----

----

| (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 |  ̈ | No | x |   |
|--------|-----|--------|----|---|--------|

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

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

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

|   | Indicate the number of shares outstanding of each of the issuer’s classes of common shares, as of the latest practicable date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

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

----

| PART I  | FINANCIAL INFORMATION | Page No.                                                                                                              |
|---------|-----------------------|-----------------------------------------------------------------------------------------------------------------------|
|    |                  |                                                                                                                  |   |
|    | Item 1.               | Financial Statements.                                                                                                 |   |
|    |                  |                                                                                                                  |   |
|    |                  | Condensed Consolidated Balance Sheets as of June 30, 2009 (unaudited) and December 31, 2008                      | 1 |
|    |                  |                                                                                                                  |   |
|    |                  | Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2009 and 2008 (unaudited) | 2 |
|    |                  |                                                                                                                  |   |
|    |                  | Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008 (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.                          | 24 |
|    |                  |                                                                                                                  |   |
|    | Item 3.               | Quantitative and Qualitative Disclosures About Market Risk.                                                           | 34 |
|    |                  |                                                                                                                  |   |
|    | Item 4T.              | Controls and Procedures.                                                                                              | 35 |
|    |                  |                                                                                                                  |   |
| PART II | OTHER INFORMATION     |                                                                                                                  |
|    |                  |                                                                                                                  |   |
|    | Item 1.               | Legal Proceedings.                                                                                                    | 35 |
|    |                  |                                                                                                                  |   |
|    | Item 1A.              | Risk Factors.                                                                                                         | 35 |
|    |                  |                                                                                                                  |   |
|    | Item 6.               | Exhibits.                                                                                                             | 36 |
|    |                  |                                                                                                                  |   |
|    | SIGNATURES            | S-1                                                                                                                   |

----

|                                                                        |   |        |         |   |         |   |
|-----------------------------------------------------------------------------|--------|-------------|--------------|--------|--------------|--------|
|                                                                        |   | June 30,    |         |   | December 31, |   |
|                                                                        |   | 2009        |         |   | 2008         |   |
| ASSETS                                                                      |   | (unaudited) |         |   |         |   |
| Current assets:                                                             |   |        |         |   |         |   |
| Cash and cash equivalents                                                   |   | $           | 62,456,754   |   |         | $      | 57,749,752 |   |
| Restricted cash                                                             |   |        | 8,486,558    |   |         |   | 5,404,310 |   |
| Accounts receivable, less allowance for doubtful accounts of $1,684,481 and |   |        |         |   |         |   |   |   |
|  $1,432,009 as of June 30, 2009 and December 31, 2008, respectively    |   |        | 2,028,986    |   |         |   | 2,995,805 |   |
| Inventories                                                                 |   |        | 928,652      |   |         |   | 984,034 |   |
| Prepaid expenses and deposits                                               |   |        | 8,037,715    |   |         |   | 2,673,864 |   |
| Receivable from affiliates                                                  |   |        | 1,018,281    |   |         |   | 796,792 |   |
| Total current assets                                                        |   |        | 82,956,946   |   |         |   | 70,604,557 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Property, equipment and improvements, net                                   |   |        | 257,377,647  |   |         |   | 263,563,631 |   |
| Intangible assets, net                                                      |   |        | 52,509,939   |   |         |   | 54,227,169 |   |
| Goodwill                                                                    |   |        | 5,922,398    |   |         |   | 5,922,398 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Other assets:                                                               |   |        |         |   |         |   |   |   |
| Deferred financing costs, net of accumulated amortization                   |   |        |         |   |         |   |   |   |
| of $14,125,078 and $12,452,427 as of June 30, 2009                          |   |        |         |   |         |   |   |   |
| and December 31, 2008, respectively                                         |   |        | 4,719,842    |   |         |   | 6,392,493 |   |
| Deferred financing costs, pushed down from Majestic Holdco, net of          |   |        |         |   |         |   |   |   |
| accumulated amortization of $1,793,877 and $1,539,725 as of                 |   |        |         |   |         |   |   |   |
| June 30, 2009 and December 31, 2008, respectively                           |   |        | 1,164,862    |   |         |   | 1,419,014 |   |
| Other assets                                                                |   |        | 1,768,837    |   |         |   | 1,381,103 |   |
| Total other assets                                                          |   |        | 7,653,541    |   |         |   | 9,192,610 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Total assets                                                                |   | $           | 406,420,471  |   |         | $      | 403,510,365 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| LIABILITIES AND MEMBER'S DEFICIT                                            |   |        |         |   |         |   |   |   |
| Current liabilities:                                                        |   |        |         |   |         |   |   |   |
| Accounts payable                                                            |   | $           | 1,916,798    |   |         | $      | 1,797,083 |   |
| Current portion of long-term debt                                           |   |        | 579,371,601  |   |         |   | 579,928,327 |   |
| Current portion of long-term debt of Majestic Holdco                        |   |        | 63,500,000   |   |         |   | 63,500,000 |   |
| Accrued liabilities:                                                        |   |        |         |   |         |   |   |   |
| Payroll and related                                                         |   |        | 9,747,709    |   |         |   | 9,182,236 |   |
| Interest                                                                    |   |        | 60,993,561   |   |         |   | 35,305,979 |   |
| Interest of Majestic Holdco                                                 |   |        | 5,778,114    |   |         |   | 1,697,743 |   |
| Property and franchise taxes                                                |   |        | 11,518,435   |   |         |   | 16,378,070 |   |
| Other accrued liabilities                                                   |   |        | 16,733,735   |   |         |   | 15,295,736 |   |
| Total current liabilities                                                   |   |        | 749,559,953  |   |         |   | 723,085,174 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Total liabilities                                                           |   |        | 749,559,953  |   |         |   | 723,085,174 |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Commitments and contingencies (Note 7)                                      |   |        |         |   |         |   |   |   |
|                                                                        |   |        |         |   |         |   |   |   |
| Member's deficit                                                            |   |        | (343,139,482 | )      |         |   | (319,574,809 | ) |
|                                                                        |   |        |         |   |         |   |   |   |
| Total liabilities and member's deficit                                      |   | $           | 406,420,471  |   |         | $      | 403,510,365 |   |
|                                                                        |   |        |         |   |         |   |   |   |

