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

                                  FORM 10-Q


[X]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1997

[    ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number 0-20712

                                     CASINO MAGIC CORP.
            (Exact name of registrant as specified in its charter)


          MINNESOTA          64-0817483
     (State or other jurisdiction of     (I.R.S. Employer
      incorporation or organization) Identification No.)

             711 CASINO MAGIC DRIVE, BAY SAINT LOUIS, MS 39520
            (Address of principal executive offices) (Zip Code)

                                             (228) 466-8099
             (Registrant's telephone number, including area code)

                                            NOT APPLICABLE
            (Former name, former address and former fiscal year,
                        if changed since last report)

     Indicate  by  check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or for such shorter period that the
registrant  was  required  to  file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                           Yes      X   No ______

Indicate  the  number  of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.

    35,722,124 shares common stock outstanding as of November 12, 1997
                                      
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                              TABLE OF CONTENTS


PART  I                      FINANCIAL INFORMATION                        PAGE
NO.
     Item 1.     Financial Statements
Condensed Consolidated Statements of Operations
     For the three months ended September 30, 1997 and 1996  ........1
Condensed Consolidated Statements of Operations
     For the nine months ended September 30, 1997 and 1996   ........2
Condensed Consolidated Balance Sheets -
     September 30, 1997 and December 31, 1996  ......................3
Condensed Consolidated Statements of Cash Flows -
     For the nine months ended September 30, 1997 and 1996  .........4
Notes to Condensed Consolidated Financial Statements   ..............5
     Item 2.     Management's Discussion and Analysis of Financial
     Condition and Results of Operations    ......................6-14

PART II     OTHER INFORMATION
     Item  1.      Legal  Proceedings      
 ..........................................15
     Item  2.      Changes  in  Securities.      
 .....................................15
     Item  3.      Default  Upon  Senior  Securities    
 ..............................15
     Item  4.      Submission  of  Matters  to  a  Vote  of Security Holders  
 .........15
     Item  5.      Other  Information    
 ...........................................15
     Item  6.      Exhibits  and  Reports  on  Form  8-K    
 ............................15

SIGNATURES  .....................................................16

                    <PAGE>PART I - FINANCIAL INFORMATION
                     CASINO MAGIC CORP. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (UNAUDITED)

                                                         THREE MONTHS ENDED
                                                              SEPTEMBER 30,
                                                          1997         1996
REVENUES:
     Casino                                          $ 62,680,205 $ 39,849,171
     Food and beverage                                  2,404,469    1,718,984
     Rooms                                                328,578      505,075
     Royalty and management fees                            --         730,034
     Other  operating  income                           1,081,882      467,971

          Total  revenues                              66,495,134   43,271,235
COSTS AND EXPENSES:
     Casino                                            30,658,015   16,432,601
     Food and beverage                                  1,767,142    2,010,774
     Rooms                                                140,554      279,844
     Other operating costs and expenses                 1,017,571      721,940
     Advertising and marketing                          7,112,014    5,365,483
     General and administrative                         6,181,399    5,422,144
     Property operation, maintenance and energy cost    2,625,158    1,681,739
     Rents, property taxes and insurance                1,906,446    1,348,281
     Development expenses                                  56,750      473,117
     Depreciation  and  amortization                    4,905,523    4,179,874

          Total  costs  and  expenses                  56,370,572   37,915,797

INCOME  FROM  OPERATIONS                               10,124,562    5,355,438

OTHER (INCOME) EXPENSE:
     Equity (income) loss from
         unconsolidated subsidiaries                     176,005     (290,088)
     Interest expense, net                             7,954,345    4,540,596
     (Gain) loss from sale of assets                  (1,337,687)      36,342
     Other                                               (57,828)     110,274
     Write-off of investment in
          Porto  Carras  Casino,  S.A.                      --     26,982,422

          Total  other  expense                        6,734,835   31,379,546

INCOME (LOSS) BEFORE INCOME TAXES AND
        MINORITY INTEREST                              3,389,727  (26,024,108)

INCOME TAX EXPENSE (BENEFIT)                               --      (5,341,377)

MINORITY INTEREST IN INCOME OF SUBSIDIARY                715,023       --

NET  INCOME  (LOSS)                                   $2,674,704 $(20,682,731)
NET INCOME (LOSS) PER COMMON SHARE:
     Primary                                         $     0.07  $  (0.57)
     Fully-diluted                                   $     0.07  $  (0.57)
AVERAGE SHARES AND EQUIVALENTS OUTSTANDING:
     Primary                                           35,654,174  36,403,759
     Fully-diluted                                     35,735,741  36,404,350
          SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
                                      1
                         MAGIC CORP. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)

                                                        NINE MONTHS ENDED
                                                           SEPTEMBER 30
                                                       1997          1996
REVENUES:
     Casino                                        $186,411,356   $118,123,734
     Food and beverage                                7,391,186      4,897,699
     Room                                             1,103,592      1,442,641
     Royalty and management fees                          --         2,860,041
     Other  operating  income                         3,327,423      1,439,795

