<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES ACT, AND MAY NOT BE TRANSFERRED WITHOUT
REGISTRATION UNDER SUCH ACTS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
THAT SUCH REGISTRATION IS NOT REQUIRED.

No.                                                                  $

                               TRANS WORLD GAMING CORP.
                        TRANS WORLD GAMING OF LOUISIANA, INC.
                     12% Secured Convertible Senior Bond Due 1999
                                 Date: June 30, 1996

         Trans World Gaming Corp., a Nevada corporation ("TWG"), and its
wholly-owned subsidiary, Trans World Gaming of Louisiana, Inc., a Louisiana
corporation (collectively, the "Issuer"), for value received hereby promises to
pay jointly and severally to                     , or registered assigns, the
principal sum of          Dollars at the Issuer's office or agency for said
purpose, on June 30, 1999, in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of
public and private debts, and to pay interest semi-annually on December 15 and
June 15 (each an "Interest Payment Date") of each year, commencing with
December 15, 1996, on said principal sum in like coin or currency at 12% per
annum at said office or agency from the most recent Interest Payment Date to
which interest on the Securities has been paid or duly provided for unless the
date hereof is a date to which interest on the Securities is paid or duly
provided for, in which case from the date of this Security, or unless no
interest has been paid or duly provided for on the Securities, in which case
from the date of issuance.

         The interest so payable on any Interest Payment Date will, except as
otherwise provided in the Indenture referred to on the reverse hereof, be paid
to the Person in whose name this Security is registered at the close of business
on December 1 or June 1, whether or not a Business Day (each an "Interest Record
Date") next preceding such Interest Payment Date, whether or not such day is a
Business Day; PROVIDED that interest may be paid, at the option of the Issuer,
by mailing a check therefor payable to the registered Holder entitled thereto at
his last address as it appears on the Security register.  Notwithstanding the
foregoing, if the date hereof is after an Interest Record Date and before the
immediately following Interest Payment Date, this Security shall bear interest
from such Interest Payment Date; PROVIDED that if the Issuer shall default in
the payment of interest due on such Interest Payment Date, then this Security
shall bear interest at 18% per annum from the next preceding Interest Payment
Date to which interest on the Securities has been paid or duly provided for, or,
if no interest has been paid or duly provided for on the Securities since the
original issue date of this Security, from such date.

         Interest on this Security will be calculated on the basis of a 360-day
year, consisting of twelve 30-day months.

<PAGE>

         Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof which further provisions shall for all purposes
have the same effect as if set forth in this place.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed under its corporate seal.

[Seal]                  TRANS WORLD GAMING CORP.


                        By:
                            ------------------------------------------------
                            Stanley Kohlenberg
                            President and Chief Executive Officer


                        By:
                            ------------------------------------------------




                        TRANS WORLD GAMING OF LOUISIANA, INC.


                        By:
                            ------------------------------------------------
                           Stanley Kohlenberg
                           President and Chief Executive Officer


                        By:
                            ------------------------------------------------

                                         -2-


<PAGE>

                                [REVERSE OF SECURITY]

                               TRANS WORLD GAMING CORP.
                        TRANS WORLD GAMING OF LOUISIANA, INC.
                     12% Secured Convertible Senior Bond Due 1999
                                 Date: June 30, 1996

         This Security is one of a duly authorized issue of debt securities of
the Issuer, with an aggregate principal amount of $4,800,000, issued pursuant to
an indenture dated as of November 1, 1996 (the "Indenture"), duly executed and
delivered by the Issuer to U.S. Trust Company of Texas, N.A., as Trustee (herein
called the "Trustee").  Reference is hereby made to the Indenture and all
indentures supplemental thereto for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Issuer
and the Holders (the words "Holders" or "Holder" meaning the registered holders
or registered holder) of the Securities.  The Securities are general secured
obligations of the Issuer.  Capitalized terms used in this Security and not
defined herein shall have the meaning set forth in the Indenture.

         In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal and interest in respect of all of the
Securities then outstanding may be declared due and payable in the manner and
with the effect, and subject to the conditions, provided in the Indenture.  The
Indenture provides that the Holders of a majority in aggregate principal amount
of the Securities then outstanding, by notice to the Trustee, may on behalf of
the Holders of all of the Securities, waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest or premium on, or the principal of,
the Securities or in respect of a covenant or provision that cannot be modified
or amended without the consent of all Holders of the Securities.  Any such
consent or waiver by the Holder of this Security (unless revoked as provided in
the Indenture) shall be conclusive and binding upon such Holder and upon all
future Holders and owners of this Security and any Security which may be issued
in exchange or substitution therefor, whether or not any notation thereof is
made upon this Security or such other Securities.

         The Indenture permits the Issuer and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of
the Securities; provided that no such supplemental indenture shall, without the
consent of each Holder affected thereby (with respect to any Securities held by
a non-consenting Securityholder) (i) reduce the principal amount of Securities
whose Holders must consent to an amendment, supplement or waiver, (ii) reduce
the principal of or change the fixed maturity of any Security or alter the
provisions with respect to the redemption of the Securities, (iii) reduce the
rate of or change the time for payment of interest on any Security, (iv) waive a
Default or Event of Default in the payment of principal of or premium, if any,
or interest on the Securities (except a rescission of acceleration of the
Securities by the Holders of at least a majority in aggregate principal amount
of the then outstanding Securities and a waiver of the payment default that
resulted from such acceleration), (v) make any Security payable in money other
than that stated in the Securities, (vi) make any change in the provisions of
the Indenture relating to


                                         -3-


<PAGE>

waivers of past Defaults or the rights of Holders of Securities to receive
payments of principal of or interest on the Securities, (vii) waive a redemption
payment with respect to any Security or (viii) make any change in the foregoing
amendment and waiver provisions.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligations of the Issuer, which
are absolute and unconditional, to pay the principal of and the interest on this
Security at the place, times, and rate, and in the currency, herein prescribed.