| 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,                 |   |
|                                  |   | 2009                       |        |   | 2008                     |   |        | 2009   |   |   | 2008        |   |
| OPERATING REVENUES:                   |   |                       |        |   |                     |   |        |   |   |   |        |   |
| Casino                                |   | $                          | 76,366,108  |   |                     | $      | 85,850,488  |   |   | $      | 157,737,589 |   |   | $ | 175,202,784 |   |
| Rooms                                 |   |                       | 2,781,579   |   |                     |   | 3,012,893   |   |   |   | 5,385,310   |   |   |   | 6,001,624 |   |
| Food and beverage                     |   |                       | 5,731,712   |   |                     |   | 5,838,436   |   |   |   | 11,515,634  |   |   |   | 12,295,469 |   |
| Other                                 |   |                       | 1,942,463   |   |                     |   | 1,980,430   |   |   |   | 3,923,612   |   |   |   | 4,020,439 |   |
| Gross revenues                        |   |                       | 86,821,862  |   |                     |   | 96,682,247  |   |   |   | 178,562,145 |   |   |   | 197,520,316 |   |
| Less: promotional allowances          |   |                       | 10,898,255  |   |                     |   | 11,333,371  |   |   |   | 21,396,453  |   |   |   | 23,177,970 |   |
|  Net operating revenues          |   |                       | 75,923,607  |   |                     |   | 85,348,876  |   |   |   | 157,165,692 |   |   |   | 174,342,346 |   |
|                                  |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:         |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| Casino                                |   |                       | 21,991,796  |   |                     |   | 24,075,605  |   |   |   | 45,245,360  |   |   |   | 49,565,378 |   |
| Rooms                                 |   |                       | 250,914     |   |                     |   | 309,634     |   |   |   | 479,819     |   |   |   | 606,740 |   |
| Food and beverage                     |   |                       | 1,585,809   |   |                     |   | 1,834,148   |   |   |   | 3,173,624   |   |   |   | 3,683,547 |   |
| Other                                 |   |                       | 296,995     |   |                     |   | 311,661     |   |   |   | 625,284     |   |   |   | 692,528 |   |
| Gaming taxes                          |   |                       | 18,028,350  |   |                     |   | 20,653,548  |   |   |   | 36,727,691  |   |   |   | 41,667,879 |   |
| Advertising and promotion             |   |                       | 4,949,317   |   |                     |   | 5,401,355   |   |   |   | 10,426,097  |   |   |   | 11,087,294 |   |
| General and administrative            |   |                       | 8,153,195   |   |                     |   | 13,991,867  |   |   |   | 21,799,138  |   |   |   | 28,735,898 |   |
| Corporate expense                     |   |                       | 1,538,263   |   |                     |   | 1,398,020   |   |   |   | 3,084,800   |   |   |   | 3,033,739 |   |
| Restructuring fees                    |   |                       | 2,616,726   |   |                     |   | -           |   |   |   | 5,750,351   |   |   |   | - |   |
| Economic incentive tax - City of Gary |   |                       | 1,559,941   |   |                     |   | 1,765,797   |   |   |   | 3,154,650   |   |   |   | 3,518,751 |   |
| Depreciation and amortization         |   |                       | 7,896,612   |   |                     |   | 8,381,888   |   |   |   | 15,890,350  |   |   |   | 16,666,547 |   |
| Loss on disposal of assets            |   |                       | 47,434      |   |                     |   | 83,757      |   |   |   | 386,787     |   |   |   | 70,479 |   |
| Total operating costs and expenses    |   |                       | 68,915,352  |   |                     |   | 78,207,280  |   |   |   | 146,743,951 |   |   |   | 159,328,780 |   |
|                                  |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| Operating income                      |   |                       | 7,008,255   |   |                     |   | 7,141,596   |   |   |   | 10,421,741  |   |   |   | 15,013,566 |   |
|                                  |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| OTHER INCOME (EXPENSE):               |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| Interest income                       |   |                       | 40,831      |   |                     |   | 64,915      |   |   |   | 115,727     |   |   |   | 174,639 |   |
| Interest expense                      |   |                       | (15,147,245 | )      |                     |   | (13,420,520 | )      |   |   | (29,766,908 | )      |   |   | (26,854,237 | ) |
| Interest expense - Majestic Holdco    |   |                       | (2,223,072  | )      |                     |   | (1,976,883  | )      |   |   | (4,334,523  | )      |   |   | (3,865,132 | ) |
| Other non-operating expense           |   |                       | (376        | )      |                     |   | (6,447      | )      |   |   | (710        | )      |   |   | (21,598 | ) |
| Total other expense                   |   |                       | (17,329,862 | )      |                     |   | (15,338,935 | )      |   |   | (33,986,414 | )      |   |   | (30,566,328 | ) |
|                                  |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |
| Net loss                              |   | $                          | (10,321,607 | )      |                     | $      | (8,197,339  | )      |   | $      | (23,564,673 | )      |   | $ | (15,552,762 | ) |
|                                  |   |                       |        |   |                     |   |        |   |   |   |        |   |   |   |   |   |

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

----

|                                                              |   |                     |        |   |   |   |
|-------------------------------------------------------------------|--------|--------------------------|-------------|--------|--------|--------|
|                                                              |   | For The Six Months Ended |        |
|                                                              |   | June 30,                 |        |
|                                                              |   | 2009                     |        |   | 2008   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                             |   |                     |        |   |   |   |
| Net loss                                                          |   | $                        | (23,564,673 | )      |   | $      | (15,552,762 | ) |
| Adjustments to reconcile net loss to net cash                     |   |                     |        |   |   |   |   |   |
| provided by (used in) operating activities:                       |   |                     |        |   |   |   |   |   |
| Depreciation                                                      |   |                     | 14,173,120  |   |   |   | 14,936,962 |   |
| Amortization                                                      |   |                     | 1,717,230   |   |   |   | 1,729,585 |   |
| 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 |   |
| 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                                        |   |                     | 386,787     |   |   |   | 70,479 |   |
| Changes in operating assets and liabilities:                      |   |                     |        |   |   |   |   |   |
| Accounts receivable, net                                          |   |                     | 966,819     |   |   |   | (188,412 | ) |
| Receivable from affiliates                                        |   |                     | (221,489    | )      |   |   | (89,980 | ) |
| Inventories                                                       |   |                     | 55,382      |   |   |   | (7,842 | ) |
| Prepaid expenses and deposits                                     |   |                     | (5,363,851  | )      |   |   | (5,389,817 | ) |
| Other assets                                                      |   |                     | (136,431    | )      |   |   | 5,460 |   |
| Accounts payable                                                  |   |                     | 78,055      |   |   |   | 443,573 |   |
| Accrued payroll and other expenses                                |   |                     | 565,473     |   |   |   | 649,555 |   |
| Accrued interest                                                  |   |                     | 25,687,582  |   |   |   | (244,314 | ) |
| Accrued interest of Majestic Holdco                               |   |                     | 4,080,371   |   |   |   | - |   |
| Other accrued liabilities                                         |   |                     | (3,931,385  | )      |   |   | (2,864,227 | ) |
| Net cash provided by (used in) operating activities               |   |                     | 16,419,793  |   |   |   | (963,957 | ) |
|                                                              |   |                     |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                             |   |                     |        |   |   |   |   |   |
| Increase in restricted cash                                       |   |                     | (2,564,349  | )      |   |   | - |   |
| Additions to property and equipment                               |   |                     | (8,485,484  | )      |   |   | (13,734,840 | ) |
| Increase in Lakefront Capital Improvement Fund                    |   |                     | (253,224    | )      |   |   | (626,092 | ) |
| Proceeds from disposal of equipment                               |   |                     | 146,992     |   |   |   | 67,481 |   |
| Net cash used in investing activities                             |   |                     | (11,156,065 | )      |   |   | (14,293,451 | ) |
|                                                              |   |                     |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                             |   |                     |        |   |   |   |   |   |
| Proceeds from line of credit                                      |   |                     | 2,680,654   |   |   |   | 34,859,344 |   |
| Repayment of line of credit                                       |   |                     | (2,663,191  | )      |   |   | (19,600,000 | ) |
| Repayment of debt                                                 |   |                     | (574,189    | )      |   |   | (124,000 | ) |
| Tax distributions to Barden Development, Inc.                     |   |                     | -           |   |   |   | (1,400,000 | ) |
| Net cash (used in) provided by financing activities               |   |                     | (556,726    | )      |   |   | 13,735,344 |   |
|                                                              |   |                     |        |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents              |   |                     | 4,707,002   |   |   |   | (1,522,064 | ) |
|                                                              |   |                     |        |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                    |   |                     | 57,749,752  |   |   |   | 29,216,263 |   |
|                                                              |   |                     |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                          |   | $                        | 62,456,754  |   |   | $      | 27,694,199 |   |
|                                                              |   |                     |        |   |   |   |   |   |

