| (Mark      One) |                                                                                                           |   |
|-----------------|----------------------------------------------------------------------------------------------------------------|--------|
| x               |  QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d)                                                    |   |
|            |                  OF THE SECURITIES EXCHANGE ACT OF 1934 |   |

|   |                                                                                               |   |
|--------|----------------------------------------------------------------------------------------------------|--------|
|  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d)                                             |   |
|   |                OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|   | For      the transition period from ______________ to______________                                |   |

| Indiana                                                             |   | THE      MAJESTIC STAR CASINO, LLC                          |   | 43-1664986                                |
|---------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------|
| Indiana                                                             |   | THE      MAJESTIC STAR CASINO CAPITAL CORP.                 |   | 35-2100872                                |
| Indiana                                                             |   | MAJESTIC      STAR CASINO CAPITAL CORP. II                  |   | 20-3879309                                |
| (State      or other jurisdiction of incorporation or organization) |   | (Exact      name of registrant as specified in its charter) |   | (I.R.S.      Employer Identification No.) |

|   | Yes | x | No |  ̈ |   |
|--------|-----|---|----|--------|--------|

| Large      accelerated filer  ̈ | Accelerated      Filer  ̈ | Non-accelerated      filer x                       | Smaller      reporting  company  ̈ |   |
|-------------------------------------|-------------------------------|----------------------------------------------------|--------------------------------------------------|--------|
|                                |                          | (Do      not check if a smaller reporting company) |                                             |   |

|   | Yes |  ̈ | No | x |   |
|--------|-----|--------|----|---|--------|

|   | Not      Applicable |
|--------|---------------------|

----

| PART      I  | FINANCIAL      INFORMATION | Page      No.                                                                                                                   |
|--------------|----------------------------|---------------------------------------------------------------------------------------------------------------------------------|
|         |                       |                                                                                                                            |   |
|         | Item      1.               | Financial      Statements.                                                                                                      |   |
|         |                       |                                                                                                                            |   |
|         |                       | Condensed      Consolidated Balance Sheets as of June 30, 2008 (unaudited) and December      31, 2007                           | 1 |
|         |                       |                                                                                                                            |   |
|         |                       | Condensed      Consolidated Statements of Operations for the three and six months ended      June 30, 2008 and 2007 (unaudited) | 2 |
|         |                       |                                                                                                                            |   |
|         |                       | Condensed      Consolidated Statements of Cash Flows for the six months ended June 30,      2008 and 2007 (unaudited)           | 3 |
|         |                       |                                                                                                                            |   |
|         |                       | Notes      to the Condensed Consolidated Financial Statements    (unaudited)                                                    | 5 |
|         |                       |                                                                                                                            |   |
|         | Item      2.               | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations.                          | 26 |
|         |                       |                                                                                                                            |   |
|         | Item      3.               | Quantitative      and Qualitative Disclosures About Market Risk.                                                                | 36 |
|         |                       |                                                                                                                            |   |
|         | Item      4T.              | Controls      and Procedures.                                                                                                   | 36 |
|         |                       |                                                                                                                            |   |
| PART      II | OTHER      INFORMATION     |                                                                                                                            |
|         |                       |                                                                                                                            |   |
|         | Item      1.               | Legal      Proceedings.                                                                                                         | 37 |
|         |                       |                                                                                                                            |   |
|         | Item      1A.              | Risk      Factors.                                                                                                              | 37 |
|         |                       |                                                                                                                            |   |
|         | Item      6.               | Exhibits.                                                                                                                       | 37 |
|         |                       |                                                                                                                            |   |
|         | SIGNATURES                 | S-1                                                                                                                             |

----

|                                                                                  |   |          |         |   |              |   |
|---------------------------------------------------------------------------------------|--------|---------------|--------------|--------|-------------------|--------|
|                                                                                  |   | June      30, |         |   | December      31, |   |
|                                                                                  |   | 2008          |         |   | 2007              |   |
| ASSETS                                                                                |   | (unaudited)   |         |   |              |   |
| Current      assets:                                                                  |   |          |         |   |              |   |
| Cash      and cash equivalents                                                        |   | $             | 27,694,199   |   |              | $      | 29,216,263 |   |
| Restricted      cash                                                                  |   |          | 3,401,359    |   |              |   | 3,401,359 |   |
| Accounts      receivable, less allowance for doubtful accounts of $1,040,753      and |   |          |         |   |              |   |   |   |
|  $1,371,930      as of June 30, 2008 and December 31, 2007, respectively         |   |          | 5,968,250    |   |              |   | 5,779,838 |   |
| Inventories                                                                           |   |          | 1,096,350    |   |              |   | 1,088,508 |   |
| Prepaid      expenses and deposits                                                    |   |          | 7,981,159    |   |              |   | 2,013,891 |   |
| Receivable      from affiliates                                                       |   |          | 492,581      |   |              |   | 616,889 |   |
| Total      current assets                                                             |   |          | 46,633,898   |   |              |   | 42,116,748 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Property,      equipment and improvements, net                                        |   |          | 277,837,153  |   |              |   | 279,629,166 |   |
| Intangible      assets, net                                                           |   |          | 120,206,751  |   |              |   | 121,936,336 |   |
| Goodwill                                                                              |   |          | 47,431,442   |   |              |   | 47,431,442 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Other      assets:                                                                    |   |          |         |   |              |   |   |   |
| Deferred      financing costs, net of accumulated amortization                        |   |          |         |   |              |   |   |   |
| of      $10,779,775 and $9,107,124 as of June 30, 2008                                |   |          |         |   |              |   |   |   |
| and      December 31, 2007, respectively                                              |   |          | 8,065,145    |   |              |   | 9,737,796 |   |
| Deferred      financing costs, pushed down from Majestic Holdco, net of               |   |          |         |   |              |   |   |   |
| accumulated      amortization of $1,285,574 and $1,031,422 as of                      |   |          |         |   |              |   |   |   |
| June      30, 2008 and December 31, 2007, respectively                                |   |          | 1,673,165    |   |              |   | 1,927,317 |   |
| Other      assets                                                                     |   |          | 3,531,772    |   |              |   | 2,911,140 |   |
| Total      other assets                                                               |   |          | 13,270,082   |   |              |   | 14,576,253 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Total      assets                                                                     |   | $             | 505,379,326  |   |              | $      | 505,689,945 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| LIABILITIES      AND MEMBER'S DEFICIT                                                 |   |          |         |   |              |   |   |   |
| Current      liabilities:                                                             |   |          |         |   |              |   |   |   |
| Accounts      payable                                                                 |   | $             | 3,593,431    |   |              | $      | 4,259,475 |   |
| Current      portion of long-term debt                                                |   |          | 1,145,546    |   |              |   | 202,780 |   |
| Accrued      liabilities:                                                             |   |          |         |   |              |   |   |   |
| Payroll      and related                                                              |   |          | 9,856,280    |   |              |   | 9,206,725 |   |
| Interest                                                                              |   |          | 10,735,761   |   |              |   | 10,980,075 |   |
| Property      and franchise taxes                                                     |   |          | 15,348,197   |   |              |   | 17,897,923 |   |
| Payable      to affiliate                                                             |   |          | -            |   |              |   | 214,288 |   |
| Other      accrued liabilities                                                        |   |          | 16,421,561   |   |              |   | 16,475,209 |   |
| Total      current liabilities                                                        |   |          | 57,100,776   |   |              |   | 59,236,475 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Long-term      debt, net of current maturities                                        |   |          | 571,702,303  |   |              |   | 556,535,441 |   |
| Long-term      debt of Majestic Holdco, net of discount of $2,178,791                 |   |          |         |   |              |   |   |   |
| and      $5,789,771 as of June 30, 2008 and December 31, 2007,      respectively      |   |          | 61,321,209   |   |              |   | 57,710,229 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Total      liabilities                                                                |   |          | 690,124,288  |   |              |   | 673,482,145 |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Commitments      and contingencies (Note 5)                                           |   |          |         |   |              |   |   |   |
|                                                                                  |   |          |         |   |              |   |   |   |
| Member's      deficit                                                                 |   |          | (184,744,962 | )      |              |   | (167,792,200 | ) |
|                                                                                  |   |          |         |   |              |   |   |   |
| Total      liabilities and member's deficit                                           |   | $             | 505,379,326  |   |              | $      | 505,689,945 |   |
|                                                                                  |   |          |         |   |              |   |   |   |

|   | The      accompanying notes are an integral part of these condensed consolidated      financial statements. |
|--------|-------------------------------------------------------------------------------------------------------------|

----

|                                       |   | For      The Three Months Ended |        |   | For      The Six Months Ended |   |
|--------------------------------------------|--------|---------------------------------|-------------|--------|-------------------------------|--------|
|                                       |   | June      30,                   |        |   | June      30,                 |   |
|                                       |   | 2008                            |        |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
| OPERATING      REVENUES:                   |   |                            |        |   |                          |   |   |   |   |   |   |   |
| Casino                                     |   | $                               | 85,850,488  |   |                          | $      | 96,137,813 |   |   | $ | 175,202,784 |   |   | $ | 191,268,373 |   |
| Rooms                                      |   |                            | 3,012,893   |   |                          |   | 3,049,522 |   |   |   | 6,001,624 |   |   |   | 5,594,467 |   |
| Food      and beverage                     |   |                            | 5,838,436   |   |                          |   | 6,911,077 |   |   |   | 12,295,469 |   |   |   | 12,786,332 |   |
| Other                                      |   |                            | 1,980,430   |   |                          |   | 2,018,884 |   |   |   | 4,020,439 |   |   |   | 3,901,360 |   |
| Gross      revenues                        |   |                            | 96,682,247  |   |                          |   | 108,117,296 |   |   |   | 197,520,316 |   |   |   | 213,550,532 |   |
| Less:      promotional allowances          |   |                            | 11,333,371  |   |                          |   | 15,359,054 |   |   |   | 23,177,970 |   |   |   | 29,278,417 |   |
|  Net      operating revenues          |   |                            | 85,348,876  |   |                          |   | 92,758,242 |   |   |   | 174,342,346 |   |   |   | 184,272,115 |   |
|                                       |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Casino                                     |   |                            | 23,405,648  |   |                          |   | 23,156,182 |   |   |   | 48,303,180 |   |   |   | 46,814,819 |   |
| Rooms                                      |   |                            | 599,720     |   |                          |   | 752,652 |   |   |   | 1,179,734 |   |   |   | 1,557,836 |   |
| Food      and beverage                     |   |                            | 2,169,739   |   |                          |   | 2,699,585 |   |   |   | 4,266,416 |   |   |   | 5,370,194 |   |
| Other                                      |   |                            | 355,941     |   |                          |   | 480,076 |   |   |   | 798,863 |   |   |   | 983,197 |   |
| Gaming      taxes                          |   |                            | 20,653,548  |   |                          |   | 22,158,447 |   |   |   | 41,667,879 |   |   |   | 44,466,391 |   |
| Advertising      and promotion             |   |                            | 5,401,355   |   |                          |   | 5,848,645 |   |   |   | 11,087,294 |   |   |   | 11,158,301 |   |
| General      and administrative            |   |                            | 13,991,867  |   |                          |   | 13,943,275 |   |   |   | 28,735,898 |   |   |   | 28,149,185 |   |
| Corporate      expense                     |   |                            | 1,398,020   |   |                          |   | 1,748,592 |   |   |   | 3,033,739 |   |   |   | 3,471,794 |   |
| Economic      incentive tax - City of Gary |   |                            | 1,765,797   |   |                          |   | 1,712,176 |   |   |   | 3,518,751 |   |   |   | 3,465,765 |   |
| Depreciation      and amortization         |   |                            | 8,381,888   |   |                          |   | 8,031,727 |   |   |   | 16,666,547 |   |   |   | 16,201,379 |   |
| Loss      on disposal of assets            |   |                            | 83,757      |   |                          |   | 820,288 |   |   |   | 70,479 |   |   |   | 808,563 |   |
| Total      operating costs and expenses    |   |                            | 78,207,280  |   |                          |   | 81,351,645 |   |   |   | 159,328,780 |   |   |   | 162,447,424 |   |
|                                       |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                      |   |                            | 7,141,596   |   |                          |   | 11,406,597 |   |   |   | 15,013,566 |   |   |   | 21,824,691 |   |
|                                       |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):               |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                       |   |                            | 64,915      |   |                          |   | 161,869 |   |   |   | 174,639 |   |   |   | 374,046 |   |
| Interest      expense                      |   |                            | (13,420,520 | )      |                          |   | (13,718,247 | ) |   |   | (26,854,237 | ) |   |   | (27,296,937 | ) |
| Interest      expense - debt pushed down   |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| from      Majestic Holdco                  |   |                            | (1,976,883  | )      |                          |   | (1,762,465 | ) |   |   | (3,865,132 | ) |   |   | (3,446,879 | ) |
| Other      non-operating expense           |   |                            | (6,447      | )      |                          |   | (15,701 | ) |   |   | (21,598 | ) |   |   | (50,366 | ) |
| Total      other expense                   |   |                            | (15,338,935 | )      |                          |   | (15,334,544 | ) |   |   | (30,566,328 | ) |   |   | (30,420,136 | ) |
|                                       |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                              |   | $                               | (8,197,339  | )      |                          | $      | (3,927,947 | ) |   | $ | (15,552,762 | ) |   | $ | (8,595,445 | ) |
|                                       |   |                            |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |

