| Indiana                                                             | THE      MAJESTIC STAR CASINO, LLC                              | 43-1664986                                |
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| Indiana                                                             | THE      MAJESTIC STAR CASINO CAPITAL CORP.                     | 35-2100872                                |
| Indiana                                                             | MAJESTIC      STAR CASINO CAPITAL CORP. II                      | 20-3879309                                |
| (State      or other jurisdiction of incorporation or organization) | (Exact      name of registrantas      specified in its charter) | (I.R.S.      Employer Identification No.) |

|   |  Yes      [   ] |  No      [X ] |   |
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|   |  Yes      [ X ] |  No      [  ] |   |
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|   |  Yes      [X] |  No      [   ] |   |
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| Large      accelerated filer [   ] | Accelerated      Filer [   ] | Non-accelerated      filer [X]                     | Smaller      reporting  company [   ] |   |
|----------------------------------------------|----------------------------------------|----------------------------------------------------|-----------------------------------------------------------|--------|
|                                         |                                   | (Do      not check if a smaller reporting company) |                                                      |   |

|   |  Yes      [   ] |  No      [X ] |   |
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|  PART      I    |                                                                                                                    |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------|
| Item 1.                   | Business                                                                                                                | 1 |
| Item 1A.                  | Risk Factors                                                                                                            | 12 |
| Item 1B.                  | Unresolved Staff Comments                                                                                               | 19 |
| Item 2.                   | Properties                                                                                                              | 19 |
| Item 3.                   | Legal Proceedings                                                                                                       | 20 |
| Item 4.                   | Submission of Matters to a Vote of Security      Holders                                                                | 25 |
|  PART      II   |                                                                                                                    |
| Item 5.                   | Market for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 25 |
| Item 6.                   | Selected Financial Data                                                                                                 | 25 |
| Item 7.                   | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                        | 27 |
| Item 7A.                  | Quantitative and Qualitative Disclosures About Market      Risk                                                         | 38 |
| Item 8.                   | Financial Statements and Supplementary    Data                                                                          | 39 |
| Item 9.                   | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                               | 39 |
| Item 9A.                  | Controls and Procedures                                                                                                 | 39 |
| Item 9B.                  | Other Information                                                                                                       | 40 |
|  PART      III  |                                                                                                                    |
| Item 10.                  | Directors, Executive Officers and Corporate      Governance                                                             | 40 |
| Item 11.                  | Executive Compensation                                                                                                  | 42 |
| Item 12.                  | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters                     | 50 |
| Item 13.                  | Certain Relationships and Related Transactions, and      Director Independence                                          | 51 |
| Item 14.                  | Principal Accountant Fees and Services                                                                                  | 53 |
|  PART      IV   |                                                                                                                    |
| Item 15.                  | Exhibits and Financial Statement    Schedules                                                                           | 53 |
|                      |                                                                                                                    |   |
| Signatures                | S-1                                                                                                                     |

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ITEM 1. BUSINESS

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| ·   | Good      Locations in Strong Drive-in Markets.  Our properties are      located in significant drive-in gaming markets, which allow our casino      patrons to reach us in short travel times and to make repeated trips to      our gaming facilities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gaming      Brands.  We believe our gaming brands help attract and retain      customers. |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Emphasis      on Slot Play.  We emphasize slot machine wagering, which we      believe is the most stable and most profitable segment of the casino      entertainment business. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Focus      on Quality and Service at an Affordable Price. Our casinos provide a      quality casino entertainment experience at an affordable price to attract      middle market guests. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strong      Ownership and Experienced Management.  Don H. Barden, our      Chairman, President and Chief Executive Officer and principal shareholder,      our property management teams and corporate staff have extensive      experience in the gaming industry, with in-depth knowledge and experience      regarding the markets in which they conduct  business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | the      prevention of unsavory or unsuitable persons from having a direct or      indirect involvement with gaming at any time or in any      capacity; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      establishment and maintenance of responsible accounting practices and      procedures; |
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| ·   | the      maintenance of effective controls over the financial practices of      licensees, including the establishment of minimum procedures for internal      fiscal affairs and the safeguarding of assets and revenues, providing for      reliable record keeping and requiring the filing of periodic reports with      the Mississippi Commission; |
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| ·   | the      prevention of cheating and fraudulentpractices; |
|--------------------|----------------------------------------------------------|

| ·   | providing      a source of state and local revenues through taxation and licensing fees;      and |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | ensuring      that gaming licensees, to the extent practicable, employ Mississippi      residents. |
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| ·   | pays      to the unsuitable person any dividend, interest, or any distribution      whatsoever; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | recognizes      any voting right by the unsuitable person in connection with those      securities; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | pays      the unsuitable person remuneration in any form;  or |
|--------------------|---------------------------------------------------------------|

| ·   | makes      any payment to the unsuitable person by way of principal, redemption,      conversion, exchange, liquidation, or similar  transaction. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | a      percentage of the gross gaming revenues received by the casino      operation; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | the      number of gaming devices operated by the casino;  or |
|--------------------|---------------------------------------------------------------|

| ·   | the      number of table games operated by thecasino. |
|--------------------|-------------------------------------------------------|

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ITEM 1A.  RISK FACTORS

You should be aware that the occurrence of any of theevents described in this section and elsewhere in this report or in any other ofour filings with the Securities and Exchange Commission (“SEC”) could have amaterial adverse effect on our business, financial position, results ofoperations and cash flows. In evaluating us, you should consider carefully,among other things, the risks described below.

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| ·   | make      it more difficult for us to satisfy our obligations with respect to the      Notes and our other outstandingindebtedness; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | require      us to direct a substantial portion of our cash flow from operations to      payments on our indebtedness, thereby reducing the availability of our      cash flow to fund working capital, capital expenditures, development      projects, marketing and other general corporate  purposes; |
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| ·   | increase      our vulnerability to adverse economic and industry conditions or a      downturn in our business; |
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| ·   | result      in an event of default if we fail to comply with the financial and other      restrictive covenants contained in the indentures governing the Notes or      our Senior Secured Credit Facility, which event of default could result in      all of our indebtedness becoming immediately due and payable and would      permit some of our lenders to foreclose on our assets securing such      indebtedness; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limit      our ability to fund or obtain additional financing for future working      capital, capital expenditures, development projects and other general      corporate purposes; or |
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| ·   | place      us at a competitive disadvantage compared to our competitors that have      less debt. |
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ITEM 1B.  UNRESOLVED STAFF COMMENTS

ITEM 2.  PROPERTIES

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ITEM 3.  LEGAL PROCEEDINGS

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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDERMATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 6. SELECTED FINANCIAL DATA

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|                                            |   | For      The Years Ended December 31, |    |
|-------------------------------------------------|--------|---------------------------------------|---------|
|  (in      thousands)                       |   | 2007                                  |    |   | 2006 |   |   | 2005      (1) |   |   | 2004 |   |   | 2003 |   |
|                                            |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| STATEMENT      OF OPERATIONS DATA:         |   |                                  |    |   |   |   |   |   |   |   |   |   |   |
| Net      revenues                               |   | $                                     | 358,098 |   |   | $ | 354,234 |   |   | $ | 261,972 |   |   | $ | 260,511 |   |   | $ | 244,955 |   |
| Cost      and expenses                          |   |                                  | 323,108 |   |   |   | 308,573 |   |   |   | 233,241 |   |   |   | 226,761 |   |   |   | 213,510 |   |
| Operating      income                           |   |                                  | 34,990  |   |   |   | 45,660 |   |   |   | 28,731 |   |   |   | 33,750 |   |   |   | 31,445 |   |
| Interest      expense, net (2)                  |   |                                  | (60,956 | ) |   |   | (59,852 | ) |   |   | (30,217 | ) |   |   | (28,530 | ) |   |   | (31,179 | ) |
| Loss      on extinguishment of debt             |   |                                  | -       |   |   |   | - |   |   |   | (3,688 | ) |   |   | - |   |   |   | (31,960 | ) |
| (Loss)      income from continuing operations   |   |                                  | (26,051 | ) |   |   | (14,307 | ) |   |   | (5,302 | ) |   |   | 5,019 |   |   |   | (31,879 | ) |
| Loss      from discontinued operations (3) |   |                                  | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,973 | ) |
| Net      (loss) income                          |   |                                  | (26,051 | ) |   |   | (14,307 | ) |   |   | (5,302 | ) |   |   | 5,019 |   |   |   | (43,852 | ) |
|                                            |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                           |   | As      of December 31, |     |
|--------------------------------|--------|-------------------------|----------|
|  (in      thousands)      |   | 2007                    |     |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                           |   |                         |     |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE      SHEET DATA:       |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents |   | $                       | 29,216   |   |   | $ | 25,532 |   |   | $ | 32,368 |   |   | $ | 16,722 |   |   | $ | 22,058 |   |
| Restricted      cash           |   |                    | 3,401    |   |   |   | 3,327 |   |   |   | 3,190 |   |   |   | 2,540 |   |   |   | 1,400 |   |
| Investment      in BHR, net    |   |                    | -        |   |   |   | - |   |   |   | - |   |   |   | 27,432 |   |   |   | 29,734 |   |
| Total      assets (2)          |   |                    | 505,690  |   |   |   | 506,359 |   |   |   | 517,959 |   |   |   | 246,376 |   |   |   | 233,215 |   |
| Current      liabilities       |   |                    | 59,236   |   |   |   | 49,022 |   |   |   | 46,074 |   |   |   | 31,918 |   |   |   | 33,666 |   |
| Long-term      debt (2)        |   |                    | 614,246  |   |   |   | 596,928 |   |   |   | 592,699 |   |   |   | 316,858 |   |   |   | 301,715 |   |
| Total      liabilities         |   |                    | 673,482  |   |   |   | 645,950 |   |   |   | 638,773 |   |   |   | 348,776 |   |   |   | 335,382 |   |
| Member’s      deficit    |   |                    | (167,792 | ) |   |   | (139,591 | ) |   |   | (120,814 | ) |   |   | (102,400 | ) |   |   | (102,167 | ) |
|                           |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | The      2005 financial data includes 11 days of operating results related to the      acquisition of Trump Indiana and BHR, (including 100% of BHR’s operations      rather than 50%, as BHR had formerly been a 50% joint venture of the      Company and accounted for under the equity method of accounting). The 2005      financial data also includes 11 days of operations for BHPA, which also      became a wholly owned subsidiary as a result of the Trump Indiana      acquisition and a contribution of our affiliate’s 50% interest in BHPA to      the Company. |
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| (2) | Pursuant      to SEC Staff Accounting Bulletin 73 Topic 5(J) related to “pushdown” basis      of accounting, the Company’s financial statements include $63.5 million      principal amount of Majestic Holdco’s the Discount Notes, and related      financing costs, including amortization and interest on such debt. Neither      the Company nor any of its direct or indirect subsidiaries is a guarantor      of the Discount Notes. Neither the equity nor assets of the Company or any      of its direct or indirect subsidiaries secure the Discount Notes. The      Company is restricted in the amount of cash that can be distributed to      Majestic Holdco. The Discount Notes, net of original issue discount, in      the amount of $45.3 million was pushed down to the Company at December 31,      2005. In addition, financing costs of $2.8 million and associated      amortization of $20,000 were pushed down. Lastly, interest in the amount      of $0.2 million was pushed down. As of December 31, 2006, $51.1      million of Discount Notes, net of original issue discount and financing      costs of $2.4 million were pushed down. As of December 31, 2007,      $57.7 million of Discount Notes, net of original issue discount and      financing costs of $1.9 million were pushed down. The 2007 and 2006      statements of operations include $6.6 million and $5.8 million,      respectively, of interest expense related to the amortization of the      original issue discount and $0.5 million of amortization of      deferred financing costs for eachyear. |
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| (3) | Loss from      discontinued operations for the year ended December 31, 2003 represents      the operating results of Barden Nevada, which was spun off to BDI on      December 31, 2003.  The loss from discontinued operations for the      year ended December 31, 2003 includes a $10.0 million charge resulting      from the write-down of the value of Barden Nevada's assets to fair      market value concurrent with thespin-off. |
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS

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| ·   | The      $32.2 million expansion plans for Fitzgeralds Black Hawk are progressing.      This expansion will add more amenities for our guests and increase the      number of slot machines from approximately 600 to approximately 1,000. The      Company anticipates completing this project in mid-2008. We spent $18.8      million in 2007 on this project and have budgeted $12.9 million for      2008. |
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| ·   | In      2007, we spent $3.2 million completing the Fitzgeralds Tunica hotel      remodel project. The management team at Fitzgeralds Tunica has implemented      and is refining changes to the property’s operating strategy to make the      property more competitive in the Tunica market and attracting a higher      value casino customer, largely through an expanded junket program. Along      with a new advertising program, management has also enhanced the      property’s direct mail, guest development and hosting programs. Management      has also focused on upgrading the property’s food and beverage      operations. |
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| ·   | At      the Majestic Properties, we took over operation of the food and beverage      outlets that were previously operated by BHR. We opened a new fast food      outlet and upgraded the buffet. We also opened a new baccarat gaming      area. |
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| ·   | Both      our Majestic Properties and Fitzgeralds Tunica provide promotional      programs that allow customers to download credits directly to the slot      machine being played (“downloadable promotional credits”).  The      implementation of our downloadable promotional credit programs has      coincided with a significant reduction in our direct mail cash coupon      programs, generally on a dollar for dollar basis.  With our      direct mail cash coupon programs, customers would receive cash coupons      from us which could be redeemed for cash with the hope that the cash would      be wagered at the casinos’ slot machines and table games.  Cash      coupons, when redeemed, are recorded in promotional allowances, which is      netted from gross revenues when computing net revenues.  Neither      the Majestic Properties nor Fitzgeralds Tunica record as slot revenues the      wagering of downloadable promotional credits; however, any jackpots won as      a result of the wagering of these promotional credits are deducted from      slot revenues.  As a result, the net impact of the      implementation of downloadable promotional credits is lower slot coin-in      and slot revenues and corresponding casino revenues.  However,      the lower slot revenues (casino revenues) under the downloadable      promotional credit programs are offset by similar reductions in      promotional allowances under the direct mail cash coupon      programs.  Further, there is a benefit to net revenues as a      result of implementing downloadable promotional credits because the      credits are not redeemable for cash.  Therefore, our customers      must play the downloadable promotional credits at the slot machine,      whereas with our direct mail cash coupon programs, our customers could      redeem their coupons without wagering the cash received. The result of      this program has been an increase in play by those customers that we      track, as well as an increase in the number of players who choose to have      their play tracked. |
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| ·   | Competition      in our markets remains intense and continued aggressive marketing by our      competitors in all our markets will require us to maintain a high level of      marketing and promotional expenses, including      complimentaries.  In particular, new casinos and amenities in      northwest Indiana and Black Hawk, Colorado have impacted the results at      the Majestic Properties and Fitzgeralds Black Hawk in 2007. Enhancements      to existing facilities of our competitors, which should open in 2008, will      intensify the level of competition our Majestic Properties experience in      northwest Indiana. We believe that there will be an increase in penny slot      machines and poker capacity, areas where we have been prominent in the      market. |
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| ·   | Smoking      bans went into effect in Illinois and in Colorado, for casinos which were      previously exempted, on January 1, 2008. We anticipate that the ban in      Colorado will negatively affect revenues at our Black Hawk property,      whereas, the ban in Illinois is expected to increase business at northwest      Indiana casinos. |
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| ·   | In      2008, one of our goals is to control costs without hurting our      competitiveness. Thus, we may not be able to reduce promotional expenses      significantly. Also, our limitations on capital expenditures may cause us      to rely more on leased slot equipment, which is more costly in the long      run. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   | Year      Ended   |    |   | Year      Ended   |   |    |    |   |   | Year      Ended   |   |   |    |    |
|---------------------------------|--------|-------------------|---------|--------|-------------------|--------|---------|---------|--------|--------|-------------------|--------|--------|---------|---------|
|                            |   | December      31, |    |   | December      31, |   |    | Percent |   |   | December      31, |   |   | Percent |    |
|                            |   | 2007              |    |   | 2006              |   |    | Change  |   |   | 2005              |   |   | Change  |    |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |
| Gross      revenues:            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |
| Majestic      Properties        |   | $                 | 269,305 |   |              | $      | 263,264 |    |   |   | 2.3               | %      |   | $       | 160,457 |   |   |   | 64.1 | % |
| Fitzgeralds      Tunica         |   |              | 106,184 |   |              |   | 107,481 |    |   |   | -1.2              | %      |   |    | 106,426 |   |   |   | 1.0 | % |
| Fitzgeralds      Black Hawk     |   |              | 36,008  |   |              |   | 38,549  |    |   |   | -6.6              | %      |   |    | 40,758  |   |   |   | -5.4 | % |
| Total                           |   | $                 | 411,497 |   |              | $      | 409,294 |    |   |   | 0.5               | %      |   | $       | 307,641 |   |   |   | 33.0 | % |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Net      revenues:              |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Majestic      Properties        |   | $                 | 240,573 |   |              | $      | 236,826 |    |   |   | 1.6               | %      |   | $       | 143,624 |   |   |   | 64.9 | % |
| Fitzgeralds      Tunica         |   |              | 86,813  |   |              |   | 83,979  |    |   |   | 3.4               | %      |   |    | 82,939  |   |   |   | 1.3 | % |
| Fitzgeralds      Black Hawk     |   |              | 30,712  |   |              |   | 33,429  |    |   |   | -8.1              | %      |   |    | 35,409  |   |   |   | -5.6 | % |
| Total                           |   | $                 | 358,098 |   |              | $      | 354,234 |    |   |   | 1.1               | %      |   | $       | 261,972 |   |   |   | 35.2 | % |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Casino      revenues:           |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Majestic      Properties        |   | $                 | 247,500 |   |              | $      | 250,707 |    |   |   | -1.3              | %      |   | $       | 155,217 |   |   |   | 61.5 | % |
| Fitzgeralds      Tunica         |   |              | 84,975  |   |              |   | 88,349  |    |   |   | -3.8              | %      |   |    | 87,575  |   |   |   | 0.9 | % |
| Fitzgeralds      Black Hawk     |   |              | 33,424  |   |              |   | 36,058  |    |   |   | -7.3              | %      |   |    | 38,127  |   |   |   | -5.4 | % |
| Total                           |   | $                 | 365,899 |   |              | $      | 375,114 |    |   |   | -2.5              | %      |   | $       | 280,919 |   |   |   | 33.5 | % |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Operating      income (loss):   |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Majestic      Properties        |   | $                 | 30,339  |   |              | $      | 35,183  |    |   |   | -13.8             | %      |   | $       | 18,982  |   |   |   | 85.4 | % |
| Fitzgeralds      Tunica         |   |              | 5,092   |   |              |   | 8,836   |    |   |   | -42.4             | %      |   |    | 10,253  |   |   |   | -13.8 | % |
| Fitzgeralds      Black Hawk (1) |   |              | 5,962   |   |              |   | 8,060   |    |   |   | -26.0             | %      |   |    | 7,393   |   |   |   | 9.0 | % |
| Corporate      (2)              |   |              | (6,403  | )      |              |   | (6,419  | )       |   |   | -0.3              | %      |   |    | (7,896  | ) |   |   | -18.7 | % |
| Total                           |   | $                 | 34,990  |   |              | $      | 45,660  |    |   |   | -23.4             | %      |   | $       | 28,732  |   |   |   | 58.9 | % |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Operating      margin (3):      |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |
| Majestic      Properties        |   |              | 12.6    | %      |              |   | 14.9    | %       |   |   |              |   |   |    | 13.2    | % |   |   |   |   |
| Fitzgeralds      Tunica         |   |              | 5.9     | %      |              |   | 10.5    | %       |   |   |              |   |   |    | 12.4    | % |   |   |   |   |
| Fitzgeralds      Black Hawk (1) |   |              | 19.4    | %      |              |   | 24.1    | %       |   |   |              |   |   |    | 20.9    | % |   |   |   |   |
| Total                           |   |              | 9.8     | %      |              |   | 12.9    | %       |   |   |              |   |   |    | 11.0    | % |   |   |   |   |
|                            |   |              |    |   |              |   |    |    |   |   |              |   |   |    |    |   |   |   |   |   |

