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                                                                    EXHIBIT 10.7



                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made and entered into as of, June 25, 2001,
(Employment Agreement") by and between Barden Colorado Gaming, LLC, a Colorado
limited liability company d/b/a Fitzgeralds Black Hawk ("the Company") and Joe
C. Collins ("Executive").

                                    RECITALS


A.       The Company and the Executive desire to enter into an Employment
         Agreement, which supersedes any and all other agreements, either oral
         or in writing with respect to the employment of Executive by the
         Company.


B.       The Company and the Executive desire that the Employment Agreement only
         become effective upon the successful completion of the acquisition of
         Fitzgeralds Black Hawk by the Company ("Acquisition Date").

1.       Terms

         The Company hereby agrees to employ Executive, and Executive hereby
         agrees to serve the Company, on the terms and conditions of the
         Employment Agreement, for a two year period ("Period of Employment")
         commencing on the Acquisition Date (such Period of Employment being
         subject to earlier termination provided herein). Upon the expiration of
         the Period of Employment, Executive's employment with the Company shall
         cease, unless mutually extended by both parties.

2.       Duties and Services

         During the period(s) of employment, Executive agrees to serve the
         Company as its Vice President and General Manager and in such other
         offices and positions of the Company within his areas of expertise and
         to perform such other reasonable and appropriate duties consistent with
         such positions (s) as may be requested of him by the President and
         Chief Executive Officer and/or his designee of the Company, In
         accordance with the terms herein set forth. Excluding periods of
         personal time off to which Executive is entitled, Executive shall
         devote his full time energy and skills to the business and affairs of
         the Company and to the promotion of its interests. The Executive shall
         perform all such duties to the best of his ability and in a diligent
         manner. Executive may be reasonably required to travel outside Black
         Hawk, Colorado from time to time. Executive acknowledges and agrees
         that this Employment is subject to the licensing and regulatory control
         of the Colorado Division of Gaming and various other state, county and
         city gaming regulatory enforcement agencies (collectively the "Gaming
         Authorities") which may require that Executive be Investigated for
         personal suitability and licensing. Executive shall fully cooperate
         with the Gaming Authorities in order that he may obtain all required
         licenses, permits, approvals or findings of suitability required in
         connection with his employment hereunder. Company agrees to pay all
         reasonable costs associated with licensing of Executive.


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3.       Compensation

         (a)      Salary. As compensation for his services hereunder, the
                  Company shall pay Executive during the Period of Employment,
                  annual salary of One Hundred Sixty Thousand Dollars ($160,000)
                  less all applicable federal, state and local taxes, social
                  security and other governmental mandated deductions, which
                  shall be payable in installments in accordance with the
                  Company's compensation schedule as in existence from time to
                  time. On the anniversary of the Acquisition Date, the
                  Executive shall receive an annual performance review at which
                  time he shall be considered for a merit increase in his annual
                  salary.

         (b)      Bonus. On the one (1) year anniversary of the Acquisition
                  Date, Executive shall be eligible to receive a retention bonus
                  of Twelve Thousand Dollars ($12,000), provided the Executive
                  is then employed by the Company and in good standing. In
                  addition, Executive shall be entitled to such bonuses and
                  other benefits as the Company may periodically award in its
                  sole discretion.

         (c)      Fringe Benefits. For such period of time as Executive is
                  employed by the Company during the Period of Employment,
                  Executive shall receive coverage under the Company's medical
                  insurance program (as such program is in effect from time to
                  time) on terms no less favorable than those generally made
                  available to the Company's executives, shall receive a five
                  hundred dollar ($500) per month car allowance, and shall
                  receive a five thousand dollar ($5,000) per annum allowance
                  for unreimbursed medical expenses submitted in accordance with
                  expense procedures. Nothing contained herein shall preclude
                  the Executive from participating in any present or future
                  employee benefit plans of the Company, including without
                  limitation any 401 (k) plan, profit-sharing plan, savings
                  plan, deferred compensation plan and health and accident plan
                  or arrangement, if he meets the eligibility requirements
                  therefor.