          Total  revenues                           198,233,557    128,763,910

COSTS AND EXPENSES:
     Casino                                           88,899,256    49,475,040
     Food and beverage                                 8,364,166     5,543,721
     Rooms                                               509,219       811,275
     Other operating costs and expenses                3,326,192     1,883,661
     Advertising and marketing                        28,517,336    15,288,395
     General and administrative                       20,261,984    15,288,225
     Property operation, maintenance and energy cost   8,669,605     4,818,119
     Rents,  property  taxes  and  insurance           5,866,014     4,234,866
     Development expenses                                511,882     1,462,841
     Depreciation  and  amortization                  15,258,905    12,564,323

          Total  costs  and  expenses                180,184,559   111,370,466

INCOME  FROM  OPERATIONS                              18,048,998    17,393,444

OTHER (INCOME) EXPENSE:
     Equity (income) loss from unconsolidated
          Subsidiaries                                  405,066      (883,337)
     Interest expense, net                           23,703,909    12,250,572
     (Gain) loss of sale of assets                   (2,578,231)       50,302
     Other                                             (244,461)      209,296
     Write-off of investment in
          Porto  Carras  Casino,  S.A.                     --      26,982,422

          Total  other  expense                      21,286,283    38,609,255

INCOME (LOSS) BEFORE INCOME TAXES AND
          MINORITY INTEREST IN INCOME OF SUBSIDIARY  (3,237,285)  (21,215,811)

INCOME TAX EXPENSE (BENEFIT)                         (1,935,000)   (3,836,505)
MINORITY  INTEREST                                      916,535        --

NET  INCOME  (LOSS)                                 $(2,218,820)  (17,379,306)
NET INCOME (LOSS) PER COMMON SHARE:
     Primary                                        $    (.06)    $    (.48)
     Fully-diluted                                  $    (.06)    $    (.49)
AVERAGE SHARES AND EQUIVALENTS OUTSTANDING:
     Primary                                         35,642,780    36,485,878
     Fully-diluted                                   35,642,780    35,387,280

          SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
                                      2
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                   ASSETS

                                                   SEPTEMBER 30,  DECEMBER 31,
                                                      1997          1996 (*)
                                                   (UNAUDITED)
CURRENT ASSETS:
     Cash and cash equivalents                       $ 26,886,635  $17,561,512
     Restricted cash                                   10,610,051   16,984,654
     Other  current  assets                             9,028,863    7,410,331

          Total  current  assets                       46,525,549   41,956,497

PROPERTY  AND  EQUIPMENT,  NET                        256,365,066  243,692,571

OTHER LONG-TERM ASSETS:
     Investment  in  unconsolidated  subsidiaries         774,234      957,831
     Deferred gaming license cost                      38,449,048   38,337,333
     Foreign casino concession agreement, net           8,777,279    9,488,950
     Other  long-term  assets                          17,226,712   36,168,509

          Total  other  long-term  assets              65,227,273   84,952,623
                                                     $368,117,888 $370,601,691


                    LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT  LIABILITIES                                  47,550,158    48,448,985

OTHER LONG-TERM LIABILITIES                                --          266,761

LONG-TERM  DEBT,  NET  OF  CURRENT  MATURITIES       253,484,013   258,261,231

MINORITY  INTEREST                                     5,444,359        --

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Common stock, $0.01 par, 50,000,000 shares authorized,
35,722,124 issued and outstanding at September 30, 1997
and 35,637,083 issued and outstanding at
December 31, 1996                                         357,221     356,371
Undesignated stock, 2,500,000 shares authorized,
none issued
Additional paid-in capital                             67,122,857  67,123,702
Retained earnings                                      (4,731,892) (2,513,062)
Unrealized holding loss on securities                    (788,156)   (850,156)
Less  unearned  compensation                             (320,672)   (492,141)

          Total  shareholders'  equity                 61,639,358   63,624,714
                                                    $ 368,117,888 $370,601,691

See notes to condensed consolidated financial statements.
* Derived from audited financial statements
                                      3
<PAGE> CASINO MAGIC CORP. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED STATEMENTS OF CASH  FLOWS
                                 (UNAUDITED)

                                                       NINE MONTHS ENDED
                                                          SEPTEMBER 30,
                                                      1997         1996

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income (loss)                            $ (2,218,828) (17,379,306)
     Adjustments  for  non-cash  charges            14,574,699   30,018,664
     Changes  in  assets  and  liabilities           5,728,959   (5,687,216)
       NET CASH PROVIDED BY OPERATING ACTIVITIES    18,084,830    6,952,142

Cash flows from investing activities:
     Acquisitions  of  property  and  equipment    (28,996,109) (42,202,267)
     Acquisition of gaming license                       --     (15,000,000)
     Investments in unconsolidated subsidiaries       (221,469)       --
     Proceeds from sale of assets                   19,833,971    1,209,019
     Other,  net                                       366,782     (310,129)
       NET CASH USED IN INVESTING ACTIVITIES        (9,016,825) (56,303,377)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from issuance of notes payable
        long-term debt                              6,514,988   121,077,031
     Principal payments on notes payable
         and long-term debt                      (12,285,515)  (48,230,214)
     Net proceeds from sale of common stock             --         264,676
     Other                                          (346,958)        __ 
         NET CASH PROVIDED BY (USED IN)
               FINANCING  ACTIVITIES              (6,117,485)   73,111,493