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

----

|                                                    |   |                     |      |   |   |   |
|---------------------------------------------------------|--------|--------------------------|-----------|--------|--------|--------|
|                                                    |   | For The Six Months Ended |      |
|                                                    |   | June 30,                 |      |
|                                                    |   | 2009                     |      |   | 2008   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION        |   |                     |      |   |   |   |
| AND NON-CASH INVESTING AND FINANCING ACTIVITIES:        |   |                     |      |   |   |   |
|                                                    |   |                     |      |   |   |   |
| Interest paid, net of capitalized interest:             |   | $                        | 2,406,675 |   |   | $      | 25,425,896 |   |
|                                                    |   |                     |      |   |   |   |   |   |
|                                                    |   |                     |      |   |   |   |   |   |
| NON-CASH INVESTING ACTIVITIES:                          |   |                     |      |   |   |   |   |   |
| Capital assets acquired from incurring accounts payable |   |                     |      |   |   |   |   |   |
|  and accrued liabilities, net                      |   | $                        | 35,431    |   |   | $      | (848,764 | ) |
| 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 casino 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 (“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”) is a co-obligor with the Company for the $200.0 million 9 3⁄4% Senior Notes due 2011 (the “Senior Notes”). MSCC II has no assets or operations. See Note 5 – Long-Term Debt. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|              |   |                                |      |   |                              |   |      |   |   |   |       |   |
|-------------------|--------|-------------------------------------|-----------|--------|-----------------------------------|--------|-----------|--------|--------|--------|------------|--------|
|              |   | For The Three Months Ended June 30, |      |   | For The Six Months Ended June 30, |   |
|              |   | 2009                                |      |   | 2008                              |   |      | 2009   |   |   | 2008       |   |
| Rooms             |   | $                                   | 1,240,110 |   |                              | $      | 1,398,052 |   |   | $      | 2,467,969  |   |   | $ | 2,851,406 |   |
| Food and beverage |   |                                | 4,720,450 |   |                              |   | 4,872,500 |   |   |   | 9,357,920  |   |   |   | 9,977,501 |   |
| Other             |   |                                | 104,479   |   |                              |   | 100,276   |   |   |   | 193,178    |   |   |   | 248,217 |   |
| Total             |   | $                                   | 6,065,039 |   |                              | $      | 6,370,828 |   |   | $      | 12,019,067 |   |   | $ | 13,077,124 |   |
|              |   |                                |      |   |                              |   |      |   |   |   |       |   |   |   |   |   |

|                                           |   |                                |       |   |                              |   |       |   |   |   |       |   |
|------------------------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                           |   | For The Three Months Ended June 30, |       |   | For The Six Months Ended June 30, |   |
|                                           |   | 2009                                |       |   | 2008                              |   |       | 2009   |   |   | 2008       |   |
| Cash based promotional activities              |   | $                                   | 1,791,336  |   |                              | $      | 2,021,190  |   |   | $      | 3,548,169  |   |   | $ | 3,985,419 |   |
| Slot club and other                            |   |                                | 1,282,736  |   |                              |   | 1,874,833  |   |   |   | 2,567,609  |   |   |   | 3,786,310 |   |
| Retail cost of rooms, food, beverage and other |   |                                | 7,824,183  |   |                              |   | 7,437,348  |   |   |   | 15,280,675 |   |   |   | 15,406,241 |   |
| Total                                          |   | $                                   | 10,898,255 |   |                              | $      | 11,333,371 |   |   | $      | 21,396,453 |   |   | $ | 23,177,970 |   |
|                                           |   |                                |       |   |                              |   |       |   |   |   |       |   |   |   |   |   |
|                                           |   |                                |       |   |                              |   |       |   |   |   |       |   |   |   |   |   |

----

|   | · | In June 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (“SFAS 168”). SFAS 168 establishes the FASB Accounting Standards Codification (the “Codification”) as the single sourceof authoritative nongovernmental GAAP. The Codification is effective for interim and annual periods ending after September 15, 2009.  The Company does not expect the adoption of SFAS 168 to have a material impact on its consolidated financial statements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R)” (“SFAS 167”). SFAS 167 is intended to improve financial reporting by providing additional guidance to companies involved with variable interest entities and by requiring additional disclosures about a company’s involvement in variable interest entities. This standard is effective for interim andannual periods ending after November 15, 2009. The Company does not expect the adoption of SFAS 167 to have a material impact on its consolidated financial statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | In June 2009, the FASB issued SFAS No. 166, “Accounting for Transfers of Financial Assets” (“SFAS 166”). SFAS 166 is a revision to SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”, and will require more information about transfers of financial assets and where companies have continuing exposure to the risk related to transferredfinancial assets. It eliminates the concept of a qualifying special purpose entity, changes the requirements for derecognizing financial assets, and requires additional disclosure. This standard is effective for interim and annual periods ending after November 15, 2009. The Company does not expect the adoption of SFAS 166 to have a material impact on its consolidated financial statements. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”), which establishes general standards of accounting for and requires disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued. The adoption of SFAS 165 became effective for the quarter ended June 30, 2009 and has had no significant impact onthe Company’s consolidated financial statements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Effective April 1, 2009, the Company adopted FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, “Fair ValueMeasurements”, when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also includes guidance on how to identify circumstances that indicate that a transaction is not orderly and emphasizes that even if there has been a significant decrease in the volume and level of activity for the asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same. There was no impact on the Company’s consolidatedfinancial statements upon adoption. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Effective April 1, 2009, the Company adopted FASB Staff Position No. 115-2 and 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (“FSP 115-2 and 124-2”). FSP 115-2 and 124-2 provides new guidance on the recognition of other-than-temporary impairments of investments in debt securities and provides new presentation and disclosure requirements for other-than-temporary impairmentsof investments in debt and equity securities. There was no impact on the Company’s consolidated financial statements upon adoption. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Effective April 1, 2009, the Company adopted FASB Staff Position No. 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP 107-1 and APB 28-1”). FSP 107-1 and APB 28-1 amends FASB SFAS No. 107, “Disclosures about Fair Value of Financial Instruments”, to require disclosures about fair value of financial instruments in interim reporting periods.Such disclosures were previously required only in annual financial statements. FSP 107-1 and APB 28-1 also amends Accounting Principles Board Opinion No. 28, “Interim Financial Reporting”, to require those disclosures in summarized financial information at interim reporting periods. There was no disclosure required in the Company’s consolidated financial statements upon adoption. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | June 30, |     |   | December 31, |   |
|-----------------------------------------|--------|----------|----------|--------|--------------|--------|
|                                    |   | 2009     |     |   | 2008         |   |
|                                    |   |     |     |   |         |   |
| 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 due 2010 |   |     | 79,354   |   |         |   | 79,336 |   |
| Capitalized leases and other debt       |   |     | 18       |   |         |   | 592 |   |
| Long-term debt                          |   |     | 579,372  |   |         |   | 579,928 |   |
| Less current maturities                 |   |     | (579,372 | )      |         |   | (579,928 | ) |
| Total long-term debt                    |   | $        | -        |   |         | $      | - |   |