         (d)      Vacation. Executive shall be entitled to maintain his current
                  vacation schedule to be taken at time or times mutually
                  acceptable to Executive and the Company, in accordance with
                  the policy in effect at the time.

         (e)      Business Expenses. All reasonable travel and other expenses
                  incident to the rendering of services by Executive hereunder
                  shall be paid by the Company. If any such expenses are paid in
                  the first instance by Executive, the Company shall reimburse
                  him therefor on presentation of appropriate documentation
                  required by the Internal Revenue Code and Regulations or
                  otherwise required under the Company policy in connection with
                  such expenses.

4.       Early Termination

         (a)      Notwithstanding the provisions of Section 1 hereof, the
                  Executive may be terminated by the Company for Cause (as
                  defined herein), in which event the period of employment
                  hereunder shall cease and terminate and the Company



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                  shall have no further obligation or duties under this
                  Employment Agreement, except for obligations accrued under
                  Section 3 as of the date of termination.
         (b)      Prior to termination for a performance deficiency as described
                  in Sections 4(a)(v),(vi), (vii) and (viii). Executive shall be
                  given notice of deficiency and thirty (30) days within which
                  to cure the same.

For the purposes of this Employment Agreement ("Cause") shall be deemed to exist
only upon (i) conviction of a felony (ii) embezzlement or misappropriation of
funds or property of the Company or any affiliates; (iii) failure to obtain and
maintain during the period(s) of employment all licenses, permits, approvals or
findings or suitability with Gaming and other Regulatory Authorities approval or
finding of suitability; (iv) conviction of any criminal or other improper act
which could result in the suspension or revocation of any such license, permit
approval or finding of suitablity; (v) Executive's repeated failure to comply
with any policies or procedures of the Company whether or not now in effect;
(vi) upon the material breach by Executive of this Employment Agreement; (vii)
excessive absenteeism or tardiness on the part of the Executive or (viii) any
other conduct which has or may reasonably be expected to have a material adverse
effect on the Company or the business of the company.

         (c)      In addition, the Period of Employment hereunder shall cease
                  and terminate upon the earliest to occur the following events:
                  (i) death of executive, or (ii) the inability of Executive by
                  reason of physical or mental disability to continue the proper
                  performance of his duties hereunder for a period of sixty (60)
                  consecutive days (subject to the requirements of the Americans
                  with Disabilities Act and Family Medical Leave Act). Upon the
                  occurence of these events the Company shall continue to pay to
                  Executive or his estate, the entire compensation otherwise
                  payable to him under Section 3(a) hereof for the lesser of
                  sixty (60) days or the remaining Period of Employment and
                  shall have no further obligation or duties under this
                  Employment Agreement.

         (d)      In the event that the Executive is discharged by the Company
                  other than Cause pursuant to Section 4(a) hereof or is
                  discharged by reason of physical or mental disability pursuant
                  to Section 4(b) hereof, Executive shall have no further
                  obligations or duties under this Employment Agreement;
                  provided, however, that Executive shall continue to be bound
                  by the provisions of Section 5 hereof. However, if Executive
                  should die prior the end of such period, the provisions of
                  Section 4(a) hereof shall be applicable as though the
                  Executive's employment hereunder had not been terminated.

         (e)      This Employment Agreement may be terminated by mutual
                  agreement of the Company and the Executive. The terms and
                  conditions of any such termination agreement shall be set
                  forth in writing and signed by both parties.


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5.       Confidentiality, Intellectual Property and Non-Competition

         (a)      The Company and Executive acknowledge that the services to be
                  performed by Executive under this Employment Agreement are
                  unique and extraordinary and, as a result of such employment,
                  Executive will be in possession of confidential information,
                  proprietary information and trade secrets (collectively,
                  "Confidential Information") relating to the business practices
                  of the Company and its affiliates, and that these constitute
                  "Trade Secrets" under the Colorado Uniform Trade Secrets Act.

Trade Secrets Act. The Confidential Information referenced herein includes but
is not limited to the following which are or were developed for the Company by
Executive or any other Company employee or agent; names and addresses of guests;
computer programs; software and disks; business plans; analytical techniques and
methodology; measurement criteria; guest developement techniques; market
research; training manuals and video tapes. Executive agrees that he will not
disclose or use the Confidential Information, directly or indirectly during or
after his employment, other than in the performance of his duties for the
Company.