         The Securities are issuable only as registered Securities without
coupons.

         At the office or agency of the Issuer referred to on the face hereof
and in the manner and subject to the limitations provided in the Indenture,
Securities may be exchanged for a like aggregate principal amount of Securities
of other authorized denominations.

         Upon due presentment for registration of transfer of this Security at
the above-mentioned office or agency of the Issuer, a new Security or Securities
of authorized denominations, for a like aggregate principal amount, will be
issued to the transferee as provided in the Indenture.  No service charge shall
be made for any such transfer, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto.

         As provided in the Indenture, the Securities may not be redeemed by
the Issuer except the Issuer may redeem the Securities in whole, but not in
part, within six months following a public offering by the Issuer of common
stock in which the gross proceeds to the Issuer are not less than $4,800,000,
upon mailing a notice of such redemption not less than 30 nor more than 60 days
prior to the date fixed for redemption to the Holders of Securities to be
redeemed, at a redemption price equal to 100% of the principal amount of the
Securities redeemed, together with accrued and unpaid interest to the date fixed
for redemption.

              Subject to payment by the Issuer of a sum sufficient to pay the
amount due upon redemption, interest on this Security shall cease to accrue upon
the date duly fixed for redemption of this Security.

              A holder of a Security may convert it into Common Stock of TWG at
any time before the close of business on June 30, 1999.  If the Security is
called for redemption, the holder may convert it at any time before the close of
business on the redemption date.  The initial conversion price is as follows,
subject to adjustment in certain events: $2.00 per share from December 23, 1996
to June 30, 1997; $2.50 per share from July 1, 1997 to June 30, 1998; and $3.125
from July 1, 1998 to June 30, 1999.  To determine the number of shares issuable
upon conversion of a Security, divide the principal amount to be converted by
the conversion price in effect on the conversion date.  On conversion no payment
or adjustment for interest will be made.  TWG will deliver a check for any
fractional share.

              To convert a Security a holder must (1) complete and sign the
conversion notice on the back of the Security, (2) surrender the Security to a
Conversion Agent, (3) furnish appropriate endorsements and transfer documents if
required by the Registrar or Conversion


                                         -4-


<PAGE>

Agent, and (4) pay any transfer or similar tax if required.  A holder may
convert a portion of a Security if the portion is $1,000 or a whole multiple of
$1,000.

         The conversion price will be adjusted for dividends or distributions
on Common Stock payable in TWG stock; subdivisions, combinations or certain
reclassifications of Common Stock; distributions to all holders of Common Stock
of certain rights to purchase Common Stock at less than the current market price
at the time; distributions to such holders of assets or debt securities of TWG
or certain rights to purchase securities of TWG (excluding cash dividends or
distributions from current or retained earnings).  However, no adjustment need
be made if Securityholders may participate in the transaction or in certain
other cases.  TWG from time to time may voluntarily reduce the conversion price
for a period of time.

         The Issuer, the Trustee and any authorized agent of the Issuer or the
Trustee may deem and treat the registered Holder hereof as the absolute owner of
this Security (whether or not this Security shall be overdue and notwithstanding
any notation of ownership or other writing hereon made by anyone other than the
Issuer or the Trustee or any authorized agent of the Issuer or the Trustee), for
the purpose of receiving payment of, or on account of, the principal hereof and
premium, if any, and subject to the provisions on the face hereof, interest
hereon and for all other purposes, and neither the Issuer nor the Trustee nor
any authorized agent of the Issuer or the Trustee shall be affected by any
notice to the contrary.

         No recourse shall be had for the payment of the principal of, premium,
if any, or the interest on this Security, for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any incorporator, shareholder, officer,
employee or director, as such, past, present or future, of the Issuer or the
Trustee or of any successor corporation, either directly or through the Issuer
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration
for the issue hereof, expressly waived and released.

         Customary abbreviations may be used in the name of a Securityholder or
an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

         This Security shall not be valid or obligatory until the certificate
of authentication hereon shall have been duly signed by an authorized signatory
of the Trustee acting under the Indenture.

                   FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Securities described in the within-mentioned
Indenture.

Dated:


                        U.S. Trust Company of Texas, N.A., as Trustee


                        By:
                            ------------------------------------------------
                            Authorized Signatory


                                         -5-


<PAGE>
                                   ASSIGNMENT FORM

To assign this Security, fill in the form below:

    I or we assign and transfer this Security to:


--------------------------------------------------------------------------------
    (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint _________________________________________ agent to
transfer this Security on the books of the Issuer.  The agent may substitute
another to act for him.


                                  CONVERSION NOTICE

To convert this Security into Common Stock of TWG, check the box:

                                         / /


To convert only part of this Security, state the amount: $__________________

If you want the stock certificate made out in another person's name, fill in the
form below:


--------------------------------------------------------------------------------
(insert other person's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
(Print or type other person's name, address and zip code)


                                         -6-



<PAGE>

Date:                                  ----------------------------------------
     --------------------------        Your Signature


                                       ----------------------------------------

(Sign exactly as your name appears on the other side of this Security)

                                       Signature Guaranty


                                       ----------------------------------------
                                       Notice: Signature must be guaranteed by
                                       an "Eligible Guarantor Institution" as
                                       defined by Securities Exchange Act Rule
                                       17Ad-15.


                                         -7-