the St. Louis operations in December 2006, discussed above, the results of
operations for these segments are classified in discontinued operations.

Results of Operations

  The results of continuing operations for the years ended February 28, 2007,
2006 and 2005 include only those expenses resulting from corporate
administration.  The gaming results for the Company's operations in Biloxi,
Mississippi and St. Louis, Missouri and to a lesser significance, the hotel
operations in Biloxi (the Broadwater Property) and the former leasing
operations are classified as discontinued operations as a result of the sale
of the operations.

                                     13
<PAGE> 19
  The following table highlights the results of the Company's operations
during the periods presented.

            <TABLE>
            <CAPTION>
                                                Twelve Months Ended February 28,
                                                  2007        2006        2005
                                                 ------      ------      ------
                                                         (in millions)

             <S>                                 <C>         <C>          <C>
             Continuing Operations:

             Corporate Administration
               operating loss                    $ (2.1)     $ (2.6)      $ (2.6)

             Discontinued Operations:

             St. Louis, Missouri Operations
               Operating revenues                  51.7        67.3         69.8
               Operating income                     4.4        10.2          7.9

             Biloxi, Mississippi Operations
               Operating revenues                   --          5.6         43.2
               Operating income                     0.1         0.6          1.2

             Leasing Operations
               Operating income (loss)               --         0.1         (0.1)

             </TABLE>

  The following table highlights cash flows of the Company's operations.

            <TABLE>
            <CAPTION>
                                                Twelve Months Ended February 28,
                                                  2007        2006        2005
                                                 ------      ------      ------
                                                         (in millions)

             <S>                                <C>          <C>         <C>
             Cash provided by (used in)
               operating activities             $ (3.5)      $(10.1)      $  6.4
             Cash provided by (used in)
               investing activities               30.5         83.9          2.3
             Cash used in
               financing activities              (51.7)       (67.8)        (6.4)
             Cash paid for interest                --          13.6          2.9
             Cash paid for income taxes            --           0.3          --
             </TABLE>

Fiscal 2007 Compared to Fiscal 2006

  Operating revenues from continuing operations.  As of February 28, 2007, the
Company had sold its Biloxi and St. Louis operations.  As such, all revenues
are classified in discontinued operations.

  Operating costs and expenses of continuing operations.  The Company's
consolidated selling, general and administrative expenses were $2.1 million
and $2.6 million during the years ended February 28, 2007 and 2006,
respectively.  The decrease is the result of the departure of two executives
in the first quarter of fiscal 2007.

  Operating income.  As a result of the foregoing items, the Company had an
operating losses of $2.1 million and $2.6 million during the years ended

                                    14

<PAGE> 20
February 28, 2007 and 2006, respectively.

  Reorganization items.  The Company incurred reorganization income of $9.8
million during the year ended February 28, 2007, compared to expense of $0.7
million during the year ended February 28, 2006.  On October 12, 2006, the
Company and President Missouri announced that the Company and President
Missouri had entered into a Settlement Agreement, dated as of October 10, 2006
(the "Settlement Agreement"), with Pinnacle, the Official Committee and Mr.
Wirginis which resolved the dispute between the competing bankruptcy
reorganization plans proposed by President Missouri and the Official Committee
in President Missouri's Chapter 11 bankruptcy proceedings pending in the
Bankruptcy Court.  The Settlement Agreement provides that the reorganization
plan previously filed by President Missouri will be amended in various
respects, including a reduction in the amount to be paid to the holders of the
Notes under the plan by $5.0 million which will be permanently waived.  An
additional $5.0 million under the Notes has been deferred, and will be payable
only if proceeds from certain pending litigation and tax refund claims exceed
$5.0 million.  In the event that an amount in excess of $5.0 million is
recovered from such contingencies, one-half of such future amounts will be
paid by the Company up to $5.0 million pursuant to the terms of the Settlement
Agreement.

  Minority interest expense.  The Company had $0.2 million in minority
interest income during the year ended February 28, 2007, compared to expense
of $0.6 million during the year ended February 28, 2006.  During both periods
the minority interest arose from Mr. Connelly's Class B Unit of the Broadwater
Property.  During the year ended February 28, 2007, the Company adjusted the
minority interest accrual to reflect the cessation of the obligation accruing
as of the date of the sale of the Biloxi properties.

  Net income/loss from continuing operations.  As a result of foregoing items,
the Company incurred net income from continuing operations of $8.0 million
during the year ended February 28, 2007 compared to a net loss from continuing
operations of $3.6 million during fiscal year 2006.

  Discontinued operations.  Discontinued operations consist of the Company's
St. Louis segment, Biloxi segment and the former vessel leasing segment.

  St. Louis segment.  On August 9, 2004, the Company entered into an agreement
with Penn National Gaming, Inc. for the purchase of its St. Louis operations.
The agreement was submitted to the Missouri Bankruptcy Court for review and
was amended on September 17, 2004.  Under the terms of the agreements, the
stock of the St. Louis operations was to be sold for approximately $28.0
million, subject to working capital adjustments and subject to a potential
overbid.  On October 7, 2004, an auction was held in accordance with Section
363 of the Bankruptcy Code.  Columbia Sussex, Inc. was the winning over-bidder
for the St. Louis casino operations for a purchase price of approximately
$57.0 million, subject to closing adjustments.  On October 13, 2004, the
Missouri Bankruptcy Court approved the terms of the agreement.  The closing of
the transaction was contingent upon licensing approval of Columbia Sussex and
its key officers by the Missouri Gaming Commission.  On October 25, 2005,
Columbia Sussex notified the Company that it had withdrawn its application for
licensing with the Missouri Gaming Commission.

  On February 24, 2006, the Company entered into an agreement with Pinnacle
Entertainment, Inc. for the purchase of the stock of President Missouri for

                                   15

<PAGE> 21
approximately $31.5 million, subject to working capital adjustments.  The sale
was consummated on December 20, 2006.

  The Company's St. Louis operating segment had operating income of $4.4
million, consisting of revenues of $51.7 million and operating expenses of
$47.3 million, during the year ended February 28, 2007, compared to operating
income of $10.2 million, consisting of revenues of $67.3 million and operating
expenses of $57.1 million, during the year ended February 28, 2006.  During
the year ended February 28, 2007, a $4.0 million asset impairment was
recognized in operating expenses which resulted from writing down the net book
value of property and equipment to the proceeds anticipated from the sale, net
of closing costs incurred as a result of the sale.  The St. Louis segment had
net income of $2.3 million for the year ended February 28, 2007, compared to
net income of $10.1 million for the year ended February 28, 2006.  Included in
net income for the year ended February 28, 2007, is $0.4 million in income
taxes.

  Biloxi segment.  On April 15, 2005, the Company consummated the sale of
substantially all of the assets utilized in its Biloxi operations.  The sale
was consummated pursuant to the terms and conditions of a Sale and Purchase
Agreement, dated as of November 15, 2004, by and between President
Mississippi, Vegas Vegas, Inc., PBLLC, (collectively, with President
Mississippi and Vegas Vegas, the "Sellers") and the purchaser, as amended by
the Amendment to Sale and Purchase Agreement dated as of November 19, 2004,
and the Second Amendment to Sale and Purchase Agreement dated as of November
29, 2004 (collectively, the "Sale Agreement").  Pursuant to the Sale
Agreement, the purchaser acquired from the Sellers substantially all of the
real and personal property associated with the Company's Biloxi, Mississippi
operations.  Under the terms of the Sale Agreement, the purchase price was
$82.0 million, subject to certain post-closing adjustments.

  The Company's Biloxi segment had operating income of less than $0.1 million,
consisting of post-closing adjustments during the year ended February 28,
2007, compared to operating income of $0.6 million, consisting of revenues of
$5.6 million and operating expenses of $5.0 million during the year ended
February 28, 2006.  The Biloxi segment had net income of $0.1 million for the
year ended February 28, 2007, compared to net income of $27.7 million for the
year ended February 28, 2006.  Included in fiscal year 2006 net income is a
$27.5 million gain, net of income taxes of $6.0 million, resulting from the
sale of the Biloxi assets.

  Leasing segment.  The leasing segment was operated by President Riverboat
Casino-New York, Inc., a wholly-owned subsidiary of the Company.  Of the two
vessels owned by this segment, the "Surfside Princess" was sold in May 2003.
On June 11, 2003, as a result of the Company's default on the debt that the
second vessel collateralized, the United States Marshall's office served a
warrant on the "President Riverboat Casino-Mississippi."  On April 7, 2004,
the vessel was auctioned.  President New York has no income during fiscal year
2007.  President New York had net income of $0.1 million during the year ended
February 28, 2006 as the result of selling gaming chips which were purchased
in 1998 in conjunction with pursuing a gaming license in New York City.

  Net income.  The Company generated net income of $10.1 million during the
year ended February 28, 2007, compared to net income of $34.4 million during
the year ended February 28, 2006.

                                   16

<PAGE> 22
Fiscal 2006 Compared to Fiscal 2005

  Operating revenues from continuing operations.  As of February 28, 2006, the

Company had sold its Biloxi operations and was negotiating a new agreement for
the sale of its St. Louis operations.  As such, all revenues are classified in
discontinued operations.

  Operating costs and expenses of continuing operations.  The Company's
consolidated selling, general and administrative expenses were $2.6 million
for fiscal 2006 and fiscal 2005.

  Operating income.  As a result of the foregoing items, the Company had an
operating loss of $2.6 million during both fiscal 2006 and fiscal 2005.

  Reorganization items.  The Company incurred reorganization items of $0.7
million during the year ended February 28, 2006, compared to $1.7 million
during the year ended February 28, 2005.  Reorganization expense is largely
attributable to legal fees associated with the Company's bankruptcy
proceedings.  The decrease in reorganization costs is a result of more costs
being attributable to discontinued operations rather than corporate
administration.

  Minority interest expense.  The Company had $0.6 million in minority
interest expense during the year ended February 28, 2006, compared to $1.4
million during the year ended February 28, 2005.  During both periods the
minority interest arose from Mr. Connelly's Class B Unit of the Broadwater
Property.  The decrease is the result of the Company redeeming $16.1 million
of the Class B Unit in fiscal 2006.

  Net loss from continuing operations.  As a result of foregoing items, the
Company incurred a net loss from continuing operations of $3.6 during fiscal
year 2006 compared to a net loss from continuing operations of $5.7 million
during fiscal year 2005.

  Discontinued operations.  Discontinued operations consist of the Company's
St. Louis segment, Biloxi segment and the former vessel leasing segment.

  St. Louis segment.  On August 9, 2004, the Company entered into an agreement
with Penn National Gaming, Inc. for the purchase of its St. Louis operations.
The agreement was submitted to the Missouri Bankruptcy Court for review and
was amended on September 17, 2004.  Under the terms of the agreements, the
stock of the St. Louis operations was to be sold for approximately $28.0
million, subject to working capital adjustments and subject to a potential
overbid.  On October 7, 2004, an auction was held in accordance with Section
363 of the Bankruptcy Code.  Columbia Sussex, Inc. was the winning over-bidder
for the St. Louis casino operations for a purchase price of approximately
$57.0 million, subject to closing adjustments.  On October 13, 2004, the
Missouri Bankruptcy Court approved the terms of the agreement.  The closing of
the transaction was contingent upon licensing approval of Columbia Sussex and
its key officers by the Missouri Gaming Commission.  On October 25, 2005,
Columbia Sussex notified the Company that it had withdrawn its application for
licensing with the Missouri Gaming Commission.

  On February 24, 2006, the Company entered into an agreement with Pinnacle
Entertainment, Inc. for the purchase of the stock of President Missouri for

                                    17

<PAGE> 23
approximately $31.5 million, subject to working capital adjustments.  The sale
was consummated on December 20, 2006.

  The Company's St. Louis operating segment had operating income of $10.2
million, consisting of revenues of $67.3 million and operating expenses of
$57.1 million, during the year ended February 28, 2006, compared to operating
income of $7.9 million, consisting of revenues of $69.8 million and operating
expenses of $61.9 million, during the year ended February 28, 2005.  Net
revenues decreased $2.5 million primarily as a result of the competitive
environment.  Operating expenses, other than depreciation, decreased $4.8
million.  The decrease is primarily the result of a decrease in payroll and
benefits and admissions taxes due to a decrease in volume, and decreased
gaming taxes as a result of a decrease in revenue.  Depreciation expense
decreased $3.4 million as a result of ceasing to depreciate assets in November
2004, in accordance with SFAS 144.  The St. Louis segment had net income of
$10.1 million for the year ended February 28, 2006, compared to net income of
$7.1 million for the year ended February 28, 2005.

  Biloxi segment.  On April 15, 2005, the Company consummated the sale of
substantially all of the assets utilized in its Biloxi operations to
Broadwater Development, LLP (the "Purchaser").  The sale was consummated
pursuant to the terms and conditions of a Sale and Purchase Agreement, dated
as of November 15, 2004, by and between President Mississippi, Vegas Vegas,
Inc., PBLLC, (collectively, with President Mississippi and Vegas Vegas, the
"Sellers") and Purchaser, as amended by the Amendment to Sale and Purchase
Agreement dated as of November 19, 2004, and the Second Amendment to Sale and
Purchase Agreement dated as of November 29, 2004 (collectively, the "Sale
Agreement").  Pursuant to the Sale Agreement, the Purchaser acquired from the
Sellers substantially all of the real and personal property associated with
the Company's Biloxi, Mississippi operations.  Under the terms of the Sale
Agreement, the purchase price was $82.0 million, subject to certain post-
closing adjustments.  Of this amount, $6.8 million was paid by Silver Slipper
Casino Venture LLC, which acquired the right to purchase the gaming casino
assets under a separate transaction with the Purchaser.

  The Company's Biloxi operating segment had operating income of $0.6 million,
consisting of revenues of $5.6 million and operating expenses of $5.0 million
during the year ended February 28, 2006, compared to operating income of $1.2
million, consisting of revenues of $43.2 million and operating expenses of
$42.0 million during the year ended February 28, 2005.  Depreciation expense
decreased $1.5 million as a result of ceasing to depreciate assets in December
2004, in accordance with SFAS 144, effective with the Bankruptcy Court's
approval of the sale agreement.  The Biloxi segment had net income of $27.7
million for the year ended February 28, 2006, compared to net income of $6.4
million for the year ended February 28, 2005.  Included in fiscal year 2006
net income is a $27.5 million gain resulting from the sale of the Biloxi
assets.  Included in fiscal year 2005 net income is a $2.4 million gain
resulting from the write down of the PBLLC debt to net realizable value due to
the Court approved Mississippi Plan of Liquidation.  As a result of the sale
of the Company's Biloxi operations on April 15, 2005, and the gain that
resulted from the transaction, the Company recorded a reduction of the income
tax valuation allowance resulting in a $5.7 million tax benefit during fiscal
year 2005.

  Leasing segment.  The leasing segment was operated by President Riverboat
Casino-New York, Inc., a wholly-owned subsidiary of the Company.  Of the two

                                    18

<PAGE> 24
vessels owned by this segment, the "Surfside Princess" was sold in May 2003.
On June 11, 2003, as a result of the Company's default on the debt that the
second vessel collateralized, the United States Marshall's office served a
warrant on the "President Riverboat Casino-Mississippi."  On April 7, 2004,
the vessel was auctioned.

  The Company had net income of $0.1 million during the year ended February
28, 2006 as the result of selling gaming chips which were purchased in 1998 in
conjunction with pursuing a gaming license in New York City.  The Company had
net income of $2.5 million, including a gain of $2.6 million on restructuring
debt, from the leasing segment during the year ended February 28, 2005.  On
October 17, 2003, the Mississippi Bankruptcy Court issued an order dismissing
President Riverboat Casino-New York, Inc.'s Chapter 11 bankruptcy case.

  Net income.  The Company generated net income of $34.4 million during the
year ended February 28, 2006, compared to net income of $10.2 million during
the year ended February 28, 2005.

Liquidity and Capital Resources

  During fiscal 2007, the Company met its working capital requirements from a
combination of internally generated sources including cash from operations and
the sale of assets.  The Company anticipates it has sufficient resources to
meet its working capital requirements through the end of certain current
litigation discussed in "Footnote 11. Commitments and Contingent Liabilities."

  As discussed above, the Company and its subsidiaries, with the exception of
PBLLC, President Riverboat Casino-Iowa, Inc. and President Riverboat Casino-
New York, Inc., are debtors-in-possession under Chapter 11 of the Bankruptcy
Code.  Following the consummation on December 20, 2006 of the sale of the
Company's St. Louis gaming operations, the Company no longer owns any
operating entities and its assets consist primarily of cash and certain
pending litigation claims.  The Company's business activities currently
consist of managing its existing litigation matters, discharging its
liabilities and administering the bankruptcy reorganization plans of its
former Biloxi and St. Louis operations.  In addition to the cash requirements
necessary to fund the Company's remaining business activities, the Company
anticipates that it will continue to incur significant professional fees and
other costs in connection with its bankruptcy proceedings.  As a result of the
uncertainty surrounding the Company's current circumstances, it is difficult
to predict the Company's actual liquidity needs at this time.  However, based
upon its current budgeting assumptions and anticipated levels of activity in
the Company's litigation matters and bankruptcy proceeding, management
believes that its liquidity and capital resources will be sufficient to fund
its remaining Corporate activities through the next fiscal year and the end of
certain current litigation.  At this time, the Company does not anticipate
access to any additional cash or capital other than potential recoveries from
its outstanding litigation claims.

  As a result of the Company's high degree of leverage and the need for
significant capital expenditures at its St. Louis property, the Company was
unable to make the regularly scheduled interest payments of $6.4 million that
were each due and payable March 15 and September 15, 2000.  Under the
Indentures pursuant to which the Senior Exchange Notes and Secured Notes were
issued, an Event of Default occurred on April 15, 2000.  Additionally the
Company did not pay the $25.0 million principal payment due September 15, 2000

                                    19

<PAGE> 25
on the Senior Exchange Notes.  The holders of at least 25% of the Senior
Exchange Notes and Secured Notes were notified and instructed the Indenture
Trustee to accelerate the Senior Exchange Notes and Secured Notes and on
August 11, 2000, the holders declared the unpaid principal and interest to be
due and payable.  The Company paid the obligations under the Notes with the
cash from operations and proceeds from the sale of various assets, and as of
February 28, 2007 there was no further debt obligation outstanding.

  The Company used $3.5 million of cash from operating activities during the
year ended February 28, 2007, compared to using $10.1 million for the year
ended February 28, 2006.  The primary decrease in cash used in operating
activities was the payment of $12.6 million in interest to the Noteholders
during fiscal year 2006.

  Investing activities of the Company generated $30.5 million of cash during
the year ended February 28, 2007 compared to generating $83.9 million during
fiscal 2006.  During the year ended February 28, 2007, the Company received
proceeds of $31.5 million from the sale of the St. Louis operations.  During
the year ended February 28, 2006, the Company received proceeds from the sale
of the Biloxi assets of $82.0 million and from the sale of the St. Louis
office building of $1.7 million.

  Financing activities of the Company used $51.7 million of cash during the
year ended February 28, 2007, compared to $67.8 million during the year ended
February 28, 2006.  During the year ended February 28, 2007, the Company used
proceeds from the sale of the St. Louis operations and existing cash on hand
to pay the Noteholders $50.7 million principal.  Additionally, during the year
ended February 28, 2007, the Company redeemed minority interest of $1.0
million for the Class B Unit in PBLLC.  During the year ended February 28,
2006, the Company used proceeds from the sale of the Biloxi assets to pay the
debt obligation of PBLLC in the amount of $36.6 million and to partially pay
the Noteholders $14.3 million principal.  Additionally, during the year ended
February 28, 2006, the Company redeemed minority interest of $16.1 million for
the Class B Unit in PBLLC.