         (b)      The Company and Executive agree that violation of Executive's
                  obligations under Section 5(a) of this Employment Agreement
                  shall constitute "misappropriation" of the Company's trade
                  secrets under the Colorado Trade Secrets Act, and the
                  Company's remedies for any such violation shall be those set
                  out in the said Act.

         (c)      Upon termination of his employment with Company for any
                  reason, Executive shall (i) immediately return to the Company
                  all the materials delivered to Executive during employment of
                  paid for by the Company, including but not limited to,
                  originals, duplicates or copies of keys, tools, telephones,
                  pagers, manuals, plans, memoranda, reports, systems,
                  procedures, forms, advertising materials, offices supplies,
                  presentations, flow charts, narratives, organization charts
                  and other employment agreements, (ii) give to the Company on
                  computer disk and then destroy any trade secrets in any
                  physical form, including originals, duplicates, or copies to
                  the Company and (iii) give to the Company on computer disk and
                  then destroy any trade secrets or any other Company
                  information stored in any computer or electronic device owned
                  or used by Executive.

         (d)      All programs, ideas, strategies, approaches, practices or
                  inventions created, developed, obtained or conceived of by
                  executive during the term hereof by reason of his employment
                  by the Company, shall be owned and belong exclusively to the
                  Company, provided that they are related in any manner to
                  business or that of any of it's affiliates. Executive shall
                  (i) promptly disclose all such programs ideas, strategies,
                  approaches, practices, inventions or business opportunities to
                  the Company and (ii) execute and deliver to the Company,
                  without additional compensation, such instruments as the
                  Company may require from time to time to evidence its
                  ownership of any such terms.

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         (e)      Executive agrees that during the period of employment he will
                  not become a stockholder, director, officer, employee or agent
                  of or consultant to any corporation, or member of or
                  consultant to any partnership or other entity, or engage in
                  any business as a sole proprietor or act as a consultant to
                  any such entity, or otherwise engage, directly or indirectly,
                  in any enterprise, in each case which competes with or has a
                  vendor relationship with any business or activity engaged in,
                  or known by Executive to be contemplated to be engaged in, by
                  the Company or any of it's affiliates, provided, however,
                  that competition shall not include the ownership (solely as an
                  investor and without participation in or contact with the
                  management of the business) of less than one percent of the
                  outstanding share of stock of any corporation engaged in any
                  such business, which shares are regularly traded on a national
                  securities exchange or in an over-the-counter market. The
                  Company, in its sole discretion, may waive one or more of the
                  restrictions set forth in this subsection; however, any such
                  waiver must be in writing executed by an authorized Company
                  representative, and shall be effective only to the extent it
                  is set forth in writing.

         (f)      Executive agrees that for a one (1) year term following his
                  termination of employment with the Company, in Gilpin County,
                  Colorado, he will not become a stockholder, director, officer,
                  employee or agent of or consultant to any corporation, or
                  member of or consultant to any partnership or other entity or
                  engage in any business as a sole proprietor in or act as a
                  consultant to any such entity in or otherwise engage, directly
                  or indirectly, in any enterprise in each case which competes
                  with or has a vendor relationship with any business or
                  activity engaged in, or known by Executive to be contemplated
                  to be engaged in, by the Company or any of its affiliates,
                  provided, however, that competition shall not include the
                  ownership (solely as an investor and without any other
                  participation in or contact with the management of the
                  business) of less than one percent of the outstanding shares
                  of stock of any corporation engaged in any such business,
                  which shares are regularly traded on a national securities
                  exchange or in an over-the-counter market. The Company, in its
                  sole discretion, may waive one or more of the restrictions
                  set forth in this subsection; however, any such waiver must be
                  in writing executed by an authorized Company representative,
                  and shall be effective only to the extent it is set forth in
                  writing.

         (g)      Executive further agrees that neither Executive nor any person
                  enterprise controlled by Executive will solicit for employment
                  any person employed by the Company or any of its sister
                  properties during and within one year following the
                  termination of Executive's employment.