|   | The      accompanying notes are an integral part of these condensed consolidated      financial statements. |
|--------|-------------------------------------------------------------------------------------------------------------|

----

|                                                                   |   | For      The Six Months Ended |        |
|------------------------------------------------------------------------|--------|-------------------------------|-------------|
|                                                                   |   | June      30,                 |        |
|                                                                   |   | 2008                          |        |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                             |   |                          |        |   |   |   |
| Net      loss                                                          |   | $                             | (15,552,762 | ) |   | $ | (8,595,445 | ) |
| Adjustments      to reconcile net loss to net cash                     |   |                          |        |   |   |   |   |   |
| (used      in) provided by operating activities:                       |   |                          |        |   |   |   |   |   |
| Depreciation                                                           |   |                          | 14,936,962  |   |   |   | 14,471,796 |   |
| Amortization                                                           |   |                          | 1,729,585   |   |   |   | 1,729,583 |   |
| Amortization      of deferred financing costs                          |   |                          | 1,672,651   |   |   |   | 1,672,651 |   |
| Amortization      of bond discount on 12 1⁄2% senior discount notes |   |                          |        |   |   |   |   |   |
| pushed      down from Majestic Holdco                                  |   |                          | 3,610,980   |   |   |   | 3,192,727 |   |
| Amortization      of deferred financing costs on 12 1⁄2% senior     |   |                          |        |   |   |   |   |   |
| discount      notes pushed down from Majestic Holdco                   |   |                          | 254,152     |   |   |   | 254,152 |   |
| Loss      on disposal of assets                                        |   |                          | 70,479      |   |   |   | 808,563 |   |
| Changes      in operating assets and liabilities:                      |   |                          |        |   |   |   |   |   |
| Accounts      receivable, net                                          |   |                          | (188,412    | ) |   |   | 3,052,428 |   |
| Receivable      from affilates                                         |   |                          | (89,980     | ) |   |   | (274,797 | ) |
| Inventories                                                            |   |                          | (7,842      | ) |   |   | (186,820 | ) |
| Prepaid      expenses and deposits                                     |   |                          | (5,389,817  | ) |   |   | (5,314,124 | ) |
| Other      assets                                                      |   |                          | 5,460       |   |   |   | 9,715 |   |
| Accounts      payable                                                  |   |                          | 443,573     |   |   |   | (2,655,935 | ) |
| Accrued      payroll and other expenses                                |   |                          | 649,555     |   |   |   | 806,845 |   |
| Accrued      interest                                                  |   |                          | (244,314    | ) |   |   | 23,648 |   |
| Other      accrued liabilities                                         |   |                          | (2,864,227  | ) |   |   | 3,574,056 |   |
| Net      cash (used in) provided by operating activities               |   |                          | (963,957    | ) |   |   | 12,569,043 |   |
|                                                                   |   |                          |        |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                             |   |                          |        |   |   |   |   |   |
| Increase      in restricted cash                                       |   |                          | -           |   |   |   | (301,360 | ) |
| Additions      to property and equipment                               |   |                          | (13,734,840 | ) |   |   | (14,853,729 | ) |
| Increase      in Lakefront Capital Improvement Fund                    |   |                          | (626,092    | ) |   |   | (619,795 | ) |
| Proceeds      from disposal of equipment                               |   |                          | 67,481      |   |   |   | 116,305 |   |
| Net      cash used in investing activities                             |   |                          | (14,293,451 | ) |   |   | (15,658,579 | ) |
|                                                                   |   |                          |        |   |   |   |   |   |

|   | The      accompanying notes are an integral part of these condensed consolidated      financial statements. |
|--------|-------------------------------------------------------------------------------------------------------------|

----

|                                                                         |   | For      The Six Months Ended |        |
|------------------------------------------------------------------------------|--------|-------------------------------|-------------|
|                                                                         |   | June      30,                 |        |
|                                                                         |   | 2008                          |        |   | 2007 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                   |   |                          |        |   |   |   |
| Proceeds      from line of credit                                            |   |                          | 34,859,344  |   |   |   | 27,599,634 |   |
| Repayment      of line of credit                                             |   |                          | (19,600,000 | ) |   |   | (20,250,049 | ) |
| Repayment      of debt                                                       |   |                          | (124,000    | ) |   |   | (82,809 | ) |
| Tax      distributions to Barden Development, Inc.                           |   |                          | (1,400,000  | ) |   |   | (2,150,245 | ) |
| Net      cash provided by financing activities                               |   |                          | 13,735,344  |   |   |   | 5,116,531 |   |
|                                                                         |   |                          |        |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                    |   |                          | (1,522,064  | ) |   |   | 2,026,995 |   |
|                                                                         |   |                          |        |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                          |   |                          | 29,216,263  |   |   |   | 25,531,924 |   |
|                                                                         |   |                          |        |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                |   | $                             | 27,694,199  |   |   | $ | 27,558,919 |   |
|                                                                         |   |                          |        |   |   |   |   |   |
|                                                                         |   |                          |        |   |   |   |   |   |
|                                                                         |   |                          |        |   |   |   |   |   |
|                                                                         |   | For      The Six Months Ended |        |
|                                                                         |   | June      30,                 |        |
|                                                                         |   | 2008                          |        |   | 2007 |   |
| Supplemental      disclosure of cash flow information and non-cash investing |   |                          |        |   |   |   |   |   |
| and      financing activities:                                               |   |                          |        |   |   |   |   |   |
|                                                                         |   |                          |        |   |   |   |   |   |
| INTEREST      PAID, NET OF CAPITALIZED INTEREST:                             |   | $                             | 25,425,896  |   |   | $ | 25,600,111 |   |
|                                                                         |   |                          |        |   |   |   |   |   |
|                                                                         |   |                          |        |   |   |   |   |   |
| NON-CASH      INVESTING ACTIVITIES:                                          |   |                          |        |   |   |   |   |   |
| Capital      assets acquired from incurring accounts payable                 |   |                          |        |   |   |   |   |   |
|  and      accrued liabilities, net                                      |   | $                             | 2,957,123   |   |   | $ | 4,156,022 |   |
| Capital      assets transferred to prepaid rent                              |   | $                             | 577,450     |   |   | $ | - |   |
| Capital      assets acquired from incurring debt                             |   | $                             | 974,284     |   |   | $ | - |   |
|                                                                         |   |                          |        |   |   |   |   |   |

|   | The      accompanying notes are an integral part of these condensed consolidated      financial statements. |
|--------|-------------------------------------------------------------------------------------------------------------|

----

| ·   | A      dockside casion and land based pavilion located on Lake Michigan in Gary,      Indiana (“Majestic Star”);                                                         |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | A      dockside casino and hotel located on Lake Michigan in Gary, Indiana      (“Majestic Star II” and with Majestic Star, the “Majestic      Properties”); |
| ·   | A      casino-hotel located in Tunica County, Mississippi (“Barden Mississippi”      or “Fitzgeralds Tunica”); and                                           |

| ·   | A      casino located in Black Hawk, Colorado (“Fitzgeralds Black      Hawk”). |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | The      Majestic Star Casino Capital Corp. (“MSCC”) is a co-obligor with the      Company for the $300.0 million 9 1⁄2% Senior Secured Notes due 2010      (the “Senior Secured Notes”). MSCC has no assets or operations;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Majestic      Star Casino Capital Corp. II (“MSCC II”) was formed in 2005 for      the purpose of facilitating the offering of the Company’s $200.0 million      9 3⁄4% Senior Notes due 2011 (the “Senior Notes”). MSCC II is a      co-obligor with the Company for the Senior Notes. MSCC II has no assets or      operations. See Note 4 - Long TermDebt. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                   |   | For      The Three Months Ended June      30, |      |   | For      The Six Months Ended June      30, |   |
|------------------------|--------|-----------------------------------------------|-----------|--------|---------------------------------------------|--------|
|                   |   | 2008                                          |      |   | 2007                                        |   |   | 2008 |   |   | 2007 |   |
| Rooms                  |   | $                                             | 1,107,966 |   |                                        | $      | 830,570 |   |   | $ | 2,278,412 |   |   | $ | 1,939,502 |   |
| Food      and Beverage |   |                                          | 4,377,716 |   |                                        |   | 4,640,552 |   |   |   | 9,076,663 |   |   |   | 8,869,057 |   |
| Other                  |   |                                          | 215,188   |   |                                        |   | 44,134 |   |   |   | 459,850 |   |   |   | 307,664 |   |
| Total                  |   | $                                             | 5,700,870 |   |                                        | $      | 5,515,256 |   |   | $ | 11,814,925 |   |   | $ | 11,116,223 |   |
|                   |   |                                          |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |                                          |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |

|                                                |   | For      The Three Months Ended June      30, |       |   | For      The Six Months Ended June      30, |   |
|-----------------------------------------------------|--------|-----------------------------------------------|------------|--------|---------------------------------------------|--------|
|                                                |   | 2008                                          |       |   | 2007                                        |   |   | 2008 |   |   | 2007 |   |
| Cash      based promotional activities              |   | $                                             | 2,021,190  |   |                                        | $      | 5,230,596 |   |   | $ | 3,985,419 |   |   | $ | 10,676,399 |   |
| Slot      club and other                            |   |                                          | 1,874,833  |   |                                        |   | 1,912,019 |   |   |   | 3,786,310 |   |   |   | 3,858,041 |   |
| Retail      cost of rooms, food, beverage and other |   |                                          | 7,437,348  |   |                                        |   | 8,216,439 |   |   |   | 15,406,241 |   |   |   | 14,743,977 |   |
| Total                                               |   | $                                             | 11,333,371 |   |                                        | $      | 15,359,054 |   |   | $ | 23,177,970 |   |   | $ | 29,278,417 |   |
|                                                |   |                                          |       |   |                                        |   |   |   |   |   |   |   |   |   |   |   |

| ·   | In      March 2008, the Financial Accounting Standards Board (“FASB”) issued FASB      Statement No. 161, “Disclosures about Derivative Instruments and Hedging      Activities” (“FASB 161”), to improve financial reporting about derivative      instruments and hedging activities by requiring enhanced disclosures to      enable investors to better understand their effects on an entity’s      financial position, financial performance, and cash flows. FASB 161 is      effective for financial statements for fiscal years beginning after      November 15, 2008. The Company anticipates that adoption will have no      impact on its condensed consolidated financial statements as we have no      derivative instruments or hedging  activities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | During      the three months ended March 31, 2008, the Company adopted FASB Statement      No. 159, “The Fair      Value Option for Financial Assets and Financial Liabilities” (“FASB 159”)      and has not made any fair value elections with respect to any eligible      assets or liabilities as permitted under the provisions of FASB 159      to date. The Company also adopted FASB Statement      No.157, “Fair Value      Measurements” (“FASB 157”) during the three months ended March 31,      2008, for financial and nonfinancial assets and liabilities measured on a      recurring basis. There was no impact to the condensed consolidated      financial statements upon adoption. FASB 157 defines fair value,      establishes a framework for measuring fair value and expands disclosure      about fair value measurements. FASB 157 does not require any new fair      value measurements, but rather applies to other accounting pronouncements      that require or permit fair value  measurements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      February 2008, FASB issued FASB Staff Position FAS 157-2, which defers the      effective date of FASB 157 to fiscal years beginning after November 15,      2008 for non-financial assets and non-financial liabilities that are      recognized or disclosed at fair value in an entity’s financial statements      on a recurring basis. The Company      anticipates that adoption will have no material impact on its condensed      consolidated financialstatements. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   |          |    |   |              |   |
|----------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                         |   | June      30, |    |   | December      31, |   |
|                                         |   | 2008          |    |   | 2007              |   |
| 9      1⁄2% senior secured notes due 2010 |   | $             | 300,000 |   |              | $      | 300,000 |   |
| 9      3⁄4% senior notes due 2011         |   |          | 200,000 |   |              |   | 200,000 |   |
| Senior      secured credit facility          |   |          | 71,684  |   |              |   | 56,425 |   |
| Capitalized      leases and other debt       |   |          | 1,164   |   |              |   | 313 |   |
| Long-term      debt                          |   |          | 572,848 |   |              |   | 556,738 |   |
| Less      current maturities                 |   |          | (1,146  | )      |              |   | (203 | ) |
| Total      long-term debt                    |   | $             | 571,702 |   |              | $      | 556,535 |   |
|                                         |   |          |    |   |              |   |   |   |

----

----

----

----

----

----

----

----

|                                                 |   | For      The Three Months Ended |   |   | For      The Six Months Ended |   |
|------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                                                 |   | June      30,                   |   |   | June      30,                 |   |
|                                                 |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
| Net      revenues:                                   |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 58,648 |   |                          | $      | 62,717 |   |   | $ | 118,086 |   |   | $ | 125,761 |   |
| Fitzgeralds      Tunica                              |   |                            | 20,197 |   |                          |   | 22,406 |   |   |   | 42,924 |   |   |   | 42,926 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 6,504  |   |                          |   | 7,635 |   |   |   | 13,332 |   |   |   | 15,585 |   |
| Total                                                |   | $                               | 85,349 |   |                          | $      | 92,758 |   |   | $ | 174,342 |   |   | $ | 184,272 |   |
|                                                 |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):                        |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 7,824  |   |                          | $      | 9,657 |   |   | $ | 14,227 |   |   | $ | 19,367 |   |
| Fitzgeralds      Tunica                              |   |                            | 394    |   |                          |   | 2,024 |   |   |   | 2,912 |   |   |   | 2,875 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 376    |   |                          |   | 1,505 |   |   |   | 1,021 |   |   |   | 3,115 |   |
| Corporate      (1)                                   |   |                            | (1,452 | )      |                          |   | (1,779 | ) |   |   | (3,146 | ) |   |   | (3,532 | ) |
| Total                                                |   | $                               | 7,142  |   |                          | $      | 11,407 |   |   | $ | 15,014 |   |   | $ | 21,825 |   |
|                                                 |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Segment      depreciation and amortization:          |   |                            |   |   |                          |   |   |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 4,770  |   |                          | $      | 4,682 |   |   | $ | 9,538 |   |   | $ | 9,533 |   |
| Fitzgeralds      Tunica                              |   |                            | 2,843  |   |                          |   | 2,689 |   |   |   | 5,716 |   |   |   | 5,358 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 715    |   |                          |   | 630 |   |   |   | 1,299 |   |   |   | 1,250 |   |
| Corporate                                            |   |                            | 54     |   |                          |   | 31 |   |   |   | 114 |   |   |   | 60 |   |
| Total                                                |   | $                               | 8,382  |   |                          | $      | 8,032 |   |   | $ | 16,667 |   |   | $ | 16,201 |   |
|                                                 |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Expenditure      for additions to long-lived assets: |   |                            |   |   |                          |   |   |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 148    |   |                          | $      | 3,364 |   |   | $ | 707 |   |   | $ | 4,528 |   |
| Fitzgeralds      Tunica                              |   |                            | 185    |   |                          |   | 1,562 |   |   |   | 892 |   |   |   | 5,611 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 6,938  |   |                          |   | 3,814 |   |   |   | 12,115 |   |   |   | 4,666 |   |
| Corporate                                            |   |                            | 4      |   |                          |   | 26 |   |   |   | 21 |   |   |   | 49 |   |
| Total                                                |   | $                               | 7,275  |   |                          | $      | 8,766 |   |   | $ | 13,735 |   |   | $ | 14,854 |   |
|                                                 |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Corporate      expenses reflect payroll, benefits, travel and other costs associated with      our corporate staff and are not allocated to the    properties. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                       |                                                                                                                    |                                                                                                                               |        | The      Majestic |        |   | The      Majestic  |         |   |         |        |        |        |   |         |         |         |         |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|-------------|-------------------|-------------|--------|--------------------|--------------|--------|--------------|-------------|-------------|-------------|--------|--------------|--------------|--------------|--------------|
|                                                       |                                                                                                                    |                                                                                                                               |        | Star      Casino, |        |   | Star      Casino   |         |   | Guarantor    |        |        | Eliminating |   |         |         | Total        |         |
|                                                       |                                                                                                                    |                                                                                                                               |        | LLC               |        |   | Capital      Corp. |         |   | Subsidiaries |        |        | Entries     |   |         |         | Consolidated |         |
|                                                       | ASSETS                                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |
|  Current      assets:                                 |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |
|                                                       | Cash      and cash equivalents                                                                                          |                                                                                                                               | $           | 11,177,531        |        |   | $                  | -            |   |         | $           | 16,516,668  |        |   | $            | -            |         |         |   | $ | 27,694,199 |   |
|                                                       | Restricted      cash                                                                                                    |                                                                                                                               |        | 3,401,359         |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 3,401,359 |   |
|                                                       | Accounts      receivable, net                                                                                           |                                                                                                                               |        | 2,692,039         |        |   |               | -            |   |         |        | 3,276,211   |        |   |         | -            |         |         |   |   | 5,968,250 |   |
|                                                       | Inventories                                                                                                             |                                                                                                                               |        | 341,969           |        |   |               | -            |   |         |        | 754,381     |        |   |         | -            |         |         |   |   | 1,096,350 |   |
|                                                       | Prepaid      expenses and deposits                                                                                      |                                                                                                                               |        | 4,320,803         |        |   |               | -            |   |         |        | 3,660,356   |        |   |         | -            |         |         |   |   | 7,981,159 |   |
|                                                       | Receivable      from affiliate                                                                                          |                                                                                                                               |        | 5,834,293         |        |   |               | -            |   |         |        | 1,399       |        |   |         | (5,343,111   | )            |  (a)    |   |   | 492,581 |   |
|                                                       | Investment      in subsidiaries                                                                                         |                                                                                                                               |        | 169,175,032       |        |   |               | -            |   |         |        | -           |        |   |         | (169,175,032 | )            |  (b)    |   |   | - |   |
|                                                       |                                                                                                                    | Total      current assets                                                                                                          |        |              | 196,943,026 |   |               |         | -      |         |        |        | 24,209,015  |   |         |         | (174,518,143 | )            |   |   |   | 46,633,898 |   |
|                                                       |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|  Property,      equipment and improvements, net  |                                                                                                                    | 135,660,644                                                                                                                        |        |              |        | -      |               |         |   | 142,176,509  |        |        |        | -      |         |         |         |         | 277,837,153 |   |
|  Intangible      assets, net                          |                                                                                                                    |                                                                                                                               | -           |              |        |   | -                  |         |   |         | 120,206,751 |        |        |   | -            |         |         |         |   | 120,206,751 |   |
|  Goodwill                                             |                                                                                                                    |                                                                                                                               | -           |              |        |   | -                  |         |   |         | 47,431,442  |        |        |   | -            |         |         |         |   | 47,431,442 |   |
|  Other      assets:                                   |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Deferred      financing costs, net                                                                                      |                                                                                                                               |        | 8,065,145         |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 8,065,145 |   |
|                                                       | Deferred      financing costs, pushed                                                                                   |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |
|                                                       |                                                                                                                    | down      from Majestic Holdco (c)                                                                                                 |        |              | 1,673,165   |   |               |         | -      |         |        |        | -           |   |         |         | -            |         |   |   |   | 1,673,165 |   |
|                                                       | Long-term      receivable from affiliates                                                                               |                                                                                                                               |        | 157,201,892       |        |   |               | -            |   |         |        | 21,720,689  |        |   |         | (178,922,581 | )            |  (a)    |   |   | - |   |
|                                                       | Other      assets                                                                                                       |                                                                                                                               |        | 1,864,784         |        |   |               | -            |   |         |        | 1,666,988   |        |   |         | -            |         |         |   |   | 3,531,772 |   |
|                                                       |                                                                                                                    | Total      other assets                                                                                                            |        |              | 168,804,986 |   |               |         | -      |         |        |        | 23,387,677  |   |         |         | (178,922,581 | )            |   |   |   | 13,270,082 |   |
|  Total      assets                                    |                                                                                                                    | $                                                                                                                                  | 501,408,656 |              |        | $      | -                  |         |   | $            | 357,411,394 |        |        | $      | (353,440,724 | )            |         |         | $ | 505,379,326 |   |
|                                                       |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|                                                       |                   LIABILITIES AND MEMBER'S (DEFICIT) EQUITY |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |
|  Current      liabilities:                            |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Accounts      payable                                                                                                   |                                                                                                                               | $           | 752,868           |        |   | $                  | -            |   |         | $           | 2,840,563   |        |   | $            | -            |         |         |   | $ | 3,593,431 |   |
|                                                       | Current      portion of long-term debt                                                                                  |                                                                                                                               |        | 146,950           |        |   |               | -            |   |         |        | 998,596     |        |   |         | -            |         |         |   |   | 1,145,546 |   |
|                                                       | Accrued      liabilities:                                                                                               |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |
|                                                       |                                                                                                                    | Payroll      and related                                                                                                           |        |              | 3,920,036   |   |               |         | -      |         |        |        | 5,936,244   |   |         |         | -            |         |   |   |   | 9,856,280 |   |
|                                                       |                                                                                                                    | Interest                                                                                                                           |        |              | 10,732,861  |   |               |         | -      |         |        |        | 2,900       |   |         |         | -            |         |   |   |   | 10,735,761 |   |
|                                                       |                                                                                                                    | Property      and franchise taxes                                                                                                  |        |              | 8,978,039   |   |               |         | -      |         |        |        | 6,370,158   |   |         |         | -            |         |   |   |   | 15,348,197 |   |
|                                                       |                                                                                                                    | Payable      to affiliates                                                                                                         |        |              | -           |   |               |         | -      |         |        |        | 5,343,112   |   |         |         | (5,343,112   | )            |  (a) |   |   | - |   |
|                                                       |                                                                                                                    | Other      accrued liabilities                                                                                                     |        |              | 6,878,663   |   |               |         | -      |         |        |        | 9,542,898   |   |         |         | -            |         |   |   |   | 16,421,561 |   |
|                                                       |                Total current liabilities                                   |                                                                                                                               |        | 31,409,417        |        |   |               | -            |   |         |        | 31,034,471  |        |   |         | (5,343,112   | )            |         |   |   | 57,100,776 |   |
|                                                       |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|  Due      to affiliates                               |                                                                                                                    |                                                                                                                               | 21,720,689  |              |        |   | -                  |         |   |         | 157,201,891 |        |        |   | (178,922,580 | )            |  (a)    |         |   | - |   |
|  Long-term      debt, net of current maturities       |                                                                                                                    |                                                                                                                               | 571,702,303 |              |        |   | 300,000,000        |         |   |         | -           |        |        |   | (300,000,000 | )            |  (d)    |         |   | 571,702,303 |   |
|  Long-term      debt pushed down from                 |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Majestic      Holdco, net (e)                                                                                           |                                                                                                                               |        | 61,321,209        |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 61,321,209 |   |
|  Total      liabilities                               |                                                                                                                    |                                                                                                                               | 686,153,618 |              |        |   | 300,000,000        |         |   |         | 188,236,362 |        |        |   | (484,265,692 | )            |         |         |   | 690,124,288 |   |
|                                                       | Member's      (deficit) equity                                                                                          |                                                                                                                               |        | (184,744,962      | )           |   |               | (300,000,000 | )      |         |        | 169,175,032 |        |   |         | 130,824,968  |         |  (b)(d) |   |   | (184,744,962 | ) |
|  Total      liabilities and member's (deficit) equity |                                                                                                                    | $                                                                                                                                  | 501,408,656 |              |        | $      | -                  |         |   | $            | 357,411,394 |        |        | $      | (353,440,724 | )            |         |         | $ | 505,379,326 |   |
|                                                       |                                                                                                                    |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|                                                       | (a)                                                                                                                     | To      eliminate intercompany receivable and payables.                                                                            |        |              |
|                                                       | (b)                                                                                                                     | To      eliminate intercompany accounts and investment in      subsidiaries.                                                       |        |              |
|                                                       | (c)                                                                                                                     | Reflects      the pushdown of deferred financing costs related to the issuance of the      Discount Notes of Majestic Holdco,      |        |
|                                                       |                                                                                                                    | net      of amortization, pursuant to SEC Staff Accounting Bulletin 73 Topic      5(J).                                            |        |              |
|                                                       | (d)                                                                                                                     | The      Majestic Star Casino Capital Corp. is a co-obligor of the Senior Secured      Notes issued by the Company. Accordingly,   |        |
|                                                       |                                                                                                                    | such      indebtedness has been presented as an obligation of both the issuer and      the co-obligor in the above balance sheet.  |        |
|                                                       | (e)                                                                                                                     | Reflects      the pushdown of Majestic Holdco’s Discount Notes pursuant to SEC Staff      Accounting Bulletin 73 Topic 5(J). |        |