  The sale of the Company's Biloxi operations closed effective April 15, 2005
and on May 27, 2005 the Missouri Bankruptcy Court confirmed a Plan of
Liquidation (the "Mississippi Plan of Liquidation") for President Mississippi,
Vegas, Vegas and PBLLC (the "Mississippi Affiliates") that was jointly
developed by the Company and its creditors AIG SunAmerica Inc. and MacKay
Shields LLC in the Company's bankruptcy case.  The Mississippi Plan of
Liquidation became effective on June 7, 2005.  Pursuant to the Mississippi
Plan of Liquidation, the proceeds from the sale of the Mississippi Affiliates,
following adjustments required under the Mississippi Asset Sale Agreement,
have been allocated and distributed to the creditors of the Mississippi
Affiliates, including the holders of the Company's Senior Exchange Notes and
Secured Notes and to J. Edward Connelly Associates, Inc. ("JECA") and certain
assignees of JECA.  JECA, an entity controlled by John E. Connelly, the
Company's former Chairman and Chief Executive Officer, holds a Class B
membership interest in PBLLC.  The Company anticipates that under the
Mississippi Plan of Liquidation, creditors of the Mississippi Affiliates, with
the exception of the Noteholders, will be paid in full, subject to final
determination and settlement of claims and expenses.  During the year ended
February 28, 2007, the Company paid $50.7 million of indebtedness to the
Noteholders and redeemed $1.0 million of JECA's Class B membership interest in
PBLLC.

                                    20
<PAGE> 26
Critical Accounting Policies

  --Significant Accounting Policies and Estimates

  The Company prepares the consolidated financial statements in conformity
with accounting principles generally accepted in the United States.  Certain
of the Company's accounting policies, including the determination of the
allowance for doubtful accounts receivable, asset impairment and insurance
reserves and require that management apply significant judgment in defining
the appropriate assumptions for calculating financial estimates.  By their
nature, these judgments are subject to an inherent degree of uncertainty.
Management's judgments are based on historical experience, terms of existing
contracts, observance of trends in the gaming industry and information
available from other outside sources.  There can be no assurance that actual
results will not differ from the Company's estimates.  To provide an
understanding of the methodology applied, significant accounting policies and
basis of presentation are discussed where appropriate in this discussion and
analysis and in the notes of the consolidated financial statements.

  The carrying values of the Company's long-lived assets are reviewed when
events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable.  Asset impairment is determined to exist if
estimated future cash flows, undiscounted and without interest charges, are
less than the carrying amount.  If it is determined that an impairment loss
has occurred, then an impairment loss is recognized in the statement of
operations.  The resulting impairment loss is measured as the amount by which
the carrying amount of the asset exceeds its fair value, estimated using
quoted market prices, if available, or other acceptable valuation
methodologies, including discounted cash flows or comparable sales.

Recently Issued Accounting Standards

  In September 2005, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard No. 157, "Fair Value Measurements"
("SFAS 157").  SFAS 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles ("GAAP"), and
expands disclosures about fair value measurements.  This statement applies
under other accounting pronouncements that required or permit fair value
measurement, the FASB having previously concluded in those accounting
pronouncements that fair value is the relevant measurement attribute.  SFAS
No. 157 is effective for the Company beginning fiscal year March 1, 2008.

  The Company has not completed the process of evaluating the impact that will
result from adopting SFAS No. 157.  The Company is therefore unable to
disclose the impact that adopting SFAS No. 157 will have on its financial
position, results of operations, and cash flows when such statement is
adopted.

  In February 2007, the FASB issued Statement of Financial Accounting Standard
No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement No. 115" ("SFAS 159").
SFAS 159 permits entities to choose, at specified election dates, to measure
many financial instruments and certain other items at fair value that are not
currently required to be measured at fair value.  A business entity shall
report unrealized gains and losses on items for which the fair value option
has been elected in earnings at each subsequent reporting date.  SFAS 159 is

                                     21

<PAGE> 27
effective as of March 1, 2008.  Early adoption is permitted as of the
beginning of a fiscal year that begins on or before November 15, 2007,
provided the entity also elects to apply the provisions of SFAS No. 157.  The
choice to adopt early should be made after issuance of this Statement but
within 120 days of the beginning of the fiscal year of adoption, provided the
entity has not yet issued financial statements, including notes to those
financial statements, for any interim period of the fiscal year of adoption.
The Company is evaluating the impact that the adoption of SFAS No. 159 will
have on its financial position.

  In June 2006, the FASB issued Interpretation No. 48 Accounting for
Uncertainty in Income Taxes   an Interpretation of FAS No. 109 ("FIN 48"),
which clarifies the accounting for uncertainty in income taxes.  Currently,
the accounting for uncertainty in income taxes is subject to significant and
varied interpretations that have resulted in diverse and inconsistent
accounting practices and measurements. Addressing such diversity, FIN 48
prescribes a consistent recognition threshold and measurement attribute, as
well as clear criteria for subsequently recognizing, derecognizing and
measuring changes in such tax positions for financial statement purposes.  FIN
48 also requires expanded disclosure with respect to the uncertainty in income
taxes.  FIN 48 is effective for fiscal years beginning after December 15,
2006.  The Company has not yet determined the impact of FIN 48 on its
consolidated financial position, results of operations, cash flows or
financial statement disclosures.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

  As of February 28, 2007, the Company had no debt that bore contractual
interest at fixed rates. The Company continues to monitor interest rate
markets, but has not engaged in any hedging transactions with respect to such
risks.

  Although the Company manages its short-term cash assets to maximize return
with minimal risk, the Company does not invest in market rate sensitive
instruments for trading or other purposes and the Company is not exposed to
foreign currency exchange risks or commodity price risks in its transactions.

Item 8.  Financial Statements and Supplementary Data.

  Reference is made to the Index to Financial Statements and Schedules on page
F-1.

Item 9.  Changes in and Disagreements with Independent Registered Public
Accounting Firm on Accounting and Financial Disclosure.

  Not applicable.

Item 9A.  Controls and Procedures.

  As of February 28, 2007, the Company carried out an evaluation, under the
supervision and with the participation of the Company's management, including
the Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the Company's disclosure controls and procedures, as defined in Rules
13a-15(e) and 15d-15(e) of the Securities and Exchange Act of 1934.  Based on
that evaluation, the Chief Executive Officer and Chief Financial Officer have
concluded that the Company's disclosure controls and procedures as of February

                                    22

<PAGE> 28
28, 2007 were effective to ensure that information required to be disclosed by
the Company in reports that it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission's rules and forms.

  There were no changes in the Company's internal control over financial
reporting that occurred during the quarter ended February 28, 2007 that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

Item 9B.  Other Information.

  Not applicable.

                                     23<PAGE> 29
                                   Part III

Item 10.  Directors, Executive Officers and Corporate Governance.

  As of the date hereof, the directors and executive officers of the Company,
together with certain information about them, are set forth below.

         Name           Age    Director Since    Positions with the Company
         ----           ---    --------------    --------------------------
   John S. Aylsworth     56        1995          President, Chief Executive
                                                 Officer, Chief Operating
                                                   Officer and Director
                                                   (Class III)
   Ralph J. Vaclavik     52         --           Senior Vice President and
                                                   Chief Financial Officer
   Karl G. Andren        60        1993          Director (Class I)
   Royal P. Walker, Jr.  47        1996          Director (Class I)

  The Company has a classified Board of Directors consisting of three classes.
At each annual meeting of stockholders, the bylaws provide that directors are
elected for a term of three years to succeed those directors whose terms are
expiring.  No annual meeting of stockholders has been held since August 2001
and none is scheduled for 2007.  Each director will continue in office until
his successor is duly elected and qualified.

  Mr. Aylsworth became Chief Executive Officer effective April 4, 2006.  Mr.
Aylsworth serves as President and Chief Operating Officer since July 1997, and
a director of the Company since July 1995.  Mr. Aylsworth served as Executive
Vice President and Chief Operating Officer of the Company from March 1995 to
July 1997.  Prior to joining the Company, Mr. Aylsworth served as an executive
officer for Davis Companies, located in Los Angeles, California.  From January
1992 through October 1994, Mr. Aylsworth was Chief Executive Officer of The
Sports Club Company, a company which operates premier health and fitness
facilities in Los Angeles and Irvine, California.

  Mr. Vaclavik has been Senior Vice President and Chief Financial Officer of
the Company since September 2002.  Mr. Vaclavik served as Vice President of
Finance of the Company since its inception in June 1992.

  Mr. Andren has been Chairman of Circle-Line Sightseeing Yachts, Inc., a
subsidiary of New York Cruise Lines, Inc. ("NYCL"), which operates the leading
sightseeing cruise line in New York City, since 1981.  In addition, NYCL owns
World Yacht, Inc., a fleet of luxury dinner cruise, sightseeing and excursion
boats in New York City.  Mr. Andren is a member of the Company's Audit and
Compensation Committees.

  Mr. Walker became a member of the Company's Board of Directors on June 4,
1996.  Mr. Walker holds a J.D. from Texas Southern University in Houston,
Texas, and since June 1, 1992 has served on the staff of The Institute for
Disability Studies at the University of Southern Mississippi.  From June 1991
through May 1992 he served as the first Executive Director of the Mississippi
Gaming Commission.  Mr. Walker is a member of the Company's Audit and
Compensation Committees.

  The Company's board of directors has a standing Audit Committee which is
comprised of non-employee directors.  Messrs. Andren and Walker comprise the

                                     24

<PAGE> 30
Audit Committee.  The Audit Committee acts pursuant to a written charter.  The
Audit Committee met telephonically four times during fiscal 2007.  Each member
of the Company's Audit Committee meets the independence requirement of the
Securities Exchange Act of 1934, as amended, and is financially literate,
knowledgeable and qualified to review financial statements.  The Audit
Committee does not have a financial expert designated by the board of
directors.  Messrs. Andren and Walker, who are the sole independent board
members, are not financial experts by definition of Regulation S-K.  Due to
the bankruptcy proceedings and financial uncertainties of the Company, it has
not been possible to recruit additional independent board members.

  The Company has adopted a Code of Ethics that applies to its principal
executive officer, principal financial officer, principal accounting officer
and controller, or persons performing similar functions.  A copy of the Code
of Ethics is available from the Company at no charge.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

  Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
directors and executive officers ("Reporting Persons") to file with the
Securities and Exchange Commission initial reports of ownership and reports of
changes in ownership of Common Stock of the Company.  The Company has
designated an officer who is available to the Company's Reporting Persons to
assist them in filing the required reports.  To the Company's knowledge, based
solely on its review of the copies of such reports furnished to the Company
and written representations that no other reports were required, during the
year ended February 28, 2007 all Section 16(a) filing requirements applicable
to the Reporting Persons were complied with.

Item 11.  Executive Compensation.

COMPENSATION DISCUSSION AND ANALYSIS

Overview of Executive Compensation Program

  The Compensation Committee of the Board of Directors (the "Committee")
oversees and makes all significant decisions on executive officer
compensation, with input from the full Board of Directors and management on
key issues.  The Committee is composed of directors selected by the Board from
time to time.  The Committee currently consists of the Company's two
independent directors, Karl G. Andren and Royal P. Walker.

  The Committee's general responsibility is to establish the Company's overall
compensation philosophy and enact and administer all principal aspects of the
compensation of executive officers consistent with that philosophy.  The
executive compensation and benefits programs of the Company are intended to
reinforce the Company's business goals and strategies for success and to
encourage and enable the maximization of long-term stockholder value. Pursuant
to its Charter, the Compensation Committee establishes and oversees the
Company's executive compensation and benefits program, including
recommendation of the compensation of the Chief Executive Officer.  The
following discussion and analysis covers the material elements of the
compensation and benefit programs for the executive officers identified in the
Summary Compensation Table.

                                    25<PAGE> 31
Compensation Philosophy

  The general purpose and goal of the Company's executive compensation program
is to attract, retain, motivate and benefit from the guidance and experience
of suitably talented and qualified individuals.  Year-to-year determinations
regarding executive compensation are based on the Company's corporate
financial condition and performance, and the performance of individual
executives.  The Company's compensation policy has been based upon the
principal that the financial rewards to the executives should be aligned with
the financial interests of the stockholders of the Company.  In this manner,
the Committee believes that the Company would meet its ultimate responsibility
to its stockholders through prudent management of the Company's business and
operations.

  Each year, the Committee has conducted a full review of the Company's
executive compensation program, as well as a review of each executive's
performance during the year.  Such review has included an evaluation by the
Committee of the Company's ongoing bankruptcy and litigation proceedings as
they relate to the Company's future business plans and prospects.  In
addition, the Committee has used its discretion to set executive compensation
based upon external and internal factors and the particular executive's
circumstances.

  Historically, the Company has periodically reviewed publicly available
information regarding the compensation levels and policies of other companies
in the gaming industry.  In light of changes in the Company's businesses and
its ongoing bankruptcy proceedings, the Committee has not adopted any formal
benchmarks by which it evaluates executive compensation or guidelines for
allocating total compensation between equity compensation and cash
compensation.  However, the Committee has administered the compensation
program with a view toward establishing arrangements that tie a substantial
portion of the executive's overall compensation to corporate performance and
the achievement of corporate goals.

  As a result of the Company's ongoing bankruptcy proceedings, certain of the
Committee's decisions with respect to executive compensation matters are
subject to the approval of the Bankruptcy Court.  As part of the approval
process, certain determinations by the Committee are subject to objections by
constituents in the Company's bankruptcy proceedings.  In light of the
completion of the sale of the Company's St. Louis operations in December 2006
and various other developments in the Company's bankruptcy proceedings, the
Committee has conducted a review of its executive compensation program and
requested bankruptcy court approval to make certain changes in its executive
compensation programs.  These matters are scheduled for a hearing before the
Bankruptcy Court in July 2007.

Basic Components of Compensation

  The basic elements of the Company's executive compensation program are base
salary, annual incentive pay (bonus) and long-term incentives (stock option
awards).  The additional elements in the overall executive compensation
program include general and special employee benefits, including insurance
arrangements,  employer contributions to retirement plans, and health and
welfare coverage.  All of these elements are considered together.  Each of
these components is discussed in more detail below.

                                    26
<PAGE> 32
  --Salary

  Salaries for executive officers, including the Chief Executive Officer, are
reviewed on an annual basis.  The Committee has the responsibility for
reviewing and making determinations on officers' salaries, subject to the
Board's general oversight responsibilities and any contractual commitments on
salaries as may be contained in employment agreements between the Company and
a particular executive.  The base salary level for each of the Company's
executives is principally based upon the level and scope of the
responsibilities of the office, the pay levels of similarly positioned
executive officers among companies competing for the services of such
executives and a consideration of the level of experience and performance
profile for the particular executive officer.  Additionally, the Committee
considers the Company's prevailing economic conditions and prospects, the
performance of the executive's duties and responsibilities and other
performance-related criteria that may be relevant with respect to such
executive officer at the time.

  In light of the Company's financial performance and bankruptcy proceedings,
the base salaries for each of the Company's executive officers was not
increased for fiscal 2007, and has not been increased during the past five
fiscal years.  Mr. Vaclavik's base salary for 2007 was determined by reference
to his employment agreement with the Company.  For a further discussion
regarding Mr. Vaclavik's employment agreement, see "Executive Compensation
Employment Arrangements" below.

  --Annual Incentive Compensation (Bonus)

  This component of total compensation is designed to link executive pay
directly to the Company's performance.  The annual incentive component is
represented by cash bonuses that may be paid at the Company's management
incentive plan.  These bonuses are directly affected by variations in the
performance of the Company.

  Bonus amounts for a fiscal year are granted by the Committee under the
Company's management incentive plan.  Under the plan, specific targeted
quarterly and annual goals for EBITDA (earnings before income taxes,
depreciation and amortization) are established for the Company's operating
units, and predetermined quarterly and annual incentive bonuses are
established for attaining and exceeding the goal targets.  Each executive is
eligible to receive cash bonuses up to a percentage of their base salary
established by the Committee.  For fiscal 2007, under the management incentive
plan Messrs. Alysworth and Vaclavik were eligible to receive cash bonuses
equal up to 50% and 30% of their annual base salaries, respectively.  Based on
the Company's performance in fiscal 2007, Messrs. Alysworth and Vaclavik
received cash bonuses under the management incentive plan equal to $181,233
and $43,493, respectively.

  --Long-Term Incentive Compensation

  Long-term incentive compensation for officers is awarded in the form of
options to purchase the Company's Common Stock under its stock option plans.
The Committee believes that long-term incentive compensation such as stock
options are the most direct way of tying executive compensation to increases
in stockholder value.  The Committee believes that awards of stock options are
an important complement to the cash elements of the Company's executive

                                    27
<PAGE> 33
officers' compensation described above as they align the executive's interests
with those of the Company's stockholders.  Stock options have historically
been granted with an exercise price equal to the market price of the Company's
Common Stock on the date of grant, and typically are subject to vesting
requirements based upon the executive's continued employment with the Company.
Stock options that have been issued to the executive officers are currently
vested and are exercisable subject to Bankruptcy Court approval.  No stock
options awards have been granted since August 1999.

Employment Agreements with Executives and Change-in-Control Protections

  Of the current executive officers, only Mr. Vaclavik has an employment
agreement with the Company, which includes providing for severance payments to
Mr. Vaclavik upon termination of employment and payments following a change-
in-control of the Company.  For a further discussion regarding Mr. Vaclavik's
employment agreement, see "Executive Compensation-Employment Arrangements"
below.

Executive Perquisites, Benefits and Other Compensation Matters

  In addition to the three significant components of executive compensation
discussed above, that is, salary, annual incentive compensation (bonus) and
long-term incentive compensation (stock options), the overall compensation
package provided by the Company to its officers includes other items, such as
standard benefit programs available to all full-time employees (e.g.,
retirement and health plans) and certain limited perquisites (or "perks")
available only to senior executives.  The Committee generally reviews and
approves all of these other forms of compensation applicable to executives.
Overall, the Committee believes that these additional compensation elements,
to the extent that they are not automatically available to executives as part
of broad-based plans available to all employees, should be structured with the
goal of enabling the executives to perform their designated functions more
effectively and efficiently.  The Company matches employee contributions to
the Company's 401(k) plan at a rate of 50% of the first 4% of the employees'
contribution, limited by appropriate IRS regulations.  The Company match is
reviewed from time to time by the Committee.  For fiscal 2007, the Company
also provided executives with extended health care expense reimbursement,
certain income tax preparation fee reimbursement and life insurance premiums.

                                    28
<PAGE> 34

COMPENSATION COMMITTEE REPORT

  The responsibilities of the Compensation Committee are provided in its
Charter, which has been approved by the Company's Board of Directors.

  In fulfilling its oversight responsibilities with respect to the
Compensation Disclosure and Analysis included in this Report, the Compensation
Committee, among other things, has:

      o  reviewed and discussed the Compensation Disclosure and Analysis
         with management; and

      o  following such review, the Compensation Committee approved the
         inclusion of such Compensation Disclosure and Analysis in this
         Annual Report on Form 10-K.

                    SUBMITTED BY THE COMPENSATION COMMITTEE

                      KARL G. ANDREN      ROYAL P. WALKER


Executive Compensation in the Last Fiscal Year

  The following table sets forth certain information with respect to
compensation paid or payable by the Company for the fiscal year ended February
28, 2007, to each of the named executive officers of the Company.

<Table>
<Caption>
                                    SUMMARY COMPENSATION TABLE

                                                                            Option
                                                                           Awards and
                                                                              Stock
                                Fiscal                           Stock     Appreciation
Name and Principal Position      Year     Salary      Bonus      Awards       Rights
---------------------------     ------    ------      -----      ------    ------------

<S>                              <C>     <C>         <C>          <C>         <C>
John E. Connelly                 2007    $ 23,077    $    --      $    --     $    --
Former Chairman of the Board
and Chief Executive Officer (2)

John S. Aylsworth                2007    $450,000    $181,233          --          --
President, Chief Executive
Officer and Chief Operating
Officer

Terrence L. Wirginis             2007    $ 53,615    $    --           --          --
Former Chairman of the Board
and Vice President
-Marine and Development (3)

Ralph J. Vaclavik                2007    $180,000    $ 43,493          --          --
Senior Vice President and
Chief Financial Officer
</Table>

                                   29
<PAGE> 35
<Table>
                                                       Change in
                                                      Pension Value
                                                          and
                                                      Nonqualified
                                         Non-Equity     Deferred
                                Fiscal Incentive Plan Compensation  All Other
Name and Principal Position      Year   Compensation    Earnings   Compensation(1)   Total
---------------------------     ------  ------------    --------   ------------      -----

<S>                              <C>     <C>            <C>          <C>            <C>
John E. Connelly                 2007    $    --        $    --      $  1,077       $ 24,154
Former Chairman of the Board
and Chief Executive Officer (2)

John S. Aylsworth                2007    $    --        $    --      $ 47,508       $678,741
President, Chief Executive
Officer and Chief Operating
Officer

Terrence L. Wirginis             2007    $    --        $    --       $ 1,299       $ 54,914
Former Chairman of the Board
and Vice President
-Marine and Development (3)

Ralph J. Vaclavik                2007    $    --        $    --       $ 29,004      $252,497
Senior Vice President and
Chief Financial Officer
</Table>
___________________

(1) Consists of contributions made to the Company's 401(k) plan, life
    insurance premiums paid on behalf of the named executive, medical
    expense reimbursement and certain professional fees paid on behalf of
    each of the named executives.