----

----

----

----

----

|                                            |   | For The Three Months Ended |   |   | For The Six Months Ended |   |
|-------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                            |   | June 30,                   |   |   | June 30,                 |   |
|                                            |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net revenues:                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Majestic Properties                             |   | $                          | 50,054 |   |                     | $      | 58,648 |   |   | $ | 102,360 |   |   | $ | 118,086 |   |
| Fitzgeralds Tunica                              |   |                       | 18,541 |   |                     |   | 20,197 |   |   |   | 39,792 |   |   |   | 42,924 |   |
| Fitzgeralds Black Hawk                          |   |                       | 7,329  |   |                     |   | 6,504 |   |   |   | 15,014 |   |   |   | 13,332 |   |
| Total                                           |   | $                          | 75,924 |   |                     | $      | 85,349 |   |   | $ | 157,166 |   |   | $ | 174,342 |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):                        |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties                             |   | $                          | 9,801  |   |                     | $      | 7,824 |   |   | $ | 14,660 |   |   | $ | 14,227 |   |
| Fitzgeralds Tunica                              |   |                       | 1,086  |   |                     |   | 394 |   |   |   | 3,893 |   |   |   | 2,912 |   |
| Fitzgeralds Black Hawk                          |   |                       | 329    |   |                     |   | 376 |   |   |   | 812 |   |   |   | 1,021 |   |
| Corporate (1)                                   |   |                       | (4,208 | )      |                     |   | (1,452 | ) |   |   | (8,943 | ) |   |   | (3,146 | ) |
| Total                                           |   | $                          | 7,008  |   |                     | $      | 7,142 |   |   | $ | 10,422 |   |   | $ | 15,014 |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Segment depreciation and amortization:          |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties                             |   | $                          | 3,977  |   |                     | $      | 4,770 |   |   | $ | 7,976 |   |   | $ | 9,538 |   |
| Fitzgeralds Tunica                              |   |                       | 2,728  |   |                     |   | 2,843 |   |   |   | 5,497 |   |   |   | 5,716 |   |
| Fitzgeralds Black Hawk                          |   |                       | 1,138  |   |                     |   | 715 |   |   |   | 2,310 |   |   |   | 1,299 |   |
| Corporate                                       |   |                       | 54     |   |                     |   | 54 |   |   |   | 107 |   |   |   | 114 |   |
| Total                                           |   | $                          | 7,897  |   |                     | $      | 8,382 |   |   | $ | 15,890 |   |   | $ | 16,667 |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Expenditure for additions to long-lived assets: |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties                             |   | $                          | 4,003  |   |                     | $      | 148 |   |   | $ | 5,110 |   |   | $ | 707 |   |
| Fitzgeralds Tunica                              |   |                       | 2,301  |   |                     |   | 185 |   |   |   | 2,671 |   |   |   | 892 |   |
| Fitzgeralds Black Hawk                          |   |                       | 474    |   |                     |   | 6,938 |   |   |   | 683 |   |   |   | 12,115 |   |
| Corporate                                       |   |                       | 12     |   |                     |   | 4 |   |   |   | 21 |   |   |   | 21 |   |
| Total                                           |   | $                          | 6,790  |   |                     | $      | 7,275 |   |   | $ | 8,485 |   |   | $ | 13,735 |   |
|                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| (1)    | Corporate expenses reflect payroll, benefits, travel and other costs associated with our corporate staff,  |
|--------|------------------------------------------------------------------------------------------------------------|
|   | plus restructuring fees of $2.6 million and $5.8 million for the three and six months ended June 30, 2009, |
|   | respectively, and are not allocated to the properties.                                                     |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION |
|----------|----------------------------------------------|