| (1)   | Fitzgeralds      Black Hawk’s 2005 depreciation includes $1.5 million catch up depreciation      and amortization expense for the period of time from July 2004 to April      2005 when the property’s assets were held for sale and no depreciation or      amortization expense was recorded. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Corporate      expenses reflect professional fees, payroll, benefits, travel and other      costs associated with our corporate staff and are not allocated to the      properties. Included in 2005 is a $2.3 million charge related to the      termination of the Fitzgeralds Black Hawksale. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Operating      margin is calculated by dividing operating income (loss) by net      revenues. |
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|                           |   | Payments      Due by Year Ended (4) |   |
|--------------------------------|--------|-------------------------------------|--------|
|                           |   | 2008                                |   |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | Thereafter |   |   | Total |   |
|                           |   |                                |   |
| Long-term      debt            |   | $                                   | -      |   |   | $ | - |   |   | $ | 300,000 |   |   | $ | 200,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 500,000 |   |
| Credit      facility           |   |                                | -      |   |   |   | - |   |   |   | 56,425 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,425 |   |
| Capital      leases            |   |                                | 203    |   |   |   | 110 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 313 |   |
| Development      agreement (1) |   |                                | 6,000  |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   | - |   |   |   | 30,000 |   |
| Operating      leases (2)      |   |                                | 383    |   |   |   | 213 |   |   |   | 103 |   |   |   | 45 |   |   |   | 27 |   |   |   | - |   |   |   | 771 |   |
| Interest      on               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt            |   |                                | 48,016 |   |   |   | 48,003 |   |   |   | 41,983 |   |   |   | 758 |   |   |   | - |   |   |   | - |   |   |   | 138,760 |   |
| Credit      facility (3)       |   |                                | 4,373  |   |   |   | 4,373 |   |   |   | 1,258 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,004 |   |
|    Total        |   | $                                   | 58,975 |   |   | $ | 58,699 |   |   | $ | 405,769 |   |   | $ | 206,803 |   |   | $ | 6,027 |   |   | $ | - |   |   | $ | 736,273 |   |
|                           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | On      December 21, 2005, Majestic Star and Trump Indiana entered into an      amended development agreement with the City of Gary (“City”), which, among      other things, requires us to pay to the City an economic incentive payment      equal to 3% of the adjusted gross receipts of the Majestic Properties, but      in no event less than $6.0 million per year. See Note 6 of the Notes to      Consolidated Financial Statements. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Variable      rate of 7.75% calculated as a weighted average of rates on the Senior      Secured Credit Facility indebtedness using London InterBank Offered Rate      (“LIBOR”) in effect plus 3.0% as of December 31,      2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Excludes      any amounts related to the debt of Majestic Holdco. Such debt of our      parent company has been pushed down to us. See Note 11 Long Term Debt      in the Notes to Consolidated Financial  Statements. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK

|                            |   |   |   |   |   |   |   |   |   |   |      |   |   |   |      |   |       |   |   |   |   |   |                |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|------------|--------|--------|--------|--------|--------|---------------------|--------|
|                            |   |   |   |   |   |   |   |   |   |   |      |   |   |   |      |   |       |   |   |   |   |   |                |   |
|        (in      thousands) |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | 2011      |   |   | 2012   |      |   | Thereafter |   |   | Total  |   |   | Fair      Value (1) |   |
|                            |   |   |   |
| Long-Term      Debt             |   |   |   |   |   |   |   |   |   |   |      |   |   |   |      |   |       |   |   |   |   |   |                |   |
| Fixed      Rate (2) (3)         |   | $      | 202.8  |   |   | $      | 110.6  |   |   | $      | 300,000.0 |   |   | $      | 263,500.0 |   |       | $      | -      |   |   | $      | -                   |   |   | $ | 563,813.4 |   |   | $ | 476.0 |   |
| Average      interest rate      |   |   | 9.91   | %      |   |   | 9.93   | %      |   |   | 9.98      | %      |   |   | 12.13     | %      |       |   | n/a    |   |   |   | n/a                 |   |   |   | 10.01 | % |   |   |   |   |
|                            |   |   |   |   |   |   |   |   |   |   |      |   |   |   |      |   |       |   |   |   |   |   |                |   |   |   |   |   |   |   |   |   |
| Variable      Rate (2)          |   | $      | -      |   |   | $      | -      |   |   | $      | 56,424.8  |   |   | $      | -         |   |       | $      | -      |   |   | $      | -                   |   |   | $ | 56,424.8 |   |   | $ | 56.4 |   |
| Average      interest rate      |   |   | 7.75   | %      |   |   | 7.75   | %      |   |   | 7.75      | %      |   |   | n/a       |   |       |   | n/a    |   |   |   | n/a                 |   |   |   | 7.75 | % |   |   | 7.75 | % |
|                            |   |   |   |   |   |   |   |   |   |   |      |   |   |   |      |   |       |   |   |   |   |   |                |   |   |   |   |   |   |   |   |   |

| (1) | The      fair values for debt with no public market are based on the borrowing      rates currently available for debt instruments with similar terms and      maturities, and for publicly traded debts, the fair values are based on      market quotes. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Our      fixed-rate debt maturities include the Discount Notes issued by Majestic      Holdco. The Discount Notes are solely the obligation of Majestic Holdco      and are unsecured. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Based      on contractual interest rates for fixed-rate indebtedness or current LIBOR      rates for variable rateindebtedness. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTINGAND FINANCIAL DISCLOSURE

ITEM 9A. CONTROLS AND PROCEDURES

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ITEM 9B. OTHER INFORMATION

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE

| Name                     |   | Age |   | Position(s)                                                         |
|--------------------------|--------|-----|--------|---------------------------------------------------------------------|
| Don      H. Barden       |   | 64  |   | Chairman,      President and Chief Executive Officer                |
| Kirk      Saylor         |   | 50  |   | Director,      Executive Vice President and Chief Operating Officer |
| Jon      S. Bennett      |   | 47  |   | Senior      Vice President, Chief Financial Officer and Treasurer   |
| Patrick      R. Cruzen   |   | 61  |   | Director                                                            |
| Andrew      J. Warhola   |   | 82  |   | Director                                                            |
| Michelle      R. Sherman |   | 42  |   | Director                                                            |
| Cara      Brown          |   | 45  |   | Director                                                            |

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ITEM 11.  EXECUTIVE COMPENSATION

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|                |   | Target      Bonus   |   |              |   | Company      Financial |   | Individual  |   |
|---------------------|--------|---------------------|--------|-------------------|--------|------------------------|--------|-------------|--------|
|                |   | (%      of Base     |   | Target      Bonus |   | Performance            |   | Performance |   |
| Name                |   | Salary      Earned) |   | ($)               |   | Component              |   | Component   |   |
| Kirk      Saylor    |   | 50%                 |   | 230,577           |   | 70%                    |   | 30%         |   |
| Jon      Bennett    |   | 30%                 |   | 91,350            |   | 60%                    |   | 40%         |   |
| Steven      Lemberg |   | 30%                 |   | N/A               |   | 50%                    |   | 50%         |   |
|                |   |                |   |              |   |                   |   |        |   |

| Actual      EBITDA as a % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| of      budgeted EBITDA   | 100    | 99     | 98     | 97     | 96     | 95     | 94     | 93     | 92     | 91     | 90     | 89     | 88     | 87     | 86     | 85     |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bonus      payout as a %  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of      bonus target      | 100    | 98     | 96     | 94     | 92     | 90     | 87     | 84     | 81     | 78     | 75     | 70     | 65     | 60     | 55     | 50     |   |

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|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|----------------------------------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------------|
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   | Non-      Equity                                                                                                                                                    |   | All      Other                                                                                                                                              |      |                                                                                              |
| Name      and Principal Position |   | Year   |   | Salary      ($)                                                                                              |   | Bonus      ($)                                                                                                                                                      |   | Incentive      ($)                                                                                                                                                  |   | Compensation      ($)                                                                                                                                       |      | Total      ($)                                                                                    |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
| Don      H. Barden               |   | 2007   |   |                600,000            |   |                            - |   |                            - |   |                        57,052            |  (1) |                657,052 |
| Chairman,      President and     |   | 2006   |   |                600,228            |   |                            - |   |                            - |   |                        57,069            |      |                657,297 |
| Chief      Executive Officer     |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
| Kirk      C. Saylor              |   | 2007   |   |                461,154            |   |                            - |   |                  69,600                                                        |   |                        70,936            |  (2) |                601,690 |
| Executive      Vice President    |   | 2006   |   |                246,178            |   |                  50,000                                                        |   |                            - |   |                          1,628 |      |                297,806 |
| and      Chief Operating Officer |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
| Jon      S. Bennett              |   | 2007   |   |                304,500            |   |                  33,400                                                        |   |                  36,600                                                        |   |                          6,570 |  (3) |                381,070 |
| Senior      Vice President,      |   | 2006   |   |                287,307            |   |                  50,000                                                        |   |                            - |   |                        22,215            |      |                359,522 |
| Chief      Financial Officer     |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
| and      Treasurer               |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |
| Steven      Lemberg              |   | 2007   |   |                  92,319 |   |                          -             |   |                          -             |   |                        68,563            |  (4) |                160,882 |
| Executive      Vice President    |   | 2006   |   |                300,047            |   |                  45,000                                                        |   |                          -             |   |                          8,674 |      |                353,721 |
|                             |   |   |   |                                                                                                         |   |                                                                                                                                                                |   |                                                                                                                                                                |   |                                                                                                                                                        |      |                                                                                              |

| (1)   | Includes      an auto allowance of $41,608 and group term life insurance premiums of      $15,444. |
|-----------------|----------------------------------------------------------------------------------------------------|

| (2)   | Includes      a golf club membership and related dues of $53,464, a 401(k) match of      $4,500, group term life insurance premiums of $4,002, an auto allowance      and reimbursement for un-reimbursed medical plan      expenditures.  Mr. Saylor is 10% vested in the 401(k)      match. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes      group term life insurance premiums of $2,070 and a 401(k) match of      $4,500.  Mr. Bennett is fully vested in the 401(k)      match. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes      $65,000 related to his resignation in April 2007. Also includes group term      life insurance premiums of $794 and a 401(k) match of      $2,769.  Mr. Lemberg is no longer vested in the 401(k)      match. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|             |   | Estimated      Possible Payouts Under Non-Equity Incentive Plan Awards |   |
|------------------|--------|------------------------------------------------------------------------|--------|
|             |   | Threshold                                                              |   | Target |   | Maximum |   |
| Name             |   | ($)                                                                    |   | ($) |   | ($) |   |
| Kirk      Saylor |   | N/A                                                                    |   | 230,577 |   | (1) |   |
| Jon      Bennett |   | N/A                                                                    |   | 91,350 |   | (1) |   |
|             |   |                                                                   |   |   |   |   |   |

| (1)   | If      the actual EBITDA of the Company exceeds budgeted EBITDA, then 25% of such      excess will be applied to the bonus pool for those participants subject to      the Company EBITDA performance measure and will be distributed on a      weighted average basis. Therefore, we cannot determine a maximum      amount. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | unpaid      base salary through the terminationdate; |
|--------------------|------------------------------------------------------|

| ·   | earned      but unpaid bonus (pro rata); |
|--------------------|------------------------------------------|

| ·   | benefits      in accordance with the terms of the Company’s plans and      policies; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | 60      days of base salary and two months of Company-paid COBRA benefits for the      executive’s then-insured dependents;and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | (for Mr. Bennett only)      any earned and unused vacation. |
|--------------------|-------------------------------------------------------------|

| ·   | unpaid      base salary through the termination date;and |
|--------------------|----------------------------------------------------------|

| ·   | benefits      in accordance with the terms of the Company’s plans and      policies. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | (for Mr. Saylor only)      unpaid base salary through the termination date, plus the lesser of (a) 12      months base salary or (b) the remainder of base salary due under the      agreement (but not less than sixmonths); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | (for Mr. Bennett only)      unpaid base salary through the termination date, plus the lesser of (a)      six months base salary or (b) the remainder of base salary due under the      agreement; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | earned      but unpaid bonus (pro rata); |
|--------------------|------------------------------------------|

| ·   | benefits      in accordance with the terms of the Company’s plans and      policies; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | six      months of Company-paid COBRA benefits;and |
|--------------------|----------------------------------------------------|

| ·   | any      earned and unused vacation. |
|--------------------|--------------------------------------|

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| ·   | accrued      and unpaid salary and vacation; |
|--------------------|----------------------------------------------|

| ·   | payments      under COBRA (except company-paid benefits set forth in employment      agreements) or any other mandated governmental assistance      program; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | welfare      benefits provided to all salariedemployees; |
|--------------------|----------------------------------------------------------|

| ·   | amounts      outstanding under the Company’s 401(k) plan;and |
|--------------------|--------------------------------------------------------------------|

| ·   | disability      insurance proceeds and term life insurance proceeds in the following      amounts (excluding any supplemental benefits paid for by such employee,      which are not disclosed in eithertable): |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |   | Term      Life Insurance |   | Accidental      Death  |   | Long      -Term |
|--------------------|--------|--------------------------|--------|------------------------|--------|-----------------|
|               |   | Proceeds                 |   | and      Dismemberment |   | Disability      |
| Name               |   | ($)                      |   | ($)                    |   | ($)             |
| Don      H. Barden |   | 2,000,000                |   | 2,000,000              |   | n/a             |
| Kirk      Saylor   |   | (1)                      |   | (1)                    |   | (2)             |
| Jon      Bennett   |   | (1)                      |   | (1)                    |   | (2)             |
|               |   |                     |   |                   |   |            |

| (1)   | Term      Life Insurance Proceeds and Accidental Death and Dismemberment benefits      are equivalent to four times the named executive's annual salary, to a      maximum benefit of $1.5 million. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Long-Term      Disability benefits are equivalent to 60% of the named executive's monthly      salary, not to exceed $12,500 per month, after 6 months of disability, up      to the age of retirement under the U.S. Social Security Act, but not      less than      60 months. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|             |                                                     |   | Cash      Severance                                                                                                                                                                               |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |
|------------------|----------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   | Company      Paid                                                                                                                                                                                 |   |   |
|             |                                                     |   | Base      Salary                                                                                                                                                                                  |   | Bonus                                                                                                                                                                                             |   | COBRA      Benefits                                                                                                                                                                               |   | Total |
|             |                                                     |   | ($)                                                                                                                                                                                               |   | ($)                                                                                                                                                                                               |   | ($)                                                                                                                                                                                               |   | ($) |
| Kirk      Saylor |                                                     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |
|             | Retirement                                               |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             | Death                                                    |   |                        83,333                                                  |   |                        69,600                                                  |   |                          1,997                                       |   |                      154,930 |
|             | Disability                                               |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             | By      Company                                          |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             |      (for      cause)           |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Executive                                        |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             |      (without      good reason) |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Company                                          |   |                      250,000                                                             |   |                        69,600                                                  |   |                          5,992                                       |   |                      325,592 |
|             |      (without      cause)       |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Executive                                        |   |                      250,000                                                             |   |                        69,600                                                  |   |                          5,992                                       |   |                      325,592 |
|             |      (for      good reason,     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             |      including      a change in |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             |      control)                   |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
| Jon      Bennett |                                                     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |
|             | Retirement                                               |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             | Death                                                    |   |                        50,000                                                  |   |                        36,600                                                  |   |                          1,997                                       |   |                        88,597 |
|             | Disability                                               |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             | By      Company                                          |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             |      (for      cause)           |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Executive                                        |   |                                 - |   |                                 - |   |                                 - |   |                                 - |
|             |      (without      good reason) |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Company                                          |   |                      150,000                                                             |   |                        36,600                                                  |   |                          5,992                                       |   |                      192,592 |
|             |      (without      cause)       |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             | By      Executive                                        |   |                      150,000                                                             |   |                        36,600                                                  |   |                          5,992                                       |   |                      192,592 |
|             |      (for      good reason,     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             |      including      a change in |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             |      control)                   |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |
|             |                                                     |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |                                                                                                                                                                                              |   |   |

|   |   | Compensation      Committee: |   |
|--------|--------|------------------------------|--------|
|   |   |                         |   |
|   |   | Andrew      J. Warhola       |   |
|   |   | Michelle      R. Sherman     |   |
|   |   | Patrick      R. Cruzen       |   |

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| Monthly      retainer:            |                                          |
|-----------------------------------|-----------------------------------------------|
| All                               | $3,750      per month                         |
| Audit      Committee chair        | $        833 per month (additional) |
| Compensation      Committee chair | $        417 per month (additional) |
| Meeting      fees:                |                                          |
| Board                             | $1,000      per meeting                       |
| Committee                         | $        500 per meeting            |
|                              |                                          |

|                   |   | Fees      Earned or |   |   |
|------------------------|--------|---------------------|--------|--------|
|                   |   | Paid      in Cash   |   | Total  |
| Name                   |   | ($)                 |   | ($)    |
|                   |   |                |   |   |
| Patrick      R. Cruzen |   | 62,002              |   | 62,002 |
| Andrew      J. Warhola |   | 57,000              |   | 57,000 |
| Cara      L. Brown     |   | 55,000              |   | 55,000 |
|                   |   |                |   |   |