NET INCREASE (DECREASE) IN CASH AND
     CASH  EQUIVALENTS                             2,950,520    23,760,258

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD    34,546,166    30,755,698

CASH AND CASH EQUIVALENTS, END OF PERIOD         $37,496,686   $54,515,956

                      SUPPLEMENTAL CASH FLOW INFORMATION
CASH PAID DURING THE PERIOD FOR:
     Interest (net of amount capitalized)          $ 25,104,711 $ 6,558,224
     Income taxes (net of refunds)                  (6,382,324) (7,587,982)

SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
     Property and equipment and other asset acquisitions included in
        accounts and construction payable and accrued
         expenses                                     1,658,604  1,225,532
     Property and equipment financed with
         long-term debt                                 946,004 46,416,570
     Gaming license acquisition financed with
        long-term debt                                     --    1,042,070
     Common stock granted to officers                 171,469      135,398
     Reclassification of long-term liabilities
         to accrued expenses                             --        250,000
     Acquisition of securities available-for-sale
        through sale of subsidiary                       --      1,198,052
      Reserve for shut down of Porto Carras              --      4,078,320

          SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
                                      4
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         (INFORMATION WITH RESPECT TO THE THREE AND NINE MONTHS ENDED
                  SEPTEMBER 30, 1997 AND 1996 ARE UNAUDITED)

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES:
ORGANIZATION AND BASIS OF PRESENTATION:
The  consolidated  financial  statements  include the accounts of Casino Magic
Corp.  and  its  wholly-owned  subsidiaries  ("the Company").  All significant
intercompany  accounts  and transactions have been eliminated.  Investments in
unconsolidated  affiliates  are  accounted  for  using  the  equity  method of
accounting.
The  Company conducts casino gaming operations in Bay Saint Louis, Mississippi
("Casino  Magic-BSL"),  Biloxi,  Mississippi  ("Casino Magic-Biloxi"), Bossier
City,  Louisiana  ("Casino  Magic-Bossier  City")  and  through  a  51%  owned
subsidiary, in the Argentina Province of Neuquen in the cities of Neuquen City
and San Martin de los Andes ("Casino Magic-Neuquen").
Certain  information  and  footnote disclosures normally included in financial
statements  prepared  in  accordance  with  generally  accepted  accounting
principles  have  been  condensed  or  omitted.    The  accompanying unaudited
condensed consolidated financial statements contain all adjustments which are,
in the opinion of management, necessary for a fair statement of the results of
the  interim  periods.   The results of operations for the interim periods are
not indicative of results of operations for an entire year.
It  is  suggested  that  these  consolidated  financial  statements be read in
conjunction  with  the consolidated financial statements and the notes thereto
included  in  the  Company's  Annual  Report  on  Form 10-K for the year ended
December 31, 1996 and Form 10-Q for March 31, 1997 and June 30, 1997.
Certain  reclassifications  have been made to 1996 amounts to conform with the
September 30, 1997 presentation.
2. SALE OF ASSET HELD FOR SALE:
In  September  1997,  the  Company  sold  the  Crescent  City  Queen Riverboat
("Crescent  City  Queen")for  $11.7  million,  and Other Income for the period
ended  September  30,  1997  represented  recognized  gain on the sale of $1.4
million.  The proceeds from the sale are restricted by the Indenture governing
the  $115  First  Mortgage  Notes  issued  by  Casino Magic-Bossier City.  The
Indenture restriction requires the proceeds from the sale of the Crescent City
Queen  to  be  used  for capital improvements at the Casino Magic-Bossier City
facility or returned to the Indenture trustee.
3. EARNINGS PER SHARE:
In  February  1997,  the Financial Accounting Standards Board issued Statement
No.  128  (FAS 128), "Earnings Per Share", which simplifies the computation of
earnings  per share.  FAS 128 is effective for financial statements issued for
periods  ending after December 15, 1997 and requires restatement for all prior
period earnings per share data presented.  Basic earnings per share calculated
in  accordance  with  FAS  128  would  be  $0.08  for  the third quarter ended
September  30,  1997  but  would  remain  unchanged  for the nine months ended
September 30, 1997.  Diluted earnings per share would remain unchanged $(0.06)
per  share  for the third quarter of the nine months ended September 30, 1997,
respectively.    Basic and diluted earnings per share calculated in accordance
with  FAS  128 would remain unchanged at $(0.57) and $(0.48) per share for the
third  quarter  of  1996  and  the  nine  months  ended  September  30,  1996,
respectively.