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |
|------------------------------------------------------|--------|--------------|--------------|--------|---------------|--------|--------------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                                 |   | The Majestic |         |   | The Majestic  |   |         |         |   |   |        |   |   |   |         |   |
|                                                 |   | Star Casino, |         |   | Star Casino   |   |         | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                                 |   | LLC          |         |   | Capital Corp. |   |         | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| ASSETS                                               |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |
| Current assets:                                      |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |
| Cash and cash equivalents                            |   | $            | 8,592,827    |   |          | $      | -            |         |   | $      | 53,863,927  |   |   | $      | -            |   |   |   | $ | 62,456,754 |   |
| Restricted cash                                      |   |         | 7,861,558    |   |          |   | -            |         |   |   | 625,000     |   |   |   | -            |   |   |   |   | 8,486,558 |   |
| Accounts receivable, net                             |   |         | 858,411      |   |          |   | -            |         |   |   | 1,170,575   |   |   |   | -            |   |   |   |   | 2,028,986 |   |
| Inventories                                          |   |         | 330,485      |   |          |   | -            |         |   |   | 598,167     |   |   |   | -            |   |   |   |   | 928,652 |   |
| Prepaid expenses and deposits                        |   |         | 4,261,627    |   |          |   | -            |         |   |   | 3,776,088   |   |   |   | -            |   |   |   |   | 8,037,715 |   |
| Receivable from affiliate                            |   |         | 41,087,793   |   |          |   | -            |         |   |   | 1,399       |   |   |   | (40,070,911  | )      |  (a) |   |   | 1,018,281 |   |
| Investment in subsidiaries                           |   |         | 86,087,266   |   |          |   | -            |         |   |   | -           |   |   |   | (86,087,266  | )      |  (b) |   |   | - |   |
| Total current assets                                 |   |         | 149,079,967  |   |          |   | -            |         |   |   | 60,035,156  |   |   |   | (126,158,177 | )      |   |   |   | 82,956,946 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Property, equipment and  improvements, net |   |         | 128,315,523  |   |          |   | -            |         |   |   | 129,062,124 |   |   |   | -            |   |   |   |   | 257,377,647 |   |
| Intangible assets, net                               |   |         | -            |   |          |   | -            |         |   |   | 52,509,939  |   |   |   | -            |   |   |   |   | 52,509,939 |   |
| Goodwill                                             |   |         | -            |   |          |   | -            |         |   |   | 5,922,398   |   |   |   | -            |   |   |   |   | 5,922,398 |   |
| Other assets:                                        |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Deferred financing costs, net                        |   |         | 4,719,842    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 4,719,842 |   |
| Deferred financing costs of                          |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Majestic Holdco, net (c)                             |   |         | 1,164,862    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 1,164,862 |   |
| Long-term receivable from affiliates                 |   |         | 122,051,892  |   |          |   | -            |         |   |   | 19,506,215  |   |   |   | (141,558,107 | )      |  (a) |   |   | - |   |
| Other assets                                         |   |         | 1,183,286    |   |          |   | -            |         |   |   | 585,551     |   |   |   | -            |   |   |   |   | 1,768,837 |   |
| Total other assets                                   |   |         | 129,119,882  |   |          |   | -            |         |   |   | 20,091,766  |   |   |   | (141,558,107 | )      |   |   |   | 7,653,541 |   |
| Total assets                                         |   | $            | 406,515,372  |   |          | $      | -            |         |   | $      | 267,621,383 |   |   | $      | (267,716,284 | )      |   |   | $ | 406,420,471 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| LIABILITIES AND MEMBER'S (DEFICIT) EQUITY            |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |
| Current liabilities:                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Accounts payable                                     |   | $            | 858,651      |   |          | $      | -            |         |   | $      | 1,058,147   |   |   | $      | -            |   |   |   | $ | 1,916,798 |   |
| Current portion of long-term debt                    |   |         | 579,371,601  |   |          |   | 300,000,000  |         |   |   | -           |   |   |   | (300,000,000 | )      |  (d) |   |   | 579,371,601 |   |
| Current portion of long-term debt of                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Majestic Holdco (e)                                  |   |         | 63,500,000   |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 63,500,000 |   |
| Payable to affiliates                                |   |         | -            |   |          |   | -            |         |   |   | 40,070,911  |   |   |   | (40,070,911  | )      |  (a) |   |   | - |   |
| Accrued liabilities:                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Payroll and related                                  |   |         | 3,898,196    |   |          |   | -            |         |   |   | 5,849,513   |   |   |   | -            |   |   |   |   | 9,747,709 |   |
| Interest                                             |   |         | 60,993,561   |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 60,993,561 |   |
| Interest of Majestic Holdco                          |   |         | 5,778,114    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 5,778,114 |   |
| Property and franchise taxes                         |   |         | 6,589,014    |   |          |   | -            |         |   |   | 4,929,421   |   |   |   | -            |   |   |   |   | 11,518,435 |   |
| Other accrued liabilities                            |   |         | 9,159,501    |   |          |   | -            |         |   |   | 7,574,234   |   |   |   | -            |   |   |   |   | 16,733,735 |   |
| Total current liabilities                            |   |         | 730,148,638  |   |          |   | 300,000,000  |         |   |   | 59,482,226  |   |   |   | (340,070,911 | )      |   |   |   | 749,559,953 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Due to affiliates                                    |   |         | 19,506,216   |   |          |   | -            |         |   |   | 122,051,891 |   |   |   | (141,558,107 | )      |  (a) |   |   | - |   |
| Total liabilities                                    |   |         | 749,654,854  |   |          |   | 300,000,000  |         |   |   | 181,534,117 |   |   |   | (481,629,018 | )      |   |   |   | 749,559,953 |   |
| Member's (deficit) equity                            |   |         | (343,139,482 | )      |          |   | (300,000,000 | )            |   |   | 86,087,266  |   |   |   | 213,912,734  |   |  (b)(d) |   |   | (343,139,482 | ) |
| Total liabilities and member's (deficit) equity      |   | $            | 406,515,372  |   |          | $      | -            |         |   | $      | 267,621,383 |   |   | $      | (267,716,284 | )      |   |   | $ | 406,420,471 |   |

| (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).                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                                 |   | The Majestic |         |   | The Majestic  |   |         |         |   |   |        |   |   |   |         |   |
|------------------------------------------------------|--------|--------------|--------------|--------|---------------|--------|--------------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                                 |   | Star Casino, |         |   | Star Casino   |   |         | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                                 |   | LLC          |         |   | Capital Corp. |   |         | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| ASSETS                                               |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |
| Current assets:                                      |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |
| Cash and cash equivalents                            |   | $            | 8,044,826    |   |          | $      | -            |         |   | $      | 49,704,926  |   |   | $      | -            |   |   |   | $ | 57,749,752 |   |
| Restricted cash                                      |   |         | 4,779,310    |   |          |   | -            |         |   |   | 625,000     |   |   |   | -            |   |   |   |   | 5,404,310 |   |
| Accounts receivable, net                             |   |         | 1,341,328    |   |          |   | -            |         |   |   | 1,654,477   |   |   |   | -            |   |   |   |   | 2,995,805 |   |
| Inventories                                          |   |         | 328,701      |   |          |   | -            |         |   |   | 655,333     |   |   |   | -            |   |   |   |   | 984,034 |   |
| Prepaid expenses and deposits                        |   |         | 1,389,030    |   |          |   | -            |         |   |   | 1,284,834   |   |   |   | -            |   |   |   |   | 2,673,864 |   |
| Receivable from affiliate                            |   |         | 40,247,247   |   |          |   | -            |         |   |   | 1,399       |   |   |   | (39,451,854  | )      |  (a) |   |   | 796,792 |   |
| Investment in subsidiaries                           |   |         | 70,144,117   |   |          |   | -            |         |   |   | -           |   |   |   | (70,144,117  | )      |  (b) |   |   | - |   |
| Total current assets                                 |   |         | 126,274,559  |   |          |   | -            |         |   |   | 53,925,969  |   |   |   | (109,595,971 | )      |   |   |   | 70,604,557 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Property, equipment and  improvements, net |   |         | 129,412,625  |   |          |   | -            |         |   |   | 134,151,006 |   |   |   | -            |   |   |   |   | 263,563,631 |   |
| Intangible assets, net                               |   |         | -            |   |          |   | -            |         |   |   | 54,227,169  |   |   |   | -            |   |   |   |   | 54,227,169 |   |
| Goodwill                                             |   |         | -            |   |          |   | -            |         |   |   | 5,922,398   |   |   |   | -            |   |   |   |   | 5,922,398 |   |
| Other assets:                                        |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Deferred financing costs, net                        |   |         | 6,392,493    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 6,392,493 |   |
| Deferred financing costs, pushed down                |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| from Majestic Holdco, net (c)                        |   |         | 1,419,014    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 1,419,014 |   |
| Long-term receivable from affiliates                 |   |         | 131,676,892  |   |          |   | -            |         |   |   | 15,649,594  |   |   |   | (147,326,486 | )      |  (a) |   |   | - |   |
| Other assets                                         |   |         | 789,462      |   |          |   | -            |         |   |   | 591,641     |   |   |   | -            |   |   |   |   | 1,381,103 |   |
| Total other assets                                   |   |         | 140,277,861  |   |          |   | -            |         |   |   | 16,241,235  |   |   |   | (147,326,486 | )      |   |   |   | 9,192,610 |   |
| Total assets                                         |   | $            | 395,965,045  |   |          | $      | -            |         |   | $      | 264,467,777 |   |   | $      | (256,922,457 | )      |   |   | $ | 403,510,365 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| LIABILITIES AND MEMBER'S (DEFICIT) EQUITY            |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |
| Current liabilities:                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Accounts payable                                     |   | $            | 942,718      |   |          | $      | -            |         |   | $      | 854,365     |   |   | $      | -            |   |   |   | $ | 1,797,083 |   |
| Current portion of long-term debt                    |   |         | 579,429,270  |   |          |   | 300,000,000  |         |   |   | 499,057     |   |   |   | (300,000,000 | )      |  (d) |   |   | 579,928,327 |   |
| Current portion of long-term debt of                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Majestic Holdco (e)                                  |   |         | 63,500,000   |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 63,500,000 |   |
| Payable to affiliates                                |   |         | -            |   |          |   | -            |         |   |   | 39,451,854  |   |   |   | (39,451,854  | )      |  (a) |   |   | - |   |
| Accrued liabilities:                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Payroll and related                                  |   |         | 3,589,107    |   |          |   | -            |         |   |   | 5,593,129   |   |   |   | -            |   |   |   |   | 9,182,236 |   |
| Interest                                             |   |         | 35,303,479   |   |          |   | -            |         |   |   | 2,500       |   |   |   | -            |   |   |   |   | 35,305,979 |   |
| Interest of Majestic Holdco                          |   |         | 1,697,743    |   |          |   | -            |         |   |   | -           |   |   |   | -            |   |   |   |   | 1,697,743 |   |
| Property and franchise taxes                         |   |         | 8,945,347    |   |          |   | -            |         |   |   | 7,432,723   |   |   |   | -            |   |   |   |   | 16,378,070 |   |
| Other accrued liabilities                            |   |         | 6,482,596    |   |          |   | -            |         |   |   | 8,813,140   |   |   |   | -            |   |   |   |   | 15,295,736 |   |
| Total current liabilities                            |   |         | 699,890,260  |   |          |   | 300,000,000  |         |   |   | 62,646,768  |   |   |   | (339,451,854 | )      |   |   |   | 723,085,174 |   |
|                                                 |   |         |         |   |          |   |         |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Due to affiliates                                    |   |         | 15,649,594   |   |          |   | -            |         |   |   | 131,676,892 |   |   |   | (147,326,486 | )      |  (a) |   |   | - |   |
| Total liabilities                                    |   |         | 715,539,854  |   |          |   | 300,000,000  |         |   |   | 194,323,660 |   |   |   | (486,778,340 | )      |   |   |   | 723,085,174 |   |
| Member's (deficit) equity                            |   |         | (319,574,809 | )      |          |   | (300,000,000 | )            |   |   | 70,144,117  |   |   |   | 229,855,883  |   |  (b)(d) |   |   | (319,574,809 | ) |
| Total liabilities and member's (deficit) equity      |   | $            | 395,965,045  |   |          | $      | -            |         |   | $      | 264,467,777 |   |   | $      | (256,922,457 | )      |   |   | $ | 403,510,365 |   |