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS ANDMANAGEMENT AND RELATED STOCKHOLDER MATTERS

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, ANDDIRECTOR INDEPENDENCE

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ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

|                    |   | 2007   |      |   | 2006   |
|-------------------------|--------|--------|-----------|--------|--------|
| Audit      Fees         |   | $      | 990,154   |   |   | $ | 956,763 |
| Audit      Related Fees |   |   | 67,649    |   |   |   | 127,177 |
| Tax      Fees           |   |   | 97,059    |   |   |   | 27,100 |
| Other      Fees         |   |   | -         |   |   |   | - |
| Total      Fees         |   | $      | 1,154,862 |   |   | $ | 1,111,040 |
|                    |   |   |      |   |   |   |   |

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

| (a)    | (1)                                                                                                                                                          | Financial      Statements as listed on the index on Page F-1.                                                                                                          |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                         |                                                                                                                                                                   |   |
|   | (2)                                                                                                                                                          | Exhibits:      The exhibits included as part of this report are listed in the attached      Exhibit Index on Page E-1, which is incorporated herein by      reference. |   |
|   |                                                                                                                                                         |                                                                                                                                                                   |   |
| (b)    | The      exhibits included as part of this report are listed in the attached      Exhibit Index on Page E-1, which is incorporated herein by      reference. |                                                                                                                                                                   |
|   |                                                                                                                                                         |                                                                                                                                                                   |   |
| (c)    | The      response to this portion of Item 15 is submitted as a separate section of      this report.                                                         |                                                                                                                                                                   |

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SIGNATURES

|  THE MAJESTIC STAR CASINO,      LLC          |                                                 |
|---------------------------------------------------|------------------------------------------------------|
|                                              |                                                 |   |
| By:                                          | /s/ Don H. Barden                                    |   |
|                                              | Don      H. Barden                                   |   |
|                                              | Chairman,      President and Chief Executive Officer |   |
|                                              |                                                 |   |
|  THE MAJESTIC STAR CASINO      CAPITAL CORP. |                                                 |
|                                              |                                                 |   |
| By:                                          | /s/ Don H. Barden                                    |   |
|                                              | Don      H. Barden                                   |   |
|                                              | President      and Chief Executive Officer           |   |
|                                              |                                                 |   |
|  MAJESTIC STAR CASINO CAPITAL      CORP. II  |                                                 |
|                                              |                                                 |   |
| By:                                          | /s/ Don H. Barden                                    |   |
|                                              | Don      H. Barden                                   |   |
|                                              | President      and Chief Executive Officer           |   |
|                                              |                                                 |   |

|  THE MAJESTIC STAR CASINO,      LLC |                                                                      |
|------------------------------------------|---------------------------------------------------------------------------|
|                                     |                                                                      |   |
|  By:                      | /s/ Don H. Barden                                                         |   |
|                                     | Don      H. Barden                                                        |   |
|                                     | Chairman,      President and Chief Executive Officer                      |   |
|                                     | (Principal      Executive Officer)                                        |   |
|                                     |                                                                      |   |
|  By:                           | /s/ Jon S. Bennett                                                        |   |
|                                     | Jon      S. Bennett                                                       |   |
|                                     | Senior      Vice President, Chief Financial Officer and Treasurer         |   |
|                                     | (Principal      Financial and Accounting Officer)                         |   |
|                                     |                                                                      |   |
| By:                            | /s/ Kirk Saylor                                                           |   |
|                                     | Kirk      Saylor                                                          |   |
|                                     | Director,      Executive Vice President and Chief Operating Officer  |   |
|  By:                      | /s/ Michelle R. Sherman                                                   |   |
|                                     | Michelle      R. Sherman                                                  |   |
|                                     | Director                                                             |   |
|  By:                      | /s/ Patrick R. Cruzen                                                     |   |
|                                     | Patrick      Cruzen                                                       |   |
|                                     | Director                                                             |   |
|  By:                      | /s/ Andrew J. Warhola                                                     |   |
|                                     | Andrew      J. Warhola                                                    |   |
|                                     | Director                                                             |   |
|  By:                           | /s/ Cara L. Brown                                                         |   |
|                                     | Cara      L. Brown                                                        |   |
|                                     | Director                                                                  |   |

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| THE      MAJESTIC STAR CASINO CAPITAL CORP. |                                                              |   |   |
|---------------------------------------------|-------------------------------------------------------------------|--------|--------|
|                                        |                                                              |   |   |   |
|  By:                         | /s/ Don H. Barden                                                 |   |   |   |
|                                        | Don      H. Barden                                                |   |   |   |
|                                        | President,      Chief Executive Officer and Director              |   |   |   |
|                                        | (Principal      Executive Officer)                                |   |   |   |
|                                        |                                                              |   |   |   |
|  By:                              | /s/ Jon S. Bennett                                                |   |   |   |
|                                        | Jon      S. Bennett                                               |   |   |   |
|                                        | Senior      Vice President, Chief Financial Officer and Treasurer |   |   |   |
|                                        | (Principal      Financial and Accounting Officer)                 |   |   |   |
|                                        |                                                              |   |   |   |

| MAJESTIC      STAR CASINO CAPITAL CORP. II |                                                              |   |   |
|--------------------------------------------|-------------------------------------------------------------------|--------|--------|
|                                       |                                                              |   |   |   |
|  By:                        | /s/ Don H. Barden                                                 |   |   |   |
|                                       | Don      H. Barden                                                |   |   |   |
|                                       | President,      Chief Executive Officer and Director              |   |   |   |
|                                       | (Principal      Executive Officer)                                |   |   |   |
|                                       |                                                              |   |   |   |
|  By:                             | /s/ Jon S. Bennett                                                |   |   |   |
|                                       | Jon      S. Bennett                                               |   |   |   |
|                                       | Senior      Vice President, Chief Financial Officer and Treasurer |   |   |   |
|                                       | (Principal      Financial and Accounting Officer)                 |   |   |   |
|                                       |                                                              |   |   |   |

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| EXHIBIT      NO. | DESCRIPTION      OF EXHIBITS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.1         | Stock      Purchase Agreement, dated as of November 3, 2005 by and between The      Majestic Star Casino, LLC and Trump Entertainment Resorts Holdings, L.P.      (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K dated      November 3, 2005)                                                                                                                                                                                                                                                               |
| 3.1              | Amended      and Restated Articles of Organization of The Majestic Star Casino, LLC      (filed as Exhibit 3.1 to the Company’s Registration Statement, No.      333-06489)                                                                                                                                                                                                                                                                                                                                                    |
| 3.2              | Third      Amended and Restated Operating Agreement of The Majestic Star Casino, LLC      dated as of March 29, 1996 (filed as Exhibit 3.2 to the Company’s      Registration Statement, No. 333-06489)                                                                                                                                                                                                                                                                                                                        |
| 3.2.1            | First      Amendment of Third Amended and Restated Operating Agreement of The      Majestic Star Casino, LLC, dated as of June 18, 1999 (filed as Exhibit 3.3      to the Company’s Registration Statement, No. 333-85089)                                                                                                                                                                                                                                                                                                     |
| 3.3              | Articles      of Incorporation of The Majestic Star Casino Capital Corp. (filed as      Exhibit 3.4 to the Company’s Registration Statement, No.      333-85089)                                                                                                                                                                                                                                                                                                                                                               |
| 3.4              | Bylaws      of The Majestic Star Casino Capital Corp. (filed as Exhibit 3.5 to the      Company’s Registration Statement, No. 333-85089)                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.5              | Articles      of Incorporation of Majestic Star Casino Capital Corp. II (filed as      Exhibit 3.6 to the Company’s Registration Statement, No.      333-134325)                                                                                                                                                                                                                                                                                                                                                               |
| 3.6              | Bylaws      of Majestic Star Casino Capital Corp. II (filed as Exhibit 3.7 to the      Company’s Registration Statement, No. 333-134325)                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.7              | Amendment      to Bylaws of Majestic Star Casino Capital Corp. II (filed as Exhibit 3.8      to the Company’s Registration Statement, No. 333-134325)                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1              | Indenture,      dated as of October 7, 2003, among The Majestic Star Casino, LLC and      Majestic Star Casino Capital Corp., as issuers, and the subsidiary      guarantors, as subsidiary guarantors and The Bank of New York, as trustee      (filed as Exhibit 4.1 to the Company’s Registration Statement, No.      333-110993)                                                                                                                                                                                           |
| 4.2              | Intercreditor      Agreement, dated as of October 7, 2003, between The Bank of New York and      Wells Fargo Foothill, Inc. (filed as Exhibit 4.6 to the Company’s      Registration Statement, No. 333-110993)                                                                                                                                                                                                                                                                                                                |
| 4.3              | Supplemental      Indenture, dated as of December 21, 2005, among The Majestic Star Casino,      LLC, The Majestic Star Casino Capital Corp., the Subsidiary Guarantors (as      defined therein), and The Bank of New York Trust Company, N.A., as      successor to The Bank of New York, as trustee for the purpose of making      changes to the Indenture required for the issuance of additional      notes  (filed as Exhibit 10.3 to the Company’s Current Report on      Form 8-K dated December 21, 2005)  |

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| 4.4    | Supplemental      Indenture, dated as of December 21, 2005, among The Majestic Star Casino,      LLC, The Majestic Star Casino Capital Corp., the Subsidiary Guarantors (as      defined therein), and The Bank of New York Trust Company, N.A., as      successor to The Bank of New York, as trustee for the purpose of adding      new subsidiary guarantors (filed as Exhibit 10.4 to the Company’s Current      Report on Form 8-K dated December 21, 2005)  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.5    | Indenture,      dated as of December 21, 2005, among The Majestic Star Casino, LLC, The      Majestic Star Casino Capital Corp. II, the Subsidiary Guarantors (as      defined therein), and The Bank of New York Trust Company N.A., as trustee      regarding the Senior Notes (filed as Exhibit 10.5 to the Company’s Current      Report on Form 8-K dated December 21, 2005)                                                                                 |
| 4.6    | First      Amendment to Intercreditor and Lien Subordination Agreement, dated as of      December 21, 2005, by and among The Majestic Star Casino, LLC, the Bank of      New York Trust Company N.A., Inc. and Wells Fargo Foothill,      Inc.                                                                                                                                                                                                                          |
| 10.1   | Loan      and Security Agreement, dated as of October 7, 2003, by and among The      Majestic Star Casino, LLC, certain subsidiaries signatory thereto, the      lenders signatories thereto and Wells Fargo Foothill, Inc., as Agent      (filed as Exhibit 10.1 to the Company’s Registration Statement, No.      333-110993)                                                                                                                                   |
| 10.1.1 | Amendment      Number One to Loan and Security Agreement, dated as of May 4, 2004, by and      among The Majestic Star Casino, LLC, certain subsidiaries signatory      thereto, the lender signatories thereto and Wells Fargo Foothill, Inc., as      Agent (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form      10-Q for the period ended March 31, 2004)                                                                                     |
| 10.1.2 | Amendment      Number Two to Loan and Security Agreement, dated as of March 1, 2005, by      and among The Majestic Star Casino, LLC, certain subsidiaries signatory      thereto, the lender signatories thereto and Wells Fargo Foothill, Inc., as      Agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K      dated March 17, 2005)                                                                                                     |
| 10.1.3 | Amendment      Number Three to Loan and Security Agreement, dated as of June 15, 2005, by      and among The Majestic Star Casino, LLC, certain subsidiary signatories      thereto, the lender signatories thereto and Wells Fargo Foothill, Inc., as      Agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K      dated August 10, 2005)                                                                                                  |
| 10.1.4 | Amendment      Number Four to Loan and Security Agreement, dated as of December 21, 2005,      by and among The Majestic Star Casino, LLC, certain subsidiary signatories      thereto, the lender signatories and Wells Fargo Foothill, Inc., as Agent      (filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K dated      December 21, 2005)                                                                                                     |
| 10.1.5 | Amendment      Number Five to Loan and Security Agreement, dated as of April 13, 2006, by      and among The Majestic Star Casino, LLC, certain subsidiary signatories      thereto, the lender signatories and Wells Fargo Foothill, Inc., as Agent      (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated      April 13, 2006)                                                                                                           |
| 10.1.6 | Amendment      Number Six to Loan and Security Agreement, dated as of July 31, 2006, by      and among The Majestic Star Casino, LLC, certain subsidiary signatories      thereto, the lender signatories and Wells Fargo Foothill, Inc., as Agent      (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated      July 31, 2006)                                                                                                              |
| 10.1.7 | Amendment      Number Seven, dated as of March 15, 2007, among The Majestic Star Casino,      LLC, certain subsidiary signatories thereto, the lender signatories and      Wells Fargo Foothill, Inc. as Agent (filed as Exhibit 10.1 to the      Company’s Current Report on Form 8-K dated March 15, 2007)                                                                                                                                                      |
| 10.1.8 | Amendment      Number Eight, dated as of March 31, 2008, among The Majestic Star Casino,      LLC, certain subsidiary signatories thereto, the lender signatories and      Wells Fargo Foothill, Inc. as Agent (filed as Exhibit 10.1 to the      Company's Current Report on Form 8-K dated April 4, 2008)                                                                                                                                                             |

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|  10.2** | Amendment      to Letter Agreement, dated as of January 1, 2005, between Don H. Barden      and The Majestic Star Casino, LLC (filed as Exhibit 10.2 to the Company’s      Annual Report on Form 10-K for the year ended December 31,      2004)               |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  10.3** | Employment      Agreement, dated August 14, 2006, between Jon Scott Bennett and The      Majestic Star Casino, LLC (filed as Exhibit 10.1 to the Company’s Current      Report on Form 8-K dated August 14, 2006)                                              |
| 10.4         | Management      Agreement, dated as of October 7, 2003, between The Majestic Star Casino,      LLC and Barden Development, Inc. (filed as Exhibit 10.8 to the Company’s      Registration Statement, No. 333-110993)                                      |
| 10.5         | Expense      Reimbursement Agreement, dated as of October 7, 2003, between Barden      Nevada Gaming, LLC and The Majestic Star Casino, LLC (filed as Exhibit      10.9 to the Company’s Registration Statement, No.    333-110993)                                 |
| 10.6         | Development      Agreement, dated March 26, 1996, by and between the Company and the City      of Gary, Indiana (filed as Exhibit 10.8 to the Company’s Registration      Statement, No. 333-06489)                                                            |
| 10.7         | Amendment      Number One to Development Agreement, dated October 19, 2005, by and among      the Company, Trump Indiana, Inc. and the City of Gary, Indiana, filed      herewith                                                                                    |
|  10.8** | Employment      Agreement, dated April 6, 2006, between Kirk Saylor and The Majestic Star      Casino, LLC (filed as Exhibit 10.1 to the Company’s Current Report on Form      8-K dated May 15, 2006)                                                         |
|  10.9** | The      Majestic Star Casino, LLC Management Incentive Plan (filed as Exhibit 10.1      to the Company’s Current Report on Form 8-K dated February 7,      2007)                                                                                              |
| 10.10        | Expense      Reimbursement/Sharing Agreement, dated as of  November 6, 2007,      between the Company and PITG Gaming, LLC (filed as Exhibit 10.1 to the      Company’s Quarterly Report on Form 10-Q for the period ended September 30,      2007)  |
| 21*          | List      of Subsidiaries of The Majestic Star Casino, LLC                                                                                                                                                                                                           |
| 31.1*        | Certification      pursuant to Section 15d-14 of the Securities Exchange Act of 1934, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002                                                                                                 |
| 31.2*        | Certification      pursuant to Section 15d-14 of the Securities Exchange Act of 1934, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002                                                                                                 |
| 32*          | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002                                                                                                                                     |

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|                                                                                                                        | Page   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
| THE      MAJESTIC STAR CASINO, LLC AND SUBSIDIARIES                                                                         |   |
|                                                                                                                        |   |
| Report      of Independent Registered Public Accounting Firm                                                                | F-2    |
| Consolidated      Balance Sheets as of December 31, 2007 and 2006                                                      | F-3    |
| Consolidated      Statements of Operations for the years ended December 31, 2007, 2006      and 2005                   | F-4    |
| Consolidated      Statements of Changes in Member’s Deficit for the years ended December 31,      2007, 2006 and 2005 | F-5    |
| Consolidated      Statements of Cash Flows for the years ended December 31, 2007, 2006      and 2005                   | F-6    |
| Notes      to Consolidated Financial Statements                                                                             | F-8    |
|                                                                                                                        |   |