                                      5
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The  discussions  regarding  proposed  Company  developments  and  operations
included  in  "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS"  and  "NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL
STATEMENTS"  contain forward looking statements that involve a number of risks
and uncertainties.  These forward-looking statements relate to: (i) completion
of  a  hotel in 1998 at Casino Magic-Biloxi; and (ii) the Company's ability to
fund  planned  developments  and debt service obligations over the next twelve
months  with  currently available cash and marketable securities and with cash
flow  from  operations.  Construction projects entail significant construction
risks,  including,  but  not  limited  to,  cost overruns, delay in receipt of
governmental  approvals,  shortages  in  materials  or  skilled  labor,  labor
disputes,  unforeseen  environmental  or  engineering problems, work stoppage,
fire and other natural disasters, construction scheduling problems and weather
interferences,  any  of  which,  if  it  occurred, could delay construction or
result  in  a  substantial  increase  in  costs to the Company.  The Company's
ability  to  meet  its consolidated debt obligations may be dependent upon the
successful  completion  of  the  hotel  at  Casino  Magic-Biloxi and the other
planned construction projects, and the Company's future operating performance,
which is itself dependent on a number of factors, such as, prevailing economic
and competitive conditions, regulatory compliance, and other factors affecting
the  Company's  operations  and  business,  many  of  which are outside of the
Company's  control.    In  addition  to  the risks and uncertainties discussed
above,  other factors that could cause actual results to differ materially are
detailed  from time to time in the Company's reports filed with the Securities
and Exchange Commission.

RESULTS OF OPERATIONS
The  following  table  sets  forth for the periods indicated certain operating
information  for  the  Company  on  a  consolidated basis and for its existing
properties.  The  principal operating entities are Casino Magic-BSL and Casino
Magic-Biloxi, both dockside casinos operating on the Gulf Coast of Mississippi
(together referred to collectiv
ely  as  the "Casino Magic-Gulf Coast"), Casino Magic-Bossier City, a dockside
casino operating on the Red River in Bossier City, Louisiana, and Casino Magic
Neuquen  SA,  a  51%  owned  subsidiary  of the Company, which operates gaming
facilities  at  two  casino sites in Neuquen City and San Martin de los Andes,
Argentina  (together  referred  to  collectively  as "Casino Magic-Neuquen"). 
During  1996,  the  Company  had  a  49%  interest in Porto Carras Casino S.A.
("Porto  Carras")  which  managed  a  casino  at  the  Porto  Carras  resort
approximately 60 miles south of Thessaloniki, Greece. Porto Carras was written
off  in September 1996 and subsequently sold for a nominal amount in  December
1996.    The  revenues,  costs  and expenses of Porto Carras were not included
below as Porto Carras was accounted for under the equity method of accounting.



                                      6
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                          THREE MONTHS       NINE MONTHS
                                     ENDED SEPTEMBER 30,  ENDED SEPTEMBER 30,
                                         1997   1996        1997    1996
                                                (Dollars in thousands)
                                                     (Unaudited)
REVENUES:
     Casino  Magic-BSL  (1)           $  22,658   21,592   68,227   63,630
     Casino Magic-Biloxi (2)             15,479   16,734   48,138   49,379
     Casino Magic-Neuquen (3)             4,608    4,215   13,392   12,141
     Casino Magic-Bossier (4)            23,750       -    68,477      -
     Corporate  and  Other  (5)(6)           -       730      -      3,614
        Total  revenues                  66,495   43,271  198,234  128,764
COST AND EXPENSES:
     Casino Magic-BSL                    17,591   16,804   54,659   49,335
     Casino  Magic-Biloxi                14,470   14,822   44,141   42,285
     Casino Magic-Neuquen                 3,038    3,065    9,424    9,361
     Casino Magic-Bossier                19,996      -     66,494      -
     Corporate and Other                  1,275    3,224    5,467   10,389
         Total  costs  and  expenses     56,370   37,915  180,185  111,370
INCOME (LOSS) FROM OPERATIONS:
     Casino Magic-BSL                     5,067    4,788   13,568   14,295
     Casino  Magic-Biloxi                 1,009    1,912    3,997    7,094
     Casino  Magic-Neuquen                1,570    1,150    3,968    2,780
     Casino Magic-Bossier                 3,754       -     1,983      -
     Corporate  and Other                (1,275)  (2,494)  (5,467)  (6,775)
        Total  income  from  operations $10,125   $5,356  $18,049  $17,394
                                        ________________  _________________
(1) Began  operations September 30, 1992; expanded casino capacity December
31, 1992.
(2) Began  operations  June  5, 1993; expanded casino capacity December 16,
1993.
(3) Began operations on January 1, 1995.
(4) Began operations on October 4, 1996: completed facility on December 31,
1996.
(5) Includes management fees and royalty fees from Porto Carras which began
operations  May  18, 1995.  Equity in earnings with respect to Porto Carras is
reported  as  non-operating  income.  Casino Magic divested of Porto Carras in
December 1996.
(6) Corporate and Other includes the operations of Goldiggers through June
13, 1996.