    During fiscal year ended February 28, 2007, Mr. Aylsworth had medical
    expense reimbursement of $28,660, life insurance premium paid of $10,133,
    income tax preparation services of $4,597 and 401(K) contributions made
    by the Company of $4,118.

(2) Mr. Connelly ceased being Chairman of the Board and Chief Executive
    Officer to the Company effective April 4, 2006.

(3) Effective May 25, 2006, Mr. Wirginis resigned as director, Chairman of
    the Board and Vice President-Marine and Development of the Company, and
    as officer and director of the Company's subsidiaries.


                                    30
<PAGE> 36
  The following table sets forth information regarding outstanding equity
award grants held by each of the Company's executive officers named in the
Summary Compensation Table as of February 28, 2007.  None of the named
executive officers exercised any stock options during fiscal 2007.

<Table>
<Caption>
                          OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END

                                       Options/SARs Awards

                                                         Equity
                                                        Incentive
                                       Number of       Plan Awards:
                       Number of       Securities       Number of
                       Securities      Underlying      Securities
                       Underlying     Unexercised      Underlying
                      Unexercised     Options/SARs     Unexercised
                      Options/SARS        (#)           Unearned      Options/SARs  Options/SARs
                          (#)         Unexercisable    Options/SARs     Exercise     Expiration
Name                   Exercisable                         (#)          Price ($)       Date
-------------------   -------------   -------------   -------------   ------------   ------------

<S>                     <C>             <C>             <C>             <C>           <C>
John E. Connelly              --               --              --             --           --

John S. Aylsworth         280,000              --              --             0.87    08/22/2007
                           90,000              --              --             0.87    08/22/2009

Terrence L. Wirginis       42,000              --              --             0.87    05/26/2007
                           60,000              --              --             0.87    05/26/2007

Ralph J. Vaclavik          13,500              --              --             0.87    08/22/2007
                           10,000              --              --             0.87    08/22/2009

</TABLE>

  All stock options were fully vested as of February 28, 2007.

Employment Arrangements

  In March 2002, the Company entered into an employment agreement with Mr.
Vaclavik for an employment term through June 1, 2004.  The agreement is
renewable thereafter for successive two-year terms unless terminated by either
party within 90 days of its expiration.  The agreement is an executory
contract which has neither been accepted nor rejected in the Company's
bankruptcy proceedings.

  The agreement provides for minimum annual base salary of $180,000 for Mr.
Vaclavik.  Mr. Vaclavik may also receive incentive bonuses provided through
any incentive compensation plan of the Company.

  Mr. Vaclavik's employment agreement provides that if the Company terminates
the employment of the executive without Cause or if the executive terminates
his employment for Good Reason prior to a Change in Control of the Company,
the Company will be required to pay the executive officer severance benefits
including the continuation of the executive's then-current annual salary for a
maximum of one year, and the continuation of certain employment benefits to
which he otherwise would have been entitled.  "Cause" is generally defined as
(i) any breach or failure to perform duties or follow instructions of the
Board of Directors, (ii) commission of fraud, misappropriation, embezzlement
or other acts of dishonesty, alcoholism, drug addiction or dependency or
conviction of a felony or gross misdemeanor if the Board of Directors

                                    31

<PAGE> 37
determines such conduct is materially adverse to Company, (iii) breach of the
employment agreement by the executive, or (iv) the refusal by any gaming
commission with jurisdiction over the Company's facilities to grant a license
to the executive or any suspension or revocation of a license previously
granted to the executive.  "Good Reason" is generally defined as (i) a
significant and adverse change in the nature or scope of the executive's
position, authority, duties or responsibility, (ii) a failure to continue the
executive officer's then-current participation in benefits or compensation,
(iii) within a period of one year following a Change in Control (as defined),
resignation by the executive in his sole and absolute discretion, or (iv) any
material breach of the agreement by the Company.

  The employment agreement additionally provides that Mr. Vaclavik will be
paid severance benefits in the event that his employment with the Company is
terminated by the Company without Cause or by the executive for Good Reason
within two years of a Change in Control of the Company.  The Change in Control
provisions would require, in addition to any other benefits to which the
executive is entitled, a lump-sum cash payment in an amount equal to 1.5 times
the Mr. Vaclavik's average annual base compensation, as determined pursuant to
the employment agreement.

  If payment of the foregoing amounts and any other benefits received or
receivable upon termination after a Change in Control would subject such
executive officer to the payment of a federal excise tax, the total amount
payable by the Company to the executive officer would be increased by an
amount sufficient to provide the executive officer (after satisfaction of all
excise taxes and federal income taxes attributable to such increased payment)
with a net amount equal to the amount receivable prior to the federal excise
tax and federal income tax owed by the executive officer.

  Change in Control is generally defined as (i) the acquisition by any person
of beneficial ownership of 20% or more of the combined voting power of the
Company's then outstanding securities, (ii) a change in the composition of the
Company's Board of Directors such that during any two consecutive years the
incumbent directors and their nominees do not constitute a majority of the
Board, (iii) a merger or consolidation of the Company in which the Company is
not the continuing or surviving corporation or pursuant to which the holders
of the Common Stock prior to such event do not have the same proportionate
ownership of the common stock of the surviving corporation, (iv) a merger or
consolidation of the Company in which the Company is the continuing or
surviving corporation in which the holders of the Company's Common Stock
immediately prior to such event do not own 50% or more of the outstanding
stock of the surviving corporation, or (v) approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company or the sale of
substantially all of the assets of the Company.  A transfer by certain related
persons and entities does not constitute a change in control.

  On April 27, 2003, the Missouri Bankruptcy Court granted a motion for
approval of a key employee retention plan for certain corporate employees and
certain Missouri operating company employees.  The motion does not affect any
pre-petition employment agreements as to assumption or rejection of pre-
petition executory contracts, with the exception that any claim asserted by a
key employee on account of a pre-petition employment agreement shall be
reduced dollar for dollar by the amounts paid or payable under the retention
plan.  Under the terms of the plan, Mr. Vaclavik will receive $180,000 of
compensation on the date he is discharged from employment. If at any time

                                    32

<PAGE> 38
prior thereto Mr. Vaclavik's salary is reduced or he is required to move his
residence from the St. Louis, Missouri metropolitan area, he will also receive
such payment.

Compensation of Directors

  The following table sets for the compensation arrangements of the Company's
non-employee directors:

<TABLE>
<CAPTION>
                                                                 Changes in
                                                               Pension Value
                               Fees                                 and
                             Earned or                          Non-qualified
                              Paid in      Stock     Option       Deferred
                               Cash       Awards     Awards     Compensation      All Other
          Name                  ($)         ($)        ($)        Earnings      Compensation
        --------             --------    --------    -------     ----------     -------------
    <S>                       <C>         <C>         <C>          <C>             <C>
    Karl G. Andren            31,500        --          --            --              --
    Royal P. Walker, Jr.      31,500        --          --            --              --
</TABLE>

  During fiscal 2007, directors who were not employees of the Company received
director's fees of $31,500.  Historically, a non-employee director received
$36,000 annual compensation.  Effective with the sale of the Company's St.
Louis operations, the non-employee directors' compensation was reduced to
$18,000 annually.  Directors who are employees of the Company do not receive
director's fees.  Directors of the Company are entitled to receive
discretionary grants of stock options.  No such grants were made in fiscal
2007.  In addition, under the Company's existing stock option plan, each non-
employee director elected to the Board of Directors receives a grant of non-
qualified stock options to purchase 5,000 shares of Common Stock at the fair
market value of the Company's Common Stock on the date of grant.  These stock
options are exercisable immediately with respect to one-half of the shares and
become exercisable with respect to the remainder of the shares in two equal
annual installments.  No such grants were made in fiscal 2007.

                                    33
<PAGE> 39
Item 12.  Security Ownership of Certain Beneficial Owners and Management
          And Related Stockholder Matters.

  The following table sets forth certain information regarding the ownership
of the Company's Common Stock as of the June 11, 2007: (i) by each person
known to the Company to own beneficially more than 5% of the outstanding
shares of the Company's Common Stock; (ii) by each of the Company's directors;
(iii) by each of the executive officers of the Company listed in the Summary
Compensation Table, and (iv) by all of directors and executive officers of the
Company as a group.

  Name of Beneficial Owner          No. of Shares (1)     % of Class (1)
  ------------------------         ------------------     -------------
    John E. Connelly                     615,235 (2)          12.2%
    John S. Aylsworth                    492,318 (3)           9.1%
    Terrence L. Wirginis               1,245,603 (4)          24.3%
    Karl G. Andren                        64,500 (5)           1.3%
    Royal J. Walker, Jr.                  31,000 (6)            *
    Ralph J. Vaclavik                     29,114 (7)            *
    All executive officers and
     directors as a group (4 persons)    616,932 (8)          12.3%
________________________
* Less than 1%

(1)  Except as otherwise noted in the footnotes to this table, to the
     Company's knowledge each of the persons named in the table has sole
     voting and investment power with respect to all shares of Common Stock
     shown as beneficially owned by them.  The percentage calculations are
     based upon 5,033,161 shares of Company Common Stock issued and
     outstanding and, for each director or executive officer or the group, the
     number of shares subject to options exercisable by such director or
     executive or the group.

(2)  Consists of an aggregate of 615,235 shares owned of record by an entity
     controlled by Mr. Connelly.  Mr. Connelly's address is 2180 Noblestown
     Road, Pittsburgh, PA 15205.

(3)  Includes 370,000 shares issuable pursuant to stock options which are
     currently exercisable.  Mr. Aylsworth's address is P.O. Box 220645
     St. Louis, MO 63122-6145.

(4)  Includes 102,000 shares issuable pursuant to stock options which are
     currently exercisable.  Mr. Wirginis's address is 350 West Station
     Square Drive, Pittsburgh, PA 15219.

(5)  Consists of 12,500 shares owned by New York Cruise Lines, Inc., of which
     Mr. Andren is Chairman and 52,000 shares issuable pursuant to stock
     options which are currently exercisable.

(6)  Consists solely of shares issuable pursuant to stock options which are
     currently exercisable.

(7)  Includes 23,500 shares issuable pursuant to stock options which are
     currently exercisable.

(8)  Includes 476,500 shares issuable pursuant to stock options which are

                                     34


<PAGE> 40
currently exercisable.

  The following table reflects information about the Company's equity
compensation plans as of February 28, 2007.

<TABLE>
<CAPTION>
                                                                         Number of securities
                    Number of securities                               remaining available for
                     to be issued upon     Weighted average exercise    future issuance under
                        exercise of           price of outstanding       equity compensation
Plan category        outstanding options          options                       plans
-------------         ------------------      ------------------          ------------------
<S>                     <C>                        <C>                       <C>

Equity compensation
plans approved by
shareholders            582,700                     $ 0.87                    217,300

Equity compensation
plans not approved
by shareholders             --                          --                        --
</TABLE>

Item 13.  Certain Relationships and Related Transactions and
          Director Independence

  J. Edward Connelly and Associates, Inc. ("JECA"), an entity controlled by
John E. Connelly, the Company's former Chairman and Chief Executive Officer,
holds a Class B membership interest in PBLLC.  Under the operating agreement
of PBLLC, such Class B interest is entitled to certain redemption rights and
preferred returns on cash flows.  In April 2001, PBLLC filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code.  As part of the
plan of reorganization filed by PBLLC in the bankruptcy proceedings, JECA will
retain its membership interest but any payments by PBLLC to JECA shall be
restricted until such time as all outstanding obligations to its lender and
other interests receiving funds under the plan of reorganization are
discharged.

  In connection with the resolution of various bankruptcy issues with respect
to the Company's Biloxi operations, JECA entered into an agreement (the "JECA
Proceeds Distribution Agreement") with John S. Aylsworth, President, Chief
Executive Officer, Chief Operating Officer and Director of the Company,
Terrence L. Wirginis, former Chairman of the Board, Vice President-Marine
Development and Director, and Ralph J. Vaclavik, Senior Vice President and
Chief Financial Officer of the Company, pursuant to which upon receipt of
funds by JECA toward payment of the liquidation preference of its Class B
membership interest in PBLLC, JECA will use its best efforts to pay a
percentage of such funds to Messrs. Aylsworth, Wirginis and Vaclavik based on
the total sales proceeds to JECA.  While final distributions under the
Mississippi Plan of Liquidation are subject to final determination and
settlement of claims and expenses, the Company currently estimates that the
proceeds of the sale of the Mississippi Properties will not be sufficient to
repay the Noteholders the outstanding indebtedness under the Notes and will
not satisfy JECA's liquidation preference of its Class B membership interest
in PBLLC.  Pursuant to the terms of the Proceeds Distribution Agreement,
Messrs. Aylsworth, Wirginis and Vaclavik would be entitled to receive
approximately $4.8 million, $4.8 million and $0.3 million, respectively, were
the proceeds sufficient to satisfy the Class B membership interest.

                                     35
<PAGE> 41
  On June 7, 2005, the Company made a distribution from the proceeds of the
sale of the Mississippi Properties.  JECA's Class B membership interest was
partially redeemed for $14,375,000, of which, Messrs. Aylsworth, Wirginis and
Vaclavik were paid $3,539,063, $3,539,063 and $218,750, respectively.  During
August 2005, JECA's Class B membership interest was redeemed for $1,400,000,
of which additional distributions of $332,500, $332,500 and $70,000 were made
to Mssrs. Aylsworth, Wirginis and Vaclavik, respectively.  During February
2006, JECA's Class B membership interest was further redeemed for $350,000, of
which additional disbursements of $84,688, $84,688 and $11,250 were made to
Mssrs. Aylsworth, Wirginis and Vaclavik, respectively.  During February 2007,
JECA's Class B membership interest was further redeemed for $1,044,697, of
which additional disbursements of $261,174 were made to each of Mssrs.
Aylsworth and Wirginis.

Item 14. Principal Accountant Fees and Services.

  The Audit Committee has appointed Deloitte & Touche LLP to serve as the
Company's independent registered public accounting firm for 2007 and 2006.

  The following table presents fees for professional audit services rendered
by Deloitte & Touche LLP for the audit of the Company's financial statements,
and fees billed for other services rendered by Deloitte & Touche LLP for the
fiscal years shown.

                                              Year Ended February 28,
                                               2007            2006
                                              ------          ------

 Audit Fees (1)......................   $    100        $   196
 Audit-Related Fees (2)..............         92            114
 Tax Fees (3)........................        --              35
                                             ---------       --------
    Total                               $    192        $   345
                                             =========       ========

(1)  Audit Fees consist of fees rendered for professional services rendered
for the audit of our financial statements included in our Forms 10-K and
review of our financial statements included in our Forms 10-Q during the 2007
and 2006 fiscal years and services that are normally provided by Deloitte &
Touche LLP in connection with statutory and regulatory filings or engagement.

(2)  Audit Related Fees consist of fees rendered for assurance and related
services that are reasonably related to the performance of the audit or review
of our financial statements and are not reported under "Audit Fees."  This
category includes fees related primarily to compliance audits required by the
Missouri and Mississippi Gaming Commissions.

(3)  Tax Fees consist of fees rendered for professional services rendered for
tax compliance, tax advice and tax planning.  These services include
assistance regarding federal and state tax compliance, tax planning,
divestiture and reorganization.

  The Audit Committee has established a policy requiring the approval of all
audit engagement fees and terms and the pre-approval of all non-audit services
provided to the Company by Deloitte & Touche LLP.  The policy prohibits the
Audit Committee from delegating to management the committee's responsibility

                                    36

<PAGE> 42
to pre-approve permitted services of the independent registered public
accounting firm.

  During 2007, the Audit Committee pre-approved non-audit services related to
tax compliance and gaming compliance.  The Audit Committee pre-approved 100%
of the fees for services covered under the captions "Audit Related Fees" and
"Tax Fees," for fiscal years 2007 and 2006.

  Prior to retaining Deloitte & Touche LLP to provide any non-audit services,
the Audit Committee considered whether Deloitte & Touche LLP's provision of
all these services was compatible with maintaining the independence of
Deloitte & Touche LLP and determined that the provision of these services
would not interfere with Deloitte & Touche LLP's independence.

                                    PART IV

Item 15.   Exhibits and Financial Statement Schedules.

(a) 1.     Financial Statements.

           See the Index to Financial Statements and Schedules on page F-1.

    2.     Financial Statement Schedules.

           See the Index to Financial Statements and Schedules on page F-1.

    3.     Exhibits.

           See Exhibit Index on page F-39.

                                      37

<PAGE> 43
                  INDEX TO FINANCIAL STATEMENTS AND SCHEDULES

I.   PRESIDENT CASINOS, INC. (Debtors-in-Possession)
     Consolidated Financial Statements:
       Report of Independent Registered Public Accounting Firm...........F-2

       Consolidated Balance Sheets as of February 28, 2007 and 2006......F-4

       Consolidated Statements of Operations for the Years
         Ended February 28, 2007, 2006 and 2005..........................F-5

       Consolidated Statements of Stockholders' Equity (Deficit) for the
         Years Ended February 28, 2007, 2006 and 2005....................F-6

       Consolidated Statements of Cash Flows for the Years
         Ended February 28, 2007, 2006 and 2005..........................F-7

       Notes to Consolidated Financial Statements........................F-8

     Financial Statement Schedule:

       Schedule II--Valuation and Qualifying Accounts...................F-34

       All other schedules are omitted as the required information is
       inapplicable or is presented in the Company's Consolidated
       Financial Statements or Notes thereto.


                                     F-1
<PAGE> 44
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Members of the Board of Directors of
President Casinos, Inc.:

We have audited the accompanying consolidated balance sheets of President
Casinos, Inc. (debtors-in-possession), (the "Company") as of February 28, 2007
and 2006, and the related consolidated statements of operations, stockholders'
equity (deficit), and cash flows for each of the three years in the period
ended February 28, 2007.  Our audits also include the financial statement
schedule listed in the Index at Item 15(a)2.  These consolidated financial
statements and the financial statement schedule are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and the financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting.  Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of the Company as of February 28,
2007 and 2006, and the results of its operations and its cash flows for each
of the three years in the period ended February 28, 2007 in conformity with
accounting principles generally accepted in the United States of America.
Also, in our opinion, such financial statement schedule, when considered in
relation to the basic consolidated financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.

As discussed in Note 1, the Company has filed for reorganization under Chapter
11 of the United States Bankruptcy Code.  The accompanying consolidated
financial statements do not purport to reflect or provide for the consequences
of the bankruptcy proceedings.  In particular, such consolidated financial
statements do not purport to show (a) as to assets, their realizable value on
a liquidation basis or their availability to satisfy liabilities; (b) as to
pre-petition liabilities, the amounts that may be allowed for claims or
contingencies, or the status and priority thereof; (c) as to stockholder
accounts, the effect of any changes that may be made in the capitalization of
the Company; or (d) as to operations, the effect of any changes that may be
made in its business.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern.  As discussed in Notes 1
and 2, the Company's recurring losses from continuing operations and absence
of any ongoing revenue producing activities raise substantial doubt about its

                                   F-2

<PAGE> 45
ability to continue as a going concern.  Management's plans concerning these
matters are also described in Note 1 to the consolidated financial statements.
The consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.