----

|                                                       |                                                                                                  |                                                                                                                               |        | The      Majestic |        |   | The      Majestic  |         |   |         |        |        |        |   |         |         |         |         |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|-------------|-------------------|-------------|--------|--------------------|--------------|--------|--------------|-------------|-------------|-------------|--------|--------------|--------------|--------------|--------------|
|                                                       |                                                                                                  |                                                                                                                               |        | Star      Casino, |        |   | Star      Casino   |         |   | Guarantor    |        |        | Eliminating |   |         |         | Total        |         |
|                                                       |                                                                                                  |                                                                                                                               |        | LLC               |        |   | Capital      Corp. |         |   | Subsidiaries |        |        | Entries     |   |         |         | Consolidated |         |
|                                                       | ASSETS                                                                                                |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |
|  Current      assets:                                 |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |
|                                                       | Cash      and cash equivalents                                                                        |                                                                                                                               | $           | 8,055,172         |        |   | $                  | -            |   |         | $           | 21,161,091  |        |   | $            | -            |         |         |   | $ | 29,216,263 |   |
|                                                       | Restricted      cash                                                                                  |                                                                                                                               |        | 3,401,359         |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 3,401,359 |   |
|                                                       | Accounts      receivable, net                                                                         |                                                                                                                               |        | 2,579,315         |        |   |               | -            |   |         |        | 3,200,523   |        |   |         | -            |         |         |   |   | 5,779,838 |   |
|                                                       | Inventories                                                                                           |                                                                                                                               |        | 421,082           |        |   |               | -            |   |         |        | 667,426     |        |   |         | -            |         |         |   |   | 1,088,508 |   |
|                                                       | Prepaid      expenses and deposits                                                                    |                                                                                                                               |        | 1,026,745         |        |   |               | -            |   |         |        | 987,146     |        |   |         | -            |         |         |   |   | 2,013,891 |   |
|                                                       | Receivable      from affiliate                                                                        |                                                                                                                               |        | 4,694,778         |        |   |               | -            |   |         |        | 1,399       |        |   |         | (4,079,288   | )            |  (a)    |   |   | 616,889 |   |
|                                                       | Investment      in subsidiaries                                                                       |                                                                                                                               |        | 153,619,028       |        |   |               | -            |   |         |        | -           |        |   |         | (153,619,028 | )            |  (b)    |   |   | - |   |
|                                                       |                                                                                                  | Total      current assets                                                                                                          |        |              | 173,797,479 |   |               |         | -      |         |        |        | 26,017,585  |   |         |         | (157,698,316 | )            |   |   |   | 42,116,748 |   |
|                                                       |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|  Property,      equipment and improvements, net  |                                                                                                  |                                                                                                                               | 141,886,772 |              |        |   | -                  |         |   |         | 137,742,394 |        |        |   | -            |         |         |         |   | 279,629,166 |   |
|  Intangible      assets, net                          |                                                                                                  |                                                                                                                               | -           |              |        |   | -                  |         |   |         | 121,936,336 |        |        |   | -            |         |         |         |   | 121,936,336 |   |
|  Goodwill                                             |                                                                                                  |                                                                                                                               | -           |              |        |   | -                  |         |   |         | 47,431,442  |        |        |   | -            |         |         |         |   | 47,431,442 |   |
|  Other      assets:                                   |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Deferred      financing costs, net                                                                    |                                                                                                                               |        | 9,737,796         |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 9,737,796 |   |
|                                                       | Deferred      financing costs, pushed                                                                 |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |
|                                                       |                                                                                                  | down      from Majestic Holdco (c)                                                                                                 |        |              | 1,927,317   |   |               |         | -      |         |        |        | -           |   |         |         | -            |         |   |   |   | 1,927,317 |   |
|                                                       | Long-term      receivable from affiliates                                                             |                                                                                                                               |        | 171,709,437       |        |   |               | -            |   |         |        | 22,321,049  |        |   |         | (194,030,486 | )            |  (a)    |   |   | - |   |
|                                                       | Other      assets                                                                                     |                                                                                                                               |        | 1,271,483         |        |   |               | -            |   |         |        | 1,639,657   |        |   |         | -            |         |         |   |   | 2,911,140 |   |
|                                                       |                                                                                                  | Total      other assets                                                                                                            |        |              | 184,646,033 |   |               |         | -      |         |        |        | 23,960,706  |   |         |         | (194,030,486 | )            |   |   |   | 14,576,253 |   |
|  Total      assets                                    |                                                                                                  | $                                                                                                                                  | 500,330,284 |              |        | $      | -                  |         |   | $            | 357,088,463 |        |        | $      | (351,728,802 | )            |         |         | $ | 505,689,945 |   |
|                                                       |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|                                                       |                LIABILITIES AND MEMBER'S (DEFICIT) EQUITY |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |
|  Current      liabilities:                            |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Accounts      payable                                                                                 |                                                                                                                               | $           | 1,255,451         |        |   | $                  | -            |   |         | $           | 3,004,024   |        |   | $            | -            |         |         |   | $ | 4,259,475 |   |
|                                                       | Current      portion of long-term debt                                                                |                                                                                                                               |        | 156,340           |        |   |               | -            |   |         |        | 46,440      |        |   |         | -            |         |         |   |   | 202,780 |   |
|                                                       | Accrued      liabilities:                                                                             |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |
|                                                       |                                                                                                  | Payroll      and related                                                                                                           |        |              | 3,558,272   |   |               |         | -      |         |        |        | 5,648,453   |   |         |         | -            |         |   |   |   | 9,206,725 |   |
|                                                       |                                                                                                  | Interest                                                                                                                           |        |              | 10,980,075  |   |               |         | -      |         |        |        | -           |   |         |         | -            |         |   |   |   | 10,980,075 |   |
|                                                       |                                                                                                  | Property      and franchise taxes                                                                                                  |        |              | 10,875,649  |   |               |         | -      |         |        |        | 7,022,274   |   |         |         | -            |         |   |   |   | 17,897,923 |   |
|                                                       |                                                                                                  | Payable      to affiliates                                                                                                         |        |              | 311,321     |   |               |         | -      |         |        |        | 3,982,255   |   |         |         | (4,079,288   | )            |  (a) |   |   | 214,288 |   |
|                                                       |                                                                                                  | Other      accrued liabilities                                                                                                     |        |              | 4,423,253   |   |               |         | -      |         |        |        | 12,051,956  |   |         |         | -            |         |   |   |   | 16,475,209 |   |
|                                                       |                Total current liabilities                 |                                                                                                                               |        | 31,560,361        |        |   |               | -            |   |         |        | 31,755,402  |        |   |         | (4,079,288   | )            |         |   |   | 59,236,475 |   |
|                                                       |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|  Due      to affiliates                               |                                                                                                  |                                                                                                                               | 22,321,049  |              |        |   | -                  |         |   |         | 171,709,437 |        |        |   | (194,030,486 | )            |  (a)    |         |   | - |   |
|  Long-term      debt, net of current maturities       |                                                                                                  |                                                                                                                               | 556,530,845 |              |        |   | 300,000,000        |         |   |         | 4,596       |        |        |   | (300,000,000 | )            |  (d)    |         |   | 556,535,441 |   |
|  Long-term      debt pushed down from                 |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |
|                                                       | Majestic      Holdco, net (e)                                                                         |                                                                                                                               |        | 57,710,229        |        |   |               | -            |   |         |        | -           |        |   |         | -            |         |         |   |   | 57,710,229 |   |
|  Total      liabilities                               |                                                                                                  |                                                                                                                               | 668,122,484 |              |        |   | 300,000,000        |         |   |         | 203,469,435 |        |        |   | (498,109,774 | )            |         |         |   | 673,482,145 |   |
|                                                       | Member's      (deficit) equity                                                                        |                                                                                                                               |        | (167,792,200      | )           |   |               | (300,000,000 | )      |         |        | 153,619,028 |        |   |         | 146,380,972  |         |  (b)(d) |   |   | (167,792,200 | ) |
|  Total      liabilities and member's (deficit) equity |                                                                                                  | $                                                                                                                                  | 500,330,284 |              |        | $      | -                  |         |   | $            | 357,088,463 |        |        | $      | (351,728,802 | )            |         |         | $ | 505,689,945 |   |
|                                                       |                                                                                                  |                                                                                                                               |        |              |        |   |               |         |   |         |        |        |        |   |         |         |         |         |   |   |   |   |   |
|                                                       | (a)                                                                                                   | To      eliminate intercompany receivable and payables.                                                                            |        |              |
|                                                       | (b)                                                                                                   | To      eliminate intercompany accounts and investment in      subsidiaries.                                                       |        |              |
|                                                       | (c)                                                                                                   | Reflects      the pushdown of deferred financing costs related to the issuance of the      Discount Notes of Majestic Holdco,      |        |
|                                                       |                                                                                                  | net      of amortization, pursuant to SEC Staff Accounting Bulletin 73 Topic      5(J).                                            |        |
|                                                       | (d)                                                                                                   | The      Majestic Star Casino Capital Corp. is a co-obligor of the Senior Secured      Notes issued by the Company. Accordingly,   |        |
|                                                       |                                                                                                  | such      indebtedness has been presented as an obligation of both the issuer and      the co-obligor in the above balance sheet.  |        |
|                                                       | (e)                                                                                                   | Reflects      the pushdown of Majestic Holdco’s Discount Notes pursuant to SEC Staff      Accounting Bulletin 73 Topic 5(J). |        |