| (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).                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |
|----------------------------------------|--------|--------------|-------------|--------|---------------|--------|--------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                   |   | The Majestic |        |   | The Majestic  |   |   |         |   |   |        |   |   |   |         |   |
|                                   |   | Star Casino, |        |   | Star Casino   |   |   | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                   |   | LLC          |        |   | Capital Corp. |   |   | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| OPERATING REVENUES:                    |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |
| Casino                                 |   | $            | 26,537,082  |   |          | $      | -      |         |   | $      | 49,829,026  |   |   | $      | -            |   |   |   | $ | 76,366,108 |   |
| Rooms                                  |   |         | -           |   |          |   | -      |         |   |   | 2,781,579   |   |   |   | -            |   |   |   |   | 2,781,579 |   |
| Food and beverage                      |   |         | 2,093,385   |   |          |   | -      |         |   |   | 3,638,327   |   |   |   | -            |   |   |   |   | 5,731,712 |   |
| Other                                  |   |         | 953,769     |   |          |   | -      |         |   |   | 988,694     |   |   |   | -            |   |   |   |   | 1,942,463 |   |
| Gross revenues                         |   |         | 29,584,236  |   |          |   | -      |         |   |   | 57,237,626  |   |   |   | -            |   |   |   |   | 86,821,862 |   |
| Less promotional allowances            |   |         | 3,485,134   |   |          |   | -      |         |   |   | 7,253,105   |   |   |   | 160,016      |   | (a) |   |   | 10,898,255 |   |
| Net operating revenues                 |   |         | 26,099,102  |   |          |   | -      |         |   |   | 49,984,521  |   |   |   | (160,016     | )      |   |   |   | 75,923,607 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:          |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Casino                                 |   |         | 8,007,690   |   |          |   | -      |         |   |   | 13,984,106  |   |   |   | -            |   |   |   |   | 21,991,796 |   |
| Rooms                                  |   |         | -           |   |          |   | -      |         |   |   | 250,914     |   |   |   | -            |   |   |   |   | 250,914 |   |
| Food and beverage                      |   |         | 649,387     |   |          |   | -      |         |   |   | 936,422     |   |   |   | -            |   |   |   |   | 1,585,809 |   |
| Other                                  |   |         | 99,609      |   |          |   | -      |         |   |   | 197,386     |   |   |   | -            |   |   |   |   | 296,995 |   |
| Gaming taxes                           |   |         | 7,772,626   |   |          |   | -      |         |   |   | 10,255,724  |   |   |   | -            |   |   |   |   | 18,028,350 |   |
| Advertising and promotion              |   |         | 1,428,048   |   |          |   | -      |         |   |   | 3,681,285   |   |   |   | (160,016     | )      | (a) |   |   | 4,949,317 |   |
| General and administrative             |   |         | 2,222,235   |   |          |   | -      |         |   |   | 5,930,960   |   |   |   | -            |   |   |   |   | 8,153,195 |   |
| Corporate expense                      |   |         | 1,538,263   |   |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 1,538,263 |   |
| Restructuring fees                     |   |         | 2,616,726   |   |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 2,616,726 |   |
| Economic incentive tax - City of Gary  |   |         | 816,577     |   |          |   | -      |         |   |   | 743,364     |   |   |   | -            |   |   |   |   | 1,559,941 |   |
| Depreciation and amortization          |   |         | 2,572,213   |   |          |   | -      |         |   |   | 5,324,399   |   |   |   | -            |   |   |   |   | 7,896,612 |   |
| Loss on disposal of assets             |   |         | -           |   |          |   | -      |         |   |   | 47,434      |   |   |   | -            |   |   |   |   | 47,434 |   |
| Total operating costs and expenses     |   |         | 27,723,374  |   |          |   | -      |         |   |   | 41,351,994  |   |   |   | (160,016     | )      |   |   |   | 68,915,352 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Operating (loss) income                |   |         | (1,624,272  | )      |          |   | -      |         |   |   | 8,632,527   |   |   |   | -            |   |   |   |   | 7,008,255 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OTHER (EXPENSE) INCOME :               |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Interest income                        |   |         | 37,505      |   |          |   | -      |         |   |   | 3,326       |   |   |   | -            |   |   |   |   | 40,831 |   |
| Interest expense                       |   |         | (15,145,813 | )      |          |   | -      |         |   |   | (1,432      | )      |   |   | -            |   |   |   |   | (15,147,245 | ) |
| Interest expense - Majestic Holdco (b) |   |         | (2,223,072  | )      |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (2,223,072 | ) |
| Other non-operating expense            |   |         | (376        | )      |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (376 | ) |
| Equity in net income of subsidiaries   |   |         | 8,634,421   |   |          |   | -      |         |   |   | -           |   |   |   | (8,634,421   | )      | (c) |   |   | - |   |
| Total other (expense) income           |   |         | (8,697,335  | )      |          |   | -      |         |   |   | 1,894       |   |   |   | (8,634,421   | )      |   |   |   | (17,329,862 | ) |
| Net (loss) income                      |   | $            | (10,321,607 | )      |          | $      | -      |         |   | $      | 8,634,421   |   |   | $      | (8,634,421   | )      |   |   | $ | (10,321,607 | ) |