/s/ Deloitte & Touche LLP
St. Louis, Missouri
June 11, 2007
                                    F-3
<PAGE> 46
<TABLE>
<CAPTION>
                                  PRESIDENT CASINOS, INC.
                                  (DEBTORS-IN-POSSESSION)
                                CONSOLIDATED BALANCE SHEETS
                             (in thousands, except share data)

                                                                              February 28,
                                                                            2007       2006
                                                                          --------   --------

<S>                                                                       <C>        <C>
ASSETS

Current Assets:
  Cash and cash equivalents.............................................  $  6,342   $ 28,077
  Assets of discontinued operations.....................................       914     38,511
  Prepaid expenses and other current assets.............................       147        170
                                                                          ---------  ---------
      Total current assets..............................................     7,403     66,758

Property and Equipment, net.............................................         4          2
                                                                          ---------  ---------
                                                                          $  7,407   $ 66,760
                                                                          =========  =========
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities Not Subject to Compromise:
  Accounts payable......................................................  $     37   $     89
  Income taxes payable..................................................       340        --
  Accrued payroll and benefits..........................................       292        258
  Other accrued liabilities.............................................       153        525
  Liabilities of discontinued operations................................     1,356      6,856
                                                                          ---------  ---------
      Total current liabilities.........................................     2,178      7,728

Minority Interest.......................................................     2,253      3,531
                                                                          ---------  ---------
      Total liabilities not subject to compromise.......................     4,431     11,259

Liabilities Subject to Compromise.......................................       688     63,317
                                                                          ---------  ---------
         Total liabilities..............................................     5,119     74,576
                                                                          ---------  ---------
Commitments and Contingent Liabilities..................................       --         --

Stockholders' Equity (Deficit):
  Preferred Stock, $.01 par value per share; 150,000 shares
    authorized; none issued and outstanding.............................       --         --
  Common Stock, $.06 par value per share; 14,000,000 shares
    authorized; 5,033,161 shares issued and outstanding.................       302        302
  Additional paid-in capital............................................   101,729    101,729
  Accumulated deficit...................................................   (99,743)  (109,847)
                                                                          ---------  ---------
      Total stockholders' equity (deficit)..............................     2,288     (7,816)
                                                                          ---------  ---------
                                                                          $  7,407   $ 66,760
                                                                          =========  =========
See Notes to Consolidated Financial Statements.
</TABLE>
                                    F-4
<PAGE> 47
<TABLE>
<CAPTION>
                            PRESIDENT CASINOS, INC.
                            (DEBTORS-IN-POSSESSION)
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)

                                                   Years Ended February 28,
                                                  2007       2006       2005
                                                 ------     ------     ------

<S>                                            <C>        <C>        <C>

OPERATING REVENUES.........................    $    --    $    --    $    --
                                               ---------  ---------  ---------
OPERATING COSTS AND EXPENSES:
Selling, general and administrative........       2,139      2,608      2,640
Depreciation and amortization..............           2          3          4
                                               ---------  ---------  ---------
  Total operating costs and expenses.......       2,141      2,611      2,644
                                               ---------  ---------  ---------

OPERATING LOSS.............................      (2,141)    (2,611)    (2,644)
                                               ---------  ---------  ---------
OTHER INCOME (EXPENSE):
Interest expense (contractual interest of
   $6,235, $8,729 and $14,965 for the
   years ended February 28, 2007,
   2006 and 2005)..........................         --         --        --
Interest income............................          68       269          8
Reorganization items, net..................       9,844      (671)    (1,738)
                                               ---------  ---------  ---------
Total other income (expense), net..........       9,912       (402)    (1,730)
                                               ---------  ---------  ---------
INCOME (LOSS) BEFORE MINORITY INTEREST
  AND DISCONTINUED OPERATIONS..............       7,771     (3,013)    (4,374)
Minority interest..........................         233       (636)    (1,368)
                                               ---------  ---------  ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS...       8,004     (3,649)    (5,742)
                                               ---------  ---------  ---------

Income from discontinued operations, net
   of income tax expense of $353 and
   $6,055 for 2007 and 2006 and income
   tax benefit of $5,688 for fiscal 2005...       2,100     37,990     15,934
                                               ---------  ---------  ---------
NET INCOME.................................    $ 10,104   $ 34,341   $ 10,192
                                               =========  =========  =========

Basic and diluted net income (loss)
  per share from continuing operations.....     $  1.59    $ (0.72)   $ (1.14)
Basic and diluted net income per
   share from discontinued operations......        0.42       7.54       3.17
                                                --------   --------   --------
Basic and diluted net income per share.....     $  2.01    $  6.82    $  2.03
                                                ========   ========   ========
Weighted average common and dilutive
 potential common shares outstanding.......       5,033      5,033      5,033
                                                 =======    =======    =======

See Notes to Consolidated Financial Statements.
</TABLE>
                                      F-5
<PAGE> 48
<TABLE>
<CAPTION>
                          PRESIDENT CASINOS, INC.
                          (DEBTORS-IN-POSSESSION)
         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                               (in thousands)

                                                Additional
                                      Common      Paid-In   Accumulated
                                       Stock      Capital     Deficit      Total
                                       -----      -------     --------     -----

<S>                                 <C>         <C>         <C>         <C>
Years Ended February 28, 2005,
  2006 and 2007:

Balance as of March 1, 2004.......  $     302   $ 101,729   $(154,380)  $ (52,349)
Net income........................        --          --       10,192      10,192
                                    ----------  ----------  ----------  ----------
Balance as of February 28, 2005...        302     101,729    (144,188)    (42,157)
Net income........................        --          --       34,341      34,341
                                    ----------  ----------  ----------  ----------
Balance as of February 28, 2006...        302     101,729    (109,847)     (7,816)
Net income........................        --          --       10,104      10,104
                                    ----------  ----------  ----------  ----------
Balance as of February 28, 2007...  $     302   $ 101,729   $ (99,743)  $   2,288
                                    ==========  ==========  ==========  ==========

See Notes to Consolidated Financial Statements.
</TABLE>

                                    F-6
<PAGE> 49
<TABLE>
<CAPTION>
                            PRESIDENT CASINOS, INC.
                            (DEBTORS-IN-POSSESSION)
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (in thousands)

                                                            Years Ended February 28,
                                                         2007        2006        2005
                                                        ------      ------      ------

<S>                                                    <C>         <C>         <C>
Cash flows from operating activities:
Net income..........................................   $ 10,104    $ 34,341    $ 10,192
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Reorganization items............................    (10,000)        --          --
    Depreciation and amortization...................          2           3       4,934
    (Gain) loss on disposal of assets...............         33     (33,847)          8
    Impairment of long-lived assets.................      3,950          --          --
    Minority interest...............................       (233)        636       1,368
    Deferred income taxes...........................        --        5,707      (5,707)
    Net decrease in working capital accounts........     (7,333)    (16,954)     (4,356)
                                                       ---------   ---------   ---------
      Net cash provided by (used in)
        operating activities........................     (3,477)    (10,114)      6,439
                                                       ---------   ---------   ---------
Cash flows from investing activities:
  Expenditures for property and equipment...........     (2,113)     (2,476)     (4,344)
  Proceeds from the sale of property
     and equipment..................................     32,606      83,793       6,554
  Changes in restricted cash and cash equivalents...        --        2,234          87
  Maturity of short-term investments................        --          350         --
  Other.............................................        (26)        --          --
                                                       ---------   ---------   ---------
       Net cash provided by investing activities....     30,467      83,901       2,297
                                                       ---------   ---------   ---------
Cash flows from financing activities:
  Payments on notes payable.........................    (50,680)    (51,691)     (6,392)
  Payment of minority interest......................     (1,045)    (16,125)        --
                                                       ---------   ---------   ---------
      Net cash used in financing activities.........    (51,725)    (67,816)     (6,392)
                                                       ---------   ---------   ---------
Net increase (decrease)
  in cash and cash equivalents......................    (24,735)      5,971       2,344

Cash and cash equivalents at beginning of year......     31,077      25,106      22,762
                                                       ---------   ---------   ---------
Cash and cash equivalents at end of year............   $  6,342    $ 31,077    $ 25,106
                                                       =========   =========   =========

Cash and cash equivalents included in
  continuing operations.............................   $  6,342    $ 28,077    $ 20,706
Cash and cash equivalents included in
  discontinued operations...........................   $    --     $  3,000    $  4,400

See Notes to Consolidated Financial Statements.
</TABLE>

                                    F-7
<PAGE> 59
                           PRESIDENT CASINOS, INC.
                           (DEBTORS-IN-POSSESSION)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (Dollars in thousands, except share data and unless otherwise stated)

1.  BANKRUPTCY PROCEEDINGS

--Overview

  As used herein, the term "Company" refers to President Casinos, Inc., its
wholly-owned subsidiaries, a 95%-owned limited partnership and a limited
liability company in which a wholly-owned subsidiary of President Casinos,
Inc. owns a Class A ownership interest and in which an entity wholly-owned by
a former Chairman of President Casinos, Inc. owns a Class B unit and has a
preferred right to certain cash flows.  As described below, President Casinos,
Inc. and certain of its subsidiaries are currently in bankruptcy proceedings.

  On June 20, 2002, President Casinos, Inc. ("PCI") and its subsidiary,
President Riverboat Casino-Missouri, Inc. ("President Missouri"), which owned
and operated the St. Louis operations, filed voluntary petitions for
reorganization under Chapter 11 of Title 11, United States Code (the
"Bankruptcy Code") in the United States Bankruptcy Court for the Southern
District of Mississippi (the "Mississippi Bankruptcy Court"). On July 9, 2002,
President Casinos, Inc.'s subsidiary The President Riverboat Casino-
Mississippi, Inc. ("President Mississippi") filed a voluntary reorganization
petition in the same Mississippi Bankruptcy Court.  On July 11, 2002,
substantially all of President Casinos, Inc.'s other operating subsidiaries,
including Vegas, Vegas, Inc. ("Vegas"), Broadwater Hotel, Inc. ("BHI"), PRC
Management, Inc. ("Management"), PRC Holdings Corporation ("Holdings"),
TCG/Blackhawk, Inc. ("Blackhawk"), and President Riverboat Casino-New York,
Inc. ("President New York"), filed voluntary reorganization petitions under
Chapter 11 in the same Mississippi Bankruptcy Court. Subsequently, orders were
entered by the Mississippi Bankruptcy Court transferring venue of all of the
bankruptcy cases, except President New York, to the United States Bankruptcy
Court for the Eastern District of Missouri (the "Missouri Bankruptcy Court,"
and together with the Mississippi Bankruptcy Court, the "Bankruptcy Courts,")
where the latter proceedings are now pending and being administered.

  On April 15, 2005, the Company completed a sale of its properties and
operations in Mississippi (the "Mississippi Properties") with the approval of
the Missouri Bankruptcy Court. Included in the sale were substantially all of
the properties owned by President Mississippi, Vegas, BHI and President
Broadwater Hotel, LLC ("PBHLLC") (a non-wholly owned subsidiary that had
previously been though a separate bankruptcy proceeding). Thereafter, on May
27, 2005, the Missouri Bankruptcy Court confirmed a Chapter 11 Plan of
Liquidation for President Mississippi, Vegas and BHI (the "Mississippi Plan"),
pursuant to which the Company continues to distribute the proceeds from the
sale of the Mississippi Properties to holders of claims that have been allowed
and approved by the Missouri Bankruptcy Court.

  On December 4, 2006, the Missouri Bankruptcy Court confirmed a Plan of
Reorganization for President Missouri (the "Missouri Plan"), which enabled the
Company to complete a previously approved sale of the stock of President
Missouri on December 20, 2006.  As a result of the sale, President Missouri is
no longer owned by or affiliated with the Company.  PCI acts as the trustee
under a Distribution Trust established under the Missouri Plan for the

                                   F-8

<PAGE> 51
distribution of the proceeds from the sale of the stock of President Missouri
to holders of claims that have been allowed and approved by the Missouri
Bankruptcy Court.

  PCI, Management, Holdings and Blackhawk have not yet filed plans of
reorganization and continue to operate as debtors-in-possession.  The
bankruptcy of President New York has been dismissed.

  Prior to any of the cases being transferred to the Missouri Bankruptcy
Court, the Mississippi Bankruptcy Court established "bar dates" for pre-
petition claims, all of which have expired, by which all pre-petition
claimants were required to submit and characterize claims against the Company.
As part of the Company's Chapter 11 reorganization process, the Company
attempted to notify all known or potential creditors of the filings for the
purpose of identifying certain pre- and post-petition claims. In the Company's
Chapter 11 cases, substantially all of the Company's liabilities as of the
filing date have been and continue to be subject to adjustment.

  Following the consummation on December 20, 2006 of the sale of the Company's
St. Louis gaming operations, the Company no longer owns any operating entities
and its assets consist primarily of cash and certain pending litigation
claims.  The Company's business activities currently consist of managing its
existing litigation matters, discharging its liabilities and administering the
bankruptcy reorganization plans of its former Biloxi and St. Louis operations.
The Company is currently evaluating, based on various assumptions regarding
the potential recoveries from its outstanding litigation claims, discharge of
its remaining liabilities and utilization of its deferred tax assets, the
advisability of pursuing new business opportunities with the Company's
remaining assets or, in the alternative, a liquidation.  In the event that the
Company's remaining assets (including any litigation recoveries which the
Company may receive) are not sufficient to discharge the Company's liabilities
or begin new business operations, the Company will be forced to liquidate.

-- President Mississippi Cases

  President Mississippi, Vegas, Vegas, Inc. ("Vegas, Vegas") and President
Broadwater Hotel, L.L.C. ("PBLLC") (collectively, the "Mississippi
Affiliates") agreed, with the prior approval of the Bankruptcy Court, to sell
substantially all of the real and personal property associated with the
Company's Biloxi, Mississippi operations (the "Mississippi Properties") to
Broadwater Development, LLP, a Mississippi limited liability partnership (or
the assignee or designee thereof) for $82,000. In connection with the sale, a
certain Sale and Purchase Agreement dated November 15, 2004 was executed by
and among Broadwater Properties, LLC, as purchaser, and the Mississippi
Affiliates, as sellers, as amended by an Amendment to Sale and Purchase
Agreement dated as of November 29, 2004, assigned on or about January 13, 2005
by Broadwater Properties to Broadwater Development, LLP ("BDLLP", and together
with any assignees or designees thereof, the "Mississippi Purchaser"), further
modified by a certain Second Amendment to Sale and Purchase Agreement dated
January 20, 2005 (as modified and amended, the "Mississippi Asset Sale
Agreement").  The Mississippi Asset Sale Agreement further provides that the
Mississippi Affiliates shall retain certain excluded assets as therein defined
(the "Mississippi Excluded Assets", consisting primarily of cash in bank
accounts. Pursuant to a separate Agreement Concerning Assignment dated March
30, 2005 ("Agreement Concerning Assignment") made by and between the
Mississippi Affiliates, BDLLP and Silver Slipper Casino Venture, LLC, it was

                                   F-9

<PAGE> 52
agreed, with the approval of the Bankruptcy Court, that the assets associated
with the Company's Mississippi casino would be transferred at the closing of
the transaction to Silver Slipper on certain terms and conditions therein
stated.

  The sale of the Mississippi Properties closed effective April 15, 2005 and
on May 27, 2005 the Missouri Bankruptcy Court confirmed a Plan of Liquidation
(the "Mississippi Plan") for the Mississippi Affiliates that was jointly
developed by the Company and its creditors AIG Global Investment Corp. and
MacKay Shields LLC.  The Mississippi Plan of Liquidation became effective on
June 7, 2005.

  The Mississippi Plan established August 8, 2005 as the post-petition
Administrative Bar Date, whereby each person or entity could file a claim
arising on or after July 9, 2002 and before May 25, 2005 for President
Mississippi or arising on or after July 11, 2002 and before May 25, 2005 for
Vegas Vegas and BHI.  The Company attempted to notify creditors that failure
to file a claim against the entities named in the Mississippi Plan would
result in the claim being forever barred and discharged.

  Pursuant to the Mississippi Plan, the proceeds from the sale of the
Mississippi Properties, following adjustments required under the Mississippi
Asset Sale Agreement, together with the proceeds from the liquidation of the
Mississippi Excluded Assets, have substantially been distributed to the
creditors of the Mississippi Affiliates, including the holders of the
Company's Notes (the "Noteholders") and to JECA and certain assignees of JECA.
JECA, an entity controlled by John E. Connelly, a former Chairman and Chief
Executive Officer of the Company, holds a Class B membership interest in
PBLLC.  The Company anticipates that under the Mississippi Plan creditors of
the Mississippi Affiliates, with the exception of the Noteholders, will be
paid in full subject to final determination and settlement of claims and
expenses.  On June 7, 2005, the effective date of the Mississippi Plan, the
Company paid $25,625 of indebtedness to the Noteholders.  Of this amount,
$12,570 was applied to principal, $12,644 was applied to accrued interest and
$411 to accrued trustee and legal fees incurred by the Noteholders.
Additionally, the Company redeemed $14,375 of JECA's Class B membership
interest in PBLLC.  During August 2005, the Company made a second distribution
from the proceeds consisting of $1,400 to the Noteholders and $1,400
redemption of JECA's Class B membership interest.  During February 2006, the
Company made a third distribution consisting of $350 to the Noteholders and
$350 redemption of JECA's Class B membership interest.  During February 2007,
the Company made a $1,045 redemption of JECA's Class B membership interest.

  JECA has entered into an agreement (the "JECA Proceeds Distribution
Agreement") with John S. Aylsworth, President, Chief Executive Officer, Chief
Operating Officer and Director of the Company, Mr. Wirginis and Ralph J.
Vaclavik, Senior Vice President and Chief Financial Officer of the Company,
pursuant to which upon receipt of funds by JECA toward payment of the
liquidation preference of its Class B membership interest in PBLLC, JECA would
use its best efforts to pay a percentage of such funds to Messrs. Aylsworth,
Wirginis and Vaclavik based on the total proceeds paid to JECA.  While final
distributions under the Mississippi Plan of Liquidation are subject to final
determination and settlement of claims and expenses, the Company has
determined that the proceeds of the sale of the Mississippi Properties will
not be sufficient to repay the Noteholders the outstanding indebtedness under
the Notes and, in addition, the Company currently estimates that proceeds will

                                   F-10

<PAGE> 53
not be sufficient to satisfy JECA's liquidation preference of its Class B
membership interest in PBLLC.  Messrs. Aylsworth, Wirginis and Vaclavik would
have been entitled to receive an aggregate of approximately $4,780, $4,780 and
$300, respectively, pursuant to the JECA Proceeds Distribution Agreement were
the proceeds sufficient to satisfy the Class B membership interest. During
fiscal year 2006, JECA made distributions to Messrs. Aylsworth, Wirginis and
Vaclavik of $3,957, $3,957 and $300, respectively, from the $16,125 Class B
membership interest redemption.  During fiscal 2007, JECA made distributions
to Messrs. Aylsworth and Wirginis of $261 each from the $1,045 Class B
membership interest redemption.

--President Missouri Case

  On August 9, 2004, the Company entered into an agreement with Penn National
Gaming, Inc. for the purchase of its St. Louis operations. The agreement was
submitted to the Missouri Bankruptcy Court for review and was amended on
September 17, 2004.  Under the terms of the agreement, the stock of President
Missouri was to be sold for approximately $28.0 million, subject to working
capital adjustments and subject to higher and better offers. On October 7,
2004, an auction was held in accordance with Section 363 of the Bankruptcy
Code.  Pursuant to an agreement submitted September 30, 2004, Columbia Sussex,
Inc. ("Columbia Sussex") was the winning over-bidder for the St. Louis casino
operations for a purchase price of approximately $57.0 million, subject to
closing adjustments.  The Company and Columbia Sussex entered into a Riverboat
Casino Sale and Purchase Agreement dated as of September 30, 2004 (as amended,
the "President/Sussex Sale Agreement").  On October 13, 2004, the Missouri
Bankruptcy Court entered an order approving the sale of the stock of President
Missouri to Columbia Sussex pursuant to the President/Sussex Sale Agreement.
The closing of the transaction was contingent upon licensing approval by the
Missouri Gaming Commission of Columbia Sussex and its key officers.  On
October 25, 2005, Columbia Sussex notified the Company that it had withdrawn
its application for licensing with the Missouri Gaming Commission. The Company
has a pending lawsuit against Columbia Sussex for breach of the
President/Sussex Sale Agreement.  See "Note 11.  Commitments and contingent
Liabilities."