                                      7
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS (CONTINUED):
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1996:
Consolidated  revenues  were  $66.5  million for the third quarter of 1997, an
increase  of  $23.2  million  over the third quarter of 1996 revenues of $43.3
million.    The  increase  in  the 1997 third quarter consolidated revenues is
primarily  attributable to Casino Magic-Bossier City, which the Company opened
in  late  1996  and which accounted for $23.7 million in additional revenues. 
Casino  Magic-Biloxi  revenues  declined  by  $1.2  million, or 7.7%, to $15.5
million  in  the  third  quarter of 1997 compared to $16.7 million in the same
period  in  1996.    Management  believes  the  decline  is  attributable  to
intensified  competition  in  the  Biloxi market, where Casino Magic-Biloxi is
located,  and the disruption caused by the on-going construction of a hotel at
Casino  Magic-Biloxi.    Competitive  pressures will likely continue to effect
Casino Magic-Biloxi's revenues and operating margins. Although there can be no
assurances, it is anticipated that revenues and operating margins will improve
at  such  time  as  the  Casino  Magic-Biloxi hotel is completed.  Competitive
pressure will increase upon the opening of a competing hotel casino located in
Biloxi that is scheduled to open in late 1997 or early 1998.  Casino Magic-BSL
revenues  increased  by  $1.1  million  or 5.0%, to $22.7 million in the third
quarter  of  1997 compared to $21.6 million in the third quarter of 1996.  The
increased  revenues  at  Casino  Magic-BSL  may  in  part  be  attributable to
improvements  in  amenities  at  the  facility,  including  a  golf course and
improved  food  and beverage outlets.  Casino Magic-Neuquen revenues increased
$0.4  million,  or  9.3%,  in  the  third quarter of 1997 compared to the same
period  in  1996.   This increase is associated with the continued increase in
slot  machine  revenues  due  to increased popularity.  Royalty and management
revenues  declined  $0.7  million  or  100%  in the third quarter of 1997. The
Company  ceased  earning  such  royalties and management fees when the Company
divested itself of its Greek operations in December 1996.
Consolidated  operating  costs and expenses increased $18.5 million, or 48.8%,
from $37.9 million in the third quarter of 1996, to $56.4 million in the third
quarter  of  1997.    Of  this  increase,  $20.0  million is related to Casino
Magic-Bossier  City,  which  opened in October 1996.  Excluding the effects of
Casino  Magic-Bossier  City,  operating  costs  in  the  third quarter of 1997
decreased  by  $1.5  million,  or  4.0%, as compared to operating costs in the
third  quarter  of  1996. Casino Magic Corp.'s and non-operating subsidiaries'
operating  costs  in  the  third  quarter  of 1997 declined by $2.0 million as
compared  to  the same quarter in 1996.  This decline is related to reductions
in  corporate  overhead  and  developmental  costs.  Operating costs at Casino
Magic-Gulf  Coast  and  Casino  Magic-Neuquen  increased  $0.5 million with no
significant  fluctuations  in  any  identifiable  areas between the comparable
periods.
Earnings before income taxes, depreciation and amortization (EBITDA) increased
$5.5  million,  or  57.7%,  in  the third quarter of 1997 compared to the same
period  in  1996.    The  third  quarter 1996 results include revenues of $0.7
million  and  EBITDA of $0.7 million from operations in Greece which were sold
during  December 1996.  The remaining increase in EBITDA was the result of the
following;
(i)     EBITDA contribution of $5.3 million from Casino Magic-Bossier City.

                                      8
(ii)      <PAGE>EBITDA at Casino Magic-BSL increased to $6.6 million from $6.2
million  for  the  1997  period  compared  to  1996.   The increased EBITDA is
believed  to  be  the  result  of  an  increase in revenues primarily achieved
through  a  new  golf facility which opened in February 1997 and improved food
and beverage outlets.
(iii)     EBITDA at Casino Magic-Biloxi for the third quarter of 1997 declined
to  $2.3  million  compared with $3.5 million during the same period in 1996. 
The    decline in EBITDA was primarily the result of decreased revenues, which
may be primarily  attributable to intensified competition in the Biloxi market
and  the  disruption  caused by the on-going construction of a hotel at Casino
Magic-Biloxi.
(iv)        EBITDA at Casino Magic-Neuquen increased $0.4 million in the third
quarter  of 1997  compared to the third quarter of 1996.  This increase is the
result of increased  slot machine revenues.
(v)      EBITDA at Casino Magic Corp. and non-operating subsidiaries increased
$0.4  million  in  the  third quarter of 1997 compared to the third quarter of
1996.  This  increase  is  related  to  reductions  in  Corporate overhead and
developmental  costs,  which  reductions  exceeded  the  loss of royalties and
management revenues.

Consolidated income from operations increased $4.7 million, or 87.0%, to $10.1
million  in  the  third  quarter of 1997 compared to $5.4 million in the third
quarter  of  1996.    In addition to the items described above with respect to
EBITDA  results,  depreciation  and amortization increased $1.5 million as the
result of the addition of the Casino Magic-Bossier City facility and decreased
by $0.7 million related to the Company's divestiture of its Greek investments.
Consolidated  "Other  (income)  expense"  (non-operating  income and expenses)
improved  by  $24.7  million,  to  a  net expense of $6.7 million in the third
quarter  of  1997,  compared  to  a  net expense of $31.4 million in the third
quarter  of  1996.   Approximately $27.0 million of the additional expenses in
1996  were  attributable  to management's decision to write off its 49% equity
interest  in  a  gaming facility in Porto Carras, Greece. Net interest expense
increased  by  $3.4  million in the third quarter of 1997 compared to the same
period  in  1996.  This was due to the increased debt from the issuance of the
$115,000,000,  13%  Louisiana  First Mortgage Notes in late August 1996, and a
reduction of $1.7 million in capitalized interest due to the completion of the
Casino  Magic-Bossier City facility and the golf course at Casino Magic-Casino
Magic-BSL.  Other income was increased by $1.4 million in the third quarter of
1997  compared  to  the  same  period in 1996 due to a gain on the sale of the
Crescent City Queen.