----

|                                       |                                                                                                                                         |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |       |        |   |   |       |         |   |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|------------|-------------|--------|--------|------------|--------------|--------|
|                                       |                                                                                                                                         |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |       | Eliminating |   |   |       | Total        |   |
|                                       |                                                                                                                                         |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |       | Entries     |   |   |       | Consolidated |   |
| OPERATING      REVENUES:                   |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |
| Casino                                     |                                                                                                                                         | $      | 32,154,541        |       |   | $                  | -      |   |         | $      | 53,695,947 |        |   | $      | -          |         |   |   | $ | 85,850,488 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |       |   |               | -      |   |         |   | 3,012,893  |        |   |   | -          |         |   |   |   | 3,012,893 |   |
| Food      and beverage                     |                                                                                                                                         |   | 2,047,176         |       |   |               | -      |   |         |   | 3,791,260  |        |   |   | -          |         |   |   |   | 5,838,436 |   |
| Other                                      |                                                                                                                                         |   | 900,550           |       |   |               | -      |   |         |   | 1,079,880  |        |   |   | -          |         |   |   |   | 1,980,430 |   |
|                                       | Gross      revenues                                                                                                                          |   |              | 35,102,267 |   |               |   | -      |         |   |       | 61,579,980  |   |   |       | -            |   |   |   |   | 96,682,247 |   |
| Less      promotional allowances           |                                                                                                                                         |   | 3,201,676         |       |   |               | -      |   |         |   | 7,964,428  |        |   |   | 167,267    |         | (a)    |   |   | 11,333,371 |   |
|                                       | Net      operating revenues                                                                                                                  |   |              | 31,900,591 |   |               |   | -      |         |   |       | 53,615,552  |   |   |       | (167,267     | )      |   |   |   | 85,348,876 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                         |   | 8,020,558         |       |   |               | -      |   |         |   | 15,385,090 |        |   |   | -          |         |   |   |   | 23,405,648 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |       |   |               | -      |   |         |   | 599,720    |        |   |   | -          |         |   |   |   | 599,720 |   |
| Food      and beverage                     |                                                                                                                                         |   | 911,826           |       |   |               | -      |   |         |   | 1,257,913  |        |   |   | -          |         |   |   |   | 2,169,739 |   |
| Other                                      |                                                                                                                                         |   | 179,451           |       |   |               | -      |   |         |   | 176,490    |        |   |   | -          |         |   |   |   | 355,941 |   |
| Gaming      taxes                          |                                                                                                                                         |   | 9,402,947         |       |   |               | -      |   |         |   | 11,250,601 |        |   |   | -          |         |   |   |   | 20,653,548 |   |
| Advertising      and promotion             |                                                                                                                                         |   | 1,640,275         |       |   |               | -      |   |         |   | 3,928,347  |        |   |   | (167,267   | )            | (a)    |   |   | 5,401,355 |   |
| General      and administrative            |                                                                                                                                         |   | 5,510,511         |       |   |               | -      |   |         |   | 8,481,356  |        |   |   | -          |         |   |   |   | 13,991,867 |   |
| Corporate      expense                     |                                                                                                                                         |   | 1,398,020         |       |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | 1,398,020 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                         |   | 962,653           |       |   |               | -      |   |         |   | 803,144    |        |   |   | -          |         |   |   |   | 1,765,797 |   |
| Depreciation      and amortization         |                                                                                                                                         |   | 3,126,798         |       |   |               | -      |   |         |   | 5,255,090  |        |   |   | -          |         |   |   |   | 8,381,888 |   |
| Loss      on disposal of assets            |                                                                                                                                         |   | -                 |       |   |               | -      |   |         |   | 83,757     |        |   |   | -          |         |   |   |   | 83,757 |   |
|                                       | Total      operating costs and expenses                                                                                                      |   |              | 31,153,039 |   |               |   | -      |         |   |       | 47,221,508  |   |   |       | (167,267     | )      |   |   |   | 78,207,280 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Operating      income                                                                                                                        |   |              | 747,552    |   |               |   | -      |         |   |       | 6,394,044   |   |   |       | -            |   |   |   |   | 7,141,596 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME :              |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                         |   | 45,208            |       |   |               | -      |   |         |   | 19,707     |        |   |   | -          |         |   |   |   | 64,915 |   |
| Interest      expense                      |                                                                                                                                         |   | (13,416,227       | )          |   |               | -      |   |         |   | (4,293     | )           |   |   | -          |         |   |   |   | (13,420,520 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                |   |              | (1,976,883 | )      |               |   | -      |         |   |       | -           |   |   |       | -            |   |   |   |   | (1,976,883 | ) |
| Other      non-operating expense           |                                                                                                                                         |   | (6,447            | )          |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | (6,447 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                         |   | 6,409,458         |       |   |               | -      |   |         |   | -          |        |   |   | (6,409,458 | )            | (c)    |   |   | - |   |
|                                       | Total      other (expense) income                                                                                                            |   |              | (8,944,891 | )      |               |   | -      |         |   |       | 15,414      |   |   |       | (6,409,458   | )      |   |   |   | (15,338,935 | ) |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                       |   | $                 | (8,197,339 | )      |               | $      | -      |         |   | $          | 6,409,458   |   |   | $          | (6,409,458   | )      |   |   | $ | (8,197,339 | ) |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| (a)                                        | To      eliminate intercompany transactions.                                                                                                 |   |              |
| (b)                                        | Includes      amortization of deferred financing costs and interest expense related to      the issuance of Majestic Holdco’s Discount |   |
|                                       | Notes      pushed down pursuant to SEC Staff Accounting Bulletin 73      Topic 5(J).                                               |   |
| (c)                                        | To      eliminate equity of net income of subsidiaries.                                                                                      |   |