  On February 24, 2006, the Company entered into an agreement with Pinnacle
Entertainment, Inc. ("Pinnacle") for the purchase of the stock of President
Missouri for approximately $31,500, subject to working capital adjustments.
Consummation of the transaction was subject to, among other things, (i)
potential over-bid by third parties at an auction to be held under the
Bankruptcy Code, and (ii) confirmation of a plan of reorganization for
President Missouri discharging all claims against President Missouri.

  The Company did not receive any qualified third party bids for its St. Louis
operations and, accordingly, no auction was held and the Company moved forward
with the preparation of a plan of reorganization for President Missouri, as
necessary to effectuate the sale of the stock of President Missouri to
Pinnacle.

  On May 25, 2006, Terrence L. Wirginis resigned as director, Chairman of the
Board and Vice President-Marine and Development of the Company, and as an
officer and director of the Company's subsidiaries, in order to form an Ad Hoc
Equity Holders' Committee for the purpose of exploring the development of an
alternative reorganization plan for the Company (in lieu of the Company's plan
that would effectuate the sale of the stock of President Missouri to

                                    F-11

<PAGE> 54
Pinnacle), including seeking financing arrangements with third parties which
would permit the Company to refinance its remaining indebtedness and emerge
from its bankruptcy proceedings as an operating gaming company.

  On August 25, 2006 the U.S. Trustee appointed the Official Committee of
Equity Holders (the "Official Committee").  Mr. Wirginis is the chairman of
the Official Committee.  The Official Committee filed its own alternative plan
of reorganization which, among other things, provided that the Company would
retain ownership of President Missouri and its St. Louis gaming operations and
the debt obligations of the Company and President Missouri would be
reorganized with funds from third-party lenders.  A disclosure statement
regarding the alternative plan of reorganization for the Company proposed by
the Official Committee was filed with the Bankruptcy Court.

  Pinnacle announced on July 19, 2006, that it had commenced a cash tender
offer for all the outstanding 13% Senior Exchange Notes and 12% Secured Notes
of the Company, and to offer to purchase all other pre-petition general
unsecured claims allowed as of July 12, 2006 asserted against President
Missouri in an amount not to exceed $2,000.  Pinnacle disclosed that the
tender offer for the Notes was eight hundred nine dollars and seven cents per
one thousand dollars original principal amount in cash (which represents
dollar for dollar of the outstanding principal balance), and the other offer
would be at 100% of the allowed amount of each general unsecured claim. On
September 14, 2006, Pinnacle announced that pursuant to the tender offer it
had purchased 99.5% of the outstanding original principal of the Notes.
Pursuant to the tender offer, Pinnacle acquired approximately $62,000 of
allowed claims against the bankruptcy estate of President Missouri.

  On October 12, 2006, the Company and President Missouri announced that the
Company and President Missouri had entered into a Settlement Agreement, dated
as of October 10, 2006 (the "Settlement Agreement"), with Pinnacle, the
Official Committee and Mr. Wirginis which resolved the dispute between the
competing bankruptcy reorganization plans proposed by President Missouri and
the Official Committee in President Missouri's Chapter 11 bankruptcy
proceedings pending in the Bankruptcy Court.  Under the Settlement Agreement,
the proposed reorganization plan filed by the Official Committee was
withdrawn, and the parties agreed to continue with the consummation of the
sale of President Missouri to Pinnacle pursuant to the Pinnacle Purchase
Agreement and to support the Settlement Agreement.  The Settlement Agreement
also provided that a reorganization plan previously filed by President
Missouri would be amended in various respects and submitted for confirmation.

  On October 18, 2006, the Bankruptcy Court issued an order approving the
Settlement Agreement. On November 30, 2006, the amended President Missouri
plan was confirmed by the court and the sale of President Missouri was
approved by the Missouri Gaming Commission.

  On December 20, 2006, the Company sold its St. Louis operations to Pinnacle
for approximately $31,500.  On December 4, 2006, the Bankruptcy Court
confirmed a plan of reorganization for President Missouri, which became
effective on the date of the sale. The Missouri plan of reorganization
established February 19, 2007 as the post-petition Administrative Bar Date,
whereby each person or entity could file a claim arising on or after June 20,
2002 and before December 20, 2006 for President Missouri.  The Company
attempted to notify creditors that failure to file a claim against President
Missouri would result in the claim being forever barred and discharged.

                                   F-12

<PAGE> 55
  Under the Missouri plan of reorganization (the "Missouri Plan"), upon
closing of the transaction, a distribution trust was created to distribute to
creditors the proceeds of the sale and certain other assets of President
Missouri.  All priority and administrative claims and claims of unsecured
trade creditors were paid in full pursuant to the Missouri Plan.  The
President Missouri Plan also provides that holders of the Company's
outstanding notes would be paid the amount of their claims less $10,000, or
$50,680.  An aggregate of $5,000 of the $10,000 was permanently waived, and
the remaining $5,000 was deferred.  The deferred amount will be payable from
one-half of any future amounts in excess of $5,000 recovered by the Company
pursuant to certain specified pending litigation and tax refund claims.  In
addition, under the President Missouri Plan the first $5,000 from such
litigation and tax refund claims and one-half of any recoveries in excess of
$5,000 will be used to pay the outstanding minority interest of JECA and its
assignees with the balance to be distributed to the Company.

--President Broadwater Hotel, LLC Bankruptcy Proceedings

  PBLLC, a limited liability company in which Broadwater Hotel, Inc., a
wholly-owned subsidiary of the Company ("BHI"), has a Class A ownership
interest, was a debtor-in-possession in a Chapter 11 bankruptcy proceeding
from April 19, 2001 until approximately May 28, 2003.  PBLLC emerged from
bankruptcy under a plan of reorganization dated October 16, 2001, as modified
on February 28, 2003, and confirmed by the United States Bankruptcy Court for
the Southern District of Mississippi on May 14, 2003.  Under the confirmed
Plan of Reorganization, unsecured creditors of PBLLC received 100% of their
allowed claims and PBHLLC's obligations to its secured lender were modified
with respect to the debt amount, the interest rate and the due date.  On April
15, 2005, the modified indebtedness owed to the secured lender, including all
accrued interest thereon, was fully satisfied by PBLLC from the proceeds of
the sale of the Company's Biloxi assets.

  --Other

  The Company's ability to continue as a going concern is dependent on many
things, including its ability to restructure successfully and the ability of
the Company to generate sufficient cash to fund future operations.  There can
be no assurance in this regard.

2.  BASIS OF PRESENTATION

  The consolidated financial statements set forth herein include the accounts
and operations of President Casinos, Inc., its wholly-owned subsidiaries, a
95%-owned limited partnership and a limited liability company in which a
wholly-owned subsidiary of the Company has a Class A ownership interest and in
which an entity wholly-owned by a former Chairman of the Board of the Company
owns a Class B Unit and has preferred rights to certain cash flows.  All
material intercompany balances and transactions have been eliminated.

  The accompanying consolidated financial statements are presented in
accordance with American Institute of Certified Public Accountants Statement
of Position 90-7, "Financial Reporting by Entities in Reorganization under the
Bankruptcy Code," assuming that the Company will continue as a going concern.
The Company is currently operating under the jurisdiction of Chapter 11 of the
Bankruptcy Code and the Missouri Bankruptcy Court, and continuation of the
Company as a going concern is contingent upon, among other things, its ability

                                   F-13

<PAGE> 56
to formulate a reorganization which will gain approval of the requisite
parties under the Bankruptcy Code and confirmation by the Missouri Bankruptcy
Court, its ability to be profitable, generate sufficient cash flows from
operations and obtain financing sources to meet future obligations.  These
matters raise substantial doubt about the Company's ability to continue as a
going concern.  The accompanying consolidated financial statements do not
include any adjustments relating to the outcome of these uncertainties.

  The accompanying consolidated balance sheets as of February 28, 2007 and
2006, segregate liabilities subject to compromise, such as unsecured claims,
from liabilities not subject to compromise, such as fully secured liabilities
and liabilities arising subsequent to filing bankruptcy petitions.

3.  NATURE OF OPERATIONS

  The Company owned and operated a dockside gaming casino in St. Louis,
Missouri through its wholly-owned subsidiary President Missouri through
December 20, 2006, at which time the operations were sold.  The proceeds of
the sale were placed in a distribution trust (the "Distribution Trust") to be
distributed in accordance with the bankruptcy reorganization plan previously
confirmed by the Bankruptcy Court for President Missouri.  The Company
conducted dockside gaming operations in Biloxi, Mississippi through its
wholly-owned subsidiary President Mississippi through April 15, 2005 at which
time the assets were sold.  In addition, the Company owned and managed certain
hotel and ancillary facilities associated with its gaming operations in Biloxi
through April 15, 2005, when they, too, were sold.  As a result of the sale of
the Biloxi and the St. Louis operations, the accounts of the Biloxi and St.
Louis operations are classified as discontinued operations.

4.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

  Cash and cash equivalents include highly liquid investments, primarily
certificates of deposit, with original maturities of ninety days or less at
date of purchase.

Property and Equipment

  Property and equipment are recorded at cost.  Repairs and maintenance are
charged to expense as incurred.  Improvements that extend the useful life or
increase the productivity of the asset are capitalized.  Depreciation and
amortization, except on property held for sale or development in which no
depreciation or amortization is taken, are computed on a straight-line basis
over the following estimated useful lives:

         Land improvements                     3-20 years
         Buildings and improvements           10-40 years
         Riverboats, barges and improvements   5-15 years
         Leasehold improvements                3-25 years
         Furnishings and equipment             5-10 years

  Leasehold improvements' estimated useful lives do not exceed the terms of
the related lease agreements.

                                   F-14
<PAGE> 57
Gaming Revenues and Promotional Allowances

  In accordance with industry practice, the Company recognizes gaming revenues
as the net win from gaming activities, which is the difference between gaming
wins and losses.  All other revenues are recognized by reference to the
service provided.  Revenues include the retail value of food and beverage,
rooms and other items provided on a complimentary basis to customers.  The
estimated departmental costs of providing such promotional allowances are
included in gaming costs and expenses and consist of the following:

                                     2007       2006       2005
                                    ------     ------     ------
         Food and beverage......   $   755    $ 1,344    $ 4,355
         Hotel..................       --         257      1,047
         Other..................       --          18        171
                                   --------   --------   --------
                                   $   755    $ 1,619    $ 5,573
                                   ========   ========   ========

  All such revenues and promotional allowances are included in "Income from
Discontinued Operations."

Reorganization Items, Net

  Reorganization items, net, represent expenses incurred by the Company as a
result of the bankruptcy filings and proceedings, net of forgiveness of
obligations and other terms agreed to by creditors.  Such items are required
to be recognized as incurred.  Reorganization items, net, include income
recognized from $5,000 of debt obligations which were waived and $5,000 which
were deferred and payable only upon the favorable outcome of certain gain
contingencies.  See "Note 1.  Bankruptcy Proceedings."

Minority Interest

  The Company recognizes net income (loss) in The Connelly Group, LP ("TCG"),
in which the Company has a 95% ownership interest, and PBLLC, in which BHI has
100% interest in the Class A Unit.  In addition, the Company accrues minority
interest at 5% of net income for TCG.  The Company recognized a priority
return based on a percentage per annum equal to the greater of (i) 7.75% or
(ii) 4.0% plus LIBOR, as defined by the terms of the agreement, for PBLLC.
Effective on the date of the sale of the Mississippi properties, minority
interest ceased to accrue on the Class B Unit in PBLLC.  As of February 28,
2007 and 2006, minority interest on the balance sheet is primarily comprised
of $2,250 and $3,528, respectively, related to its obligation to redeem the
Class B Unit for the priority return accrued but not paid.  See "Note 13.
Minority Interest."

Stock-Based Compensation

  As of March 1, 2006, the Company adopted SFAS No. 123 (revised 2004), Share-
Based Payment ("SFAS 123R").  SFAS 123R replaced SFAS No. 123, Accounting for
Stock-Based Compensation ("SFAS 123"), and superseded Accounting Principles
Board Opinion No. 25, Accounting for Stock Issued to Employees ("APB 25").
SFAS 123R requires all share-based payments to employees, including grants of
employee stock options, to be recognized in the consolidated financial
statements based on their fair values and eliminates the alternative method of

                                   F-15

<PAGE> 58
accounting for employee share-based payments previously available under APB
25.  Historically, the Company has elected to follow the guidance of APB 25
which allowed the Company to use the intrinsic value method of accounting to
value its share-based payment transactions with employees.  Based on this
method, the Company did not recognize compensation expense in its consolidated
financial statements as the stock options granted had an exercise price equal
to the fair market value of the underlying common stock on the date of the
grant.  SFAS 123R requires measurement of the cost of share-based payment
transactions to employees at the fair value of the award on the grant date and
recognition of expense over the required service or vesting period.

  Had compensation cost for the Company's Stock Option Plans been determined
based on the fair value at the grant dates for awards under those plans in
accordance with SFAS No. 123R, the Company's pro forma net income (loss) and
net income (loss) per share would be the same.  There were no options granted
during the years ended February 28, 2007 and 2006.

Basic and Diluted Income/Loss Per Share Information

  Income/loss per share information is computed using the weighted average
number of shares of Common Stock outstanding and common stock equivalent
shares from diluted stock options from date of grant, using the treasury stock
method.  There is no difference between loss per share under the basic and
diluted methods due to the anti-dilutive effect of the stock options, since
the Company has either had losses or the exercise price of the stock options
is in excess of the market value of the stock.  See "Note 15.  Stock Option
Plans."

Fair Value of Financial Instruments

  The Company calculates the fair value of financial instruments and includes
this additional information in the Notes to the Consolidated Financial
Statements.  The Company uses quoted market prices whenever available to
calculate these fair values.  When quoted market prices are not available, the
Company uses valuation methodologies which take into account the present value
of estimated future cash flows to determine fair value.

Recoverability of Long-Lived Assets

  The carrying values of the Company's long-lived assets are reviewed when
events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable.  Asset impairment is determined to exist if
estimated future cash flows, undiscounted and without interest charges, are
less than the carrying amount.  If it is determined that an impairment loss
has occurred, then an impairment loss is recognized in the statement of
operations.  The resulting impairment loss is measured as the amount by which
the carrying amount of the asset exceeds its fair value, estimated using
quoted market prices, if available, or other acceptable valuation
methodologies, including discounted cash flows or comparable sales.

Use of Management Estimates

  The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and

                                   F-16

<PAGE> 59
liabilities at the date of the financial statements and the amounts of
revenues and expenses during the reporting period.  Actual results may differ
from those estimates.

Recently Issued Accounting Standards

  In September 2005, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard No. 157, "Fair Value Measurements"
("SFAS 157").  SFAS 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles ("GAAP"), and
expands disclosures about fair value measurements.  This statement applies
under other accounting pronouncements that required or permit fair value
measurement, the FASB having previously concluded in those accounting
pronouncements that fair value is the relevant measurement attribute.  SFAS
No. 157 is effective for the Company beginning fiscal year March 1, 2008.

  The Company has not completed the process of evaluating the impact that will
result from adopting SFAS No. 157.  The Company is therefore unable to
disclose the impact that adopting SFAS No. 157 will have on its financial
position, results of operations, and cash flows when such statement is
adopted.

  In February 2007, the FASB issued Statement of Financial Accounting Standard
No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement No. 115" ("SFAS 159").
SFAS 159 permits entities to choose, at specified election dates, to measure
many financial instruments and certain other items at fair value that are not
currently required to be measured at fair value.  A business entity shall
report unrealized gains and losses on items for which the fair value option
has been elected in earnings at each subsequent reporting date.  SFAS 159 is
effective as of March 1, 2008.  Early adoption is permitted as of the
beginning of a fiscal year that begins on or before November 15, 2007,
provided the entity also elects to apply the provisions of SFAS No. 157.  The
choice to adopt early should be made after issuance of this Statement but
within 120 days of the beginning of the fiscal year of adoption, provided the
entity has not yet issued financial statements, including notes to those
financial statements, for any interim period of the fiscal year of adoption.
The Company is evaluating the impact that the adoption of SFAS No. 159 will
have on its financial position.

  In June 2006, the FASB issued Interpretation No. 48 Accounting for
Uncertainty in Income Taxes   an Interpretation of FAS No. 109 ("FIN 48"),
which clarifies the accounting for uncertainty in income taxes.  Currently,
the accounting for uncertainty in income taxes is subject to significant and
varied interpretations that have resulted in diverse and inconsistent
accounting practices and measurements. Addressing such diversity, FIN 48
prescribes a consistent recognition threshold and measurement attribute, as
well as clear criteria for subsequently recognizing, derecognizing and
measuring changes in such tax positions for financial statement purposes.  FIN
48 also requires expanded disclosure with respect to the uncertainty in income
taxes.  FIN 48 is effective for fiscal years beginning after December 15,
2006.  The Company has not yet determined the impact of FIN 48 on its
consolidated financial position, results of operations, cash flows or
financial statement disclosures.

                                   F-17
<PAGE> 60
5.  PROPERTY AND EQUIPMENT

   On December 20, 2006, the Company completed the sale of the capital stock
of its St. Louis casino operations to Pinnacle for approximately $31,500.  The
Company did not recognize a gain or loss on the transaction as a result of the
asset impairments previously recognized during fiscal 2007 in the amount of
$3,950.  As such, property and equipment of the St. Louis and have been
classified as "Assets of Discontinued Operations" as of February 28, 2006.

  On April 15, 2005, the assets of the Biloxi operations were sold.  The
Company recognized a gain of $27,545, net of income tax expense of $6,039, on
this transaction.

  The Company consummated the sale of its 36,000 square foot office building
in St. Louis for $1,825 on June 23, 2005.  A gain of approximately $344 was
recognized as a result of this transaction.  Upon closing, certain areas of
the building were leased back by the Company.  An area of approximately 1,400
square feet is currently being leased by the Company's corporate
administration on a month-to-month basis.

6.  LONG-TERM DEBT

  In conjunction with the purchase of the Broadwater Property, PBLLC borrowed
the sum of $30,000 from a third party lender.  Except as set forth in the
promissory note and related security documents, PBLLC's obligations under the
Indebtedness were nonrecourse and secured by the Broadwater Property, its
improvements and leases thereon.  The indebtedness bore interest at a
stipulated variable rate per annum equal to the greater of (i) 8.75% or (ii)
4% plus the LIBOR 30-day rate.  The indebtedness was modified during the
course of the bankruptcy proceedings of PBLLC.  See "Note 1.  Bankruptcy
Proceedings."  On April 15, 2005, the indebtedness and interest thereon were
fully satisfied from the proceeds on the sale of the Broadwater property.  The
Company recognized a gain of $2,416 as of February 28, 2005 to write the
principal amount down to the subsequent liquidated payment amount.  This
adjustment is reported in net income from discontinued operations.

7.  LIABILITIES SUBJECT TO COMPROMISE AND REORGANIZATION ITEMS, NET

  The components of liabilities subject to compromise as of February 28, 2007
and 2006 are as follows:

              <TABLE>
              <CAPTION>
                                                                    2007         2006
                                                                   ------       ------

              <S>                                                <C>          <C>
              Senior Exchange Notes, 13%......................   $    --      $  45,967
              Secured Notes, 12%,.............................        --         14,713
              Accounts payable and other accrued expenses.....        688         2,637
                                                                 ---------     ---------
                 Total liabilities subject to compromise......   $    688      $ 63,317
                                                                 =========     =========
              </TABLE>

  The Senior Exchange Notes ranked equal in right of payment to all present
and future senior debt, as defined in the indenture governing the Senior
Exchange Notes (the "Note Indenture").  In addition, the Senior Exchange Notes
were unconditionally guaranteed, jointly and severally on a senior basis, by

                                   F-18

<PAGE> 61
all of the Company's restricted subsidiaries (the "Guarantors"), and, under
certain circumstances, the Company's future subsidiaries, although the
subsidiary guarantee from The Connelly Group, LP ("TCG") was limited in
amount.  The obligation of TCG has been zero since June 1996.  As security for
the obligations of the Company and the Guarantors under the Senior Exchange
Notes, the Company and the Guarantors pledged their equity interests in each
Guarantor.  The Note Indenture contained certain restrictive covenants which,
among other things, limited the Company's Guarantors' ability to pay
dividends, incur additional indebtedness (exclusive of $15,000 of senior
debt), issue preferred stock, create liens on certain assets, merge or
consolidate with another company and sell or otherwise dispose of all or
substantially all of its properties or assets.