                                      9
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS (CONTINUED):
The  Company's  effective  tax rate for the third quarter of 1997 of 0% is the
result  of  an  anticipated  loss  for  the year ending 1997 and the allowance
against the deferred tax assets.  The effective tax rate for the third quarter
of 1996 of (20.4%) is the result of an allowance against deferred tax assets. 
This  allowance  reduces  deferred  tax  assets, which relate primarily to the
Porto Carras write off, to their estimated realizable value.
The  Company had net income of $2.7 million, or $0.07 per share in the quarter
ended  September 30, 1997, compared to net loss of $20.7 million, or $0.57 per
share  for  the  quarter ended September 30, 1996.  The improvement in the net
income  for  the  1997  third  quarter   compared to the 1996 third quarter is
primarily  attributable  to the $26.7 million write off of Porto Carras Casino
S.A. in 1996.
NINE  MONTHS  ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1996:
Consolidated  revenues increased $69.4 million, or 54.0%, to $198.2 million in
the  first  nine months of 1997, compared to $128.8 million in the same period
of  1996.  The  increase  in consolidated revenues in the first nine months of
1997 is primarily attributable to Casino Magic-Bossier City, which the Company
opened  in  late  1996  and  which  accounted  for $68.5 million in additional
revenues.   Casino Magic-Biloxi revenues declined by $1.2 million, or 2.5%, to
$48.1  million  in the first nine months of 1997, compared to $49.4 million in
the  same  period in 1996.  Management believes the decline is attributable to
intensified  competition  in  the  Biloxi market, where Casino Magic-Biloxi is
located,  and the disruption caused by the on-going construction of a hotel at
Casino  Magic-Biloxi which began in December 1996.  Competitive pressures will
likely  continue  to  effect  Casino  Magic-Biloxi's  revenues  and  operating
margins.   Although there can be no assurances it is anticipated that revenues
and  operating  margins  will  improve  when  the Casino Magic-Biloxi hotel is
completed.  Competitive pressure will increase upon the opening of a competing
hotel  casino  located  in  Biloxi  that is scheduled to open in late 1997, or
early  1998.   Casino Magic-BSL revenues increased by $4.6 million, or 7.2% to
$68.2  million  in  the first nine months of 1997 compared to $63.6 million in
the  same  period  of 1996.  The increased revenues at Casino Magic-BSL may in
part be attributable to improvements in amenities at the facility, including a
golf  course  and  improved  food  and beverage outlets.  Casino Magic-Neuquen
revenues increased $1.3 million, or 10.7%, in the first nine months of 1997 as
compared  to  the  same  period in 1996.  This increase is associated with the
continued  increase  in  slot  machine revenues at the casino due to increased
popularity.    Royalty and management revenues declined $2.9 million, or 100%,
in  the  first  nine months of 1997. The Company ceased earning such royalties
and  management  fees when the Company divested itself of its Greek operations
in December 1996.
                                      10
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS (CONTINUED):
Consolidated  operating  costs and expenses increased $68.8 million, or 61.8%,
from  $111.4 million in the first nine months of 1996 to $180.2 million in the
first  nine  months  of  1997.   Of this increase, $62.2 million is related to
Casino  Magic-Bossier  City,  which  opened  in  October  1996.  Excluding the
effects    of  Casino  Magic-Bossier  City,  operating costs in the first nine
months  of  1997  increased  by  $2.3 million, or 2.1%,  compared to operating
costs in the first nine months of 1996. Casino Magic Corp.'s and non-operating
subsidiaries'  operating  costs  in  the first nine months of 1997 declined by
$4.9  million as compared to the same period in 1996, in part as the result of
the  sale of the casino operation in South Dakota in June 1996, which resulted
in a $1.2 decline in operating costs. The remainder of this decline is related
to  reductions in corporate overhead and developmental costs.  Operating costs
at  Casino Magic-Gulf Coast and Casino Magic-Neuquen increased $7.2 million in
the first nine months of 1997  compared to the same period in 1996.  Operating
costs  at  Casino  Magic-BSL  increased  $5.3  million,  or 10.7%, between the
periods.    The increases in cost were the result of the operation of the golf
course,  the associated depreciation and increases in promotional allowances. 
Operating costs at Casino Magic-Biloxi increased $1.9 million, or 4.4%, in the
first  nine months of 1997 compared to the same period in 1996.  The increased
operating cost was primarily the result of increased marketing and advertising
costs of $1.9 million.
EBITDA  increased  $3.4  million,  or  11.2%, in the first nine months of 1997
compared  to  the  same  period  in  1996.  The first nine months 1996 results
include  revenues  of  $3.6  million  and  EBITDA  of $2.6 million from casino
operations  in  South  Dakota  and  Greece  which  were sold during 1996.  The
remaining increase in EBITDA is  the result of the following;
(i)     EBITDA contribution of $6.3 million from Casino Magic-Bossier City.
(ii)          EBITDA at Casino Magic-BSL decreased to $18.6 million from $18.7
million  for  the  1997  period compared to 1996.  The decreased EBITDA is the
result  of increases in costs associated with the operation of the golf course
and increases in promotional allowances;
(iii)          EBITDA at Casino Magic-Biloxi for the first nine months of 1997
declined to $8.2 million compared with $11.4 million during the same period in
1996.    The decrease in EBITDA was primarily the result of decreased revenues
and  increased  marketing,  advertising and promotional costs.  The decline is
attributable  to  intensified  competition  in  the  Biloxi  market,  and  the
disruption caused by the construction  of a hotel at Casino Magic-Biloxi.  The
increases  in  marketing  and  advertising costs are the result of attempts to
stabilize revenues at Casino Magic-Biloxi.
(iv)        EBITDA at Casino Magic-Neuquen increased $1.2 million in the first
nine  months of 1997 compared to the first nine months of 1996.  This increase
is the result of increased slot machine revenues.