         (h)      Unless required by law, Executive shall not disclose the
                  existence of this Employment Agreement or the terms and
                  conditions hereof to any other person, except to Executive's
                  attorneys, accountants and financial/banking institutions who
                  have a need to know.
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         (i)      The covenants in this Section 5 on the part of the Executive
                  shall be construed as an agreement independent of any other
                  provision in its Employment Agreement; and the existence of
                  any claim or cause of action of Executive against Company,
                  whether predicted on this Employment Agreement or otherwise,
                  shall not constitute a defense to the enforcement by Executive
                  of these covenants. It is agreed by the parties hereto that if
                  any portion of the covenants against solicitation are held to
                  be unreasonable, arbitrary or against public policy, the
                  covenants herein shall be considered divisible both as to time
                  and scope; and each month of the specified period shall be
                  deemed a separate period of time, so that the lesser period of
                  time shall remain effective so long as the same is not
                  unreasonable, arbitrary, or against public policy. The parties
                  hereto agree that, in the event any court determines the
                  specified time period to be reasonable, arbitrary or against
                  public policy, a lesser time period which is determined to be
                  unreasonable, not arbitrary and not against public policy may
                  be enforced against Executive. It is further agreed by the
                  parties hereto that, in the event of a breach or violation or
                  threatened breach or violation by Executive of the provisions
                  of this section, the Company shall be entitled to obtain
                  injunctive relief from a court of competent jurisdiction
                  restraining the activities set forth herein in breach or
                  violation of this section (without posting a bond therefor and
                  upon 24 hours notice to Executive), whether directly or
                  indirectly. Nothing herein shall be construed as prohibiting
                  Company from pursuing any other remedies available to it by
                  law or by this Employment Agreement for breach, violation or
                  threatened breach or violation of the provisions of this
                  section, including, by way of illustration and not by way of
                  limitation, the recovery of damages from Executive or any
                  other person, firm, corporation or entity. The provisions of
                  this section shall survive any termination of this Employment
                  Agreement for the purpose of providing Company with the
                  protection of Covenants of Executive provided herein.
                  Executive acknowledges that his capabilities and education
                  are such that enforcement of the restrictions contained herein
                  shall not prevent him from earning a livelihood.

6.       Representations and Warranties

         (a)      Executive represents and warrants to Company that his
                  execution, delivery and performance of this Employment
                  Agreement will not result in or constitute a breach of or
                  conflict with any term, covenant condition, or provision of
                  any commitment, contract, or other agreement or instrument,
                  including, without limitation, any other employment agreement,
                  to which Executive is or has been a party.

         (b)      Executive shall indemnify, defend and hold harmless Company
                  for, from, and against any and all losses, claims, suits,
                  damages, expenses, or liabilities, including court costs and
                  counsel fees, which Company has incurred or to which Company
                  may become subject, insofar as such losses, claims, suits,
                  damages, expenses, liabilities, costs, or fees, arise out of
                  or are based upon any failure of any representation or
                  warranty of Executive in section 6(a) hereof to be true and
                  correct when made.





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7.       Assignment and Change of Control

         (a)      Executive shall not assign his rights or delegate the
                  performance of these obligations hereunder without the prior
                  written consent of the Company. Subject to the provisions of
                  the preceding sentence, all the terms of this Employment
                  Agreement shall be binding upon and shall inure to the benefit
                  of the parties and their legal representatives, heirs,
                  successors and assigns.

         (b)      Upon a "Change of Control" the Company may assign this
                  Employment Agreement. For this purpose, a "Change of Control"
                  shall mean a sale of substantially all of the assets of the
                  Company. Upon the occurrence of a Change of Control, Company
                  Will pay Employee all payments Company would have been
                  obligated to make pursuant to Section 3 hereof, based upon a
                  termination date that is six (6) months after the date on
                  which the period of employment would have expired but for such
                  termination by reason of a Change of Control.