| (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 in net income of subsidiaries.                                                                                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |
|----------------------------------------|--------|--------------|-------------|--------|---------------|--------|--------|--------------|--------|--------|-------------|--------|--------|--------|--------------|--------|
|                                   |   | The Majestic |        |   | The Majestic  |   |   |         |   |   |        |   |   |   |         |   |
|                                   |   | Star Casino, |        |   | Star Casino   |   |   | Guarantor    |   |   | Eliminating |   |   |   | Total        |   |
|                                   |   | LLC          |        |   | Capital Corp. |   |   | Subsidiaries |   |   | Entries     |   |   |   | Consolidated |   |
| OPERATING REVENUES:                    |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |
| Casino                                 |   | $            | 55,624,891  |   |          | $      | -      |         |   | $      | 102,112,698 |   |   | $      | -            |   |   |   | $ | 157,737,589 |   |
| Rooms                                  |   |         | -           |   |          |   | -      |         |   |   | 5,385,310   |   |   |   | -            |   |   |   |   | 5,385,310 |   |
| Food and beverage                      |   |         | 3,999,222   |   |          |   | -      |         |   |   | 7,516,412   |   |   |   | -            |   |   |   |   | 11,515,634 |   |
| Other                                  |   |         | 1,933,065   |   |          |   | -      |         |   |   | 1,990,547   |   |   |   | -            |   |   |   |   | 3,923,612 |   |
| Gross revenues                         |   |         | 61,557,178  |   |          |   | -      |         |   |   | 117,004,967 |   |   |   | -            |   |   |   |   | 178,562,145 |   |
| Less promotional allowances            |   |         | 6,506,362   |   |          |   | -      |         |   |   | 14,588,090  |   |   |   | 302,001      |   | (a) |   |   | 21,396,453 |   |
| Net operating revenues                 |   |         | 55,050,816  |   |          |   | -      |         |   |   | 102,416,877 |   |   |   | (302,001     | )      |   |   |   | 157,165,692 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:          |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Casino                                 |   |         | 16,279,538  |   |          |   | -      |         |   |   | 28,965,822  |   |   |   | -            |   |   |   |   | 45,245,360 |   |
| Rooms                                  |   |         | -           |   |          |   | -      |         |   |   | 479,819     |   |   |   | -            |   |   |   |   | 479,819 |   |
| Food and beverage                      |   |         | 1,302,701   |   |          |   | -      |         |   |   | 1,870,923   |   |   |   | -            |   |   |   |   | 3,173,624 |   |
| Other                                  |   |         | 228,459     |   |          |   | -      |         |   |   | 396,825     |   |   |   | -            |   |   |   |   | 625,284 |   |
| Gaming taxes                           |   |         | 16,181,625  |   |          |   | -      |         |   |   | 20,546,066  |   |   |   | -            |   |   |   |   | 36,727,691 |   |
| Advertising and promotion              |   |         | 2,931,464   |   |          |   | -      |         |   |   | 7,796,634   |   |   |   | (302,001     | )      | (a) |   |   | 10,426,097 |   |
| General and administrative             |   |         | 7,525,584   |   |          |   | -      |         |   |   | 14,273,554  |   |   |   | -            |   |   |   |   | 21,799,138 |   |
| Corporate expense                      |   |         | 3,084,800   |   |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 3,084,800 |   |
| Restructuring fees                     |   |         | 5,750,351   |   |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | 5,750,351 |   |
| Economic incentive tax - City of Gary  |   |         | 1,701,202   |   |          |   | -      |         |   |   | 1,453,448   |   |   |   | -            |   |   |   |   | 3,154,650 |   |
| Depreciation and amortization          |   |         | 5,202,745   |   |          |   | -      |         |   |   | 10,687,605  |   |   |   | -            |   |   |   |   | 15,890,350 |   |
| Loss on disposal of assets             |   |         | 355,581     |   |          |   | -      |         |   |   | 31,206      |   |   |   | -            |   |   |   |   | 386,787 |   |
| Total operating costs and expenses     |   |         | 60,544,050  |   |          |   | -      |         |   |   | 86,501,902  |   |   |   | (302,001     | )      |   |   |   | 146,743,951 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Operating (loss) income                |   |         | (5,493,234  | )      |          |   | -      |         |   |   | 15,914,975  |   |   |   | -            |   |   |   |   | 10,421,741 |   |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| OTHER (EXPENSE) INCOME :               |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |
| Interest income                        |   |         | 78,583      |   |          |   | -      |         |   |   | 37,144      |   |   |   | -            |   |   |   |   | 115,727 |   |
| Interest expense                       |   |         | (29,757,938 | )      |          |   | -      |         |   |   | (8,970      | )      |   |   | -            |   |   |   |   | (29,766,908 | ) |
| Interest expense - Majestic Holdco (b) |   |         | (4,334,523  | )      |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (4,334,523 | ) |
| Other non-operating expense            |   |         | (710        | )      |          |   | -      |         |   |   | -           |   |   |   | -            |   |   |   |   | (710 | ) |
| Equity in net income of subsidiaries   |   |         | 15,943,149  |   |          |   | -      |         |   |   | -           |   |   |   | (15,943,149  | )      | (c) |   |   | - |   |
| Total other (expense) income           |   |         | (18,071,439 | )      |          |   | -      |         |   |   | 28,174      |   |   |   | (15,943,149  | )      |   |   |   | (33,986,414 | ) |
| Net (loss) income                      |   | $            | (23,564,673 | )      |          | $      | -      |         |   | $      | 15,943,149  |   |   | $      | (15,943,149  | )      |   |   | $ | (23,564,673 | ) |
|                                   |   |         |        |   |          |   |   |         |   |   |        |   |   |   |         |   |   |   |   |   |   |