                                      11
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS (CONTINUED):
(v)          EBITDA  at  Casino  Magic Corp. increased $1.0 million in 1997 as
compared  to  1996.    This  increase  is  related  to reductions in corporate
overhead  and developmental costs, which these reductions more than offset the
loss of royalties and management revenues;
Consolidated  income from operations increased $0.7 million, or 3.8%, to $18.1
million in the first nine months of 1997 compared to $17.4 million in the same
period  of  1996.    In  addition to the items described above with respect to
EBITDA  results,  depreciation  and amortization increased $4.3 million as the
result of the addition of the Casino Magic-Bossier City facility and decreased
by $2.1 million related to the Company's divestiture of its Greek investments.
Consolidated  "Other  (income)  expense"  (non-operating  income and expenses)
improved  $17.3  million, for the first nine month of 1997, from a net expense
of $38.6 million to  a net expense of $21.3 million  in the comparative period
of  1996.    Approximately $27.0 million of the additional expense in 1996 was
due  to  management's  decision  to  write  off its 49% equity interest in its
gaming  facility  in  Porto  Carras, Greece, in the third quarter of 1996. Net
interest  expense  increased by $11.5 million in the first nine months of 1997
compared  to the same period in 1996.  This was due to the increased debt from
the  issuance  of the $115,000,000, 13% Louisiana First Mortgage Notes in late
August  1996,  and  a reduction of $2.3 million in capitalized interest due to
the  completion  of the Casino Magic-Bossier City facility and the golf course
at Casino Magic-BSL.  Other income increased by $2.8 million in the first nine
months  of  1997    compared  to the same period in 1996 due to gains from the
sales  of  a 49% interest in Casino Magic-Neuquen and the sale of the Crescent
City Queen.
The  Company's  effective  tax  rate  for  the  first  nine  months of 1997 of
approximately  (59.8%)  is the result of anticipated losses for the year ended
December  1997.  The Company's effective tax rate for the first nine months of
1996  of  approximately (18.1%) is the result of an allowance against deferred
tax  assets.    This  allowance  reduces  deferred  tax  assets,  which relate
primarily to the Porto Carras write off, to their estimated realizable value.
The  Company had a net loss of $2.2 million, or $0.06 per share in the current
year's first nine months compared to a net loss of $17.4 million, or $0.48 per
share  in  the 1996 period.  The improvement in net income  for the first nine
months of 1997 would not have occurred but for the  write off of the Company's
investment in Porto Carras Casino S.A. in the third quarter of 1996.

                                      12
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

At  September  30,  1997,  the  Company  had  unrestricted cash and marketable
securities  of  $26.9  million  compared  to  unrestricted cash and marketable
securities  of  $17.6 million at December 31, 1996. At September 30, 1997, the
Company  had  $10.6  million  in  restricted  cash  related to the sale of the
Crescent  City Queen (see discussion below).  The Company had $17.0 million in
restricted  cash  relating  to  the $115 million, 13% Louisiana First Mortgage
Notes at December 31, 1996.  For the nine months ended September 30, 1997, the
Company  generated  $18.1  million  of cash flow from operating activities and
received  $6.5  million  of  proceeds  from  the  issuance of a long term note
payable.  During  that  nine  months  the  Company  spent  $30.0  million  for
acquisitions  of  property,  equipment  and other long-term assets and reduced
long term debt by  $12.3 million.
Of  the $30 million spent, approximately $21.3 million was expended in capital
improvements  at  Casino  Magic-Gulf  Coast,  and  $7.4  million  in  capital
expenditures  at  Casino  Magic-Bossier  City.    The Company plans additional
capital  improvements    at  Casino  Magic-Gulf Coast and Casino Magic-Bossier
City,  much  of  which  is  subject  to  cash flows generated by the Company's
operations,  and  the availability of financing.  There are no assurances that
adequate funding will be available for these planned improvements.
The  Company  opened  Casino  Magic-Bossier  City  on  October 4, 1996 using a
temporary  boarding  facility,  and on December 31, 1996, opened the permanent
facility.    The    Company  plans  to  construct  an  approximately  200-room
convention  hotel  and related amenities, including restaurants, banquet space
and  a  swimming  pool.    The   construction of the  hotel is  expected to be
funded  primarily  by  the $11.7 million in proceeds received from the sale of
the  Crescent  City  Queen  and  the  future  operating  cash  flow  of Casino
Magic-Bossier  City.    No  assurances can be given that the proceeds from the
sale  of  the  Crescent  City  Queen  and the cash flow from the operations of
Casino  Magic-Bossier  City  will  be  sufficient  to  complete such hotel and
related facilities or that these improvements will ever be developed.
The  Company  is  currently  constructing a hotel tower at Casino Magic-Biloxi
above  the  eight-story parking garage adjacent to the casino.  The hotel will
consist  of  approximately  378 rooms, including 86 suites, and will include a
swimming  pool  and  conference space.  Completion is estimated for 1998.  The
hotel  construction  costs  are  being  funded  solely out of the cash flow of
Casino  Magic-BSL  and  Casino  Magic-Biloxi,  and  any lack of cash flow from
operations in the future may delay or prevent completion of the hotel as

