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EXHIBIT 10.12





January 1, 2000



PRIVATE & CONFIDENTIAL

Mr. Jerry Campbell
1677 Hayball Road
Jackson, Michigan
49201

Dear Jerry:

RE:  EMPLOYMENT WITH MI ENTERTAINMENT CORP.
-------------------------------------------

In accordance with our recent discussions, we are delighted to confirm the
terms and conditions of your employment with MI Entertainment Corp. (the
"Corporation"), as follows:

1.       POSITION: You are appointed President and CEO of the Corporation
         reporting to the Chairman and carrying out your day-to-day duties
         from an office in Michigan and the Corporation's head office at
         Santa Anita Race Track. You will also be appointed to the Board of
         Directors of the Corporation at the earliest opportunity after
         commencement of your employment.

2.       BASE SALARY: Your Base Salary shall be U.S. $300,000 per annum (less
         statutorily required deductions), payable monthly in arrears and
         otherwise in accordance with the Corporation's standard payroll
         practices.

3.       ANNUAL BONUS: In addition to your Base Salary, you shall receive (a)
         a bonus (the "Basic Bonus") equal to 2% of the pre-tax profits of
         the Corporation at the end of each year of employment, and (b) a
         discretionary bonus (the "Discretionary Bonus") as determined by the
         Board based on your progress with respect to the guidelines set
         forth in Schedule A (the Basic Bonus and the Discretionary Bonus are
         referred to herein collectively as the "Annual Bonus"). The Annual
         Bonus shall be inclusive of all entitlement to vacation pay, and
         less statutorily required deductions.

4.       BENEFITS: During your employment by the Corporation, you will be
         entitled to:

         (a)      participate in all group insurance and benefit programs
                  generally applicable to salaried employees of the
                  Corporation from time to time, with the exception of any
                  Employee Equity Participation and Profit Sharing Plan or
                  any equivalent or related plans in effect from time to time;

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         (b)      four weeks vacation in respect of each completed twelve
                  month period, to be taken at such time or times as are
                  mutually convenient to you and the Corporation, but not
                  payment in lieu thereof;

         (c)      receive an automobile allowance of U.S. $875 per month for
                  a North American vehicle; provided that you shall be
                  responsible for all automobile operating costs including,
                  without limitation, fuel, repairs, maintenance, insurance
                  premiums and insurance deductibles; and

         (d)      reimbursement for all reasonable and documented business
                  expenses incurred on behalf of the Corporation in carrying
                  out your duties, in accordance with the Corporation's
                  policies from time to time, but excluding automobile
                  operating costs.

5.       MIE STOCK OPTIONS: Subject to the express approval of the Board of
         Directors of the Corporation and any regulatory bodies having
         jurisdiction (including the consent of The New York Stock Exchange
         and/or NASDAQ to the listing of the underlying shares), and subject
         to you entering into a Stock Option Agreement with the Corporation
         in the standard form contemplated by the Corporation's Incentive
         Stock Option Plan, the Corporation shall grant you options (vesting
         over three years) to purchase 1,000,000 Shares at an exercise price
         per share which is equal to the issue price of the Shares to
         shareholders of Magna International Inc. Such options shall be
         exercisable by you only in accordance with the terms and conditions
         set forth in the Stock Option Agreement referred to above. Upon
         receipt of an executed copy of this agreement, we will place this
         matter before the Board of Directors of the Corporation at the
         earliest opportunity.

         The above noted stock option agreement will contain a provision that
         in the event that your employment with the corporation is terminated
         for reasons other than just cause or your voluntary resignation, the
         above-noted options will vest in their entirety and be exercisable
         for a period of ninety (90) days.

6.       TERMINATION: Your employment and this agreement, including all
         benefits provided for under this agreement, will terminate on: (a)
         the acceptance by the Corporation of your voluntary resignation; (b)
         at the Corporation's option, your disability for an aggregate of six
         months or more in any twenty-four month period, subject to any
         statutory requirement to accommodate such disability; (c) your
         death; or (d) your dismissal for just cause or by reason of your
         breach of the terms of this agreement.

         Otherwise, you or the Corporation may, at any time, terminate your
         employment and this agreement by providing the other party with
         twelve months prior written notice of intention to terminate. In
         addition the Corporation may elect to terminate your employment
         immediately by paying you a retiring allowance of U.S. $300,000
         (less statutorily required deductions) either in a lump sum within
         thirty days of the day of termination or monthly in arrears in
         twelve equal instalments commencing thirty days after the day of
         termination. If your employment is terminated pursuant to this
         paragraph, the Corporation shall maintain on your behalf the
         benefits referred to in paragraph 4(a) for a period of not less than
         the period required by applicable statute.

         In the event that you breach the provisions of paragraph 7, the
         payment of any further instalments of such retiring allowance will
         immediately cease. Further, the amount paid in each instalment will
         be offset by any income earned, during the period you are entitled
         to receive instalments, from alternate or self-employment.