----

|                                       |                                                                                                                                         |   | The      Majestic |        |   | The      Majestic  |   |   |         |   |        |        |   |   |        |         |   |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|--------|--------|--------------|--------|-------------|-------------|--------|--------|-------------|--------------|--------|
|                                       |                                                                                                                                         |   | Star      Casino, |        |   | Star      Casino   |   |   | Guarantor    |   |        | Eliminating |   |   |        | Total        |   |
|                                       |                                                                                                                                         |   | LLC               |        |   | Capital      Corp. |   |   | Subsidiaries |   |        | Entries     |   |   |        | Consolidated |   |
| OPERATING      REVENUES:                   |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |
| Casino                                     |                                                                                                                                         | $      | 63,577,350        |        |   | $                  | -      |   |         | $      | 111,625,434 |        |   | $      | -           |         |   |   | $ | 175,202,784 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |        |   |               | -      |   |         |   | 6,001,624   |        |   |   | -           |         |   |   |   | 6,001,624 |   |
| Food      and beverage                     |                                                                                                                                         |   | 4,491,816         |        |   |               | -      |   |         |   | 7,803,653   |        |   |   | -           |         |   |   |   | 12,295,469 |   |
| Other                                      |                                                                                                                                         |   | 1,812,709         |        |   |               | -      |   |         |   | 2,207,730   |        |   |   | -           |         |   |   |   | 4,020,439 |   |
|                                       | Gross      revenues                                                                                                                          |   |              | 69,881,875  |   |               |   | -      |         |   |        | 127,638,441 |   |   |        | -            |   |   |   |   | 197,520,316 |   |
| Less      promotional allowances           |                                                                                                                                         |   | 6,619,876         |        |   |               | -      |   |         |   | 16,203,070  |        |   |   | 355,024     |         | (a)    |   |   | 23,177,970 |   |
|                                       | Net      operating revenues                                                                                                                  |   |              | 63,261,999  |   |               |   | -      |         |   |        | 111,435,371 |   |   |        | (355,024     | )      |   |   |   | 174,342,346 |   |
|                                       |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                         |   | 16,826,604        |        |   |               | -      |   |         |   | 31,476,576  |        |   |   | -           |         |   |   |   | 48,303,180 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |        |   |               | -      |   |         |   | 1,179,734   |        |   |   | -           |         |   |   |   | 1,179,734 |   |
| Food      and beverage                     |                                                                                                                                         |   | 1,672,901         |        |   |               | -      |   |         |   | 2,593,515   |        |   |   | -           |         |   |   |   | 4,266,416 |   |
| Other                                      |                                                                                                                                         |   | 412,001           |        |   |               | -      |   |         |   | 386,862     |        |   |   | -           |         |   |   |   | 798,863 |   |
| Gaming      taxes                          |                                                                                                                                         |   | 18,580,508        |        |   |               | -      |   |         |   | 23,087,371  |        |   |   | -           |         |   |   |   | 41,667,879 |   |
| Advertising      and promotion             |                                                                                                                                         |   | 3,319,979         |        |   |               | -      |   |         |   | 8,122,339   |        |   |   | (355,024    | )            | (a)    |   |   | 11,087,294 |   |
| General      and administrative            |                                                                                                                                         |   | 11,764,829        |        |   |               | -      |   |         |   | 16,971,069  |        |   |   | -           |         |   |   |   | 28,735,898 |   |
| Corporate      expense                     |                                                                                                                                         |   | 3,033,739         |        |   |               | -      |   |         |   | -           |        |   |   | -           |         |   |   |   | 3,033,739 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                         |   | 1,887,620         |        |   |               | -      |   |         |   | 1,631,131   |        |   |   | -           |         |   |   |   | 3,518,751 |   |
| Depreciation      and amortization         |                                                                                                                                         |   | 6,254,674         |        |   |               | -      |   |         |   | 10,411,873  |        |   |   | -           |         |   |   |   | 16,666,547 |   |
| (Gain)      loss on disposal of assets     |                                                                                                                                         |   | (13,278           | )           |   |               | -      |   |         |   | 83,757      |        |   |   | -           |         |   |   |   | 70,479 |   |
|                                       | Total      operating costs and expenses                                                                                                      |   |              | 63,739,577  |   |               |   | -      |         |   |        | 95,944,227  |   |   |        | (355,024     | )      |   |   |   | 159,328,780 |   |
|                                       |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
|                                       | Operating      (loss) income                                                                                                                 |   |              | (477,578    | )      |               |   | -      |         |   |        | 15,491,144  |   |   |        | -            |   |   |   |   | 15,013,566 |   |
|                                       |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME :              |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                         |   | 105,113           |        |   |               | -      |   |         |   | 69,526      |        |   |   | -           |         |   |   |   | 174,639 |   |
| Interest      expense                      |                                                                                                                                         |   | (26,849,571       | )           |   |               | -      |   |         |   | (4,666      | )           |   |   | -           |         |   |   |   | (26,854,237 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                |   |              | (3,865,132  | )      |               |   | -      |         |   |        | -           |   |   |        | -            |   |   |   |   | (3,865,132 | ) |
| Other      non-operating expense           |                                                                                                                                         |   | (21,598           | )           |   |               | -      |   |         |   | -           |        |   |   | -           |         |   |   |   | (21,598 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                         |   | 15,556,004        |        |   |               | -      |   |         |   | -           |        |   |   | (15,556,004 | )            | (c)    |   |   | - |   |
|                                       | Total      other (expense) income                                                                                                            |   |              | (15,075,184 | )      |               |   | -      |         |   |        | 64,860      |   |   |        | (15,556,004  | )      |   |   |   | (30,566,328 | ) |
|                                       |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                       |   | $                 | (15,552,762 | )      |               | $      | -      |         |   | $           | 15,556,004  |   |   | $           | (15,556,004  | )      |   |   | $ | (15,552,762 | ) |
|                                       |                                                                                                                                         |   |              |        |   |               |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| (a)                                        | To      eliminate intercompany transactions.                                                                                                 |   |              |
| (b)                                        | Includes      amortization of deferred financing costs and interest expense related to      the issuance of Majestic Holdco’s Discount |   |
|                                       | Notes      pushed down pursuant to SEC Staff Accounting Bulletin 73      Topic 5(J).                                               |   |
| (c)                                        | To      eliminate equity of net income ofsubsidiaries.                                                                                       |

----

|                                       |                                                                                                                                         |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |       |        |   |   |       |         |   |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|------------|-------------|--------|--------|------------|--------------|--------|
|                                       |                                                                                                                                         |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |       | Eliminating |   |   |       | Total        |   |
|                                       |                                                                                                                                         |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |       | Entries     |   |   |       | Consolidated |   |
| OPERATING      REVENUES:                   |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |
| Casino                                     |                                                                                                                                         | $      | 35,563,791        |       |   | $                  | -      |   |         | $      | 60,574,022 |        |   | $      | -          |         |   |   | $ | 96,137,813 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |       |   |               | -      |   |         |   | 3,049,522  |        |   |   | -          |         |   |   |   | 3,049,522 |   |
| Food      and beverage                     |                                                                                                                                         |   | 2,533,664         |       |   |               | -      |   |         |   | 4,377,413  |        |   |   | -          |         |   |   |   | 6,911,077 |   |
| Other                                      |                                                                                                                                         |   | 919,318           |       |   |               | -      |   |         |   | 1,099,566  |        |   |   | -          |         |   |   |   | 2,018,884 |   |
|                                       | Gross      revenues                                                                                                                          |   |              | 39,016,773 |   |               |   | -      |         |   |       | 69,100,523  |   |   |       | -            |   |   |   |   | 108,117,296 |   |
| Less      promotional allowances           |                                                                                                                                         |   | 5,192,409         |       |   |               | -      |   |         |   | 10,093,289 |        |   |   | 73,356     |         | (a)    |   |   | 15,359,054 |   |
|                                       | Net      operating revenues                                                                                                                  |   |              | 33,824,364 |   |               |   | -      |         |   |       | 59,007,234  |   |   |       | (73,356      | )      |   |   |   | 92,758,242 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                         |   | 7,638,795         |       |   |               | -      |   |         |   | 15,517,387 |        |   |   | -          |         |   |   |   | 23,156,182 |   |
| Rooms                                      |                                                                                                                                         |   | -                 |       |   |               | -      |   |         |   | 752,652    |        |   |   | -          |         |   |   |   | 752,652 |   |
| Food      and beverage                     |                                                                                                                                         |   | 1,311,763         |       |   |               | -      |   |         |   | 1,387,822  |        |   |   | -          |         |   |   |   | 2,699,585 |   |
| Other                                      |                                                                                                                                         |   | 249,369           |       |   |               | -      |   |         |   | 230,707    |        |   |   | -          |         |   |   |   | 480,076 |   |
| Gaming      taxes                          |                                                                                                                                         |   | 9,991,123         |       |   |               | -      |   |         |   | 12,167,324 |        |   |   | -          |         |   |   |   | 22,158,447 |   |
| Advertising      and promotion             |                                                                                                                                         |   | 1,494,274         |       |   |               | -      |   |         |   | 4,427,727  |        |   |   | (73,356    | )            | (a)    |   |   | 5,848,645 |   |
| General      and administrative            |                                                                                                                                         |   | 5,627,424         |       |   |               | -      |   |         |   | 8,315,851  |        |   |   | -          |         |   |   |   | 13,943,275 |   |
| Corporate      expense                     |                                                                                                                                         |   | 1,748,592         |       |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | 1,748,592 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                         |   | 924,216           |       |   |               | -      |   |         |   | 787,960    |        |   |   | -          |         |   |   |   | 1,712,176 |   |
| Depreciation      and amortization         |                                                                                                                                         |   | 2,933,260         |       |   |               | -      |   |         |   | 5,098,467  |        |   |   | -          |         |   |   |   | 8,031,727 |   |
| Loss      on disposal of assets            |                                                                                                                                         |   | 87,600            |       |   |               | -      |   |         |   | 732,688    |        |   |   | -          |         |   |   |   | 820,288 |   |
|                                       | Total      operating costs and expenses                                                                                                      |   |              | 32,006,416 |   |               |   | -      |         |   |       | 49,418,585  |   |   |       | (73,356      | )      |   |   |   | 81,351,645 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Operating      income                                                                                                                        |   |              | 1,817,948  |   |               |   | -      |         |   |       | 9,588,649   |   |   |       | -            |   |   |   |   | 11,406,597 |   |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME :              |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                         |   | 100,070           |       |   |               | -      |   |         |   | 61,799     |        |   |   | -          |         |   |   |   | 161,869 |   |
| Interest      expense                      |                                                                                                                                         |   | (13,716,599       | )          |   |               | -      |   |         |   | (1,648     | )           |   |   | -          |         |   |   |   | (13,718,247 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                |   |              | (1,762,465 | )      |               |   | -      |         |   |       | -           |   |   |       | -            |   |   |   |   | (1,762,465 | ) |
| Other      non-operating expense           |                                                                                                                                         |   | (15,701           | )          |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | (15,701 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                         |   | 9,648,800         |       |   |               | -      |   |         |   | -          |        |   |   | (9,648,800 | )            | (c)    |   |   | - |   |
|                                       | Total      other (expense) income                                                                                                            |   |              | (5,745,895 | )      |               |   | -      |         |   |       | 60,151      |   |   |       | (9,648,800   | )      |   |   |   | (15,334,544 | ) |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                       |   | $                 | (3,927,947 | )      |               | $      | -      |         |   | $          | 9,648,800   |   |   | $          | (9,648,800   | )      |   |   | $ | (3,927,947 | ) |
|                                       |                                                                                                                                         |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| (a)                                        | To      eliminate intercompany transactions.                                                                                                 |   |              |
| (b)                                        | Includes      amortization of deferred financing costs and interest expense related to      the issuance of Majestic Holdco’s Discount |
|                                       | Notes      pushed down pursuant to SEC Staff Accounting Bulletin 73      Topic 5(J).                                               |   |
| (c)                                        | To      eliminate equity of net income ofsubsidiaries.                                                                                       |