                                      13
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES (CONTINUED):
planned.    The  Company  has obtained a commitment for debt financing of
furniture,  fixtures  and  equipment  for the Casino Magic-Biloxi hotel in the
amount of $6.5 million.
Under  the  terms  of  the  Indenture  associated  with the $135,000,000 First
Mortgage  Notes,  Casino  Magic  Corp., Mardi Gras Casino Corp., Biloxi Casino
Corp.  and  Casino  Magic  Finance Corp. have certain restrictions relative to
additional  borrowings and guarantees.  Jefferson Casino Corp and Casino Magic
of  Louisiana,  Corp.  have  certain  restrictions  relative  to  additional
borrowings and cash flow under the terms of the Louisiana Indenture associated
with the $115,000,000 First Mortgage Notes.
The  Company  commenced  operations in 1995 outside the United States becoming
subject  to certain risks including foreign currency exchange, repatriation of
earnings  and  profits,  and  adverse foreign tax treatment.  In addition, the
Company  will  incur  the  general  business risk associated with operating in
foreign  county  where  culture  and business practices may vary significantly
from  that  in  the United States.  Such risks could have a material impact on
the operating results and liquidity of the Company.
The  Company will have a significant need for cash in 1997 and beyond in order
to  continue  its planned development of its existing properties.  The Company
believes  that  cash and marketable securities at September 30, 1997, and cash
flows  from  operations  will  be sufficient to service its operating and debt
service  requirements,  including  the  completion  of  the  hotel  at  Casino
Magic-Biloxi, through at least the next twelve months, but are not anticipated
to  be sufficient to complete the Casino Magic-Bossier City Hotel or engage in
any other development activities without additional debt or equity financing. 
There  are  no  assurances  that  adequate funding will be available for these
planned investments at Casino Magic-Biloxi  or Casino Magic-Bossier City.

                                      14
<PAGE>CASINO MAGIC CORP. AND SUBSIDIARIES

                        PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Reference  is  made  to  the Company's Annual Report on Form 10-K for the year
ended  December 31, 1996 and Form 10-Q for the six month period ended June 30,
1997  on file with the Securities and Exchange Commission.  During the quarter
ended  September 30, 1997, the Company was not a party to any newly instituted
legal  proceedings  and there were no material developments during such period
with respect to existing legal proceedings.

ITEM 2.  CHANGES IN SECURITIES

On September 16, 1997, 18,750 shares of the Company's common stock were issued
and sold to five employees of the Company as the result of common stock grants
which  had  previously  vested.    The shares were issued in consideration for
services  valued  at an aggregate of $100,316.  The shares were sold under the
exemption from registration provided under Section 4 (2) of the Securities Act
of 1933,as amended.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

     None
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

     None.

ITEM 5. OTHER INFORMATION

None.
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(a)     Exhibits
10.1         Purchase agreement for the sale of a 49% interest in Casino Magic
Neuquen S.A.
10.2     Purchase agreement for the sale of the Crescent City Queen Riverboat.
27.     Financial Data Schedule (filed electronically only).
__________


(b)     Reports on Form 8-K:

     None



                                      15
<PAGE>SIGNATURES

Pursuant  to  the  requirements  of  the  Securities Exchange Act of 1934, the
Registrant  has  duly  caused  this  report  to be signed on its behalf by the
undersigned thereunto duly authorized.

CASINO MAGIC CORP.
Registrant


Date:   NOVEMBER 12, 1997     /S/ JAMES E. ERNST
     JAMES E. ERNST, PRESIDENT
     AND CHIEF EXECUTIVE OFFICER


Date:    NOVEMBER 12, 1997     /S/ JAY S. OSMAN
     JAY  S. OSMAN, CHIEF FINANCIAL OFFICER AND TREASURER (PRINCIPAL FINANCIAL
AND ACCOUNTING OFFICER)


                                      16



                                 CASINO MAGIC CORP

     QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 1997

     INDEX TO EXHIBITS
Exhibit                         Number
                         Page

10.1         Purchase agreement for the sale of a 49% interest in Casino Magic
Neuquen S.A.
10.2     Purchase agreement for the sale of the Crescent City Queen Riverboat.
27     Financial Data Schedule (filed electronically only).