EXHIBIT 10.8
                               SEVERANCE AGREEMENT


     This  Severance Agreement (this "Agreement") is made this 23rd day of July,
1999  by and between Marie T. Pierson (hereinafter "Pierson") and American Bingo
&  Gaming  Corp.  (hereinafter  "ABG").

     Whereas  Pierson  is  an  employee  and  an  officer  of  ABG;

     Now, in consideration of the mutual promises contained herein and the terms
set  forth  below,  the  parties  agree  as  follows:

1.     Resignation.  Pierson hereby resigns from any and all positions held with
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ABG  and its subsidiaries as a result of the change in control provisions of the
employment  agreement.

2.     Severance  Payment.  ABG  does  hereby  agree to pay Pierson $90,000 as a
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severance  payment  pursuant  to  the  terms  of  her  employment  agreement.

3.     Benefits  Continuation.  Continuation  for  the  Severance  Period  (nine
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months)  of  coverage  under  the  group  health,  dental,  disability  and life
insurance benefit plans or until Pierson is able to effect coverage from another
employer  at  any  time  during  the  Severance  period.

4.     Confidentiality.  Pierson hereby acknowledges, represents and agrees that
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she will maintain the confidentiality of all information obtained regarding ABG,
including  but  not  limited  to  its operations, management, financial matters,
plans  and  other  material  data, and that she will not in any fashion, form or
manner,  either  directly or indirectly, divulge, disclose or communicate to any
person,  firm,  corporation  or other business entity, in any manner whatsoever,
any such confidential information concerning ABG.  However, Pierson may disclose
any  information  required  by  law  or  regulatory  agency.

5.     Indemnification.  ABG  agrees to indemnify and hold Pierson harmless from
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and  against any and all costs, judgments, expenses, attorney's fees, damages or
liabilities  whatsoever  relating  to  any  and  all  claims that may be brought
against  Pierson  in  connection  with  her position as an officer of ABG to the
fullest  extent  authorized  by  Delaware  law as provided in paragraph 7 of the
Certificate  of  Incorporation  of  ABG,  as  amended  October  7,  1994.

6.     Governing  Law.  This  Agreement  shall  be governed by and construed and
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enforced  in  accordance  with  the  laws  of  the  State  of  South  Carolina.

7.     Severability.  If  any  of this Agreement or any portion of any provision
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of  this  Agreement  is  at  any  time  deemed  or  declared  void,  voidable or
unenforceable,  then  such  provision  or portion of such provision is severable
from the remainder of this Agreement and the remainder of this Agreement and the
remainder  of  this  Agreement  shall  be  fully  enforced.

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8.     Further Assurances.  The parties shall from time to time promptly execute
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and  deliver  such further instruments, documents or papers and perform all acts
necessary  or  proper  to  carry out and effect the terms and provisions of this
Agreement.

9.     Supersedes  Prior  Agreement.  It  is  understood  and  agreed  that this
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Agreement  contains  the entire agreement between the parties and supersedes any
and  all prior agreements and arrangements or understandings between the parties
relating  to  the  subject  matter  hereof.  No  oral understanding, statements,
promises  or  inducements  contrary  to the terms of this Agreement exist.  This
Agreement  cannot  be  changed  or  terminated  orally.

10.     ABG Release.  Pierson hereby releases ABG and its officers and directors
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from  any  and  all  past, present or future claims, demands, actions, causes of
action, costs, judgments, expenses, attorney's fees, damages and all liabilities
whatsoever  at  law  or  in equity, whether known or unknown, that she may have,
claim  to  have,  or  have  ever had, against ABG and its officers and directors
arising  from  any  and  all  causes  of  action.

11.     Pierson  Global  Release.  ABG  hereby releases Pierson from any and all
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past,  present  and  future  claims,  demands, actions, causes of action, costs,
judgments,  expenses, attorney's fees, damages and all liabilities whatsoever at
law  or in equity, whether known or unknown, that it may have, claim to have, or
have  ever  had,  against  Pierson.


     In  Witness  whereof, the parties hereto have executed this Agreement as of
the  date  first  set  forth  above.


WITNESS:


/s/  Shannon  M.  Pierson             /s/  Marie  T.  Pierson
-------------------------             -----------------------
                                      Marie  T.  Pierson


WITNESS:                              American  Bingo  &  Gaming  Corp.


/s/  Shannon  M.  Pierson             By:    /s/  Daniel  W.  Deloney
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                                      Name:  Daniel  W.  Deloney
                                      Title: Chairman  of  the  Board  &  CEO

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