----

|                                       |                                                                                                                                         |   |        The      Majestic |        |   |        The      Majestic |   |   |         |   |        |        |   |   |        |         |   |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|-------------------------------|--------|--------|--------------|--------|-------------|-------------|--------|--------|-------------|--------------|--------|
|                                       |                                                                                                                                         |   | Star      Casino,             |        |   | Star      Casino              |   |   | Guarantor    |   |        | Eliminating |   |   |        | Total        |   |
|                                       |                                                                                                                                         |   | LLC                           |        |   | Capital      Corp.            |   |   | Subsidiaries |   |        | Entries     |   |   |        | Consolidated |   |
| OPERATING      REVENUES:                   |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |
| Casino                                     |                                                                                                                                         | $      | 72,407,450                    |        |   | $                             | -      |   |         | $      | 118,860,923 |        |   | $      | -           |         |   |   | $ | 191,268,373 |   |
| Rooms                                      |                                                                                                                                         |   | -                             |        |   |                          | -      |   |         |   | 5,594,467   |        |   |   | -           |         |   |   |   | 5,594,467 |   |
| Food      and beverage                     |                                                                                                                                         |   | 4,589,175                     |        |   |                          | -      |   |         |   | 8,197,157   |        |   |   | -           |         |   |   |   | 12,786,332 |   |
| Other                                      |                                                                                                                                         |   | 1,833,370                     |        |   |                          | -      |   |         |   | 2,067,990   |        |   |   | -           |         |   |   |   | 3,901,360 |   |
|                                       | Gross      revenues                                                                                                                          |   |                          | 78,829,995  |   |                          |   | -      |         |   |        | 134,720,537 |   |   |        | -            |   |   |   |   | 213,550,532 |   |
| Less      promotional allowances           |                                                                                                                                         |   | 10,132,937                    |        |   |                          | -      |   |         |   | 18,982,101  |        |   |   | 163,379     |         | (a)    |   |   | 29,278,417 |   |
|                                       | Net      operating revenues                                                                                                                  |   |                          | 68,697,058  |   |                          |   | -      |         |   |        | 115,738,436 |   |   |        | (163,379     | )      |   |   |   | 184,272,115 |   |
|                                       |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                         |   | 15,026,587                    |        |   |                          | -      |   |         |   | 31,788,232  |        |   |   | -           |         |   |   |   | 46,814,819 |   |
| Rooms                                      |                                                                                                                                         |   | -                             |        |   |                          | -      |   |         |   | 1,557,836   |        |   |   | -           |         |   |   |   | 1,557,836 |   |
| Food      and beverage                     |                                                                                                                                         |   | 2,522,244                     |        |   |                          | -      |   |         |   | 2,847,950   |        |   |   | -           |         |   |   |   | 5,370,194 |   |
| Other                                      |                                                                                                                                         |   | 509,971                       |        |   |                          | -      |   |         |   | 473,226     |        |   |   | -           |         |   |   |   | 983,197 |   |
| Gaming      taxes                          |                                                                                                                                         |   | 20,344,454                    |        |   |                          | -      |   |         |   | 24,121,937  |        |   |   | -           |         |   |   |   | 44,466,391 |   |
| Advertising      and promotion             |                                                                                                                                         |   | 2,854,694                     |        |   |                          | -      |   |         |   | 8,466,986   |        |   |   | (163,379    | )            | (a)    |   |   | 11,158,301 |   |
| General      and administrative            |                                                                                                                                         |   | 11,153,992                    |        |   |                          | -      |   |         |   | 16,995,193  |        |   |   | -           |         |   |   |   | 28,149,185 |   |
| Corporate      expense                     |                                                                                                                                         |   | 3,471,794                     |        |   |                          | -      |   |         |   | -           |        |   |   | -           |         |   |   |   | 3,471,794 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                         |   | 1,889,668                     |        |   |                          | -      |   |         |   | 1,576,097   |        |   |   | -           |         |   |   |   | 3,465,765 |   |
| Depreciation      and amortization         |                                                                                                                                         |   | 5,993,349                     |        |   |                          | -      |   |         |   | 10,208,030  |        |   |   | -           |         |   |   |   | 16,201,379 |   |
| Loss      on disposal of assets            |                                                                                                                                         |   | 87,600                        |        |   |                          | -      |   |         |   | 720,963     |        |   |   | -           |         |   |   |   | 808,563 |   |
|                                       | Total      operating costs and expenses                                                                                                      |   |                          | 63,854,353  |   |                          |   | -      |         |   |        | 98,756,450  |   |   |        | (163,379     | )      |   |   |   | 162,447,424 |   |
|                                       |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
|                                       | Operating      income                                                                                                                        |   |                          | 4,842,705   |   |                          |   | -      |         |   |        | 16,981,986  |   |   |        | -            |   |   |   |   | 21,824,691 |   |
|                                       |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME :              |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                         |   | 133,280                       |        |   |                          | -      |   |         |   | 240,766     |        |   |   | -           |         |   |   |   | 374,046 |   |
| Interest      expense                      |                                                                                                                                         |   | (27,293,445                   | )           |   |                          | -      |   |         |   | (3,492      | )           |   |   | -           |         |   |   |   | (27,296,937 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                |   |                          | (3,446,879  | )      |                          |   | -      |         |   |        | -           |   |   |        | -            |   |   |   |   | (3,446,879 | ) |
| Other      non-operating expense           |                                                                                                                                         |   | (50,366                       | )           |   |                          | -      |   |         |   | -           |        |   |   | -           |         |   |   |   | (50,366 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                         |   | 17,219,260                    |        |   |                          | -      |   |         |   | -           |        |   |   | (17,219,260 | )            | (c)    |   |   | - |   |
|                                       | Total      other (expense) income                                                                                                            |   |                          | (13,438,150 | )      |                          |   | -      |         |   |        | 237,274     |   |   |        | (17,219,260  | )      |   |   |   | (30,420,136 | ) |
|                                       |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                       |   | $                             | (8,595,445  | )      |                          | $      | -      |         |   | $           | 17,219,260  |   |   | $           | (17,219,260  | )      |   |   | $ | (8,595,445 | ) |
|                                       |                                                                                                                                         |   |                          |        |   |                          |   |   |         |   |        |        |   |   |        |         |   |   |   |   |   |   |
| (a)                                        | To      eliminate intercompany transactions.                                                                                                 |   |                          |
| (b)                                        | Includes      amortization of deferred financing costs and interest expense related to      the issuance of Majestic Holdco’s Discount |   |
|                                       | Notes      pushed down pursuant to SEC Staff Accounting Bulletin 73      Topic 5(J).                                               |   |
| (c)                                        | To      eliminate equity of net income ofsubsidiaries.                                                                                       |

----

|                                                           |                                                                                                                            |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |        |        |   |   |         |   |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|-------------|-------------|--------|--------|--------------|--------|
|                                                           |                                                                                                                            |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |        | Eliminating |   |   | Total        |   |
|                                                           |                                                                                                                            |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |        | Entries     |   |   | Consolidated |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |
| NET      CASH (USED IN) PROVIDED BY                            |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |
| OPERATING      ACTIVITIES: (a)                                 |                                                                                                                            | $      | (30,397,986       | )          |   | $                  | -      |   |         | $      | 29,434,029  |        |   | $      | -            |   |   | $ | (963,957 | ) |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                     |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Additions      to property and equipment                       |                                                                                                                            |   | (640,917          | )          |   |               | -      |   |         |   | (13,093,923 | )           |   |   | -            |   |   |   | (13,734,840 | ) |
| Increase      in Lakefront Capital Improvement Fund            |                                                                                                                            |   | (626,092          | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (626,092 | ) |
| Proceeds      from disposal of equipment                       |                                                                                                                            |   | 25,286            |       |   |               | -      |   |         |   | 42,195      |        |   |   | -            |   |   |   | 67,481 |   |
|                                                           | Net      cash used in investing activities                                                                                      |   |              | (1,241,723 | )      |               |   | -      |         |   |        | (13,051,728 | )      |   |         | -      |   |   |   | (14,293,451 | ) |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                     |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Proceeds      from line of credit                              |                                                                                                                            |   | 34,859,344        |       |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | 34,859,344 |   |
| Repayment      of line of credit                               |                                                                                                                            |   | (19,600,000       | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (19,600,000 | ) |
| Advances      from (to) affiliates                             |                                                                                                                            |   | 21,000,000        |       |   |               | -      |   |         |   | (21,000,000 | )           |   |   | -            |   |   |   | - |   |
| Repayment      of debt                                         |                                                                                                                            |   | (97,276           | )          |   |               | -      |   |         |   | (26,724     | )           |   |   | -            |   |   |   | (124,000 | ) |
| Tax      Distribution to Barden Development, Inc.              |                                                                                                                            |   | (1,400,000        | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (1,400,000 | ) |
|                                                           | Net      cash provided by (used in) financing activities                                                                        |   |              | 34,762,068 |   |               |   | -      |         |   |        | (21,026,724 | )      |   |         | -      |   |   |   | 13,735,344 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Net increase      (decrease) in cash and cash equivalents |                                                                                                                            |   | 3,122,359         |       |   |               | -      |   |         |   | (4,644,423  | )           |   |   | -            |   |   |   | (1,522,064 | ) |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period            |                                                                                                                            |   | 8,055,172         |       |   |               | -      |   |         |   | 21,161,091  |        |   |   | -            |   |   |   | 29,216,263 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                  |                                                                                                                            | $      | 11,177,531        |       |   | $                  | -      |   |         | $      | 16,516,668  |        |   | $      | -            |   |   | $ | 27,694,199 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| (a)                                                            | Includes      interest expense of $3.6 million and amortization of deferred financing      costs of $0.3 million related to the |
|                                                           | amortization      of bond discount and deferred financing costs of Majestic Holdco's      Discount Notes.                       |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |

----

|                                                           |                                                                                                                            |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |        |        |   |   |         |   |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|-------------|-------------|--------|--------|--------------|--------|
|                                                           |                                                                                                                            |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |        | Eliminating |   |   | Total        |   |
|                                                           |                                                                                                                            |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |        | Entries     |   |   | Consolidated |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |
| NET      CASH (USED IN) PROVIDED BY                            |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |
| OPERATING      ACTIVITIES: (a)                                 |                                                                                                                            | $      | (19,488,925       | )          |   | $                  | -      |   |         | $      | 32,057,968  |        |   | $      | -            |   |   | $ | 12,569,043 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                     |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Increase      in restricted cash                               |                                                                                                                            |   | (301,360          | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (301,360 | ) |
| Additions      to property and equipment                       |                                                                                                                            |   | (4,409,056        | )          |   |               | -      |   |         |   | (10,444,673 | )           |   |   | -            |   |   |   | (14,853,729 | ) |
| Increase      in Lakefront Capital Improvement Fund            |                                                                                                                            |   | (619,795          | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (619,795 | ) |
| Proceeds      from disposal of equipment                       |                                                                                                                            |   | 20,900            |       |   |               | -      |   |         |   | 95,405      |        |   |   | -            |   |   |   | 116,305 |   |
|                                                           | Net      cash used in investing activities                                                                                      |   |              | (5,309,311 | )      |               |   | -      |         |   |        | (10,349,268 | )      |   |         | -      |   |   |   | (15,658,579 | ) |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                     |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Proceeds      from line of credit                              |                                                                                                                            |   | 27,599,634        |       |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | 27,599,634 |   |
| Repayment      of line of credit                               |                                                                                                                            |   | (20,250,049       | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (20,250,049 | ) |
| Advances      from (to) affiliates                             |                                                                                                                            |   | 18,100,000        |       |   |               | -      |   |         |   | (18,100,000 | )           |   |   | -            |   |   |   | - |   |
| Repayment      of debt                                         |                                                                                                                            |   | (29,993           | )          |   |               | -      |   |         |   | (52,816     | )           |   |   | -            |   |   |   | (82,809 | ) |
| Distributions      to Barden Development, Inc.                 |                                                                                                                            |   | (2,150,245        | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (2,150,245 | ) |
|                                                           | Net      cash provided by (used in) financing activities                                                                        |   |              | 23,269,347 |   |               |   | -      |         |   |        | (18,152,816 | )      |   |         | -      |   |   |   | 5,116,531 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents |                                                                                                                            |   | (1,528,889        | )          |   |               | -      |   |         |   | 3,555,884   |        |   |   | -            |   |   |   | 2,026,995 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period            |                                                                                                                            |   | 9,101,841         |       |   |               | -      |   |         |   | 16,430,083  |        |   |   | -            |   |   |   | 25,531,924 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                  |                                                                                                                            | $      | 7,572,952         |       |   | $                  | -      |   |         | $      | 19,985,967  |        |   | $      | -            |   |   | $ | 27,558,919 |   |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| (a)                                                            | Includes      interest expense of $3.2 million and amortization of deferred financing      costs of $0.3 million related to the |
|                                                           | amortization      of bond discount and deferred financing costs of Majestic Holdco's      Discount Notes.                       |
|                                                           |                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |