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|                                                                  |                                                                    |                                                                                      |         | December      31, |        |   | December      31, |       |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------------|-------------------|-------------|--------|-------------------|------------|
|                                                                  |                                                                    |                                                                                      |         | 2007              |        |   | 2006              |       |
| ASSETS                                                                |                                                                    |                                                                                      |         |              |        |   |
| Current      assets:                                                  |                                                                    |                                                                                      |         |              |        |   |
|                                                                  | Cash      and cash equivalents                                          |                                                                                      | $            | 29,216,263        |        |   | $                 | 25,531,924 |   |
|                                                                  | Restricted      cash                                                    |                                                                                      |         | 3,401,359         |        |   |              | 3,326,881  |   |
|                                                                  | Accounts      receivable, less allowance for doubtful accounts          |                                                                                      |         |              |        |   |              |       |   |
|                                                                  |                                                                    | of $1,371,930 and  $871,449      as of December 31, 2007 and 2006, respectively |         |              | 5,779,838   |   |              |       | 7,582,476 |   |
|                                                                  | Inventories                                                             |                                                                                      |         | 1,088,508         |        |   |              | 888,292    |   |
|                                                                  | Prepaid      expenses and deposits                                      |                                                                                      |         | 2,013,891         |        |   |              | 2,306,311  |   |
|                                                                  | Receivable      from affiliates                                         |                                                                                      |         | 616,889           |        |   |              | 455,270    |   |
|                                                                  |                                                                    | Total      current assets                                                                 |         |              | 42,116,748  |   |              |       | 40,091,154 |   |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Property,      equipment and improvements, net                        |                                                                    |                                                                                      | 279,629,166  |              |        |   | 275,735,582       |       |
| Intangible      assets, net                                           |                                                                    |                                                                                      | 121,936,336  |              |        |   | 125,395,502       |       |
| Goodwill                                                              |                                                                    |                                                                                      | 47,431,442   |              |        |   | 47,431,442        |       |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Other      assets:                                                    |                                                                    |                                                                                      |         |              |        |   |              |       |
|                                                                  | Deferred      financing costs, net of accumulated amortization          |                                                                                      |         |              |        |   |              |       |   |
|                                                                  |                                                                    | of      $9,107,124 and $5,761,820 as of December 31, 2007 and                             |         |              |        |   |              |       |   |   |
|                                                                  |                                                                    | 2006,      respectively                                                                   |         |              | 9,737,796   |   |              |       | 13,083,100 |   |
|                                                                  | Deferred      financing costs, pushed down from Majestic Holdco, net of |                                                                                      |         |              |        |   |              |       |   |
|                                                                  |                                                                    | accumulated      amortization of $1,031,422 and $523,119 as of                            |         |              |        |   |              |       |   |   |
|                                                                  |                                                                    | December      31, 2007 and 2006, respectively                                             |         |              | 1,927,317   |   |              |       | 2,435,620 |   |
|                                                                  | Other      assets                                                       |                                                                                      |         | 2,911,140         |        |   |              | 2,187,020  |   |
|                                                                  |                                                                    | Total      other assets                                                                   |         |              | 14,576,253  |   |              |       | 17,705,740 |   |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Total      assets                                                     |                                                                    | $                                                                                         | 505,689,945  |              |        | $      | 506,359,420       |       |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| LIABILITIES      AND MEMBER'S DEFICIT                                 |                                                                    |                                                                                      |         |              |        |   |              |       |
| Current      liabilities:                                             |                                                                    |                                                                                      |         |              |        |   |              |       |
|                                                                  | Accounts      payable                                                   |                                                                                      | $            | 4,259,475         |        |   | $                 | 4,491,600  |   |
|                                                                  | Current      portion of long-term debt                                  |                                                                                      |         | 202,780           |        |   |              | 165,421    |   |
|                                                                  | Accrued      liabilities:                                               |                                                                                      |         |              |        |   |              |       |   |
|                                                                  |                                                                    | Payroll      and related                                                                  |         |              | 9,206,725   |   |              |       | 9,116,726 |   |
|                                                                  |                                                                    | Interest                                                                                  |         |              | 10,980,075  |   |              |       | 10,750,630 |   |
|                                                                  |                                                                    | Property      and franchise taxes                                                         |         |              | 17,897,923  |   |              |       | 8,942,975 |   |
|                                                                  |                                                                    | Payable      to affiliate                                                                 |         |              | 214,288     |   |              |       | - |   |
|                                                                  |                                                                    | Other      accrued liabilities                                                            |         |              | 16,475,209  |   |              |       | 15,554,947 |   |
|                                                                  |                                                                    | Total      current liabilities                                                            |         |              | 59,236,475  |   |              |       | 49,022,299 |   |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Long-term      debt, net of current maturities                        |                                                                    |                                                                                      | 556,535,441  |              |        |   | 545,803,990       |       |
| Long-term      debt of Majestic Holdco, net of discount of $5,789,771 |                                                                    |                                                                                      |         |              |        |   |              |       |
|                                                                  | and      $12,376,308 as of December 31, 2007 and 2006, respectively     |                                                                                      |         | 57,710,229        |        |   |              | 51,123,692 |   |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
|                                                                  |                                                                    | Total      liabilities                                                                    |         |              | 673,482,145 |   |              |       | 645,949,981 |   |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Commitments      and contingencies (Note 14)                          |                                                                    |                                                                                      |         |              |        |   |              |       |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Member's      deficit                                                 |                                                                    |                                                                                      | (167,792,200 | )                 |        |   | (139,590,561      | )          |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |
| Total      liabilities and member's deficit                           |                                                                    | $                                                                                         | 505,689,945  |              |        | $      | 506,359,420       |       |
|                                                                  |                                                                    |                                                                                      |         |              |        |   |              |       |   |   |

|   | The      accompanying notes are an integral part of these consolidated financial      statements. |
|--------|---------------------------------------------------------------------------------------------------|

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|                                                               |   | For      The Years Ended |        |
|--------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                               |   | December      31,        |        |
|                                                               |   | 2007                     |        |   | 2006 |   |   | 2005 |   |
| OPERATING      REVENUES:                                           |   |                     |        |   |   |   |   |   |   |
|           Casino                               |   |  $                  | 365,899,220 |   |   |  $ | 375,113,896 |   |   |  $ | 280,918,520 |   |
| Rooms                                                              |   |                     | 11,851,142  |   |   |   | 10,890,724 |   |   |   | 7,726,464 |   |
| Food      and beverage                                             |   |                     | 25,605,009  |   |   |   | 16,347,550 |   |   |   | 14,030,267 |   |
| Other                                                         |   |                     | 8,141,969   |   |   |   | 6,942,171 |   |   |   | 4,965,862 |   |
| Gross      revenues                                                |   |                     | 411,497,340 |   |   |   | 409,294,341 |   |   |   | 307,641,113 |   |
| Less:      promotional allowances                                  |   |                     | 53,399,221  |   |   |   | 55,060,746 |   |   |   | 45,669,261 |   |
|  Net      operating revenues                                  |   |                     | 358,098,119 |   |   |   | 354,233,595 |   |   |   | 261,971,852 |   |
|                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                                 |   |                     |        |   |   |   |   |   |   |   |   |   |
| Casino                                                             |   |                     | 94,859,609  |   |   |   | 87,708,577 |   |   |   | 67,910,637 |   |
| Rooms                                                              |   |                     | 3,066,404   |   |   |   | 3,329,367 |   |   |   | 1,763,340 |   |
| Food      and beverage                                             |   |                     | 11,199,846  |   |   |   | 8,436,922 |   |   |   | 5,865,541 |   |
| Other                                                              |   |                     | 2,020,352   |   |   |   | 1,734,230 |   |   |   | 1,040,514 |   |
| Gaming      taxes                                                  |   |                     | 85,943,370  |   |   |   | 87,096,884 |   |   |   | 61,053,037 |   |
| Advertising      and promotion                                     |   |                     | 22,689,392  |   |   |   | 18,641,992 |   |   |   | 15,230,150 |   |
| General      and administrative                                    |   |                     | 56,541,080  |   |   |   | 56,970,437 |   |   |   | 42,931,535 |   |
| Corporate      expense                                             |   |                     | 6,253,724   |   |   |   | 6,306,222 |   |   |   | 7,717,108 |   |
| Economic      incentive tax - City of Gary                         |   |                     | 6,794,396   |   |   |   | 6,758,373 |   |   |   | 4,709,154 |   |
| Depreciation      and amortization                                 |   |                     | 32,833,812  |   |   |   | 31,722,888 |   |   |   | 22,612,185 |   |
| Loss      on investment in Buffington Harbor Riverboats,      LLC  |   |                     | -           |   |   |   | - |   |   |   | 2,354,799 |   |
| Loss      (gain) on disposal of assets                             |   |                     | 905,726     |   |   |   | (132,723 | ) |   |   | 52,790 |   |
| Total      operating costs and expenses                            |   |                     | 323,107,711 |   |   |   | 308,573,169 |   |   |   | 233,240,790 |   |
|                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Operating      income                                              |   |                     | 34,990,408  |   |   |   | 45,660,426 |   |   |   | 28,731,062 |   |
|                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):                                       |   |                     |        |   |   |   |   |   |   |   |   |   |
| Interest      income                                               |   |                     | 668,071     |   |   |   | 447,625 |   |   |   | 332,335 |   |
| Interest      expense                                              |   |                     | (54,529,563 | ) |   |   | (53,968,445 | ) |   |   | (30,362,182 | ) |
| Interest      expense - debt pushed down from      Majestic Holdco |   |                     | (7,094,840  | ) |   |   | (6,330,956 | ) |   |   | (187,039 | ) |
| Loss      on extinguishment of debt                                |   |                     | -           |   |   |   | - |   |   |   | (3,688,480 | ) |
| Other      non-operating expense                                   |   |                     | (85,470     | ) |   |   | (115,375 | ) |   |   | (127,386 | ) |
| Total      other expense                                           |   |                     | (61,041,802 | ) |   |   | (59,967,151 | ) |   |   | (34,032,752 | ) |
|                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net      loss                                                      |   | $                        | (26,051,394 | ) |   | $ | (14,306,725 | ) |   | $ | (5,301,690 | ) |
|                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |

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|                                                |   | Member's      Deficit |         |
|-----------------------------------------------------|--------|-----------------------|--------------|
|                                                |   |                  |         |
| Balance,      December 31, 2004                     |   | $                     | (102,399,523 | ) |
| Net      loss                                       |   |                  | (5,301,690   | ) |
| Contribution      of Deficit in BHPA from Affiliate |   |                  | (6,351,134   | ) |
| Distributions      to Barden Development, Inc.      |   |                  | (6,761,824   | ) |
| Balance,      December 31, 2005                     |   | $                     | (120,814,171 | ) |
| Net      loss                                       |   |                  | (14,306,725  | ) |
| Distribution      to Barden Development, Inc.       |   |                  | (4,469,665   | ) |
| Balance,      December 31, 2006                     |   | $                     | (139,590,561 | ) |
| Net      loss                                       |   |                  | (26,051,394  | ) |
| Distribution      to Barden Development, Inc.       |   |                  | (2,150,245   | ) |
| Balance,      December 31, 2007                     |   | $                     | (167,792,200 | ) |
|                                                |   |                  |         |   |

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|                                                                                      |   | For      The Years Ended |        |
|-------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                      |   | December      31,        |        |
|                                                                                      |   | 2007                     |        |   | 2006 |   |   | 2005 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                |   |                     |        |   |   |   |   |   |   |
| Net      loss                                                                             |   | $                        | (26,051,394 | ) |   | $ | (14,306,725 | ) |   | $ | (5,301,690 | ) |
| Adjustments      to reconcile net loss to net cash provided      by operating activities: |   |                     |        |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                              |   |                     | 29,374,646  |   |   |   | 28,263,722 |   |   |   | 19,513,964 |   |
| Amortization                                                                              |   |                     | 3,459,166   |   |   |   | 3,459,166 |   |   |   | 3,098,221 |   |
| Amortization      of deferred financing costs                                             |   |                     | 3,345,304   |   |   |   | 3,251,970 |   |   |   | - |   |
| Amortization      of bond discount on 12 1⁄2% senior discount notes                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| pushed      down from Majestic Holdco                                                     |   |                     | 6,586,537   |   |   |   | 5,827,355 |   |   |   | 167,520 |   |
| Amortization      of deferred financing costs on 12 1⁄2% senior                        |   |                     |        |   |   |   |   |   |   |   |   |   |
| discount      notes pushed down from Majestic Holdco                                      |   |                     | 508,303     |   |   |   | 503,600 |   |   |   | 19,519 |   |
| Loss      on investment in Buffington Harbor Riverboats, LLC                              |   |                     | -           |   |   |   | - |   |   |   | 2,354,799 |   |
| Loss      (gain) on disposal of assets                                                    |   |                     | 905,726     |   |   |   | (132,723 | ) |   |   | 52,790 |   |
| Loss      on early extinguishment of debt                                                 |   |                     | -           |   |   |   | - |   |   |   | 3,688,480 |   |
| Changes      in operating assets and liabilities, net of effects of      acquisition:     |   |                     |        |   |   |   |   |   |   |   |   |   |
| Accounts      receivable, net                                                             |   |                     | 1,802,638   |   |   |   | (2,983,062 | ) |   |   | 168,303 |   |
| Receivable      from affiliates                                                           |   |                     | 52,669      |   |   |   | (286,259 | ) |   |   | 546,206 |   |
| Inventories                                                                               |   |                     | (200,216    | ) |   |   | (100,411 | ) |   |   | 140,460 |   |
| Prepaid      expenses and deposits                                                        |   |                     | 292,420     |   |   |   | 127,292 |   |   |   | 398,371 |   |
| Other      assets                                                                         |   |                     | 996,289     |   |   |   | 814,535 |   |   |   | 197,113 |   |
| Accounts      payable                                                                     |   |                     | (1,126,516  | ) |   |   | 331,229 |   |   |   | 698,685 |   |
| Accrued      payroll and other expenses                                                   |   |                     | 89,999      |   |   |   | (149,522 | ) |   |   | 697,511 |   |
| Accrued      interest                                                                     |   |                     | 229,445     |   |   |   | 3,534,250 |   |   |   | 1,535,766 |   |
| Other      accrued liabilities                                                            |   |                     | 8,832,836   |   |   |   | (440,295 | ) |   |   | (136,665 | ) |
| Net      cash provided by operating activities                                            |   |                     | 29,097,852  |   |   |   | 27,714,122 |   |   |   | 27,839,353 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                |   |                     |        |   |   |   |   |   |   |   |   |   |
| (Increase)      decrease in restricted cash                                               |   |                     | (74,478     | ) |   |   | (136,881 | ) |   |   | 390,008 |   |
| Acquisition      of Trump Indiana, Inc., net of cash acquired                             |   |                     | -           |   |   |   | (180,648 | ) |   |   | (231,994,427 | ) |
| Payment      of gaming license transfer fee to State of Indiana                           |   |                     | -           |   |   |   | - |   |   |   | (2,000,000 | ) |
| Payoff      of City of Gary development agreement                                         |   |                     | -           |   |   |   | - |   |   |   | (3,506,797 | ) |
| Additions      to property and equipment                                                  |   |                     | (32,133,243 | ) |   |   | (25,409,147 | ) |   |   | (11,783,499 | ) |
| Increase      in Lakefront Capital Improvement Fund                                       |   |                     | (1,720,409  | ) |   |   | (896,948 | ) |   |   | - |   |
| Investment      in Buffington Harbor Riverboats, LLC                                      |   |                     | -           |   |   |   | - |   |   |   | (174,342 | ) |
| Proceeds      from disposal of equipment                                                  |   |                     | 182,742     |   |   |   | 893,001 |   |   |   | 135,709 |   |
| Other                                                                                     |   |                     | -           |   |   |   | - |   |   |   | 209,926 |   |
| Net      cash used in investing activities                                                |   |                     | (33,745,388 | ) |   |   | (25,730,623 | ) |   |   | (248,723,422 | ) |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |

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|                                                                                      |   | For      The Years Ended |        |
|-------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                      |   | December      31,        |        |
|                                                                                      |   | 2007                     |        |   | 2006 |   |   | 2005 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                |   |                     |        |   |   |   |   |   |   |
| Payment      of costs on early extinguishment of debt                                     |   |                     | -           |   |   |   | - |   |   |   | (1,053,905 | ) |
| Issuance      costs for the 9 1⁄2% senior secured notes                                |   |                     | -           |   |   |   | (245,107 | ) |   |   | (1,805,572 | ) |
| Issuance      costs for the 9 3⁄4% senior notes                                        |   |                     | -           |   |   |   | (1,195,533 | ) |   |   | (9,026,094 | ) |
| Costs      for the $80.0 million secured credit facility                                  |   |                     | -           |   |   |   | - |   |   |   | (110,000 | ) |
| Issuance      costs for the 12 1⁄2% senior discount notes                              |   |                     |        |   |   |   |   |   |   |   |   |   |
| pushed      down from Majestic Holdco                                                     |   |                     | -           |   |   |   | (206,290 | ) |   |   | (2,823,746 | ) |
| Cash      paid for redemption of the 11.653% notes                                        |   |                     | -           |   |   |   | - |   |   |   | (16,290,000 | ) |
| Proceeds      from issuance of the 9 1⁄2% senior secured notes                         |   |                     | -           |   |   |   | - |   |   |   | 40,000,000 |   |
| Proceeds      from issuance of the 9 3⁄4% senior notes                                 |   |                     | -           |   |   |   | - |   |   |   | 200,000,000 |   |
| Proceeds      from issuance of the 12 1⁄2% senior discount notes                       |   |                     |        |   |   |   |   |   |   |   |   |   |
| pushed      down from Majestic Holdco                                                     |   |                     | -           |   |   |   | - |   |   |   | 45,128,815 |   |
| Proceeds      from line of credit                                                         |   |                     | 53,787,903  |   |   |   | 60,168,339 |   |   |   | 43,877,024 |   |
| Repayment      of line of credit                                                          |   |                     | (43,100,000 | ) |   |   | (61,643,760 | ) |   |   | (37,629,678 | ) |
| Repayment      of debt                                                                    |   |                     | (205,783    | ) |   |   | (1,227,808 | ) |   |   | (16,974,431 | ) |
| Distributions      to Barden Development, Inc.                                            |   |                     | (2,150,245  | ) |   |   | (4,469,665 | ) |   |   | (6,761,824 | ) |
| Net      cash provided by (used in) financing activities                                  |   |                     | 8,331,875   |   |   |   | (8,819,824 | ) |   |   | 236,530,589 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                 |   |                     | 3,684,339   |   |   |   | (6,836,325 | ) |   |   | 15,646,520 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                       |   |                     | 25,531,924  |   |   |   | 32,368,249 |   |   |   | 16,721,729 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                             |   | $                        | 29,216,263  |   |   | $ | 25,531,924 |   |   | $ | 32,368,249 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
|                                                                                      |   | For      The Years Ended |        |
|                                                                                      |   | December      31,        |        |
|                                                                                      |   | 2007                     |        |   | 2006 |   |   | 2005 |   |
| Supplemental      disclosure of cash flow information and non-cash investing              |   |                     |        |   |   |   |   |   |   |   |   |   |
| and      financing activities:                                                            |   |                     |        |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| INTEREST      PAID, NET OF CAPITALIZED INTEREST:                                          |   | $                        | 50,954,258  |   |   | $ | 47,512,348 |   |   | $ | 27,948,968 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |
| NON-CASH      INVESTING ACTIVITIES:                                                       |   |                     |        |   |   |   |   |   |   |   |   |   |
| Capital      assets acquired from incurring accounts payable and accrued      liabilities |   | $                        | 3,805,887   |   |   | $ | 1,107,582 |   |   | $ | 535,363 |   |
| Capital      assets acquired from incurring debt                                          |   | $                        | 286,690     |   |   | $ | 110,370 |   |   | $ | 1,054,987 |   |
| Deferred      financing and transaction costs related to the Trump      acquisition       |   |                     |        |   |   |   |   |   |   |   |   |   |
| included      in accrued liabilities                                                      |   | $                        | -           |   |   | $ | - |   |   | $ | 440,762 |   |
|                                                                                      |   |                     |        |   |   |   |   |   |   |   |   |   |