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         On termination of this agreement other than for dismissal for cause
         or for breach under sub-paragraph 6(d), the Corporation will also
         pay your Annual Bonus on a prorated basis and, to the extent that
         any stock options referenced in paragraph 5 have vested, they will
         continue to be exercisable in accordance with the said Stock Option
         Agreement.

         The termination provisions set forth above represent all severance
         pay entitlement, notice of termination or pay in lieu thereof,
         salary, bonuses, automobile allowances, vacation and/or vacation pay
         and other remuneration and benefits payable or otherwise provided to
         you in relation to your employment by the Corporation or any
         affiliates of Magna International Inc. (the "Magna Group").

7.       OTHER CONDITIONS: You hereby acknowledge as reasonable and agree that
         you shall abide by the following terms and conditions:

         a)       TECHNOLOGY, KNOW-HOW, INVENTIONS, PATENTS: That all
                  designs, devices, improvements, inventions and ideas made
                  or conceived by you resulting from your access to the
                  business of the Corporation and/or the Magna Group shall be
                  exclusive property of the Magna Group, and you and your
                  estate agree to take all necessary steps to ensure that
                  such property rights are protected.

         b)       CONFIDENTIALITY: You shall keep confidential at any time
                  during or after your employment, any information (including
                  proprietary or confidential information) about the business
                  and affairs of, or belonging to, the Corporation or any
                  member of the Magna Group or their respective customers or
                  suppliers, including information which, though technically
                  not trade secrets, the dissemination or knowledge whereof
                  might prove prejudicial to any of them.

         c)       NON-COMPETITION: During the term of your employment with
                  the Corporation and for a period of six months after the
                  termination of your employment, you shall not, directly or
                  indirectly, in any capacity compete with the business of
                  the Corporation or of any member of the Magna Group in
                  respect of which you have had access to proprietary or
                  confidential information or solicit the employees thereof.

8.       TERM: Subject to earlier termination in accordance with the terms of
         this agreement, your employment with the Corporation shall commence
         on January 1, 2000, or such earlier or later date as may be mutually
         agreed upon, (the "Start Date") and shall expire on December 31,
         2002. This Agreement may be renewed for a subsequent term on such
         terms and conditions as be mutually agreed upon in writing. Upon
         expiry or other termination of this agreement, paragraph 7 shall
         continue in full force and effect. This agreement shall be null and
         void and of no effect if you do not commence employment by January
         1, 2000.

9.       ASSIGNABILITY: The Corporation may, in its sole discretion, assign
         this agreement to an affiliated or other organization at any time.
         Upon any such assignment, the terms and conditions of this agreement
         shall continue in full force and affect.

If the terms of employment as set out in this agreement are acceptable to
you, please sign and date three copies in the places indicated and return two
fully signed copies to the attention of the Chairman by January 1, 2000,
after which, if not so signed and returned, this agreement shall become null
and void and of no effect. Upon execution by you, this agreement (i) replaces
any prior written or oral employment contract or other agreement concerning
remuneration between you and the Corporation or any member of the Magna
Group, (ii) will continue to apply to your employment in a similar or other
capacity with the Corporation or any member of the Magna Group, and (iii) will

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continue to be applicable in the event that your employment with the
Corporation continues beyond the expiry date of the term specified above
without this agreement being formally extended or replaced.

Yours very truly,

MAGNA VENTURES INC.





Per:     ____________________
            Frank Stronach







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



I hereby accept the terms and conditions set out above and acknowledge that
this agreement contains all the terms and conditions of my employment with MI
Entertainment Corp. and that no other terms, conditions or representations
other than those within this letter form part of this agreement and confirm
that I am not subject to any restrictions (contractual or otherwise) arising
from my former employment which would prevent or impair me in carrying out my
duties and functions with the Corporation. Furthermore, I confirm that during
the term of my employment I will not offer to the Corporation any
confidential or proprietary information that I have knowledge of with respect
to my former employers, nor will I provide such information to the
Corporation should I be requested to do so, until such time as such
information is no longer confidential, proprietary or comes into the public
domain.

-------------------------           --------------------------------
Date               , 1999           Jerry Campbell


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                                   SCHEDULE A


You Shall be entitled to a Discretionary Bonus equal to $1,000,000 less Base
Salary and Basic Bonus based on your success in furthering the foregoing:

(a)      Furthering of our corporate strategy, i.e.:

         (1)  completing our racetrack consolidation strategy;

         (2)  "bundling", or combining, our simucast horse racing products and
              marketing the signal under the corporate brand name;

         (3)  leveraging our competitive position in the horse racing industry
              and, ultimately, our brand name, in expanding our distribution
              channels and sports wagering products;

         (4)  enhancing the facilities at some of our horse racetracks; and

         (5)  developing total entertainment destinations centered on some of
              our horse racetracks.

(b)      Effecting synergies related to pursuing Corporate Strategy including:

         (1)  improving business systems;

         (2)  rationalising financial reporting;

         (3)  cost cutting; and

         (4)  advance IT network.