  On December 3, 1998, the Company repurchased $25,000 of its Senior Exchange
Notes.  The repurchased notes were used to satisfy the $25,000 principal
payment due September 15, 1999 on the Company's $100,000 Senior Exchange
Notes.  The repurchase was funded by the issuance of $25,000 of new 12% notes
due September 15, 2001 (the "Secured Notes").  The Secured Notes had no
mandatory redemption obligation and were secured by a mortgage on the
"Admiral" as well as subsidiary guarantees.

  See "Note 1.  Bankruptcy Proceedings" regarding the cash tender offer for
the Notes by Pinnacle and the Settlement Agreement which reduced the
obligation of the Notes.  On December 20, 2006, the Company paid the
outstanding principal obligation on the Senior Exchange Notes and Secured
Notes from proceeds of the sale of the St. Louis operations and existing cash
in the bank.

8.  OPERATING LEASES

  In January 2000, the Company entered into a sublease agreement with the Port
Authority of the City of St. Louis for a mooring site on the St. Louis river
front north of its former location.  The term of the lease was 25 years
commencing December 2000.

  Rent under the terms of the lease consisted of base rent plus a percent of
adjusted gross receipts.  The base rent was subject to rate change every five
years based on the recommendation of the Port Commission.  Effective January
1, 2004, the rent was adjusted to $29 annually.  The percentage rent was 2% of
adjusted gross receipts for any lease year equal to or less than $80,000, plus
3% of that portion of adjusted gross receipts for such lease year which exceed
$80,000 but which are equal to or less than $100,000, plus 4% of that portion
of adjusted gross receipts for such lease year, if any, which exceed $100,000.
Rent expense for the mooring site for the years ended February 28, 2007, 2006
and 2005 was $1,138, $1,420 and $1,459, respectively.  The mooring site lease
was assumed by the purchaser of the St. Louis operations.

  The marina where the Company conducted its Biloxi gaming operations was
determined by the Secretary of State of Mississippi to constitute both
"tidelands" and "fast lands" under the Mississippi Trust Tidelands Act.  The
tidelands lease was for an initial period of ten years commencing August 1,
1992.  During August 2002, the Company exercised its option to extend the
lease for a term of five years under the same terms and provisions, and
renegotiated the annual rental.  The rent was $672 annually.  The fast lands
lease was for a period of 40 years commencing December 31, 1996 for annual
rent of $21, adjustable every five years as defined in the lease agreement.

                                    F-19

<PAGE> 62
The purchasers of the Biloxi casino assets assumed both leases.

  Rental expense incurred under operating leases was $2,574, $3,477 and $4,245
for the years ended February 28, 2007, 2006 and 2005, respectively, and is
classified in net income from discontinued operations.

  The Company has no future commitments under non-cancelable long-term
operating leases.

9. DISCONTINUED OPERATIONS

  --Biloxi

  Following an auction held on January 20, 2005, under the terms of Section
363 of the United States Bankruptcy Code, three subsidiaries of President
Casinos, Inc., namely President Mississippi, Vegas Vegas, Inc., and PBLLC
(collectively, "Sellers"), on the one hand, and Broadwater Development, LLP
("Purchaser") on the other, entered into a Second Amendment to Sale and
Purchase Agreement (the "Second Amendment") pursuant to which the Purchaser
agreed to acquire from the Sellers substantially all of the real and personal
property associated with the Company's Biloxi operations for $82,000.  Prior
to the auction, on January 13, 2005, the Purchaser received an assignment of
all the right, title and interest of Broadwater Properties, LLC in and to that
certain Sale and Purchase Agreement dated as of November 15, 2004, as amended
by the Amendment to Sale and Purchase Agreement dated as of November 29, 2004
(as amended, the "Purchase Agreement") which had been previously executed by
the Sellers with respect to the sale of the Company's Biloxi operations.  A
hearing to approve the auction results and sale to the Purchaser was held
before the Missouri Bankruptcy Court on January 26, 2005, and the court issued
an order approving the auction results and the sale on February 7, 2005.  On
April 15, 2005, the Company completed the sale, subject to certain post-
closing adjustments.  In fiscal 2006, the Company recognized a gain of
$27,545, net of income tax expense of $6,039, as a result of this transaction.

  --St. Louis

  On August 9, 2004, the Company entered into an agreement with Penn National
Gaming, Inc. for the purchase of its St. Louis operations.  The agreement was
submitted to the Missouri Bankruptcy Court for review and was amended on
September 17, 2004.  Under the terms of the agreement, the stock of President
Missouri was to be sold for approximately $28,000, subject to working capital
adjustments and subject to higher and better offers.  On October 7, 2004, an
auction was held in accordance with Section 363 of the Bankruptcy Code.
Pursuant to an agreement submitted September 30, 2004, Columbia Sussex was the
winning over-bidder for the St. Louis casino operations for a purchase price
of approximately $57,000, subject to closing adjustments.  The Company and
Columbia Sussex entered into a Riverboat Casino Sale and Purchase Agreement
dated as of September 30, 2004 (as amended, the "Columbia Purchase
Agreement").  On October 13, 2004, the Missouri Bankruptcy Court entered an
order approving the sale of the stock of President Missouri to Columbia Sussex
pursuant to the Columbia Purchase Agreement.  The closing of the transaction
was contingent upon the licensing approval of Columbia Sussex and its key
officers by the Missouri Gaming Commission.  On October 25, 2005, Columbia
Sussex notified the Company that it had withdrawn its application for
licensing with the Missouri Gaming Commission.  The Company has filed an
action in the Bankruptcy Court against Columbia Sussex for breach of contract

                                   F-20

<PAGE> 63
regarding the Columbia Purchase Agreement.  See "Note 11.  Commitments and
Contingent Liabilities."

  On February 24, 2006, the Company and Pinnacle entered into a Riverboat
Casino Sale and Purchase Agreement (the "Pinnacle Purchase Agreement").  Under
the terms of the Pinnacle Purchase Agreement all of the outstanding capital
stock of President Missouri was sold for approximately $31,500, subject to
working capital adjustments, on December 20, 2006.

  In accordance with the Financial Accounting Standards Board SFAS No. 144
"Accounting for the Impairment and Disposal of Long-Lived Assets," ("SFAS
144") the St. Louis and Biloxi operations are accounted for as discontinued
operations, as follows:

            <TABLE>
            <CAPTION>
                                                                  Feb. 28,     Feb. 28,
                                                                    2007         2006
                                                                   ------       ------

            <S>                                                  <C>           <C>
            ASSETS
              Cash and cash equivalents..................        $    --       $  3,000
              Receivables, net...........................             382           428
              Inventories................................             --            432
              Prepaid expenses...........................             532         1,918
              Property and equipment, net................             --         32,733
                                                                 ---------     ---------
                                                                 $    914      $ 38,511
                                                                 =========     =========
            LIABILITIES
              Accounts payable...........................        $    105      $  1,546
              Income taxes payable.......................              24            32
              Accrued payroll and benefits...............             --          1,535
              Other accrued liabilities..................           1,321         3,743
                                                                 ---------     ---------
                                                                 $  1,450      $  6,856
                                                                 =========     =========
            </TABLE>
            <TABLE>
            <CAPTION>
                                                                  Feb. 28,     Feb. 28,
                                                                    2007         2006
                                                                   ------       ------

            <S>                                                  <C>           <C>

            ASSETS
              St. Louis operations.......................        $    914      $ 38,361
              Biloxi operations..........................             --            150
                                                                 ---------     ---------
                                                                 $    914      $ 38,511
                                                                 =========     =========
            LIABILITIES
              St. Louis operations.......................        $  1,275      $  5,985
              Biloxi operations..........................             175           871
                                                                 ---------     ---------
                                                                 $  1,450      $  6,856
                                                                 =========     =========
             </TABLE>

  The Company's St. Louis segment had income of $2,300 consisting of revenues
of $51,736, operating expenses of $47,355 and reorganization items of $3,096
during the year ended February 28, 2007, compared to operating income of
$10,174, consisting of revenues of $67,301 and operating expenses of $57,127
during the year ended February 28, 2006.  The St. Louis segment had operating
income of $7,901 consisting of revenues of $69,811 and operating expenses of

                                   F-21

<PAGE> 64
$61,910 during the year ended February 28, 2005.  Operating expenses of the
St. Louis segment for the year ended February 28, 2007, include $3,950 of
asset impairment.  Operating expenses for the year ended February 28, 2005,
include depreciation expense of $3,406 through October 2004, at which time the
assets ceased to be depreciated in accordance with SFAS 144.  The sale of the
St. Louis operations was completed December 20, 2006.

  The Company's Biloxi segment had income of $46, consisting of entirely of
ongoing expenses offset by adjustments to working capital accounts resulting
from the final settlement of closing adjustments with the buyers during the
year ended February 28, 2007, compared to income of $27,753 consisting of
revenues of $5,604, operating expenses of $4,956 and a gain of $27,538 during
the year ended February 28, 2006.  The Biloxi segment had operating income of
$1,173 consisting of revenues of $43,195 and operating expenses of $42,022
during the year ended February 28, 2005.  Operating expenses for the year
ended February 28, 2005, include depreciation expense of $1,359 through
December 2004, at which time the assets ceased to be depreciated in accordance
with SFAS 144.  The sale of the Biloxi properties was completed April 15,
2005.

10.  INCOME TAXES

  The Company recognizes deferred tax assets, net of applicable reserves,
related to net operating loss carryforwards and certain temporary differences.
Recognition of future tax benefits is based on the extent the realization of
such benefit is "more likely than not."  As such, the realization of the
deferred tax benefit is dependent on the Company's ability to generate future
taxable income.  For the years ending February 28, 2007, 2006 and 2005, the
Company has recognized tax gains that have made it more likely than not that a
portion of the net operating loss carryforward would be realized.
Accordingly, the Company has recognized a tax benefit equal to the amount of
the valuation allowance released related to the use of the deferred tax
assets.  The tax benefit related to the reversal of this valuation allowance
has been recognized in discontinued operations.

  The gain on the sale of the Company's St. Louis operations during the year
ending February 28, 2007 generated federal income taxes of $13,924.  A portion
of the Company's net operating loss carryforward has offset the federal tax.
The use of the Company's net operating loss carryforward generated an
additional $340 of alternative minimum tax liability and credit carryforward.
All state income taxes related to this sale are offset by state net operating
losses.

  Given the level of operations, and the overall uncertainty as to the timing
of the Company's ability to return to profitability, management has determined
that the remaining tax benefits do not satisfy the recognition criteria and
accordingly the Company maintains a 100% valuation allowance against the
Company's remaining net deferred tax assets.

  The Company's net Federal income tax expense of $299 and $6,005 is reflected
in income from discontinued operations for the fiscal years ended February 28,
2007 and 2006, respectively.  Also included in income from discontinued
operations is $54 and $16 of state and local income taxes for the fiscal years
ended February 28, 2007 and 2006, respectively.  During the year ended
February 28, 2005, a portion of the Company's net operating loss carryforward
offset current federal income taxes of $5,707.  The Company's deferred tax
valuation allowance also decreased by $5,707 during the year ended February

                                    F-22

<PAGE> 65
28, 2005.  The tax benefit was offset by local and state taxes of $19.

  The components of the net deferred tax asset are as follows:

      <TABLE>
      <CAPTION>
                                                   Feb. 28,      Feb. 28,
                                                     2007          2006
                                                    ------        ------
     <S>                                          <C>           <C>
     Deferred tax assets:
       Net operating loss carryforward.......     $ 53,326      $ 66,172
       Pre-opening costs and intangible
         assets..............................          --            853
       Accounting reserves and liabilities...          --            896
       Tax credits...........................          965           280
       Other.................................           16            55
                                                  ---------     ---------
                                                    54,306        68,256
       Less: Valuation allowance.............      (54,306)      (59,575)
                                                  ---------     ---------
                                                       --          8,681
     Deferred tax liabilities:
       Property..............................          --          8,681
                                                  ---------     ---------
          Net deferred tax asset.............     $    --       $    --
                                                  =========     =========
       </TABLE>

  As of February 28, 2007, the Company had Federal and Missouri net operating
loss carryforwards of $130,639 and $175,347, respectively.  These tax benefits
will expire between 2008 and 2025 unless first offset against taxable income.
The availability of the loss carryforwards may be limited in the event a
significant change in ownership of the Company or its subsidiaries.

11. COMMITMENTS AND CONTINGENT LIABILITIES

Bankruptcy Actions

  On June 20, 2002, the Company together with its subsidiary, President
Missouri filed voluntary petitions for reorganization under Chapter 11 of the
Bankruptcy Code in the Mississippi Bankruptcy Court.  On July 9, 2002, the
Company's subsidiary President Mississippi filed a voluntary reorganization
petition in the same Court.  On July 11, 2002, substantially all of the
Company's other subsidiaries filed voluntary reorganization petitions under
Chapter 11 in the same Court.  Subsequently, orders were entered by the
Mississippi Bankruptcy Court transferring venue of all of the Chapter 11
cases, except PBLLC and President New York, to the Missouri Bankruptcy Court,
where they are now pending and being administered.  President New York
subsequently had its Chapter 11 case dismissed and PBLLC subsequently emerged
from Chapter 11.  In addition, a bankruptcy plan of liquidation has been
confirmed for President Mississippi, BHI and Vegas Vegas and a plan of
reorganization was confirmed for President Missouri.  The Company and its
subsidiaries, except as noted, each continue in possession and use of their
assets as debtors-in-possession.  See "Note 1. Bankruptcy Proceedings."

  On April 27, 2003, the Missouri Bankruptcy Court granted a motion for
approval of a key employee retention plan for certain corporate and Missouri
casino employees (the "Retention Plans").  The motion does not affect any pre-
petition employment agreements as to assumption or rejection of pre-petition
executory contracts, with the exception that any claim asserted by a key
employee on account of a pre-petition employment agreement shall be reduced

                                   F-23

<PAGE> 66
dollar for dollar by the amounts paid or payable under the retention plan.
Under the terms of the Retention Plans for corporate employees, upon the sale
of the St. Louis operations, the Chief Financial Officer will receive one year
of his then salary on the date he is discharged from employment and the other
named key employees will receive 50% of their then salary.  If at any time
prior thereto the corporate key employees' salaries are reduced or he or she
is required to move his or her residence from the St. Louis, Missouri
metropolitan area, he or she will also receive such payment.  During the
fourth quarter of fiscal 2007, $273 was accrued to fund such payments and is
included in liabilities of discontinued operations.

Legal Proceedings

-- Columbia Sussex

  The Company's St. Louis patrons have, since the "Admiral" was moved north
from its original location, almost exclusively used a public parking lot
immediately in front of the entrance to the "Admiral," known as the Cherrick
Lot.  The Company had a validation agreement with the operator of the Cherrick
Lot to accept one dollar and twenty-five cents (later raised to one dollar and
fifty cents) for use by "Admiral" patrons of the Cherrick Lot.  On September
10, 2004, the City of St. Louis commenced an action seeking to condemn the
Cherrick Lot for use by Pinnacle which is developing a large gaming and hotel
complex approximately one block away from the Cherrick Lot.  At the time the
condemnation was commenced, Columbia Sussex, Inc. had an option to purchase
the Cherrick Lot for $5,000.  On October 26, 2004, Columbia Sussex exercised
its option and purchased the Cherrick Lot.  On November 4, 2005, the Creditors
Committee and the Company filed a Verified Complaint for Declaratory Judgment
and for Injunctive Relief in the Company's bankruptcy proceedings pending in
the Missouri Bankruptcy Court.  On November 10, 2005, the Court granted the
request and enjoined the condemnation action until January 9, 2006.  In
connection with the pending sale of the Company's St. Louis operations,
Pinnacle, the Company and President Missouri entered into a letter agreement
relating to the Cherrick Lot.  Pinnacle currently holds an option to purchase
the Cherrick Lot if it is taken in the condemnation proceeding.  Pursuant to
the letter agreement, the parties agreed that if the Cherrick Lot is
condemned, Pinnacle shall exercise its option to purchase the Cherrick Lot,
provided the aggregate price required to be paid as compensation for the
Cherrick Lot does not exceed $5,000.  If Pinnacle purchases the Cherrick Lot,
whether pursuant to its option or otherwise, Pinnacle shall permit patrons of
President Missouri the right to park on the Cherrick Lot for a validation fee
not exceeding one dollar and fifty cents per day for each vehicle, which
arrangement shall extend for a term ending on the earlier of (a) the date on
which Pinnacle opens its new casino project on Laclede's Landing, or (b)
December 31, 2008.  In consideration for Pinnacle's obligations under the
letter agreement, the Company's complaint against the City of St. Louis has
been dismissed and the injunction has been dissolved.

  On January 12, 2006, the Company filed a verified Complaint for Damages and
Injunctive Relief in the Missouri Bankruptcy Court, where its bankruptcy is
pending.  The suit named both PCI and President Missouri as plaintiffs and
named Columbia Sussex, Inc. and Wimar Tahoe Corporation as defendants.  The
Company alleged that Columbia Sussex breached a contract to purchase the stock
of President Missouri by taking actions that could reasonably be expected to
impede or delay licensure by the Missouri Gaming Commission and by failing to
use all commercially reasonable efforts to obtain licensure from Missouri
Gaming Commission, as required by the contract.  The Company also alleged a

                                    F-24

<PAGE> 67
prima facie tort in that Columbia Sussex had unilaterally raised validation
rates for the Cherrick Lot used by the Company for its patrons and with the
intent to cause injury to the Company.  This litigation is proceeding on a
partially sealed record, and accordingly a review of publicly available court
files would not disclose potentially relevant facts and, in some cases,
arguments of the parties.  The Company seeks damages of approximately $28,700,
which is the difference between the price Columbia Sussex had contracted to
purchase the stock of President Missouri and the price for which such stock
was subsequently sold, plus prejudgment interest.  In addition, the Company
originally sought an injunction to prevent Columbia Sussex from raising the
validation fee above the one dollar and fifty cents per patron vehicle charged
immediately prior to the increase in fees and from blocking access to the
parking lot by the Company's patrons.

  On February 16, 2006, the Missouri Bankruptcy Court issued a preliminary
injunction prohibiting Columbia Sussex from charging more than one dollar and
fifty cents per patron vehicle for validated parking for casino patrons. As
security for the preliminary injunction, the Company was required to post a
$525 bond.  The preliminary injunction remained in effect through the sale of
the Company's St. Louis operations, when it was dissolved by agreement of the
parties.

  The parties have each filed motions for summary judgment.  It is anticipated
the Missouri Bankruptcy Court will rule on such motions prior to a pretrial
conference scheduled for July 24, 2007. In the event that Missouri Bankruptcy
Court does not fully dispose of the case on the motions for summary judgement,
it is anticipate that a trial will be scheduled for late 2007 or early 2008.

  In the event of a ruling adverse to the Company, the Company could be liable
for additional charges (in excess of the one dollar and fifty cents paid by
the Company under the injunction) for each vehicle parked on the Cherrick Lot
by the Company's patrons during the time that the injunction was in place.  At
this time management is unable to predict with any certainty what the outcome
of this matter will be.

  Management of the Company does not believe that the outcome of any
litigation will have a material adverse effect on the Company's financial
condition or results of operations.