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| ·   | A      casino-hotel located in Tunica County, Mississippi (“Fitzgeralds      Tunica”). |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | A      casino located in Black Hawk, Colorado (“Fitzgeralds Black      Hawk”). |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | The      Majestic Star Casino Capital Corp. (“MSCC”) is a co-obligor with the      Company for the $300.0 million 9 1⁄2% Senior Secured Notes (the “Senior      Secured Notes”) due 2010. MSCC has no assets or operations. See      Note 11 - Long Term Debt. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Majestic      Star Casino Capital Corp. II (“MSCC II”) was formed in 2005 for      the purpose of facilitating the offering of the Company’s $200.0 million      9 3⁄4% Senior Notes (the “Senior Notes”). MSCC II is a co-obligor      with the Company for the Senior Notes. MSCC II has no assets or      operations. See Note 11 - Long TermDebt. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   |    |      |   |   |    |     |   |   |
|---------------------------------|--------|---------|-----------|--------|--------|---------|----------|--------|--------|
|                            |   | 2007    |      |   | 2006   |    |     | 2005   |   |
| Balance,      beginning of year |   | $       | 871,449   |   |   |  $ | 668,576  |   |   |  $ | 631,240 |   |
| Provision                       |   |    | 917,291   |   |   |    | 559,805  |   |   |   | 306,673 |   |
| Accounts      written-off       |   |    | (416,810  | )      |   |    | (356,932 | )      |   |   | (269,337 | ) |
| Balance,      end of year       |   |  $ | 1,371,930 |   |   |  $ | 871,449  |   |   |  $ | 668,576 |   |
|                            |   |    |      |   |   |    |     |   |   |   |   |   |

|                                       | Estimated      useful life |
|--------------------------------------------|----------------------------|
| Vessels,      buildings & improvements | 25-39      years           |
| Site      improvements                     | 9-15      years            |
| Barge      and improvements                | 13-15      years           |
| Leasehold      improvements                | 5-15      years            |
| Furniture,      fixtures and equipment     | 3-10      years            |

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|                   |   | For      The Years Ended December 31, |       |
|------------------------|--------|---------------------------------------|------------|
|                   |   | 2007                                  |       |   | 2006 |   |   | 2005 |   |
| Rooms                  |   | $                                     | 4,117,444  |   |   | $ | 3,290,923 |   |   | $ | 2,377,544 |   |
| Food      and Beverage |   |                                  | 18,130,704 |   |   |   | 10,898,012 |   |   |   | 8,839,650 |   |
| Other                  |   |                                  | 976,454    |   |   |   | 551,844 |   |   |   | 466,750 |   |
| Total                  |   | $                                     | 23,224,602 |   |   | $ | 14,740,779 |   |   | $ | 11,683,944 |   |
|                   |   |                                  |       |   |   |   |   |   |   |   |   |   |

|                                                |   | For      The Years Ended December 31, |       |
|-----------------------------------------------------|--------|---------------------------------------|------------|
|                                                |   | 2007                                  |       |   | 2006 |   |   | 2005 |   |
| Cash      based promotional activities              |   | $                                     | 14,727,082 |   |   | $ | 27,447,352 |   |   | $ | 24,479,693 |   |
| Slot      club                                      |   |                                  | 7,947,295  |   |   |   | 7,928,867 |   |   |   | 5,791,872 |   |
| Retail      cost of rooms, food, beverage and other |   |                                  | 30,724,844 |   |   |   | 19,684,527 |   |   |   | 15,397,696 |   |
| Total                                               |   | $                                     | 53,399,221 |   |   | $ | 55,060,746 |   |   | $ | 45,669,261 |   |
|                                                |   |                                  |       |   |   |   |   |   |   |   |   |   |

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|  | ·   | In      September 2006, the Financial Accounting Standards Board (“FASB”) issued      FASB No. 157, “Fair Value Measurements” (“FASB 157”) to      establish a framework for measuring fair value and expanding disclosures      related to fair value measurements. FASB 157 is effective for      financial statements for fiscal years beginning after November 15,      2007. In February 2008, FASB issued FASB Staff Position FAS 157-2, which      defers the effective date of FASB 157 to fiscal years beginning after      November 15, 2008 for non-financial assets and non-financial liabilities      that are recognized or disclosed at fair value in an entity’s financial      statements on a recurring basis. The Company is evaluating, what impact,      if any, FASB 157 will have on future  reporting. |
|--|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      February 2007, the FASB issued FASB Statement No. 159, "The Fair Value      Option for Financial Assets and Financial Liabilities" (“FASB 159”). FASB      159 permits companies to choose to measure many financial instruments and      certain other items at fair value. The objective is to improve financial      reporting by providing companies with the opportunity to mitigate      volatility in reported earnings caused by measuring related assets and      liabilities differently without having to apply complex hedge accounting      provisions. The fair value option established by FASB 159 permits all      companies to choose to measure eligible items at fair value at specified      election dates. At each subsequent reporting date, companies shall report      in earnings any unrealized gains and losses on items for which the fair      value option has been elected. FASB 159 is effective as of the beginning      of a company's first fiscal year that begins after November 15, 2007. We      are currently evaluating whether to adopt the fair value option under FASB      159 and evaluating what impact such adoption would have on our      consolidated financialstatements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      December 2007, the FASB issued FASB Statement No. 141(R), “Business      Combinations” (“FASB 141(R)”). FASB 141(R) requires the acquiring entity      in a business combination to recognize all (and only) the assets acquired      and liabilities assumed in the transaction; establishes the      acquisition-date fair value as the measurement objective for all assets      acquired and liabilities assumed; and requires the acquirer to disclose to      investors and other users all of the information they need to evaluate and      understand the nature and financial effect of the business combination.      FASB 141(R) is effective as of the beginning of a company’s first fiscal      year that begins after December 15, 2008. We are currently evaluating what      impact such adoption would have on our consolidated financial      statements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In      December 2007, the FASB issued FASB Statement No.160, “Noncontrolling      Interests in Consolidating Financial Statements” (“FASB 160”). FASB 160      requires all entities to report noncontrolling (minority) interests in      subsidiaries in the same way—as equity in the consolidated financial      statements. Moreover, FASB 160 eliminates the diversity that currently      exists in accounting for transactions between an entity and noncontrolling      interests by requiring they be treated as equity transactions. FASB 160 is      effective as of the beginning of a company’s first fiscal year that begins      after December 15, 2008. We anticipate that adoption will have no impact      on our consolidated financial statements as we have no noncontrolling      interests. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                |   |              |     |   |              |   |
|-----------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                                |   | December      31, |     |   | December      31, |   |
|                                                |   | 2007              |     |   | 2006              |   |
|                                                |   |              |     |
| Land                                                |   | $                 | 23,661   |   |              | $      | 23,661 |   |
| Land      held for future development               |   |              | 22,009   |   |              |   | 22,056 |   |
| Vessels,      buildings & improvements          |   |              | 166,880  |   |              |   | 174,436 |   |
| Site      improvements                              |   |              | 28,826   |   |              |   | 40,493 |   |
| Barge      and improvements                         |   |              | 20,679   |   |              |   | 20,121 |   |
| Leasehold      improvements                         |   |              | 802      |   |              |   | 1,503 |   |
| Furniture,      fixtures and equipment              |   |              | 124,656  |   |              |   | 119,704 |   |
| Construction      in progress                       |   |              | 24,253   |   |              |   | 5,475 |   |
|                                                |   |              | 411,766  |   |              |   | 407,449 |   |
|                                                |   |              |     |   |              |   |   |   |
| Less      accumulated depreciation and amortization |   |              | (132,137 | )      |              |   | (131,713 | ) |
|                                                |   |              |     |   |              |   |   |   |
| Total      Property and equipment, net              |   | $                 | 279,629  |   |              | $      | 275,736 |   |
|                                                |   |              |     |   |              |   |   |   |

|                                |                                   |           |    |    |              |         |    |              |       |           |       |
|-------------------------------------|----------------------------------------|----------------|---------|---------|-------------------|--------------|---------|-------------------|------------|----------------|------------|
|                                |                                   | Gross          |    |    |              |         |    | Net      Amount   |       |           |
|  As      of December 31, 2007: |                                   |  Carrying |    |    | Accumulated       |         |    | December      31, |       |  Expected |
|                                |                                   |           | Amount  |    |              | Amortization |    |              | 2007       |           |  Life |
|  Intangible      assets:       |                                   |           |    |    |
|                                |  Customer      relationship       |           | $       | 24,540  |              |         | $       | (10,185           | )          |           | $          | 14,355 |   |    8      yrs |
|                                |  Trade      name                  |           |    | 3,450   |              |         |    | (2,094            | )          |           |       | 1,356 |   |  10      yrs |
|                                |  Gaming      license              |           |    | 105,700 |              |         |    | -                 |       |           |       | 105,700 |   |  indefinite |
|                                |  Riverboat      excursion license |           |    | 700     |              |         |    | (175              | )          |           |       | 525 |   |  15      yrs |
|  Total      intangible assets  |                                   | $              | 134,390 |    |              | $            | (12,454 | )                 |       | $              | 121,936    |   |   |
|                                |                                   |           |    |    |              |         |    |              |       |           |       |   |   |   |
|                                |                                   |           |    |    |              |         |    |              |       |           |       |   |   |   |
|                                |                                   | Gross          |    |    |              |         |    | Net      Amount   |       |           |
|  As      of December 31, 2006: |                                   |  Carrying |    |    |  Accumulated |         |    | December      31, |       | Expected       |
|                                |                                   |           | Amount  |    |              | Amortization |    |              |  2006 |           |  Life |
|  Intangible      assets:       |                                   |           |    |    |
|                                |  Customer      relationship       |           | $       | 24,540  |              |         | $       | (7,117            | )          |           | $          | 17,423 |   |    8      yrs |
|                                |  Trade      name                  |           |    | 3,450   |              |         |    | (1,749            | )          |           |       | 1,701 |   |  10      yrs |
|                                |  Gaming      license              |           |    | 105,700 |              |         |    | -                 |       |           |       | 105,700 |   |  indefinite |
|                                |  Riverboat      excursion license |           |    | 700     |              |         |    | (128              | )          |           |       | 572 |   |  15      yrs |
|  Total      intangible assets  |                                   | $              | 134,390 |    |              | $            | (8,994  | )                 |       | $              | 125,396    |   |   |
|                                |                                   |           |    |    |              |         |    |              |       |           |       |   |   |   |

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|                                        |   |   |   |
|---------------------------------------------|--------|--------|--------|
|  For      the years ended December 31, |   |   |   |
| 2008                                        |   | $      | 3,459  |   |
| 2009                                        |   |   | 3,392  |   |
| 2010                                        |   |   | 2,479  |   |
| 2011                                        |   |   | 2,456  |   |
| 2012                                        |   |   | 2,134  |   |
| Thereafter                                  |   |   | 2,316  |   |
| Total      amortization expense             |   | $      | 16,236 |   |
|                                        |   |   |   |   |

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| STATEMENT      OF OPERATIONS |   |   |   |
|------------------------------|--------|--------|--------|
|                         |   |   |   |
|  Net      revenues      |   | $      | 11,514 |   |
|                         |   |   |   |   |
|  Operating      loss    |   | $      | (4,308 | ) |
|                         |   |   |   |   |
|  Net      loss          |   | $      | (4,738 | ) |

|                            |   |              |   |   |              |   |
|---------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                            |   | December      31, |   |   | December      31, |   |
|                            |   | 2007              |   |   | 2006              |   |
|                            |   |              |   |
| Gaming      and other taxes     |   | $                 | 2,159  |   |              | $      | 2,761 |   |
| Progressive      jackpots       |   |              | 4,165  |   |              |   | 3,479 |   |
| Slot      club liability        |   |              | 1,818  |   |              |   | 1,648 |   |
| Chip      & token liability |   |              | 763    |   |              |   | 810 |   |
| Accrued      trade payables     |   |              | 5,001  |   |              |   | 4,686 |   |
| Professional      fees          |   |              | 1,304  |   |              |   | 823 |   |
| Other                           |   |              | 1,265  |   |              |   | 1,348 |   |
|                            |   | $                 | 16,475 |   |              | $      | 15,555 |   |
|                            |   |              |   |   |              |   |   |   |

|                                         |   | December      31, |    |   | December      31, |   |
|----------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                         |   | 2007              |    |   | 2006              |   |
|                                         |   |              |    |   |              |   |
| 9      1⁄2% senior secured notes due 2010 |   | $                 | 300,000 |   |              | $      | 300,000 |   |
| 9      3⁄4% senior notes due 2011         |   |              | 200,000 |   |              |   | 200,000 |   |
| Senior      secured credit facility          |   |              | 56,425  |   |              |   | 45,737 |   |
| Capitalized      leases and other debt       |   |              | 313     |   |              |   | 232 |   |
| Long-term      debt                          |   |              | 556,738 |   |              |   | 545,969 |   |
| Less      current maturities                 |   |              | (203    | )      |              |   | (165 | ) |
| Total      long-term debt                    |   | $                 | 556,535 |   |              | $      | 545,804 |   |
|                                         |   |              |    |   |              |   |   |   |
|                                         |   |              |    |   |              |   |   |   |

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| For      the years ended December 31,                   |   |   |    |
|---------------------------------------------------------|--------|--------|---------|
|                                                    |   |   |    |
|  2008                                              |   | $      | 203     |   |
|  2009                                              |   |   | 110     |   |
|  2010                                              |   |   | 356,425 |   |
|  2011                                              |   |   | 200,000 |   |
|  2012                                              |   |   | -       |   |
|  Thereafter                                        |   |   | -       |   |
|  Total      scheduled maturities of long-term debt |   | $      | 556,738 |   |
|                                                    |   |   |    |   |

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|                                   |   | December      31, 2007 |    |   | December      31, 2006 |   |
|----------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                   |   | Carrying               |    |   | Estimated              |   |   | Carrying |   |   | Estimated |   |
|                                   |   | Value                  |    |   | Fair      Value        |   |   | Value |   |   | Fair      Value |   |
| Assets:                                |   | (in      thousands)    |    |
| Cash      and equivalents              |   | $                      | 29,216  |   |                   | $      | 29,216 |   |   | $ | 25,532 |   |   | $ | 25,532 |   |
| Restricted      Cash                   |   | $                      | 3,401   |   |                   | $      | 3,401 |   |   | $ | 3,327 |   |   | $ | 3,327 |   |
|                                   |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                           |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt                    |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| 9      1⁄2% Senior Secured Notes    |   | $                      | 300,000 |   |                   | $      | 281,250 |   |   | $ | 300,000 |   |   | $ | 313,500 |   |
| 9      3⁄4% Senior Notes            |   |                   | 200,000 |   |                   |   | 138,000 |   |   |   | 200,000 |   |   | $ | 196,000 |   |
| Senior      Secured Credit Facility    |   |                   | 56,425  |   |                   |   | 56,425 |   |   |   | 45,737 |   |   |   | 45,737 |   |
| Capitalized      leases and other debt |   |                   | 313     |   |                   |   | 313 |   |   |   | 232 |   |   |   | 232 |   |
|                                   |   | $                      | 556,738 |   |                   | $      | 475,988 |   |   | $ | 545,969 |   |   | $ | 555,469 |   |
|                                   |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| 12      1⁄2% Discount Notes, pushed |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| down      from Majestic Holdco         |   | $                      | 57,710  |   |                   | $      | 45,085 |   |   | $ | 51,124 |   |   | $ | 42,310 |   |
|                                   |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

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| For      the years ended December 31, |   |   |   |
|---------------------------------------|--------|--------|--------|
|                                  |   |   |   |
| 2008                                  |   | $      | 383    |   |
| 2009                                  |   |   | 213    |   |
| 2010                                  |   |   | 103    |   |
| 2011                                  |   |   | 45     |   |
| 2012                                  |   |   | 43     |   |
| Thereafter                            |   |   | -      |   |
|                                  |   | $      | 787    |   |
|                                  |   |   |   |   |

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|                                                 |                                                                                               |                | For      The Years Ended |      |
|------------------------------------------------------|----------------------------------------------------------------------------------------------------|---------------------|--------------------------|-----------|
|                                                 |                                                                                               |                | December      31,        |      |
|                                                 |                                                                                               |                | 2007                     |      |   | 2006 |   |   | 2005 |   |
|                                                 |                                                                                               |                | (in      thousands)      |      |
| Net      revenues:                                   |                                                                                               |                |                     |      |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 240,573   |   |   | $ | 236,826 |   |   | $ | 143,624 |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 86,813    |   |   |   | 83,979 |   |   |   | 82,939 |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 30,712    |   |   |   | 33,429 |   |   |   | 35,409 |   |
|                                                 | Total                                                                                              |                | $                        | 358,098   |   |   | $ | 354,234 |   |   | $ | 261,972 |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):                        |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 30,339    |   |   | $ | 35,183 |   |   | $ | 18,982 |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 5,092     |   |   |   | 8,836 |   |   |   | 10,253 |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 5,962     |   |   |   | 8,060 |   |   |   | 7,393 |   |
|                                                 | Corporate      (1)                                                                                 |                |                     | (6,403    | ) |   |   | (6,419 | ) |   |   | (7,896 | ) |
|                                                 | Total                                                                                              |                | $                        | 34,990    |   |   | $ | 45,660 |   |   | $ | 28,732 |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
| Segment      depreciation and amortization:          |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 19,197    |   |   | $ | 20,291 |   |   | $ | 9,245 |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 10,975    |   |   |   | 9,157 |   |   |   | 10,062 |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 2,515     |   |   |   | 2,163 |   |   |   | 3,125 |   |
|                                                 | Corporate      (1)                                                                                 |                |                     | 147       |   |   |   | 112 |   |   |   | 180 |   |
|                                                 | Total                                                                                              |                | $                        | 32,834    |   |   | $ | 31,723 |   |   | $ | 22,612 |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
|                                                 |                                                                                               |                | For      The Years Ended |      |
|                                                 |                                                                                               |                | December      31,        |      |
|                                                 |                                                                                               |                | 2007                     |      |   | 2006 |   |   | 2005 |   |
|                                                 |                                                                                               | (in      thousands) |                     |
| Expenditure      for additions to long-lived assets: |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 7,403     |   |   | $ | 9,130 |   |   | $ | 4,152 |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 7,367     |   |   |   | 10,577 |   |   |   | 4,860 |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 16,411    |   |   |   | 5,541 |   |   |   | 2,655 |   |
|                                                 | Corporate                                                                                          |                |                     | 952       |   |   |   | 161 |   |   |   | 116 |   |
|                                                 | Total                                                                                              |                | $                        | 32,133    |   |   | $ | 25,409 |   |   | $ | 11,783 |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
|                                                 |                                                                                               |                |                          |      |   |  |   |   |   |   |   |
|                                                 |                                                                                               |                | December      31,        |      |   | December      31, |   |   |   |   |   |
|                                                 |                                                                                               |                | 2007                     |      |   | 2006 |   |   |   |   |   |
|                                                 |                                                                                               |                | (in      thousands)      |      |   |   |   |   |
| Segment      assets:                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 465,357   |   |   | $ | 478,896 |   |   |   |   |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 76,159    |   |   |   | 79,664 |   |   |   |   |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 52,829    |   |   |   | 43,803 |   |   |   |   |   |
|                                                 | Corporate                                                                                          |                |                     | 464,340   |   |   |   | 524,981 |   |   |   |   |   |
|                                                 | Total                                                                                              |                |                     | 1,058,685 |   |   |   | 1,127,344 |   |   |   |   |   |
|                                                 | Less:      Intercompany                                                                            |                |                     | (552,995  | ) |   |   | (620,985 | ) |   |   |   |   |
|                                                 | Total                                                                                              |                | $                        | 505,690   |   |   | $ | 506,359 |   |   |   |   |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
| Goodwill:                                            |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |
|                                                 | Majestic      Properties                                                                           |                | $                        | 41,509    |   |   | $ | 41,509 |   |   |   |   |   |
|                                                 | Fitzgeralds      Tunica                                                                            |                |                     | 3,998     |   |   |   | 3,998 |   |   |   |   |   |
|                                                 | Fitzgeralds      Black Hawk                                                                        |                |                     | 1,924     |   |   |   | 1,924 |   |   |   |   |   |
|                                                 | Total                                                                                              |                | $                        | 47,431    |   |   | $ | 47,431 |   |   |   |   |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |
| (1)                                                  | Corporate      expenses reflect payroll, benefits, travel and other costs associated with      our |                |
|                                                 | corporate      staff and are not allocated to the properties.                                      |                |                     |      |   |
|                                                 |                                                                                               |                |                     |      |   |   |   |   |   |   |   |   |   |