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| ·   | The      expansion of Fitzgeralds Black Hawk was substantially completed in June      2008. This expansion has added more amenities for our guests and increased      the number of slot machines from approximately 600 to approximately 1,000.      We have incurred approximately $34.8 million through June 30, 2008 on this      project, exceeding budget by $2.6million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Given      our commitments to complete the Fitzgeralds Black Hawk expansion and the      lower cash flows from operating activities at our facilities, we have not      had the ability to make significant improvements to amenities and gaming      operations at our Majestic Properties and Fitzgeralds Tunica during the      current year.  As a result, our revenues were impacted by our      inability to re-invest in the Majestic Properties and Fitzgeralds Tunica      and will likely be impacted in thefuture. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      Majestic Properties and Fitzgeralds Tunica provide promotional programs      that allow customers to download credits directly to the slot machine      being played (“downloadable promotional credits”).  Net revenues      have benefited as a result of implementing downloadable promotional      credits because the credits are not redeemable for      cash.  Therefore, our customers must play the downloadable      promotional credits at the slot machine, whereas with our direct mail cash      coupon programs, our customers could redeem their coupons without wagering      the cash received.  Indiana and Mississippi have taken different      approaches regarding the taxability of downloadable promotional      credits.  In Indiana, the wagering of downloadable promotional      credits is fully taxable for gaming tax purposes.  In      Mississippi, the wagering of downloadable promotional credits is not      taxable for gaming tax purposes.  Under our direct mail cash      coupon programs, coupons redeemed and wagered by customers of the Majestic      Properties and Fitzgeralds Tunica were fully taxable for gaming tax      purposes by the Indiana and Mississippi tax authorities. See Note 2 to our      Notes to the Condensed Consolidated Financial  Statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Competition      in our markets remains intense and continued aggressive marketing by our      competitors in all our markets will require us to maintain a higher level      of marketing and promotional expenses. Enhancements to existing facilities      of our competitors in all our markets will intensify the level of      competition at our Majestic Properties, Fitzgeralds Tunica and Fitzgeralds      Black Hawk. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continue to strive to control costs without hurting our competitiveness.      However, given the difficulties in raising capital in the current      financial market and our lower cash flows, it will be very difficult for      us to compete by providing new or enhanced amenities to our customers. In      the three- and six-month periods ended June 30, 2008, our promotional      allowances decreased significantly and advertising and promotional      expenses were relatively unchanged compared to the same periods in 2007      mainly due to the implementation of downloadable promotional credits at      the Majestic Properties and a reduction in junket programs at Fitzgeralds      Tunica. However, we may need to increase promotional and marketing expense      to drive visitation to our casinos. Also, our limitations on capital      expenditures may cause us to rely more on leasing slot equipment to ensure      that we have the slot product that customers desire, but leasing slot      machines is more costly in the longrun. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      have seen casinos in northwest Indiana increase the number of lower      denomination slot machines on their casino floors, particularly penny slot      machines.  Penny slot machines have been one of the best      performing slot denominations in the market and the Majestic Properties      have seen good revenue performance within this segment; however, our      future performance in the lower denomination slot machine segment is at      risk as our competitors add more lower denomination slot machines, and in      particular penny slot machines, to their casino  floors. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      January 1, 2008, a statewide smoking ban that includes casino floors went      into effect in Colorado. The ban negatively affected revenues in the Black      Hawk market, including Fitzgeralds Black Hawk, although, due to other      factors that also have impacted revenues, as mentioned below, we have not      yet been able to quantify theeffect. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other      events that have impacted the number of visits by customers or amounts      gambled at our properties include poor weather, high gasoline prices,      especially in the drive-in markets of Tunica and Black Hawk, and generally      weak economic conditions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                          |                                                                                              |   | For      The Three Months Ended |   |   |    |   |   | For      The Six Months Ended |   |   |    |   |
|-------------------------------|---------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------|--------|--------|-------------------------------|--------|--------|---------|--------|
|                          |                                                                                              |   | June      30,                   |   |   | Percent |   |   | June      30,                 |   |   | Percent |   |
|                          |                                                                                              |   | 2008                            |   |   | 2007    |   |   | Change                        |   |   | 2008    |   |   | 2007 |   |   | Change |   |
| Net      revenues:            |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |
| Majestic      Properties      |                                                                                              | $      | 58,648                          |   |   | $       | 62,717 |   |                          |   | -6.5   | %       |   | $ | 118,086 |   |   | $ | 125,761 |   |   |   | -6.1 | % |
| Fitzgeralds      Tunica       |                                                                                              |   | 20,197                          |   |   |    | 22,406 |   |                          |   | -9.9   | %       |   |   | 42,924 |   |   |   | 42,926 |   |   |   | 0.0 | % |
| Fitzgeralds      Black Hawk   |                                                                                              |   | 6,504                           |   |   |    | 7,635  |   |                          |   | -14.8  | %       |   |   | 13,332 |   |   |   | 15,585 |   |   |   | -14.5 | % |
|                          | Total                                                                                             |   | $                               | 85,349 |   |    | $      | 92,758 |                          |   |   | -8.0    | %      |   | $ | 174,342 |   |   | $ | 184,272 |   |   |   | -5.4 | % |
|                          |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casino      revenues:         |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Majestic      Properties      |                                                                                              | $      | 58,743                          |   |   | $       | 65,802 |   |                          |   | -10.7  | %       |   | $ | 118,056 |   |   | $ | 132,270 |   |   |   | -10.7 | % |
| Fitzgeralds      Tunica       |                                                                                              |   | 19,672                          |   |   |    | 21,912 |   |                          |   | -10.2  | %       |   |   | 42,010 |   |   |   | 42,018 |   |   |   | 0.0 | % |
| Fitzgeralds      Black Hawk   |                                                                                              |   | 7,435                           |   |   |    | 8,424  |   |                          |   | -11.7  | %       |   |   | 15,137 |   |   |   | 16,980 |   |   |   | -10.9 | % |
|                          | Total                                                                                             |   | $                               | 85,850 |   |    | $      | 96,138 |                          |   |   | -10.7   | %      |   | $ | 175,203 |   |   | $ | 191,268 |   |   |   | -8.4 | % |
|                          |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss): |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Majestic      Properties      |                                                                                              | $      | 7,824                           |   |   | $       | 9,657  |   |                          |   | -19.0  | %       |   | $ | 14,227 |   |   | $ | 19,367 |   |   |   | -26.5 | % |
| Fitzgeralds      Tunica       |                                                                                              |   | 394                             |   |   |    | 2,024  |   |                          |   | -80.5  | %       |   |   | 2,912 |   |   |   | 2,875 |   |   |   | 1.3 | % |
| Fitzgeralds      Black Hawk   |                                                                                              |   | 376                             |   |   |    | 1,505  |   |                          |   | -75.0  | %       |   |   | 1,021 |   |   |   | 3,115 |   |   |   | -67.2 | % |
| Corporate      (1)            |                                                                                              |   | (1,452                          | )      |   |    | (1,779 | )      |                          |   | 18.4   | %       |   |   | (3,146 | ) |   |   | (3,532 | ) |   |   | 10.9 | % |
|                          | Total                                                                                             |   | $                               | 7,142  |   |    | $      | 11,407 |                          |   |   | -37.4   | %      |   | $ | 15,014 |   |   | $ | 21,825 |   |   |   | -31.2 | % |
|                          |                                                                                              |   |                            |   |   |    |   |   |                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                           | Corporate      expenses reflect professional fees, payroll, benefits, travel and other      costs |
|                          | associated      with our corporate staff and are not allocated to the      properties.            |

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| (a)   | The      following exhibits are filed as part of this  report: |
|-----------------|----------------------------------------------------------------|

| Exhibit      No. |                 | Description      of Document                                                                                                                                                                  |
|------------------|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                 |                                                                                                                                                                                          |
|             |                 |                                                                                                                                                                                          |
| 31.1*            |                 | Certification      of Chief Executive Officer pursuant to Rule 15d-14 of the Securities      Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|             |                 |                                                                                                                                                                                          |
| 31.2*            |                 | Certification      of Chief Financial Officer pursuant to Rule 15d-14 of the Securities      Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|             |                 |                                                                                                                                                                                          |
| 32*              |                 | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                             |
|             |                 |                                                                                                                                                                                          |
| *                | Filed      herewith. |
|             |                 |                                                                                                                                                                                          |

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| Dated:      August 14, 2008                                       |
|-------------------------------------------------------------------|
|                                                              |   |
| THE      MAJESTIC STAR CASINO, LLC                                |
|                                                              |   |
|  /s/      Don H. Barden                                      |   |
| Don      H. Barden                                                |
| Chairman,      President and Chief Executive Officer              |
| (Principal      Executive Officer)                                |
|                                                              |   |
|  /s/ Jon S.      Bennett                                     |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |   |
|                                                              |   |
| THE      MAJESTIC STAR CASINO CAPITAL CORP.                       |
|                                                              |   |
|  /s/      Don H. Barden                                      |   |
| Don      H. Barden                                                |
| President      and Chief Executive Officer                        |
| (Principal      Executive Officer)                                |
|                                                              |   |
|  /s/ Jon S.      Bennett                                     |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |
|                                                              |
| THE      MAJESTIC STAR CASINO CAPITAL CORP. II                    |
|                                                              |
|  /s/ Don H.      Barden                                      |   |
| Don      H. Barden                                                |
| President      and Chief Executive Officer                        |
| (Principal      Executive Officer)                                |
|                                                              |
|  /s/Jon      S. Bennett                                      |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |

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