-- Tax Matters

  President Missouri has filed claims for refund for sales and use taxes that
it paid to the State of Missouri on the cost of the food provided to its
patrons as free meals, and on gaming tables and gaming devices (collectively,
"Gaming Devices"), for the periods January 1, 1995 through February 28, 2003.
President Missouri is claiming that the cost of the free meals and the cost of
the Gaming Devices leased by President Missouri qualify for Missouri's resale
exclusion, because the Missouri Gaming Tax is the functional equivalent of
Missouri's sales tax.  President Missouri has filed claims for refund for
approximately $641, plus applicable interest for the years at issue. Both
issues (the food and the Gaming Devices) are recurring; thus, the case will
set an important precedent, barring legislative changes.  On May 1, 2006, the
Missouri Administrative Hearing Commission (the "Commission") rendered its
decision in favor of President Missouri in regard to the food ($506 or
approximately 79% of the amount in controversy, plus interest) and in favor of
the Missouri Department of Revenue in regard to the Gaming Devices and a minor
amount of other items (the rest of the amount in controversy, or approximately

                                      F-25

<PAGE> 68
$135).  The Commission's holding was based on the fact that President
Missouri's restaurant operations were normally subject to the sales tax and
that the Gaming Devices were not.  The Commission ruled that the gaming tax
was not the substantial equivalent of the sales tax.  Both President Missouri
and the Missouri Department of Revenue appealed the Commission's decision to
the Missouri Supreme Court.  The Missouri Supreme Court reversed the decision
of the Commission in favor of President Missouri and upheld the decision of
the Commission in favor of the Missouri Department of Revenue.  This matter is
now concluded.

  The Company has filed a tax refund with Iowa in the amount of approximately
$1,100. The Company formerly conducted gaming operations in the state of Iowa.
Under Iowa law, computer equipment is generally exempt from sales and use
taxes.  However "point-of-sale" computer equipment, such as cash registers, is
subject to taxation.  Historically in Iowa, slot machines were considered to
be subject to sales and use tax. The Company is challenging this position
under the theory that a slot machine is "computer equipment" subject to
exemption and has sought a refund for past paid sales and use tax.

  The refund was denied and the Company is currently appealing this decision.

  Management is unable to predict with certainty the outcome of this appeal.

-- M/V "Anne Holly" Incident

  On April 4, 1998, the "Admiral", the vessel on which the Company conducted
its St. Louis casino operations, was struck by barges from the tow of the M/V
"Anne Holly." The "Admiral" was partially dislodged from its mooring because
of the impact with the barges. In the incident, the "Admiral" sustained damage
to its hull and external structures. Additionally, approximately 150 patrons
claim various types of injuries and damages against the "Admiral" and against
the operator of the M/V "Anne Holly." The "Admiral" had to be closed and lost
business and profits as a result of the incident. A limitation proceeding,
captioned "In the Matter of the Complaint of American Milling Company, UN
Limited, H & B Marine, Corporations and American Milling, LP, a Limited
Partnership, for Exoneration from or Limitation of Liability" was filed in the
United States District Court, Eastern District of Missouri. The Company has
filed a claim in the limitation proceeding for damages caused by the collision
including hull and property damage, loss of revenue while the "Admiral" was
not in operation and damages for other claims which have been made and which
are anticipated to be made against the Company. The Company is pursuing both
insured and uninsured claims against the owners and operators of the M/V "Anne
Holly."  In January 2000, the Company filed suit against the captain who had
been operating the M/V "Anne Holly" at the time of the accident.  This suit
was consolidated with the limitation of liability action on May 4, 2000.
Following trial, on June 12, 2003, the Court issued a ruling allocating 80% of
the fault for this collision to American Milling, Winterville Marine and Capt.
Johnson and 20% of the fault to Company interests. The Court determined that
American Milling and Winterville are entitled to limit their liability to the
value of the M/V "Anne Holly," $2,200, plus 6% interest from the date of
filing of their complaint in April 1998.  The Company filed an appeal in the
United States Court of Appeals for the Eighth Circuit, and on May 17, 2005,
the Eighth Circuit Court of Appeals issued a decision reversing the trial
court on the issue of whether Winterville qualifies as an owner under the
Limitation of Liability Act and could therefore limit their liability.  A
petition for rehearing filed by Winterville was denied.  The damages phase of
the Limitation Action has now begun and has been set for trial (as to property

                                    F-26

<PAGE> 69
damage claims) in April 2008.  Separate Declaratory Judgment actions were
filed by the underwriters for American Milling in New York in December 2004
and January 2006 to determine whether insurance coverage for the incident will
be available to cover Winterville and/or Captain Johnson.  That coverage
litigation was transferred to the Eastern District of Missouri in November
2006, and has been set for trial in August 2008.  The insurance coverage
action is being defended by the Company and its insurance carriers who are
pursuing subrogation claims in the Limitation Action for the incident.

12.  RISKS AND UNCERTAINTIES

  The Company was partially self-insured for employee health and workers
compensation claims and third party liability costs through April 1999.
Effective May 1999, the Company became fully insured for workers compensation
claims.  The Company continues to be partially self-insured for employee
health and third party liability claims.  The self-insurance claim liability
is based on claims reported and claims incurred but not reported using the
Company's historic experience with such matters.

13. MINORITY INTEREST

The Connelly Group, LP

  The assets of the Company's former Davenport casino operations were sold in
October 2000.  The Davenport casino operations were managed by the Company's
wholly-owned subsidiary, PRC Iowa, which is the general partner of the 95%
Company-owned operating partnership, TCG.  The partnership agreement provides
for the allocation of income between the general partner and limited partner
at 95% and 5%, respectively.

President Broadwater Hotel, LLC

  To effectuate the acquisition of the Broadwater Property, the Company
entered into a Redemption Agreement dated as of July 22, 1997 (the "Redemption
Agreement") by and among JECA, BHI, a wholly-owned subsidiary of the Company,
and PBLLC, a limited liability company formed by JECA and BHI for purposes of
the transaction.

  BH Acquisition Corporation ("BHAC"), a company wholly-owned by Mr. Connelly,
was the sole owner of the Broadwater Property.  Prior to the closing of the
transactions, JECA, the successor by merger to BHAC became the sole owner of
the Broadwater Property.  In connection with the formation of PBLLC, JECA
transferred its interest in the Broadwater Property to PBLLC as a capital
contribution in exchange for the sole outstanding membership interest in
PBLLC.  Pursuant to the Redemption Agreement, BHI made a capital contribution
of $5,000 to PBLLC in exchange for the Class A Unit of PBLLC as described in
the Amended and Restated Limited Liability Company Operating Agreement of
PBLLC (the "Amended Operating Agreement").  Simultaneously with BHI's
acquisition of the Class A Unit, PBLLC redeemed JECA's existing membership
interest in PBLLC in exchange for (i) the cash payment by PBLLC to JECA of
$28,484, (ii) redemption of the $2,016 debt owed by BHAC to the Company and
(iii) the issuance by PBLLC to JECA of the Class B Unit of PBLLC as described
in the Amended Operating Agreement.

  PBLLC was obligated to redeem the Class B Unit from JECA for a redemption
price of $10,000 on the date on which the indebtedness was fully and finally
discharged and the mortgage securing the Indebtedness was released.

                                     F-27

<PAGE> 70
  On June 7, 2005, the Company made a distribution from the proceeds of the
sale of the Mississippi Properties.  JECA's Class B membership interest was
partially redeemed for $14,375.  During August 2005, JECA's Class B membership
interest was further redeemed for $1,400.  During February 2006, JECA's Class
B membership interest was further redeemed for $350.  A fourth distribution of
$1,044 was made during February 2007.

14.  EMPLOYEE BENEFIT PLANS

  The Company maintains an employee savings plan which covers all eligible
employees as defined by the plan.  Pursuant to this savings plan,
participating employees may contribute (defer) a percentage of eligible
compensation.  Employee contributions to the savings plan, up to certain
limits, are partially matched by the Company.  The expense applicable for the
Company's contribution to the savings plan, net of forfeitures, was $63, $102
and $200 for the years ended February 28, 2007, 2006 and 2005, respectively.

  On April 27, 2003, the Missouri Bankruptcy Court granted a motion for
approval of a key employee retention plan for certain corporate employees and
certain Missouri operating company employees.  The motion does not affect any
pre-petition employment agreements as to assumption or rejection of pre-
petition executory contracts, with the exception that any claim asserted by a
key employee on account of a pre-petition employment agreement shall be
reduced dollar for dollar by the amounts paid or payable under the retention
plan.  Under the terms of the plan for corporate employees, the Chief
Financial Officer will receive one year of his then salary on the date he is
discharged from employment and the other named key employees will receive 50%
of their then salary.  If at any time prior thereto the corporate key
employees' salaries are reduced or he is required to move his residence from
the St. Louis, Missouri metropolitan area, he or she will also receive such
payment.  As of February 28, 2007, the amount accrued for such corporate
obligations is $273 and is included in liabilities of discontinued operations.

15.  STOCK OPTION PLANS

  The Company has adopted non-qualified and incentive stock option plans which
provide for the granting of stock options to eligible directors, officers and
employees.  In addition, the plans authorize the issuance of tandem stock
appreciation rights in connection with the issuance of certain options.  Stock
appreciation rights may only be issued in connection with a non-qualified
stock option.  This right will entitle the holder to receive in cash or stock
an amount equal to the excess of the fair market value on the date of exercise
over the exercise price of the tandem stock option.  The maximum value of any
stock appreciation right will be limited to the exercise price of the tandem
stock option.  A stock appreciation right may be exercisable only at the same
time and to the same extent as the tandem stock option.

  The plans are administered by the Compensation Committee of the Board of
Directors (the "Committee"), whose members determine to whom options will be
granted and the terms of each option.  The exercise price of stock options
granted under the plans are established by the Committee, but the exercise
price may not be less than the market price of the Company's Common Stock on
the date the option is granted.  Each option granted is exercisable in full at
any time or from time to time as determined by the Committee and provided in
the option agreement, provided that no option may have a term exceeding ten
years.  In July 1997 and June 1999, the stockholders of the Company approved
the Company's 1997 and 1999 stock option plans which increased the number of

                                   F-28

<PAGE> 71
shares available for grant by 500,000 shares and 300,000 shares, respectively.

  On June 19, 1996 and August 22, 1997, the Committee approved amendments to
certain of the outstanding stock option agreements.  Pursuant to such
amendments, options to purchase an aggregate of 276,340 shares of Common Stock
at exercise prices ranging from $54.00 to $5.625, per share were repriced to
an exercise price of $11.625 and $2.625, respectively, per share, the market
value of the Common Stock on the date of the repricings.

  On August 28, 2001, the Committee approved further amendments to certain of
the outstanding stock option agreements.  Pursuant to such amendments, options
to purchase an aggregate of 811,618 shares of Common Stock at exercise prices
ranging from $1.875 to $4.000, per share were repriced to an exercise price of
$0.87 per share.  Except for such amendments, the other terms of the stock
options were not changed.  The Over the Counter fair market value of the
Common Stock on August 28, 2001, was $0.87.  Pursuant to the guidance of APB
25, "Accounting for Stock Issued to Employees" and related interpretations,
the amendments to certain of the outstanding option agreements modified the
options from being fixed stock option awards to variable stock option awards.
As such, the Company recognizes compensation cost for increases or decreases
in the intrinsic value of the modified award in periods subsequent to the
modification until the award is exercised, forfeited or expires unexercised.
However, compensation cost is not adjusted below the intrinsic value, if any,
of the modified stock option at the date of modification unless the award is
forfeited because the employee fails to fulfill an obligation.  The Over the
Counter closing market value of the Common Stock on February 28, 2007, was
$0.40, therefore, as of February 28, 2007, no compensation cost has been
recognized.

  As of March 1, 2006, the Company adopted SFAS No. 123 (revised 2004), Share-
Based Payment ("SFAS 123R").  SFAS 123R replaced SFAS No. 123, Accounting for
Stock-Based Compensation ("SFAS 123"), and superseded Accounting Principles
Board Opinion No. 25, Accounting for Stock Issued to Employees ("APB 25").
SFAS 123R requires all share-based payments to employees, including grants of
employee stock options, to be recognized in the consolidated financial
statements based on their fair values and eliminates the alternative method of
accounting for employee share-based payments previously available under APB
25.  Historically, the Company has elected to follow the guidance of APB 25
which allowed the Company to use the intrinsic value method of accounting to
value its share-based payment transactions with employees.  Based on this
method, the Company did not recognize compensation expense in its consolidated
financial statements as the stock options granted had an exercise price equal
to the fair market value of the underlying common stock on the date of the
grant.  SFAS 123R requires measurement of the cost of share-based payment
transactions to employees at the fair value of the award on the grant date and
recognition of expense over the required service or vesting period.

  Had compensation cost for the Company's Stock Option Plans been determined
based on the fair value at the grant dates for awards under those plans in
accordance with SFAS No. 123R, the Company's pro forma net income (loss) and
net income (loss) per share would be the same.  There were no options granted
during the years ended February 28, 2007 and 2006.

  Under the Company's plans, the Company is authorized to grant options up to
an aggregate of 1,325,000 shares to management team members and directors.  Of
this amount, 425,000 shares have expired.  As of February 28, 2007, 100,000
options have been exercised and 217,300 are available for grant.  Options

                                   F-29

<PAGE> 72
under the plans are generally granted at market value at the date of the grant
and expire ten years from the date of grant.  The outstanding options that
have been granted under the plan generally vest either at (i) a rate of 20%
each anniversary date or (ii) 20% on date of grant and 20% on each anniversary

date thereafter.  The Company has also granted stock options to external board
members under a non-qualified plan.  These options are granted at market value
at the date of the grant; and generally vest at 50% on date of grant and 25%
each anniversary date thereafter or 20% at the date of grant, 20% on the first
anniversary and 60% on the second anniversary; and expire 10 years from date
of grant.

  A summary of the status of the Company's stock option plans as of February
28, 2007, 2006 and 2005, and changes during the years ending on those dates is
presented below:

<TABLE>
<CAPTION>
                            2007                      2006                       2005
                 -------------------------  -------------------------  --------------------------
Variable                  Weighted-Average           Weighted-Average           Weighted-Average
Options          Shares    Exercise Price   Shares    Exercise Price   Shares    Exercise Price
-------------------------------------------------------------------------------------------------
<S>           <C>              <C>         <C>            <C>           <C>          <C>
Outstanding at
 beginning
 of year        615,967        $ 0.87        688,609      $ 0.87        691,193      $ 0.87
-------------------------------------------------------------------------------------------------
Granted             --            --             --          --             --          --
Forfeited       (17,017)         0.87         (5,975)       0.87           (500)       0.87
Expired         (16,250)         0.87        (66,667)       0.87         (2,084)       0.87
-------------------------------------------------------------------------------------------------
Outstanding
 at end
 of year        582,700          0.87        615,967        0.87        688,609        0.87
-------------------------------------------------------------------------------------------------
Options
 exercisable
 at year-end    582,700                      615,967                    671,942
-------------------------------------------------------------------------------------------------
</TABLE>

  The following table summarizes information about variable stock options
outstanding at February 28, 2007:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
                             Options Outstanding                       Options Exercisable
                ------------------------------------------------   ----------------------------
   Range of       Number       Weighted-Average     Weighted-        Number        Weighted-
   Exercise     Outstanding       Remaining          Average       Exercisable      Average
    Prices      at 02/28/06   Contractual Life    Exercise Price   at 02/28/06   Exercise Price
-------------------------------------------------------------------------------------------------
<S>               <C>            <C>                  <C>          <C>             <C>
$ 0.00 - 1.00     582,700        1.86 years           0.87         582,700         0.87
-------------------------------------------------------------------------------------------------
</TABLE>

16.  SEGMENT INFORMATION

  The Company has one reportable segment from continuing operations consisting
of corporate administration.  See "Note 9.  Discontinued Operations" for the
results of the Company's discontinued operations.  The Company has no inter-
segment sales.

                                    F-30

<PAGE> 73
17. RELATED PARTY TRANSACTIONS

  In connection with the resolution of various bankruptcy issues with respect
to the Company's Biloxi operations, JECA entered into an agreement (the "JECA
Proceeds Distribution Agreement") with John S. Aylsworth, President, Chief
Executive Officer, Chief Operating Officer and Director of the Company,
Terrence L. Wirginis, former Vice President and former Chairman of the Board
and Ralph J. Vaclavik, Senior Vice President and Chief Financial Officer of
the Company, pursuant to which upon receipt of funds by JECA toward payment of
the liquidation preference of its Class B membership interest in PBLLC, JECA
will use its best efforts to pay a percentage of such funds to Messrs.
Aylsworth, Wirginis and Vaclavik based on the total sales proceeds distributed
to JECA.  While final distributions under the Mississippi Plan of Liquidation
are subject to final determination and settlement of claims and expenses, the
Company has determined that the proceeds of the sale of the Mississippi
Properties was not be sufficient to repay the Noteholders the outstanding
indebtedness under the Notes and, in addition, the Company currently estimates
that proceeds will not be sufficient to satisfy JECA's liquidation preference
of its Class B membership interest in PBLLC.  Pursuant to the terms of the
JECA Proceeds Distribution Agreement, Messrs. Aylsworth, Wirginis and Vaclavik
would have been entitled to receive an aggregate of approximately $4,780,
$4,780 and $300, respectively, were the proceeds sufficient to satisfy the
Class B membership unit.  See "Note 1.  Bankruptcy Proceedings."

  During the year ended February 28, 2006, the Company made distributions from
the proceeds of the sale of the Mississippi Properties.  JECA's Class B
membership interest was partially redeemed for $16,125, of which, Messrs.
Aylsworth, Wirginis and Vaclavik were paid $3,956, $3,956 and $300,
respectively.  During the year ended February 28, 2007, the Company redeemed
JECA's Class B interest in the amount of $1,045, of which additional
distributions of $261 were made to Messrs. Aylsworth and Wirginis each.
Messrs. Aylsworth and Wirginis are each entitled to receive an additional $563
from JECA.

18.  SUPPLEMENTAL CASH FLOW STATEMENT DISCLOSURES

  The components of net change in working capital accounts, including such
amounts related to discontinued operations, are as follows:

                                                  2007       2006       2005
                                                 ------     ------     ------
  Changes in working capital accounts:
    Receivables, net.......................... $     34   $    356   $  (118)
    Prepaid expenses and other current assets.    1,852      1,190       643
    Accounts payable..........................   (3,333)    (1,345)   (4,174)
    Income taxes payable......................      364         32       --
    Accrued payroll and benefits..............   (1,501)    (1,755)   (1,345)
    Other accrued liabilities.................   (4,749)   (15,432)      638
                                               ---------  ---------  --------
                                               $ (7,333)  $(16,984)  $(4,356)
                                               =========  =========  ========

  During fiscal years 2007, 2006 and 2005, the Company paid $22, $315 and $19,
respectively, in net income taxes.  The Company paid no interest during the
year ended February 28, 2007.  Interest paid by the Company was $13,626 and
$2,946 for the years ended February 28, 2006 and 2005, respectively.

                                   F-31

<PAGE> 74
19.  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

  The following table sets forth consolidated income statement data for the
periods indicated.  The quarterly information is unaudited, but in
management's opinion reflects all adjustments necessary for a fair
presentation of the information for the periods presented.

<TABLE>
<CAPTION>
                                           Fiscal 2007 Quarters Ended
                                     May 31     Aug. 31    Nov. 30    Feb. 28
                                    --------   ---------  ---------  ---------

<S>                                 <C>        <C>        <C>        <C>
Operating revenues................  $    --    $    --    $    --    $     --

Operating loss....................      (658)      (510)      (491)     (482)

Income (loss) before minority
  interest income taxes and
  discontinued operations.........      (648)      (470)     9,519      (630)

Income (loss) from continuing
 operations.......................      (716)      (540)     9,890      (630)

Income (loss) from discontinued
  operations......................      (160)     2,486        165      (391)

Net income (loss).................      (876)     1,946     10,055     (1,021)
                                    =========  =========  =========  =========
Basic and diluted income (loss)
  per share from continuing
 operations.......................   $ (0.14)   $ (0.11)   $  1.97    $ (0.12)
Basic and diluted income (loss)
  per share from discontinued
  operations......................     (0.03)      0.49       0.03      (0.08)
                                     --------   --------   --------   --------
Basic and diluted net income
 (loss) per share.................   $ (0.17)   $  0.38    $  2.00    $ (0.20)
                                     ========   ========   ========   ========
</TABLE>

                                    F-32

<PAGE> 75
<TABLE>
<CAPTION>
                                           Fiscal 2006 Quarters Ended
                                     May 31     Aug. 31    Nov. 30    Feb. 28
                                    --------   ---------  ---------  ---------

<S>                                 <C>        <C>        <C>        <C>
Operating revenues................  $    --    $    --    $    --    $     --

Operating loss....................      (737)      (677)      (575)      (622)

Loss before income tax,
  minority interest and
  discontinued operations.........    (1,506)      (424)      (562)      (521)

Loss from continuing operations...    (1,861)      (561)      (634)      (593)

Income from discontinued
  operations......................    30,936       2,688     2,350      2,016

Net income........................    29,075       2,127     1,716      1,423
                                    =========  =========  =========  =========
Basic and diluted loss per
  share from continuing operations   $ (0.37)   $ (0.11)   $ (0.13)   $ (0.12)
Basic and diluted income
  per share from discontinued
  operations......................      6.15       0.53       0.47       0.40
                                     --------   --------   --------   --------
Basic and diluted net income
  per share.......................   $  5.78    $  0.42    $  0.34    $  0.28
                                     ========   ========   ========   ========
</TABLE>

  During the third quarter of fiscal 2007, the Company and President Missouri
announced that the Company and President Missouri had entered into a
Settlement Agreement which resolved a dispute between the competing bankruptcy
reorganization plans.  The Settlement Agreement provided that the
reorganization plan previously filed by President Missouri would be amended in
various respects, including a reduction in the amount to be paid to the
holders of the Notes under the plan by $5,000 which was permanently waived.
An additional $5,000 under the Notes has be deferred, and will be payable from
one-half of any future amounts in excess of $5,000 recovered by the Company
pursuant to certain pending litigation and tax refund claims.  As such,
$10,000 was recognized as income from continuing operations.