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|   | NOTE      17. SUPPLEMENTAL GUARANTOR FINANCIALINFORMATION |
|--------|-----------------------------------------------------------|

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|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | The      Majestic                                                                                                                           |                                                                                                                                        | The      Majestic                                                                                                                           |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | Star      Casino,                                                                                                                           |                                                                                                                                        | Star      Casino                                                                                                                            |                                                                                                                                        | Guarantor                                                                                                                                   |                                                                                                                                        | Eliminating                                                                                                                                 |                                                                        | Total                                                            |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | LLC                                                                                                                                         |                                                                                                                                        | Capital      Corp.                                                                                                                          |                                                                                                                                        | Subsidiaries                                                                                                                                |                                                                                                                                        | Entries                                                                                                                                     |                                                                        | Consolidated                                                     |
| ASSETS                                                   |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
| Current      assets:                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | Cash      and cash equivalents                                                                                                              |  $        8,055,172                                                                                   |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $      21,161,091                                                                                       |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $      29,216,263                                                                                       |
|                                                     | Restricted      cash                                                                                                                        |            3,401,359                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            3,401,359                                                                 |
|                                                     | Accounts      receivable, net                                                                                                               |            2,579,315                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            3,200,523                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            5,779,838                                                                 |
|                                                     | Inventories                                                                                                                                 |               421,082                                                        |                                                                                                                                        |                        - |                                                                                                                                        |               667,426                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            1,088,508                                                                 |
|                                                     | Prepaid      expenses and deposits                                                                                                          |            1,026,745                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |               987,146                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            2,013,891                                                                 |
|                                                     | Receivable      from affiliate                                                                                                              |            4,694,778                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                   1,399                           |                                                                                                                                        |                (4,079,288)                                                                     |  (a)                                                                                                                                   |               616,889                                                 |
|                                                     | Investment      in subsidiaries                                                                                                             |        154,416,819                                                                                              |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            (154,416,819)                                                                                           |  (b)                                                                                                                                   |                        - |
|                                                     |                                                                                                                                        | Total      current assets                                                                                                                          |        174,595,270                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |          26,017,585                                                                            |                                                                                                                                        |            (158,496,107)                                                                                           |                                                                                                                                        |          42,116,748            |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| Property,      equipment and improvements, net      |        141,886,772                                                                                       |                                                                                                                                               |                        - |                                                                                                                                        |        137,742,394                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |        279,629,166                                                                                       |
| Intangible      assets, net                              |                        - |                                                                                                                                               |                        - |                                                                                                                                        |        121,936,336                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |        121,936,336                                                                                       |
| Goodwill                                                 |                                                                                                                                        |                        -        |                                                                                                                                        |                        - |                                                                                                                                        |          47,431,442                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          47,431,442                                                                            |
| Other      assets:                                       |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | Deferred      financing costs, net                                                                                                          |            9,737,796                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            9,737,796                                                                 |
|                                                     | Deferred      financing and transaction costs                                                                                               |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        | pushed      down from Majestic Holdco (c)                                                                                                          |            1,927,317                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            1,927,317 |
|                                                     | Long-term      receivable - related party                                                                                                   |        171,709,437                                                                                              |                                                                                                                                        |                        - |                                                                                                                                        |          23,118,840                                                                            |                                                                                                                                        |            (194,828,277)                                                                                           |  (a)                                                                                                                                   |                        - |
|                                                     | Other      assets                                                                                                                           |            1,271,483                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            1,639,657                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            2,911,140                                                                 |
|                                                     |                                                                                                                                        | Total      other assets                                                                                                                            |        184,646,033                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |          24,758,497                                                                            |                                                                                                                                        |            (194,828,277)                                                                                           |                                                                                                                                        |          14,576,253            |
|                                                     |                                                                                                                                        |                                                                                                                                               | Total      assets                                                                                                                           |  $    501,128,075                                                                                                  |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $    357,886,254                                                                                                  |                                                                                                                                        |  $        (353,324,384)                                                                                                      |                                                                        |  $    505,689,945                       |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| LIABILITIES      AND MEMBER'S DEFICIT                    |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
| Current      liabilities:                                |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | Accounts      payable                                                                                                                       |  $        1,255,451                                                                                   |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $        3,004,024                                                                            |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $        4,259,475                                                                            |
|                                                     | Current      portion of long-term debt                                                                                                      |               156,340                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                 46,440                                      |                                                                                                                                        |                        - |                                                                                                                                        |               202,780                                                 |
|                                                     | Payable      to related party                                                                                                               |               311,321                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            3,982,255                                                                 |                                                                                                                                        |                (4,079,288)                                                                     |  (a)                                                                                                                                   |               214,288                                                 |
|                                                     | Accrued      liabilities:                                                                                                                   |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        | Payroll      and related                                                                                                                           |            3,558,272                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            5,648,453                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            9,206,725 |
|                                                     |                                                                                                                                        | Interest                                                                                                                                           |          10,980,075                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |          10,980,075            |
|                                                     |                                                                                                                                        | Property      and franchise taxes                                                                                                                  |          10,875,649                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |            7,022,274                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |          17,897,923            |
|                                                     |                                                                                                                                        | Other      accrued liabilities                                                                                                                     |            4,423,253                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |          12,051,956                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          16,475,209            |
|                                                     |                                                                                                                                        |                                                                                                                                               | Total      current liabilities                                                                                                              |          31,560,361                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          31,755,402                                                                            |                                                                                                                                        |                (4,079,288)                                                                     |                                                                        |          59,236,475 |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| Due      to related parties                              |          23,118,840                                                                            |                                                                                                                                               |                        - |                                                                                                                                        |        171,709,437                                                                                       |                                                                                                                                        |            (194,828,277)                                                                                           |  (a)                                                                                                                                   |                        - |
| Long-term      debt, net of current maturities           |        556,530,845                                                                                       |                                                                                                                                               |        300,000,000                                                                                       |                                                                                                                                        |                   4,596                           |                                                                                                                                        |            (300,000,000)                                                                                           |  (d)                                                                                                                                   |        556,535,441                                                                                       |
| Long-term      debt pushed down from Majestic Holdco (e) |          57,710,229                                                                            |                                                                                                                                               |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |          57,710,229                                                                            |
|                                                     |                                                                                                                                        | Total      liabilities                                                                                                                             |        668,920,275                                                                                       |                                                                                                                                        |        300,000,000                                                                                       |                                                                                                                                        |        203,469,435                                                                                       |                                                                                                                                        |            (498,907,565)                                                                                           |                                                                                                                                        |        673,482,145                       |
|                                                     | Member's      (deficit) equity                                                                                                              |            (167,792,200)                                                                                                  |                                                                                                                                        |            (300,000,000)                                                                                           |                                                                                                                                        |        154,416,819                                                                                       |                                                                                                                                        |        145,583,181                                                                                       |  (b)(d)                                                                                                                                |            (167,792,200)                                                                                           |
|                                                     |                                                                                                                                        | Total      liabilities and member's (deficit) equity                                                                                               |  $    501,128,075                                                                                                  |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $    357,886,254                                                                                                  |                                                                                                                                        |  $        (353,324,384)                                                                                                      |                                                                                                                                        |  $    505,689,945                                  |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
|                                                     | (a)                                                                                                                                         | To      eliminate intercompany receivable and payables.                                                                                            |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (b)                                                                                                                                         | To      eliminate intercompany accounts and investment in      subsidiaries.                                                                       |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (c)                                                                                                                                         | Reflects      the pushdown of deferred financing costs related to the issuance of the      Discount Notes of Majestic Holdco, net of amortization, |
|                                                     |                                                                                                                                        |             pursuant to SEC Staff Accounting Bulletin 73 Topic 5(J).                                                 |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (d)                                                                                                                                         | The      Majestic Star Casino Capital Corp. is a co-obligor of the Senior Secured      Notes issued by the Company. Accordingly, such              |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        |         indebtedness has been presented as an obligation of both the issuer and      the co-obligor in the above balance sheet.          |                                                                                                                                        |                                                                                                                                        |
|                                                     | (e)                                                                                                                                         | Reflects      the pushdown of Majestic Holdco’s Discount Notes pursuant to SEC Staff      Accounting Bulletin 73 Topic 5(J).                 |                                                                                                                                        |                                                                                                                                        |

----

Table of Contents

|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | The      Majestic                                                                                                                           |                                                                                                                                        | The      Majestic                                                                                                                           |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | Star      Casino,                                                                                                                           |                                                                                                                                        | Star      Casino                                                                                                                            |                                                                                                                                        | Guarantor                                                                                                                                   |                                                                                                                                        | Eliminating                                                                                                                                 |                                                                        | Total                                                            |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        | LLC                                                                                                                                         |                                                                                                                                        | Capital      Corp.                                                                                                                          |                                                                                                                                        | Subsidiaries                                                                                                                                |                                                                                                                                        | Entries                                                                                                                                     |                                                                        | Consolidated                                                     |
| ASSETS                                                   |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
| Current      assets:                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | Cash      and cash equivalents                                                                                                              |  $        9,101,841                                                                                   |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $      16,430,083                                                                                       |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $      25,531,924                                                                                       |
|                                                     | Restricted      cash                                                                                                                        |            2,286,881                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            1,040,000                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            3,326,881                                                                 |
|                                                     | Accounts      receivable, net                                                                                                               |            2,014,267                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            5,568,209                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            7,582,476                                                                 |
|                                                     | Inventories                                                                                                                                 |               196,681                                                        |                                                                                                                                        |                        - |                                                                                                                                        |               691,611                                                 |                                                                                                                                        |                        - |                                                                                                                                        |               888,292                                                 |
|                                                     | Prepaid      expenses and deposits                                                                                                          |               824,865                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            1,481,446                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            2,306,311                                                                 |
|                                                     | Receivable      from affiliate                                                                                                              |            6,186,636                                                                        |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                (5,731,366)                                                                     |  (a)                                                                                                                                   |               455,270                                                 |
|                                                     | Investment      in subsidiaries                                                                                                             |        119,861,069                                                                                              |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            (119,861,069)                                                                                           |  (b)                                                                                                                                   |                        - |
|                                                     |                                                                                                                                        | Total      current assets                                                                                                                          |        140,472,240                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |          25,211,349                                                                            |                                                                                                                                        |            (125,592,435)                                                                                           |                                                                                                                                        |          40,091,154            |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| Property,      equipment and improvements, net      |        146,207,554                                                                                       |                                                                                                                                               |                        - |                                                                                                                                        |        129,528,028                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |        275,735,582                                                                                       |
| Intangible      assets, net                              |                        - |                                                                                                                                               |                        - |                                                                                                                                        |        125,395,502                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |        125,395,502                                                                                       |
| Goodwill                                                 |                                                                                                                                        |                        -        |                                                                                                                                        |                        - |                                                                                                                                        |          47,431,442                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          47,431,442                                                                            |
| Other      assets:                                       |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                               |                                                                                                                                        |                                                                                                                                        |
|                                                     | Deferred      financing costs, net                                                                                                          |          13,083,100                                                                                   |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |          13,083,100                                                                            |
|                                                     | Deferred      financing and transaction costs                                                                                               |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        | pushed      down from Majestic Holdco (c)                                                                                                          |            2,435,620                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |            2,435,620 |
|                                                     | Long-term      receivable - related party                                                                                                   |        223,649,437                                                                                              |                                                                                                                                        |                        - |                                                                                                                                        |            7,757,546                                                                 |                                                                                                                                        |            (231,406,983)                                                                                           |  (a)                                                                                                                                   |                        - |
|                                                     | Other      assets                                                                                                                           |               503,637                                                        |                                                                                                                                        |                        - |                                                                                                                                        |            1,683,383                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            2,187,020                                                                 |
|                                                     |                                                                                                                                        | Total      other assets                                                                                                                            |        239,671,794                                                                                       |                                                                                                                                        |                        - |                                                                                                                                        |            9,440,929                                                                 |                                                                                                                                        |            (231,406,983)                                                                                           |                                                                                                                                        |          17,705,740            |
|                                                     |                                                                                                                                        |                                                                                                                                               | Total      assets                                                                                                                           |  $    526,351,588                                                                                                  |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $    337,007,250                                                                                                  |                                                                                                                                        |  $        (356,999,418)                                                                                                      |                                                                        |  $    506,359,420                       |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| LIABILITIES      AND MEMBER'S DEFICIT                    |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
| Current      liabilities:                                |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | Accounts      payable                                                                                                                       |  $        2,166,672                                                                                   |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $        2,324,928                                                                            |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $        4,491,600                                                                            |
|                                                     | Current      portion of long-term debt                                                                                                      |                 60,091                                             |                                                                                                                                        |                        - |                                                                                                                                        |               105,330                                                 |                                                                                                                                        |                        - |                                                                                                                                        |               165,421                                                 |
|                                                     | Payable      to related party                                                                                                               |                   2,095                                  |                                                                                                                                        |                        - |                                                                                                                                        |            5,729,271                                                                 |                                                                                                                                        |                (5,731,366)                                                                     |  (a)                                                                                                                                   |                        - |
|                                                     | Accrued      liabilities:                                                                                                                   |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        | Payroll      and related                                                                                                                           |            3,131,620                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            5,985,106                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            9,116,726 |
|                                                     |                                                                                                                                        | Interest                                                                                                                                           |          10,750,630                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |          10,750,630            |
|                                                     |                                                                                                                                        | Property      and franchise taxes                                                                                                                  |            5,178,856                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            3,764,119                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |            8,942,975 |
|                                                     |                                                                                                                                        | Other      accrued liabilities                                                                                                                     |            5,476,552                                                                 |                                                                                                                                        |                        - |                                                                                                                                        |          10,078,395                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          15,554,947            |
|                                                     |                                                                                                                                        |                                                                                                                                               | Total      current liabilities                                                                                                              |          26,766,516                                                                            |                                                                                                                                        |                        - |                                                                                                                                        |          27,987,149                                                                            |                                                                                                                                        |                (5,731,366)                                                                     |                                                                        |          49,022,299 |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
| Due      to related parties                              |          42,298,987                                                                            |                                                                                                                                               |                        - |                                                                                                                                        |        189,107,996                                                                                       |                                                                                                                                        |            (231,406,983)                                                                                           |  (a)                                                                                                                                   |                        - |
| Long-term      debt, net of current maturities           |        545,752,954                                                                                       |                                                                                                                                               |        300,000,000                                                                                       |                                                                                                                                        |                 51,036                                      |                                                                                                                                        |            (300,000,000)                                                                                           |  (d)                                                                                                                                   |        545,803,990                                                                                       |
| Long-term      debt pushed down from Majestic Holdco (e) |          51,123,692                                                                            |                                                                                                                                               |                        - |                                                                                                                                        |                        - |                                                                                                                                        |                        - |                                                                                                                                        |          51,123,692                                                                            |
|                                                     |                                                                                                                                        | Total      liabilities                                                                                                                             |        665,942,149                                                                                       |                                                                                                                                        |        300,000,000                                                                                       |                                                                                                                                        |        217,146,181                                                                                       |                                                                                                                                        |            (537,138,349)                                                                                           |                                                                                                                                        |        645,949,981                       |
|                                                     | Member's      (deficit) equity                                                                                                              |            (139,590,561)                                                                                                  |                                                                                                                                        |            (300,000,000)                                                                                           |                                                                                                                                        |        119,861,069                                                                                       |                                                                                                                                        |        180,138,931                                                                                       | (b)(d)                                                                                                                                      |            (139,590,561)                                                                                           |
|                                                     |                                                                                                                                        | Total      liabilities and member's (deficit) equity                                                                                               |  $    526,351,588                                                                                                  |                                                                                                                                        |  $                    -            |                                                                                                                                        |  $    337,007,250                                                                                                  |                                                                                                                                        |  $        (356,999,418)                                                                                                      |                                                                                                                                        |  $    506,359,420                                  |
|                                                     |                                                                                                                                        |                                                                                                                                               |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                        |                                                             |
|                                                     | (a)                                                                                                                                         | To      eliminate intercompany receivable and payables.                                                                                            |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (b)                                                                                                                                         | To      eliminate intercompany accounts and investment in      subsidiaries.                                                                       |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (c)                                                                                                                                         | Reflects      the pushdown of deferred financing costs related to the issuance of the      Discount Notes of Majestic Holdco, net of amortization, |
|                                                     |                                                                                                                                        |             pursuant to SEC Staff Accounting Bulletin 73 Topic 5(J).                                                 |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |                                                                                                                                        |
|                                                     | (d)                                                                                                                                         | The      Majestic Star Casino Capital Corp. is a co-obligor of the Senior Secured      Notes issued by the Company. Accordingly, such              |                                                                                                                                        |                                                                                                                                        |
|                                                     |                                                                                                                                        |         indebtedness has been presented as an obligation of both the issuer and      the co-obligor in the above balance sheet.          |                                                                                                                                        |                                                                                                                                        |
|                                                     | (e)                                                                                                                                         | Reflects      the pushdown of Majestic Holdco’s Discount Notes pursuant to SEC Staff      Accounting Bulletin 73 Topic 5(J).                 |                                                                                                                                        |                                                                                                                                        |