8.       Arbitration

         Any claim or controversy arising out of or relating to this Agreement
         shall be settled by arbitration in Denver County Colorado, in
         accordance with the Commercial Arbitration Rules of the American
         Arbitration Association, and judgement on the award rendered by the
         arbitrators may be entered in any court having jurisdiction. There
         shall be three (3) arbitrators, one to be chosen directly by each party
         at will, and the third arbitrator to be selected by the two (2)
         arbitrators so chosen. Each party shall pay the fees of the arbitrator
         it selects and of its own attorneys, the expenses of its witnesses and
         all other expenses connected with presenting its case. Other costs of
         the arbitration, including the cost of any record or transcripts of the
         arbitration, administrative fees, the fee if the third arbitrator, and
         all other fees and costs, shall be borne equally by the parties.
         Notwithstanding this arbitration provision, if the Company deems it
         necessary to seek extraordinary or equitable remedies, it may seek the
         same through the appropriate court.

9.       Notice

         Any notice or other communication required or permitted to be given
         hereunder shall be made in writing and shall be delivered in person or
         mailed by prepaid registered or certified mail, return receipt
         requested, addressed to the parties as follows:

         If to the Company:

         Barden Colorado Gaming, LLC
         c/o Majestic Star Casino
         1 Buffington Harbor Drive
         Gary, Indiana 46406-3000

         Attention: President and Chief Executive Officer

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         If to the Executive:

         Joe C. Collins
         5956 Dunraven Court
         Golden, Colorado 80403

         or to such other addresses as the party shall have furnished in writing
         in accordance with this Section. Such notices or communication shall be
         effective upon delivery in person, and upon actual receipt or three (3)
         days after mailing, whichever is earlier, if delivered by mail.

10.      Breach of Agreement

         Should the Company be in breach of this Employment Agreement and/or it
         be determined that Executive has not been terminated for Cause (the
         position first taken by Company for terminating the contract), then
         this entire Employment Agreement shall be null and void and of no
         further force or effect. Further, Executive shall be entitled to all
         benefits and compensation under the Employment Agreement as well as
         attorney fees and costs incurred in vindicating himself or establishing
         a breach by the Company. Conversely, if the Executive is determined to
         be in breach of this Employment Agreement, the Company shall be
         entitled to costs and attorney fees in validating that breach.

11.      Parties In Interest

         The benefits and obligations of this Employment Agreement shall be
         binding upon and insure to the benefit of Executive, and it shall be
         binding upon and insure to the benefit of the Company, its subsidiaries
         and related entities, as well as any corporation succeeding to all or
         substantially all of the business assets of the Company by merger,
         consolidation, purchase of assets or otherwise.

12.      Entire Agreement

         This Employment Agreement supersedes any and all other agreements,
         either oral or in writing, between the parties hereto with respect to
         the employment of Executive by the Company and contains all of the
         covenants and agreements between the parties with respect to such
         employment in any manner whatsoever. Any modification of this
         Employment Agreement will be effective only if it is in writing signed
         by the party to be charged.


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13.      Governing Law and Venue

         This Agreement is to be governed by and construed in accordance with
         the laws of the State of Colorado applicable to contracts made and to
         be performed wholly within such State, and without regard to the
         conflicts of laws principles thereof.


14.      Acknowledgement

         Executive acknowledges that he has been given a reasonable period of
         time to study this Agreement before signing it. Executive certifies
         that he has fully read, has received an explanation of, and completely
         understands the terms, nature, and effect of this Agreement and to
         seek the advice of legal counsel. Executive further acknowledges that
         he is executing this Agreement freely, knowingly, and voluntarily and
         that Executive's execution of this Agreement is not the result of any
         fraud, duress, mistake, or undue influence whatsoever. In executing
         this Agreement, Executive does not rely on any inducements, promises,
         or representations by Company other than the terms and conditions of
         this Agreement.


15.      Effective Date

         This Employment Agreement shall become effective on the Acquisition
         Date.


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         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
         duly executed as of the date first set forth hereinabove.


         COMPANY:                                  EXECUTIVE:
         Barden Colorado Gaming, LLC
         d/b/a/Fitzgeralds Black Hawk



         By: /s/ Michael E. Kelly                  By: /s/ Joe C. Collins
            ---------------------------               --------------------------
         Michael E. Kelly                          Joe C. Collins
         Chief Operating Officer