                                   F-33

<PAGE> 76
<TABLE>
<CAPTION>
                                      PRESIDENT CASINOS, INC.
                                      (DEBTORS-IN-POSSESSION)
                         SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS
                       For the Years Ended February 28, 2007, 2006 and 2005
                                          (in thousands)

                                                           Additions
                                              Balance at   Charged to
                                              Beginning    Costs and                 Balance at
        Description                            of Year      Expenses    Deductions   End of Year
        -----------                           ---------    ----------    ---------    ---------

<S>                                            <C>          <C>          <C>          <C>


Allowance for Doubtful Accounts Receivable:

Year ended February 28, 2007...............    $    22      $     2       $  (24)(a)  $    --

Year ended February 28, 2006...............         48            7          (33)(a)       22

Year ended February 28, 2005...............        119           62         (133)(a)       48

Allowance for Deferred Income Tax
  Asset Valuation:

Year ended February 28, 2007...............     59,575       (5,269)(b)      --        54,306

Year ended February 28, 2006...............     61,379       (1,804)(c)      --        59,575

Year ended February 28, 2005...............     69,911       (8,532)(d)      --        61,379
</TABLE>

(a)  Write-offs of uncollectible accounts receivable, net of recoveries.

(b)  The decrease in the reserve is due to a decrease in net deferred tax
     assets.

(b)  The decrease in the reserve is due to a decrease in net deferred tax
     assets of $2,104 and an increase in the valuation allowance of $300
     for that alternative minimum tax credit which more likely than not will
     be realized.

(c)  The decrease in the reserve is due to a decrease in net deferred tax
     assets of $2,825 and a decrease in the valuation allowance of $5,707
     for that portion of the net operating loss carryforward which more
     likely than not will be realized.

  See "Note 11.  Income Taxes" for disclosure regarding the Company's income
taxes.

                                    F-34<PAGE> 77
                              SIGNATURES

  Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized.

PRESIDENT CASINOS, INC.

By:     /s/ Ralph J. Vaclavik
    ---------------------------
    Name:   Ralph J. Vaclavik
    Title:  Senior Vice President
            and Chief Financial Officer

    Date:   June 12, 2007

  Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed on this 12th day of June, 2007 by the following persons
on behalf of the registrant in the capacities indicated.

Signature                            Capacity
----------                           --------


  /s/ John S. Aylsworth             President, Chief Executive Officer, Chief
--------------------------          Operating Officer and Director
John S. Aylsworth


  /s/ Karl G. Andren                Director
--------------------------
Karl G. Andren


  /s/ Royal P. Walker, Jr.          Director
--------------------------
Royal P. Walker, Jr.


  /s/ Ralph J. Vaclavik             Senior Vice President and
--------------------------          Chief Financial Officer
Ralph J. Vaclavik



                                   F-35
<PAGE> 78
                            PRESIDENT CASINOS, INC.
                                EXHIBIT INDEX
  Exhibits
   2.1      Asset Sale Agreement, dated as of July 19, 2000, by and among
            The Connelly Group, L.P. ("TCG"), TCG/Blackhawk, Inc.
            ("Blackhawk") (collectively, the "Sellers"), and IOC-Davenport,
            Inc. and Isle of Capri Casinos, Inc. ("Purchasers"). (17)
   2.2      Riverboat Casino Sale and Purchase Agreement entered into as of
            30th day of September, 2004, by and among President Casinos, Inc.
            debtor and debtor-in-possession in a Chapter 11 bankruptcy case,
            Case No. 02-53005 pending in the United States Bankruptcy Court
            for the Eastern District of Missouri, President Riverboat
            Casino-Missouri, Inc. and Columbia Sussex Corporation. (27)
   2.3      Sale and Purchase Agreement, dated as of November 15, 2004, by
            and between The President Riverboat Casino-Mississippi, Inc.,
            Vegas, Vegas, Inc. (each a debtor in Case No. 02-53005-172
            pending in the United States Bankruptcy Court for the Eastern
            District of Missouri), President Broadwater Hotel, LLC, on the
            one hand, and Broadwater Properties, LLC, on the other hand. (28)
   2.4      Amendment to Sale and Purchase Agreement, dated as of November
            29, 2004, by and between The President Riverboat Casino-
            Mississippi, Inc., Vegas, Vegas, Inc. (each a debtor in Case No.
            02-53005-172 pending in the United States Bankruptcy Court for
            the Eastern District of Missouri), President Broadwater Hotel,
            LLC, on the one hand, and Broadwater Properties, LLC, on the
            other hand. (29)
   2.5      Second Amendment to Sale and Purchase Agreement executed and
            delivered the 20th day of January, 2005, by Broadwater
            Development, LLP to President Riverboat Casino-Mississippi,
            Inc., Vegas Vegas, Inc. (each a debtor in Case No. 02-53005-172
            pending in the United States Bankruptcy Court for the Eastern
            District of Missouri, and President Broadwater Hotel, LLC. (30)
   2.6      Riverboat Casino Sale and Purchase Agreement entered into as of
            February 24, 2006, by and among President Casinos, Inc.,
            debtor and debtor-in-possession in a chapter 11 bankruptcy case,
            Case No. 02-53005 pending in the United States Bankruptcy Court
            for the Eastern District of Missouri, President Riverboat Casino-
            Missouri, Inc. and Pinnacle Entertainment, Inc. (32)
   2.7      First Amended Jointly Proposed Chapter 11 Plan of Reorganization
            dated June 23, 2005 for Debtor President Riverboat Casino-
            Missouri, Inc. (31)
   2.7.1    Modifications to First Amended Jointly Proposed Plan of
            Reorganization of President Riverboat Casino-Missouri, Inc.,
            dated June 23, 2005. (31)
   2.7.2    Fourth Amended Chapter 11 Plan of Reorganization dated October
            17, 2006 for Debtor President Missouri. (34)
   2.8      Settlement Agreement, dated as of October 10, 2006, by and among
            Pinnacle Entertainment, Inc., the Official Equity Committee of
            Equity Security Holders of President Casinos, Inc., President
            Casinos, Inc. President Missouri and Terrence L. Wirginis. (35)
   3.1      Restated Articles of Incorporation of the Company. (21)
   3.2      By-Laws of the Company, as amended. (33)
   4.1      Indenture dated as of August 26, 1994, by and among the Company,
            the Guarantors and United States Trust Company of New York
            ("U.S. Trust"). (6)
   4.1.1    Form of Senior Exchange Note issued pursuant to Indenture. (5)
   4.1.2    Warrant Agreement dated as of September 23, 1993, by and between

                                  F-36


<PAGE> 79
            the Company and U.S. Trust, as Warrant agent. (4)
   4.1.3    Warrant Agreement dated as of August 26, 1994, by and between
            the Company and U.S. Trust. (6)
   4.1.4    Subsidiary Stock Pledge and Collateral Assignment Agreement
            dated as of August 26, 1994, by the Company and Subsidiary
            Pledgors in favor of U.S. Trust, as collateral agent. (6)
   4.2      Rights Agreement, dated as of November 20, 1997, between the
            Company and ChaseMellon Shareholder Services, LLC. (12)
   4.3      Agreement to Exchange Securities, dated December 3, 1998 by and
            among the Company, President Riverboat Casino-Iowa, Inc.
            ("President Iowa"), President Riverboat Casino-Missouri, Inc.
            ("President Missouri"), The President Riverboat Casino-
            Mississippi, Inc. ("President Mississippi"), Blackhawk, P.R.C.-
            Louisiana, Inc., President Riverboat Casino-New York, Inc.
            ("President New York"), President Casino New Yorker, Inc., PRC
            Holdings Corporation, PRC Management, Inc. ("PRC Management"),
            PRCX Corporation, President Riverboat Casino-Philadelphia, Inc.
            ("President Philadelphia"), Vegas, Vegas, Inc., and TCG and each
            holder of the Company's 13% Senior Exchange Notes due 2001. (14)
   4.3.1    Indenture dated as of December 3, 1998, among The Company,
            President Iowa, President Missouri, President Mississippi,
            Blackhawk, P.R.C.-Louisiana, Inc., President New York, President
            Casino New Yorker, Inc., PRC Holdings Corporation, PRC
            Management, PRCX Corporation, President Philadelphia, Vegas,
            Vegas, Inc. and TCG and U.S. Trust Company of Texas, N.A. (14)
   4.4.2    President Casinos, Inc. Supplemental Indenture with respect to
            $25,000,000 12% Notes due September 15, 2001. (18)
   4.4.3    President Casinos, Inc. Supplemental Indenture with respect to
            $75,000,000 13% Senior Notes due September 15, 2001. (18)
   10.1     Amended and Restated Agreement of Limited Partnership of TCG. (1)
   10.2     The Company's 1992 Stock Option Plan, as amended. (5)
 * 10.2.1   The Company's 1996 Amended and Restated Stock Option Plan. (7)
 * 10.2.2   The Company's 1997 Stock Option Plan. (11)
 * 10.2.3   The Company's 1999 Incentive Stock Plan. (15)
   10.3     Management Advisory Agreement for TCG. (1)
   10.4     Promissory Note (Vessel-Term) dated July 8, 1992, from President
            Mississippi to Caterpillar. (3)
   10.4.1   Loan Agreement dated July 31, 1992, between President
            Mississippi and Caterpillar. (1)
   10.4.2   Preferred Fleet Mortgage dated July 8, 1992, between President
            Mississippi and Caterpillar. (1)
   10.5     Form of Indemnification Agreement for Directors and Officers. (1)
 * 10.6     1998 Fiscal Year Management Incentive Plan Participant Form. (9)
   10.7     Promissory Note dated July 22, 1997, by and between President
            Broadwater Hotel, L.L.C. (Broadwater LLC) and Lehman Brothers
            Holdings Inc. ("Lehman"). (8)
   10.7.1   Redemption Agreement dated July 22, 1997, by and among J. Edward
            Connelly Associates, Inc. ("JECA") and Broadwater LLC and
            Broadwater Hotel, Inc. (8)
   10.7.2   Indemnity Agreement dated July 22, 1997, by Broadwater LLC, the
            Company and President Mississippi, jointly and severally, in
            favor of Lehman. (8)
   10.7.3   Indemnity and Guaranty Agreement dated July 22, 1997, by the
            Company and President Mississippi in favor of Lehman. (11)
   10.7.4   Unconditional Guaranty of Lease Obligations dated July 22, 1997,
            by the Company. (8)
   10.7.5   Amended and Restated Limited Liability Company Operating

                                    F-37

<PAGE> 80
            Agreement, dated as of July 22, 1997, by and between JECA and
            President Broadwater Hotel, Inc. (8)
   10.8     Relocation Funding Agreement entered into January 18, 2000, by
            and among the City of St. Louis, Missouri, the Port Authority of
            the City of St. Louis, President Missouri and Mercantile Bank
            National Association. (16)
   10.8.1   Lease and Sublease Agreement entered into January 18, 2000,
            among the City of St. Louis, the Port Authority of the City of
            St. Louis and President Missouri. (16)
   10.8.2   Escrow Agreement made as of January 18, 2000, by and among
            Mercantile Bank, President Missouri and U.S. Title Guaranty
            Company, Inc. (16)
   10.8.3   Escrow Agreement made as of January 18, 2000, by and among the
            Port Authority of the City of St. Louis, President Missouri and
            U.S. Title Guaranty Company, Inc. (16)
   10.9     Agreement, dated as of October 10, 2000, entered into by and
            among the Company, PRC Holdings Corporation, PRC Management,
            PRCX, Inc., President Philadelphia, P.R.C. Louisiana, Inc.,
            Vegas Vegas, Inc., President New York, President Mississippi
            Charter Corp., President Missouri, President Mississippi,
            Broadwater Hotel, Inc., President Iowa, Blackhawk, President
            Casino New Yorker, Inc., TCG, and President Broadwater Hotel,
            LLC, and each of the undersigned holders of the US $100.0
            million 13% Senior Notes, due September 15, 2001 issued pursuant
            to that certain indenture dated as of August 26, 1994 by and
            between the Company and United States Trust Company of New York,
            as trustee, of which US $75.0 million in principal amount is
            outstanding, and holders of the US $25.0 million 12% Notes, due
            September 15, 2001 issued pursuant to that certain indenture
            dated as of December 3, 1998, by and between the Company and
            U.S. Trust Company of Texas, N.A., as trustee. (17)
  *10.10    Employment agreement dated February 1, 1999, by and between the
            Company and Ralph J. Vaclavik. (20)
  *10.10.1  Employment agreement dated March 1, 2002, by and between the
            Company and Ralph J. Vaclavik. (22)
   10.11    Amended and Restated Promissory Note dated as of May 28, 2003 by
            and between President Broadwater Hotel, LLC and Lehman Brothers
            Holdings Inc. (23)
   10.11.1  Amended and Restated Deed of Trust, Security Agreement and
            Fixture Filing made as of the 28th day of May, 2003, by
            President Broadwater Hotel, LLC for the benefit of Lehman
            Brothers Holdings Inc. (23)
   10.11.2  Amended and Restated Security Agreement and Lockbox Agreement
            dated as of May 28, 2003 by and among President Broadwater Hotel,
            LLC, Lehman Brothers Holdings Inc. and Trimont Real Estate
            Advisors. (23)
   10.11.3  Amended and Restated Security Agreement and Assignment of
            Contractual Agreements Affecting Real Estate made as of May 28,
            2003, by President Broadwater Hotel, LLC in favor of Lehman
            Brothers Holdings Inc. (23)
   10.12    Riverboat Casino Sale and Purchase Agreement entered into as of
            25th day of September, 2003, by and between President Missouri,
            debtor-in-possession in Case No. 02-53404-SEG pending in the
            United States Bankruptcy Court for the Eastern District of
            Missouri, and STLP, L.L.C.  (24)
   10.12.1  Eighth Amendment to Riverboat Casino Sale and Purchase Agreement
            entered into as of the 2nd day of December, 2003, by and between

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<PAGE> 81
            President Missouri, debtor-in-possession in Case No. 02-53404-
            SEG pending in the United States Bankruptcy Court for the
            Eastern District of Missouri, and IOC-City of St. Louis, LLC,
            f/k/a STLP, L.L.C. (25)
   10.13    Agreement for Purchase and Sale of President Broadwater Tower
            by and between President Broadwater Hotel, LLC and Site Realty
            Inc., a subsidiary of Morgan Niko, Inc. (26)
   10.14    Letter Agreement entered into February 24, 2006 among Pinnacle
            Entertainment, Inc., President Casinos, Inc. and President
            Riverboat Casino-Missouri, Inc. (32)
   21       Schedule of subsidiaries of the Company.
   23.1     Consent of Deloitte & Touche, L.L.P. with respect to the
            Company's Registration Statements on Form S-8, as filed on June
            8, 1994, January 8, 1998 and October 10, 2001.
   31.1     Certification of Chief Executive Officer Pursuant to 18 Rule
            131-14(a) under the Securities Exchange Act of 1934, as amended.
   31.2     Certification of Chief Financial Officer Pursuant to 18 Rule
            131-14(a) under the Securities Exchange Act of 1934, as amended.
   32.1     Certification of Chief Executive Officer Pursuant to 18 U.S.C.
            Section 1350, as Adopted Pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.
   32.2     Certification of Chief Financial Officer Pursuant to 18 U.S.C.
            Section 1350, as Adopted Pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.
__________________
(1)  Incorporated by reference from the Company's Registration Statement on
     Form S-1 (File No. 33-48446) filed on June 5, 1992.
(2)  Incorporated by reference from the Company's Registration Statement on
     Form S-1 (Registration No. 33-63174), filed on May 21, 1993.
(3)  Incorporated by reference from the Company's Annual Report on Form 10-K
     for the Fiscal Year Ended February 28, 1993 filed on June 1, 1993.
(4)  Incorporated by reference from the Company's Registration Statement on
     Form S-4 (File No. 33-71332) filed November 5, 1993.
(5)  Incorporated by reference from the Company's Registration Statement on
     Form S-8 dated June 8, 1994.
(6)  Incorporated by reference from the Company's Registration Statement on
     Form S-4 (File No. 33-86386) filed November 15, 1994.
(7)  Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended November 30, 1996 filed January 14,
     1997.
(8)  Incorporated by reference from the Company's Report on Form 8-K dated
     July 24, 1997.
(9)  Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended August 31, 1997 filed October 10,
     1997.
(10) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended November 30, 1997 filed January 14,
     1998.
(11) Incorporated by reference from the Company's Definitive Proxy Statement
     for the 1997 Annual Meeting of Stockholders.
(12) Incorporated by reference from the Company's Registration Statement on
     Form 8-A dated December 5, 1997.
(13) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended August 31, 1998 filed October 15,
     1998.
(14) Incorporated by reference from the Company's Report on Form 8-K
     dated December 15, 1998.

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<PAGE> 82
(15) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended August 31, 1999 filed October 15,
     1999.
(16) Incorporated by reference from the Company's Annual Report on Form 10-K
     for the Fiscal Year Ended February 29, 2000 on May 30, 2000.
(17) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended August 31, 2000 filed October 19,
     2000.
(18) Incorporated by reference from the Company's Report on Form 8-K dated
     November 22, 2000.
(19) Incorporated by reference from the Company's Annual Report on Form 10-K
     for the Fiscal Year Ended February 28, 2001 on May 29, 2001.
(20) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended May 31, 2001 filed July 13, 2001.
(21) Incorporated by reference from the Company's Registration Statement on
     Form S-8 dated October 10, 2001.
(22) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended Ausust 31, 2002 filed October 15,
     2002.
(23) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended May 31, 2003 filed July 14, 2003.
(24) Incorporated by reference from the Company's Report on Form 8-K dated
     September 25, 2003.
(25) Incorporated by reference from the Company's Report on Form 8-K dated
     December 30, 2003.
(26) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended May 31, 2004 filed July 14, 2004.
(27) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q dated August 31, 2004.
(28) Incorporated by reference from the Company's Report on Form 8-K dated
     November 15, 2004.
(29) Incorporated by reference from the Company's Report on Form 8-K dated
     November 29, 2004.
(30) Incorporated by reference from the Company's Report on Form 8-K dated
     January 20, 2005.
(31) Incorporated by reference from the Company's Quarterly Report on Form
     10-Q for the quarterly period ended August 31, 2005 filed October 13,
     2005.
(32) Incorporated by reference from the Company's Report on Form 8-K dated
     February 24, 2006.
(33) Incorporated by reference from the Company's Report on Form 8-K dated
     April 4, 2006.
(34) Incorporated by reference from the Company's Report on Form 8-K dated
     December 4, 2006.
(35) Incorporated by reference from the Company's Report on Form 8-K dated
     October 10, 2006.

 *   Compensatory plan filed as an exhibit pursuant to Item 14(c) of this
     report.

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