----

Table of Contents

|                                                                                                                                                                   |   | The      Majestic |        |   | The      Majestic  |    |   |         |   |    |        |   |   |    |         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|---------|--------|--------------|--------|---------|-------------|--------|--------|---------|--------------|--------|
|                                                                                                                                                                   |   | Star      Casino, |        |   | Star      Casino   |    |   | Guarantor    |   |    | Eliminating |   |   |    | Total        |   |
|                                                                                                                                                                   |   | LLC               |        |   | Capital      Corp. |    |   | Subsidiaries |   |    | Entries     |   |   |    | Consolidated |   |
| OPERATING      REVENUES:                                                                                                                                               |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |
| Casino                                                                                                                                                                 |   |  $           | 132,550,323 |   |               |  $ | -      |         |   |  $ | 233,348,897 |   |   |  $ | -            |   |   |   |  $ | 365,899,220 |   |
| Rooms                                                                                                                                                   |   |              | -           |   |               |    | -      |         |   |    | 11,851,142  |   |   |    | -            |   |   |   |   | 11,851,142 |   |
| Food      and beverage                                                                                                                                                 |   |              | 9,297,118   |   |               |    | -      |         |   |    | 16,307,891  |   |   |    | -            |   |   |   |   | 25,605,009 |   |
| Other                                                                                                                                                                  |   |              | 3,676,440   |   |               |    | -      |         |   |    | 4,465,529   |   |   |    | -            |   |   |   |   | 8,141,969 |   |
| Gross      revenues                                                                                                                                                    |   |              | 145,523,881 |   |               |    | -      |         |   |    | 265,973,459 |   |   |    | -            |   |   |   |   | 411,497,340 |   |
| Less      promotional allowances                                                                                                                                       |   |              | 16,825,543  |   |               |    | -      |         |   |    | 36,127,511  |   |   |    | 446,167      |   | (a) |   |   | 53,399,221 |   |
| Net      operating revenues                                                                                                                                            |   |              | 128,698,338 |   |               |    | -      |         |   |    | 229,845,948 |   |   |    | (446,167     | )      |   |   |   | 358,098,119 |   |
|                                                                                                                                                                   |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                                                                                                                                     |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| Casino                                                                                                                                                                 |   |              | 30,602,068  |   |               |    | -      |         |   |    | 64,257,541  |   |   |    | -            |   |   |   |   | 94,859,609 |   |
| Rooms                                                                                                                                                                  |   |              | -      |   |               |    | -      |         |   |    | 3,066,404   |   |   |    | -            |   |   |   |   | 3,066,404 |   |
| Food      and beverage                                                                                                                                                 |   |              | 5,418,734   |   |               |    | -      |         |   |    | 5,781,112   |   |   |    | -            |   |   |   |   | 11,199,846 |   |
| Other                                                                                                                                                                  |   |              | 1,062,004   |   |               |    | -      |         |   |    | 958,348     |   |   |    | -            |   |   |   |   | 2,020,352 |   |
| Gaming      taxes                                                                                                                                                      |   |              | 38,319,279  |   |               |    | -      |         |   |    | 47,624,091  |   |   |    | -            |   |   |   |   | 85,943,370 |   |
| Advertising      and promotion                                                                                                                                         |   |              | 5,799,023   |   |               |    | -      |         |   |    | 17,336,536  |   |   |    | (446,167     | )      | (a) |   |   | 22,689,392 |   |
| General      and administrative                                                                                                                                        |   |              | 24,329,704  |   |               |    | -      |         |   |    | 32,211,376  |   |   |    | -            |   |   |   |   | 56,541,080 |   |
| Corporate      expense                                                                                                                                                 |   |              | 6,253,724   |   |               |    | -      |         |   |    | -           |   |   |    | -            |   |   |   |   | 6,253,724 |   |
| Economic      incentive tax - City of Gary                                                                                                                             |   |              | 3,635,188   |   |               |    | -      |         |   |    | 3,159,208   |   |   |    | -            |   |   |   |   | 6,794,396 |   |
| Depreciation      and amortization                                                                                                                                     |   |              | 12,272,858  |   |               |    | -      |         |   |    | 20,560,954  |   |   |    | -            |   |   |   |   | 32,833,812 |   |
| Loss      on disposal of assets                                                                                                                                        |   |              | 190,710     |   |               |    | -      |         |   |    | 715,016     |   |   |    | -            |   |   |   |   | 905,726 |   |
| Total      operating costs and expenses                                                                                                                                |   |              | 127,883,292 |   |               |    | -      |         |   |    | 195,670,586 |   |   |    | (446,167     | )      |   |   |   | 323,107,711 |   |
|                                                                                                                                                                   |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| Operating      income                                                                                                                                                  |   |              | 815,046     |   |               |    | -      |         |   |    | 34,175,362  |   |   |    | -            |   |   |   |   | 34,990,408 |   |
|                                                                                                                                                                   |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):                                                                                                                                           |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| Interest      income                                                                                                                                                   |   |              | 282,474     |   |               |    | -      |         |   |    | 385,597     |   |   |    | -            |   |   |   |   | 668,071 |   |
| Interest      expense                                                                                                                                                  |   |              | (54,524,354 | )      |               |    | -      |         |   |    | (5,209      | )      |   |    | -            |   |   |   |   | (54,529,563 | ) |
| Interest      expense - debt pushed down                                                                                                                               |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| from      Majestic Holdco (b) (c)                                                                                                                                      |   |              | (7,094,840  | )      |               |    | -      |         |   |    | -           |   |   |    | -            |   |   |   |   | (7,094,840 | ) |
| Other      non-operating expense                                                                                                                                       |   |              | (85,470     | )      |               |    | -      |         |   |    | -           |   |   |    | -            |   |   |   |   | (85,470 | ) |
| Equity      in net income of subsidiaries                                                                                                                              |   |              | 34,555,750  |   |               |    | -      |         |   |    | -           |   |   |    | (34,555,750  | )      | (d) |   |   | - |   |
| Total      other expense                                                                                                                                               |   |              | (26,866,440 | )      |               |    | -      |         |   |    | 380,388     |   |   |    | (34,555,750  | )      |   |   |   | (61,041,802 | ) |
|                                                                                                                                                                   |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| Net      (loss) income                                                                                                                                                 |   | $                 | (26,051,394 | )      |               | $       | -      |         |   | $       | 34,555,750  |   |   | $       | (34,555,750  | )      |   |   | $ | (26,051,394 | ) |
|                                                                                                                                                                   |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |   |   |   |
| (a)  To eliminate      intercompany transactions.                                                                                                                 |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |
| (b)  Includes      amortization of deferred financing costs related to the issuance of      Majestic Holdco’s Discount Notes pushed down pursuant to    SEC |   |
|                        Staff      Accounting Bulletin 73 Topic 5(J)               |   |              |
| (c)  Includes interest      expense on Majestic Holdco’s Discount Notes pushed down pursuant to SEC      Staff Accounting Bulletin 73 Topic 5(J).           |   |
| (d)  To eliminate equity      of net income of subsidiaries.                                                                                                      |   |              |        |   |               |    |   |         |   |    |        |   |   |    |         |   |   |   |

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                 |   | The      Majestic |        |   | The      Majestic  |   |   |         |   |   |        |   |   |   |         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|--------|--------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   | Star      Casino, |        |   | Star      Casino   |   |   | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   | LLC               |        |   | Capital      Corp. |   |   | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| OPERATING      REVENUES:                                                                                                                                                                                                                                                                                                                                                             |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |
| Casino                                                                                                                                                                                                                                                                                                                                                                               |   | $                 | 134,809,379 |   |               | $      | -      |         |   | $      | 240,304,517 |   |   | $      | -            |   |   |   | $ | 375,113,896 |   |
| Rooms                                                                                                                                                                                                                                                                                                                                                                                |   |              | -           |   |               |   | -      |         |   |   | 10,890,724  |   |   |   | -            |   |   |   |   | 10,890,724 |   |
|         Food and beverage                                                                                                                                                                                                                                                                                                                                                  |   |              | 1,868,380   |   |               |   | -      |         |   |   | 14,479,170  |   |   |   | -            |   |   |   |   | 16,347,550 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                |   |              | 3,311,326   |   |               |   | -      |         |   |   | 3,630,845   |   |   |   | -            |   |   |   |   | 6,942,171 |   |
| Gross      revenues                                                                                                                                                                                                                                                                                                                                                                  |   |              | 139,989,085 |   |               |   | -      |         |   |   | 269,305,256 |   |   |   | -            |   |   |   |   | 409,294,341 |   |
|         Less promotional allowances                                                                                                                                                                                                                                                                                                                                        |   |              | 13,360,845  |   |               |   | -      |         |   |   | 41,390,389  |   |   |   | 309,512      |   | (a) |   |   | 55,060,746 |   |
| Net      operating revenues                                                                                                                                                                                                                                                                                                                                                          |   |              | 126,628,240 |   |               |   | -      |         |   |   | 227,914,867 |   |   |   | (309,512     | )      |   |   |   | 354,233,595 |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                                                                                                                                                                                                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Casino                                                                                                                                                                                                                                                                                                                                                                               |   |              | 25,296,664  |   |               |   | -      |         |   |   | 62,411,913  |   |   |   | -            |   |   |   |   | 87,708,577 |   |
| Rooms                                                                                                                                                                                                                                                                                                                                                                                |   |              | -           |   |               |   | -      |         |   |   | 3,329,367   |   |   |   | -            |   |   |   |   | 3,329,367 |   |
|         Food and beverage                                                                                                                                                                                                                                                                                                                                                  |   |              | 2,075,472   |   |               |   | -      |         |   |   | 6,361,450   |   |   |   | -            |   |   |   |   | 8,436,922 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                |   |              | 813,413     |   |               |   | -      |         |   |   | 920,817     |   |   |   | -            |   |   |   |   | 1,734,230 |   |
|         Gaming taxes                                                                                                                                                                                                                                                                                                                                                       |   |              | 38,450,258  |   |               |   | -      |         |   |   | 48,646,626  |   |   |   | -            |   |   |   |   | 87,096,884 |   |
|         Advertising and promotion                                                                                                                                                                                                                                                                                                                                          |   |              | 5,662,612   |   |               |   | -      |         |   |   | 13,288,892  |   |   |   | (309,512     | )      | (a) |   |   | 18,641,992 |   |
|         General and administrative                                                                                                                                                                                                                                                                                                                                         |   |              | 25,035,679  |   |               |   | -      |         |   |   | 31,934,758  |   |   |   | -            |   |   |   |   | 56,970,437 |   |
|         Corporate expense                                                                                                                                                                                                                                                                                                                                                  |   |              | 6,306,222   |   |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 6,306,222 |   |
|         Economic incentive tax - City of Gary                                                                                                                                                                                                                                                                                                                              |   |              | 3,637,683   |   |               |   | -      |         |   |   | 3,120,690   |   |   |   | -            |   |   |   |   | 6,758,373 |   |
|         Depreciation and amortization                                                                                                                                                                                                                                                                                                                                      |   |              | 12,149,478  |   |               |   | -      |         |   |   | 19,573,410  |   |   |   | -            |   |   |   |   | 31,722,888 |   |
|         (Gain) loss on disposal of assets                                                                                                                                                                                                                                                                                                                                  |   |              | (96,851     | )      |               |   | -      |         |   |   | (35,872     | )      |   |   | -            |   |   |   |   | (132,723 | ) |
| Total      operating costs and expenses                                                                                                                                                                                                                                                                                                                                              |   |              | 119,330,630 |   |               |   | -      |         |   |   | 189,552,051 |   |   |   | (309,512     | )      |   |   |   | 308,573,169 |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Operating      income                                                                                                                                                                                                                                                                                                                                                                |   |              | 7,297,610   |   |               |   | -      |         |   |   | 38,362,816  |   |   |   | -            |   |   |   |   | 45,660,426 |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):                                                                                                                                                                                                                                                                                                                                                         |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|         Interest income                                                                                                                                                                                                                                                                                                                                                    |   |              | 216,534     |   |               |   | -      |         |   |   | 231,091     |   |   |   | -            |   |   |   |   | 447,625 |   |
|         Interest expense                                                                                                                                                                                                                                                                                                                                                   |   |              | (53,934,687 | )      |               |   | -      |         |   |   | (33,758     | )      |   |   | -            |   |   |   |   | (53,968,445 | ) |
|         Interest expense - debt pushed down                                                                                                                                                                                                                                                                                                                                |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| from      Majestic Holdco (b) (c)                                                                                                                                                                                                                                                                                                                                                    |   |              | (6,330,956  | )      |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (6,330,956 | ) |
|         Other non-operating expense                                                                                                                                                                                                                                                                                                                                        |   |              | (115,375    | )      |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (115,375 | ) |
|         Equity in net income of subsidiaries                                                                                                                                                                                                                                                                                                                               |   |              | 38,560,149  |   |               |   | -      |         |   |   | -           |   |   |   | (38,560,149  | )      | (d) |   |   | - |   |
| Total      other expense                                                                                                                                                                                                                                                                                                                                                             |   |              | (21,604,335 | )      |               |   | -      |         |   |   | 197,333     |   |   |   | (38,560,149  | )      |   |   |   | (59,967,151 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Net      (loss) income                                                                                                                                                                                                                                                                                                                                                               |   | $                 | (14,306,725 | )      |               | $      | -      |         |   | $      | 38,560,149  |   |   | $      | (38,560,149  | )      |   |   | $ | (14,306,725 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| (a)       To eliminate intercompany transactions.                                                                                                                                                                                                                                                                                                                               |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |
|              (b)  Includes amortization      of deferred financing costs related to the issuance of Majestic      Holdco’s Discount Notes pushed down pursuant to                        SEC Staff      Accounting Bulletin 73 Topic    5(J) |
| (c)  Includes interest      expense on Majestic Holdco’s Discount Notes pushed down pursuant to SEC      Staff Accounting Bulletin 73 Topic 5(J).                                                                                                                                                                                                                         |   |
| (d)  To eliminate equity      of net income of subsidiaries.                                                                                                                                                                                                                                                                                                                    |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                 |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |

----

Table of Contents

|                                                                                                                                                                   |   | The      Majestic |        |   | The      Majestic  |   |   |         |   |   |        |   |   |   |         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|--------|--------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                                                                                                                                                   |   | Star      Casino, |        |   | Star      Casino   |   |   | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                                                                                                                                                   |   | LLC               |        |   | Capital      Corp. |   |   | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| OPERATING      REVENUES:                                                                                                                                               |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |
| Casino                                                                                                                                                                 |   | $                 | 150,552,871 |   |               | $      | -      |         |   | $      | 130,365,649 |   |   | $      | -            |   |   |   | $ | 280,918,520 |   |
| Rooms                                                                                                                                                                  |   |              | -           |   |               |   | -      |         |   |   | 7,726,464   |   |   |   | -            |   |   |   |   | 7,726,464 |   |
| Food      and beverage                                                                                                                                                 |   |              | 1,761,489   |   |               |   | -      |         |   |   | 12,268,778  |   |   |   | -            |   |   |   |   | 14,030,267 |   |
| Other                                                                                                                                                                  |   |              | 3,218,165   |   |               |   | -      |         |   |   | 1,747,697   |   |   |   | -            |   |   |   |   | 4,965,862 |   |
|                Gross revenues                                                                                             |   |              | 155,532,525 |   |               |   | -      |         |   |   | 152,108,588 |   |   |   | -            |   |   |   |   | 307,641,113 |   |
| Less      promotional allowances                                                                                                                                       |   |              | 16,514,443  |   |               |   | -      |         |   |   | 29,154,818  |   |   |   | -            |   |   |   |   | 45,669,261 |   |
|                Net operating revenues                                                                                     |   |              | 139,018,082 |   |               |   | -      |         |   |   | 122,953,770 |   |   |   | -            |   |   |   |   | 261,971,852 |   |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                                                                                                                                     |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Casino                                                                                                                                                                 |   |              | 27,580,681  |   |               |   | -      |         |   |   | 40,329,956  |   |   |   | -            |   |   |   |   | 67,910,637 |   |
| Rooms                                                                                                                                                                  |   |              | -           |   |               |   | -      |         |   |   | 1,763,340   |   |   |   | -            |   |   |   |   | 1,763,340 |   |
| Food      and beverage                                                                                                                                                 |   |              | 1,999,116   |   |               |   | -      |         |   |   | 3,866,425   |   |   |   | -            |   |   |   |   | 5,865,541 |   |
| Other                                                                                                                                                                  |   |              | 40,341      |   |               |   | -      |         |   |   | 1,000,173   |   |   |   | -            |   |   |   |   | 1,040,514 |   |
| Gaming      taxes                                                                                                                                                      |   |              | 43,151,499  |   |               |   | -      |         |   |   | 17,901,538  |   |   |   | -            |   |   |   |   | 61,053,037 |   |
|                Advertising and promotion                                                                                  |   |              | 7,509,472   |   |               |   | -      |         |   |   | 7,720,678   |   |   |   | -            |   |   |   |   | 15,230,150 |   |
|                General and administrative                                                                                 |   |              | 24,939,010  |   |               |   | -      |         |   |   | 17,992,525  |   |   |   | -            |   |   |   |   | 42,931,535 |   |
|                Corporate expense                                                                                          |   |              | 7,717,108   |   |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 7,717,108 |   |
|                Economic incentive tax - City of Gary                                                                      |   |              | 4,520,228   |   |               |   | -      |         |   |   | 188,926     |   |   |   | -            |   |   |   |   | 4,709,154 |   |
|                Depreciation and amortization                                                                              |   |              | 9,173,151   |   |               |   | -      |         |   |   | 13,439,034  |   |   |   | -            |   |   |   |   | 22,612,185 |   |
|                Loss on investment in Buffington                                                                           |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|                Harbor Riverboats, LLC                                                                                     |   |              | 2,354,799   |   |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 2,354,799 |   |
|                Loss on disposal of assets                                                                                 |   |              | (45,466     | )      |               |   | -      |         |   |   | 98,256      |   |   |   | -            |   |   |   |   | 52,790 |   |
|                Total operating costs and expenses                                                                         |   |              | 128,939,939 |   |               |   | -      |         |   |   | 104,300,851 |   |   |   | -            |   |   |   |   | 233,240,790 |   |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|                Operating income                                                                                           |   |              | 10,078,143  |   |               |   | -      |         |   |   | 18,652,919  |   |   |   | -            |   |   |   |   | 28,731,062 |   |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):                                                                                                                                           |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|                Interest income                                                                                            |   |              | 280,694     |   |               |   | -      |         |   |   | 51,641      |   |   |   | -            |   |   |   |   | 332,335 |   |
|                Interest expense                                                                                           |   |              | (30,361,550 | )      |               |   | -      |         |   |   | (632        | )      |   |   | -            |   |   |   |   | (30,362,182 | ) |
|                Interest expense - debt pushed down                                                                        |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|                from Majestic Holdco (a) (b)                                                                               |   |              | (187,039    | )      |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (187,039 | ) |
|                Other non-operating expense                                                                                |   |              | (127,386    | )      |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (127,386 | ) |
|                Loss on extinguishment of debt                                                                             |   |              | (3,688,480  | )      |               |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (3,688,480 | ) |
|                Equity in net income of subsidiaries                                                                       |   |              | 18,703,928  |   |               |   | -      |         |   |   | -           |   |   |   | (18,703,928  | )      | (c) |   |   | - |   |
|                Total other expense                                                                                        |   |              | (15,379,833 | )      |               |   | -      |         |   |   | 51,009      |   |   |   | (18,703,928  | )      |   |   |   | (34,032,752 | ) |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
|                Net (loss) income                                                                                          |   | $                 | (5,301,690  | )      |               | $      | -      |         |   | $      | 18,703,928  |   |   | $      | (18,703,928  | )      |   |   | $ | (5,301,690 | ) |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| (a)  Includes      amortization of deferred financing costs related to the issuance of      Majestic Holdco’s Discount Notes pushed down pursuant to    SEC |   |
|                       Staff      Accounting Bulletin 73 Topic 5(J)                     |
| (b)  Includes interest      expense on Majestic Holdco’s Discount Notes pushed down pursuant to SEC      Staff Accounting Bulletin 73 Topic 5(J).           |   |
| (c)  To eliminate equity      of net income of subsidiaries.                                                                                                      |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |
|                                                                                                                                                                   |   |              |        |   |               |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |

----

Table of Contents

|                                                                    |                                                                                                                                                                        |                                                     |        | The      Majestic |        |   | The      Majestic  |   |   |         |       |        |        |   |   |         |   |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|-------------|-------------------|-------------|--------|--------------------|--------|--------|--------------|------------|-------------|-------------|--------|--------|--------------|--------|
|                                                                    |                                                                                                                                                                        |                                                     |        | Star      Casino, |        |   | Star      Casino   |   |   | Guarantor    |       |        | Eliminating |   |   | Total        |   |
|                                                                    |                                                                                                                                                                        |                                                     |        | LLC               |        |   | Capital      Corp. |   |   | Subsidiaries |       |        | Entries     |   |   | Consolidated |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |
|  NET      CASH (USED IN) PROVIDED BYOPERATING      ACTIVITIES: (a) |                                                                                                                                                                        | $                                                        | (42,217,316 | )                 |        | $      | -                  |   |   | $            | 71,315,168 |        |        | $      | -      |         |   | $ | 29,097,852 |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                              |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |
|                                                                    | (Increase)      decrease in restricted cash                                                                                                                                 |                                                     |        | (1,114,478        | )           |   |               | -      |   |         |       | 1,040,000   |        |   |   | -            |   |   |   | (74,478 | ) |
|                                                                    | Additions      to property and equipment                                                                                                                                    |                                                     |        | (8,160,239        | )           |   |               | -      |   |         |       | (23,973,004 | )           |   |   | -            |   |   |   | (32,133,243 | ) |
|                                                                    | Increase      in Lakefront Capital Improvement Fund                                                                                                                         |                                                     |        | (1,720,409        | )           |   |               | -      |   |         |       | -           |        |   |   | -            |   |   |   | (1,720,409 | ) |
|                                                                    | Proceeds      from disposal of equipment                                                                                                                                    |                                                     |        | 78,568            |        |   |               | -      |   |         |       | 104,174     |        |   |   | -            |   |   |   | 182,742 |   |
|                                                                    |                                                                                                                                                                        | Net      cash used in investing activities               |        |              | (10,916,558 | )      |               |   | -      |         |       |        | (22,828,830 | )      |   |         | -      |   |   |   | (33,745,388 | ) |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                              |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |
|                                                                    | Proceeds      from line of credit                                                                                                                                           |                                                     |        | 53,787,903        |        |   |               | -      |   |         |       | -           |        |   |   | -            |   |   |   | 53,787,903 |   |
|                                                                    | Repayment      of line of credit                                                                                                                                            |                                                     |        | (43,100,000       | )           |   |               | -      |   |         |       | -           |        |   |   | -            |   |   |   | (43,100,000 | ) |
|                                                                    | Advances      from (to) affiliates                                                                                                                                          |                                                     |        | 43,650,000        |        |   |               | -      |   |         |       | (43,650,000 | )           |   |   | -            |   |   |   | - |   |
|                                                                    | Repayment      of debt                                                                                                                                                      |                                                     |        | (100,453          | )           |   |               | -      |   |         |       | (105,330    | )           |   |   | -            |   |   |   | (205,783 | ) |
|                                                                    | Distribution      to Barden Development, Inc.                                                                                                                               |                                                     |        | (2,150,245        | )           |   |               | -      |   |         |       | -           |        |   |   | -            |   |   |   | (2,150,245 | ) |
|                                                                    |                                                                                                                                                                        | Net      cash provided by (used in) financing activities |        |              | 52,087,205  |   |               |   | -      |         |       |        | (43,755,330 | )      |   |         | -      |   |   |   | 8,331,875 |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents               |                                                                                                                                                                        |                                                     | (1,046,669  | )                 |        |   | -                  |   |   |         | 4,731,008  |        |        |   | -      |         |   |   | 3,684,339 |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                     |                                                                                                                                                                        |                                                     | 9,101,841   |              |        |   | -                  |   |   |         | 16,430,083 |        |        |   | -      |         |   |   | 25,531,924 |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                           |                                                                                                                                                                        | $                                                        | 8,055,172   |              |        | $      | -                  |   |   | $            | 21,161,091 |        |        | $      | -      |         |   | $ | 29,216,263 |   |
|                                                                    |                                                                                                                                                                        |                                                     |        |              |        |   |               |   |   |         |       |        |        |   |   |         |   |   |   |   |   |   |
| (a)                                                                     | Includes      interest expense of $7.1 million related to the amortization of the bond      discount and deferred financing costs of Majestic Holdco's Discount      Notes. |
|                                                                    |

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Table of Contents

|                                                          |                                                                                                                                                                        |   | The      Majestic |        |   | The      Majestic  |   |   |         |   |       |        |   |   |         |   |
|---------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|--------|--------|--------------|--------|------------|-------------|--------|--------|--------------|--------|
|                                                          |                                                                                                                                                                        |   | Star      Casino, |        |   | Star      Casino   |   |   | Guarantor    |   |       | Eliminating |   |   | Total        |   |
|                                                          |                                                                                                                                                                        |   | LLC               |        |   | Capital      Corp. |   |   | Subsidiaries |   |       | Entries     |   |   | Consolidated |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |
| NET      CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: (a) |                                                                                                                                                                        | $      | (19,458,131       | )           |   | $                  | -      |   |         | $      | 47,172,253 |        |   | $      | -            |   |   | $ | 27,714,122 |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                    |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |
|                                                          | Increase      in restricted cash                                                                                                                                            |   |              | (136,881    | )      |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | (136,881 | ) |
|                                                          | Adjustments      of costs related to Trump Indiana acquisition                                                                                                              |   |              | -           |   |               |   | -      |         |   |       | (180,648    | )      |   |         | -      |   |   |   | (180,648 | ) |
|                                                          | Additions      to property and equipment                                                                                                                                    |   |              | (8,705,542  | )      |               |   | -      |         |   |       | (16,703,605 | )      |   |         | -      |   |   |   | (25,409,147 | ) |
|                                                          | Increase      in Lakefront Capital Improvement Fund                                                                                                                         |   |              | (896,948    | )      |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | (896,948 | ) |
|                                                          | Proceeds      from disposal of equipment                                                                                                                                    |   |              | 240,751     |   |               |   | -      |         |   |       | 652,250     |   |   |         | -      |   |   |   | 893,001 |   |
|                                                          | Net      cash used in investing activities                                                                                                                                  |   |              | (9,498,620  | )      |               |   | -      |         |   |       | (16,232,003 | )      |   |         | -      |   |   |   | (25,730,623 | ) |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                    |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |
|                                                          | Payment      of debt issuance costs (b)                                                                                                                                     |   |              | (1,646,930  | )      |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | (1,646,930 | ) |
|                                                          | Repayment      of line of credit                                                                                                                                            |   |              | (61,643,760 | )      |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | (61,643,760 | ) |
|                                                          | Proceeds      from line of credit                                                                                                                                           |   |              | 60,168,339  |   |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | 60,168,339 |   |
|                                                          | Advances      from (to) affiliates                                                                                                                                          |   |              | 37,600,000  |   |               |   | -      |         |   |       | (37,600,000 | )      |   |         | -      |   |   |   | - |   |
|                                                          | Repayment      of debt                                                                                                                                                      |   |              | (34,300     | )      |               |   | -      |         |   |       | (1,193,508  | )      |   |         | -      |   |   |   | (1,227,808 | ) |
|                                                          | Distributions      to Barden Development, Inc.                                                                                                                              |   |              | (4,469,665  | )      |               |   | -      |         |   |       | -           |   |   |         | -      |   |   |   | (4,469,665 | ) |
|                                                          | Net      cash provided by (used in) financing activities                                                                                                                    |   |              | 29,973,684  |   |               |   | -      |         |   |       | (38,793,508 | )      |   |         | -      |   |   |   | (8,819,824 | ) |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents     |                                                                                                                                                                        |   | 1,016,933         |        |   |               | -      |   |         |   | (7,853,258 | )           |   |   | -            |   |   |   | (6,836,325 | ) |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period           |                                                                                                                                                                        |   | 8,084,908         |        |   |               | -      |   |         |   | 24,283,341 |        |   |   | -            |   |   |   | 32,368,249 |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                 |                                                                                                                                                                        | $      | 9,101,841         |        |   | $                  | -      |   |         | $      | 16,430,083 |        |   | $      | -            |   |   | $ | 25,531,924 |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |
| (a)                                                           | Includes      interest expense of $6.3 million related to the amortization of the bond      discount and deferred financing costs of Majestic Holdco's Discount      Notes. |   |
| (b)                                                           |  Includes      issuance costs of $0.2 million related to the Discount Notes of Majestic      Holdco.                                                                   |   |
|                                                          |                                                                                                                                                                        |   |              |        |   |               |   |   |         |   |       |        |   |   |         |   |   |   |   |   |   |

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Table of Contents

|                                                      |                                                                                                                                                                                                                                                            |   | The      Majestic |         |   | The      Majestic  |   |   |         |   |       |         |   |   |   |         |   |
|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------|--------|--------------------|--------|--------|--------------|--------|------------|--------------|--------|--------|--------|--------------|--------|
|                                                      |                                                                                                                                                                                                                                                            |   | Star      Casino, |         |   | Star      Casino   |   |   | Guarantor    |   |       | Eliminating  |   |   |   | Total        |   |
|                                                      |                                                                                                                                                                                                                                                            |   | LLC               |         |   | Capital      Corp. |   |   | Subsidiaries |   |       | Entries      |   |   |   | Consolidated |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |
| NET      CASH (USED IN) PROVIDED BY                       |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |
|                                                      | OPERATING      ACTIVITIES: (a)                                                                                                                                                                                                                                  |   | $                 | (17,978,203  | )      |               | $      | -      |         |   | $          | 40,817,557   |   |   | $      | 4,999,999    |   | (b) |   | $ | 27,839,353 |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |
|                                                      | Increase      in restricted cash                                                                                                                                                                                                                                |   |              | 390,008      |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 390,008 |   |
|                                                      | Acquisition      of Trump Indiana, Inc., net of cash acquired                                                                                                                                                                                                   |   |              | 209,927      |   |               |   | -      |         |   |       | (232,204,354 | )      |   |   | -            |   |   |   |   | (231,994,427 | ) |
|                                                      | Payment      of gaming license transfer fee to State of Indiana                                                                                                                                                                                                 |   |              | -            |   |               |   | -      |         |   |       | (2,000,000   | )      |   |   | -            |   |   |   |   | (2,000,000 | ) |
|                                                      | Payoff      of City of Gary development agreement                                                                                                                                                                                                               |   |              | -            |   |               |   | -      |         |   |       | (3,506,797   | )      |   |   | -            |   |   |   |   | (3,506,797 | ) |
|                                                      | Additions      to property and equipment                                                                                                                                                                                                                        |   |              | (3,841,488   | )      |               |   | -      |         |   |       | (7,942,011   | )      |   |   | -            |   |   |   |   | (11,783,499 | ) |
|                                                      | Investment      in Buffington Harbor Riverboats, LLC                                                                                                                                                                                                            |   |              | (174,342     | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (174,342 | ) |
|                                                      | Proceeds      from disposal of equipment                                                                                                                                                                                                                        |   |              | 102,225      |   |               |   | -      |         |   |       | 33,484       |   |   |   | -            |   |   |   |   | 135,709 |   |
|                                                      | Other                                                                                                                                                                                                                                                           |   |              | 209,926      |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 209,926 |   |
|                                                      | Net      cash used in investing activities                                                                                                                                                                                                                      |   |              | (3,103,744   | )      |               |   | -      |         |   |       | (245,619,678 | )      |   |   | -            |   |   |   |   | (248,723,422 | ) |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |
|                                                      | Payment      of costs on early extinguishment of debt                                                                                                                                                                                                           |   |              | (1,053,905   | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (1,053,905 | ) |
|                                                      | Issuance      costs for the 9 1⁄2% senior secured notes                                                                                                                                                                                                      |   |              | (1,805,572   | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (1,805,572 | ) |
|                                                      | Issuance      costs for the 9 3⁄4% senior notes                                                                                                                                                                                                              |   |              | (9,026,094   | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (9,026,094 | ) |
|                                                      | Costs      for the $80.0 million secured credit facility                                                                                                                                                                                                        |   |              | (110,000     | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (110,000 | ) |
|                                                      |  Issuance      costs for the 12 1⁄2% senior discount notes                                                                                                                                                                                              |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
|                                                      | pushed      down from Majestic Holdco (c)                                                                                                                                                                                                                       |   |              | (2,823,746   | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (2,823,746 | ) |
|                                                      | Cash      paid for redemption of the 11.653% notes                                                                                                                                                                                                              |   |              | (16,290,000  | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (16,290,000 | ) |
|                                                      | Proceeds      from issuance of the 9 1⁄2% senior secured notes                                                                                                                                                                                               |   |              | 40,000,000   |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 40,000,000 |   |
|                                                      | Proceeds      from issuance of the 9 3⁄4% senior notes                                                                                                                                                                                                       |   |              | 200,000,000  |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 200,000,000 |   |
|                                                      | Proceeds from      issuance of the 12 1⁄2% senior discount notes                                                                                                                                                                                             |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
|                                                      | pushed      down from Majestic Holdco (c)                                                                                                                                                                                                                       |   |              | 45,128,815   |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 45,128,815 |   |
|                                                      | Proceeds      from line of credit                                                                                                                                                                                                                               |   |              | 43,877,024   |   |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | 43,877,024 |   |
|                                                      | Repayment      of line of credit                                                                                                                                                                                                                                |   |              | (37,629,678  | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (37,629,678 | ) |
|                                                      | Repayment      of debt                                                                                                                                                                                                                                          |   |              | (16,973,028  | )      |               |   | -      |         |   |       | (1,403       | )      |   |   | -            |   |   |   |   | (16,974,431 | ) |
|                                                      | Advances      from (to) affiliates                                                                                                                                                                                                                              |   |              | (215,837,200 | )      |               |   | -      |         |   |       | 220,837,199  |   |   |   | (4,999,999   | )      | (b) |   |   | - |   |
|                                                      | Distributions      to Barden Development, Inc.                                                                                                                                                                                                                  |   |              | (6,761,824   | )      |               |   | -      |         |   |       | -            |   |   |   | -            |   |   |   |   | (6,761,824 | ) |
|                                                      | Net      cash provided by (used in) financing activities                                                                                                                                                                                                        |   |              | 20,694,792   |   |               |   | -      |         |   |       | 220,835,796  |   |   |   | (4,999,999   | )      |   |   |   | 236,530,589 |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents |                                                                                                                                                                                                                                                            |   | (387,155          | )            |   |               | -      |   |         |   | 16,033,675 |         |   |   | -      |         |   |   |   | 15,646,520 |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period       |                                                                                                                                                                                                                                                            |   | 8,472,063         |         |   |               | -      |   |         |   | 8,249,666  |         |   |   | -      |         |   |   |   | 16,721,729 |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period             |                                                                                                                                                                                                                                                            | $      | 8,084,908         |         |   | $                  | -      |   |         | $      | 24,283,341 |         |   | $      | -      |         |   |   | $ | 32,368,249 |   |
|                                                      |                                                                                                                                                                                                                                                            |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| (a)                                                       | Includes      interest expense of $0.2 million related to the amortization of the bond      discount and deferred financing costs of Majestic Holdco's Discount      Notes.                                                                                     |   |
| (b)                                                       | To      eliminate intercompany transactions.                                                                                                                                                                                                                    |   |              |         |   |               |   |   |         |   |       |         |   |   |   |         |   |   |   |   |   |   |
| (c)                                                       | Reflects      the pushdown of Majestic Holdco's Discount Notes and associated issuance      costs pursuant to SEC Staff Accounting Bulletin 73, topic 5(J).  The      Discount Notes are not guaranteed by the Company or the guarantor      subsidiaries. |   |

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