| (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 in net income of subsidiaries.                                                                                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                   |   | 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                                 |   |         | 8,210,317   |   |          |   | -      |         |   |   | 15,865,288  |   |   |   | -            |   |   |   |   | 24,075,605 |   |
| Rooms                                  |   |         | -           |   |          |   | -      |         |   |   | 309,634     |   |   |   | -            |   |   |   |   | 309,634 |   |
| Food and beverage                      |   |         | 773,550     |   |          |   | -      |         |   |   | 1,060,598   |   |   |   | -            |   |   |   |   | 1,834,148 |   |
| Other                                  |   |         | 127,968     |   |          |   | -      |         |   |   | 183,693     |   |   |   | -            |   |   |   |   | 311,661 |   |
| 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 - 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 in net income of subsidiaries.                                                                                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                                 |   | 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                                               |   |         | 17,107,102  |   |          |   | -      |         |   |   | 32,458,276  |   |   |   | -            |   |   |   |   | 49,565,378 |   |
| Rooms                                                |   |         | -           |   |          |   | -      |         |   |   | 606,740     |   |   |   | -            |   |   |   |   | 606,740 |   |
| Food and beverage                                    |   |         | 1,502,141   |   |          |   | -      |         |   |   | 2,181,406   |   |   |   | -            |   |   |   |   | 3,683,547 |   |
| Other                                                |   |         | 302,263     |   |          |   | -      |         |   |   | 390,265     |   |   |   | -            |   |   |   |   | 692,528 |   |
| 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, net of refund |   |         | 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 in net income of subsidiaries.                                                                                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                                 |   | 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)                            |   | $            | (7,332,672 | )      |          | $      | -      |         |   | $      | 23,752,465  |   |   | $            | -      |   |   | $ | 16,419,793 |   |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| Increase in restricted cash                          |   |         | (2,564,349 | )      |          |   | -      |         |   |   | -           |   |   |         | -      |   |   |   | (2,564,349 | ) |
| Additions to property and equipment                  |   |         | (4,419,685 | )      |          |   | -      |         |   |   | (4,065,799  | )      |   |         | -      |   |   |   | (8,485,484 | ) |
| Increase in Lakefront Capital Improvement Fund       |   |         | (253,224   | )      |          |   | -      |         |   |   | -           |   |   |         | -      |   |   |   | (253,224 | ) |
| Proceeds from disposal of equipment                  |   |         | 600        |   |          |   | -      |         |   |   | 146,392     |   |   |         | -      |   |   |   | 146,992 |   |
| Net cash used in investing activities                |   |         | (7,236,658 | )      |          |   | -      |         |   |   | (3,919,407  | )      |   |         | -      |   |   |   | (11,156,065 | ) |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| Proceeds from line of credit                         |   |         | 2,680,654  |   |          |   | -      |         |   |   | -           |   |   |         | -      |   |   |   | 2,680,654 |   |
| Repayment of line of credit                          |   |         | (2,663,191 | )      |          |   | -      |         |   |   | -           |   |   |         | -      |   |   |   | (2,663,191 | ) |
| Advances from (to) affiliates                        |   |         | 15,175,000 |   |          |   | -      |         |   |   | (15,175,000 | )      |   |         | -      |   |   |   | - |   |
| Repayment of debt                                    |   |         | (75,132    | )      |          |   | -      |         |   |   | (499,057    | )      |   |         | -      |   |   |   | (574,189 | ) |
| Net cash provided by (used in) financing activities  |   |         | 15,117,331 |   |          |   | -      |         |   |   | (15,674,057 | )      |   |         | -      |   |   |   | (556,726 | ) |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| Net  increase in cash and cash equivalents |   |         | 548,001    |   |          |   | -      |         |   |   | 4,159,001   |   |   |         | -      |   |   |   | 4,707,002 |   |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period       |   |         | 8,044,826  |   |          |   | -      |         |   |   | 49,704,926  |   |   |         | -      |   |   |   | 57,749,752 |   |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |
| Cash and cash equivalents, end of period             |   | $            | 8,592,827  |   |          | $      | -      |         |   | $      | 53,863,927  |   |   | $            | -      |   |   | $ | 62,456,754 |   |
|                                                 |   |         |       |   |          |   |   |         |   |   |        |   |   |         |   |   |   |   |   |   |

| (a)    | Includes interest expense of $4.1 million and amortization of deferred financing costs of $0.3 million related to |   |
|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|   | Majestic Holdco's Discount Notes.                                                                                 |   |

----

| NOTE 10. | SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED) |
|----------|----------------------------------------------------------|

|                                                            |   | 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 deferred financing costs of $0.3 million related to the amortization of |   |
|--------|-----------------------------------------------------------------------------------------------------------------------|--------|
|   | bond discount and deferred financing costs of Majestic Holdco's Discount Notes.                                       |   |

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
|---------|----------------------------------------------------------------------------------------------|

----

|   | · | An event of default exists under the indentures governing the Senior Secured Notes and the Senior Notes and the Senior Secured Credit Facility (“Event of Default”) due to our decision to not make the October 15, 2008 and April 15, 2009 interest payments on the Senior Secured Notes and the Senior Notes. In addition, there is an event of default under the indenture which governs the Discount Note because ourparent did not make the cash interest payment due April 15, 2009, as well as the defaults under our other indebtedness.  As a result, the trustee or a specified percentage of holders of these notes have the right to accelerate the maturity date of the respective notes, which would cause the respective notes to be immediately due and payable and could result in all of our indebtedness becoming immediately due and payable. Thelenders also have the right to accelerate the maturity of the amounts outstanding under our Senior Secured Credit Facility. The lenders under the Senior Secured Credit Facility have the right to foreclose on substantially all of our equity and the equity of our subsidiaries as well as on our assets which secure such indebtedness. In addition, on August 10, 2009, the standstill agreement between the trustee to the Senior Secured Notes and the agent for the Senior Secured Credit Facility expired. As such, the trusteeis entitled to exercise its rights and remedies under the indenture ten days after the date that the agent under the Senior Secured Credit Facility receives a default notice from the trustee. The rights and remedies of the trustee include foreclosure on substantially all of our equity and the equity of our subsidiaries as well as on our assets which secure the Senior Secured Notes.  Consequently, we have classified all debt, including the debt of our parent, within current liabilities in theCondensed Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have engaged financial advisors to assist in the evaluation of a broad range of financial and strategic alternatives aimed at addressing trends in our operating results and financial position. We continue our evaluation of financial and strategic alternatives, which may include a recapitalization, restructuring or reorganization of our obligations or a sale of some or all of our business assets. We are actively workingwith our advisors and creditors toward such a transaction that would modify our capital structure, including our outstanding indebtedness. Given the current valuations for regional gaming companies such as ours, the weak economic environment, our diminishing cash flows, and the reduced availability of debt and equity capital in the U.S. markets, it is unlikely that any restructuring plan can be consummated outside a bankruptcy proceeding. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have significant negative working capital. Our negative working capital is the result of all of our debt and accrued and unpaid interest on our Senior Secured Notes, Senior Notes, Senior Secured Credit Facility and the Discount Notes being reflected as current. As a result of not paying interest on the Senior Secured Notes and Senior Notes in the aggregate amount of $48.0 million, we have the liquidity to pay ourother current obligations, fund our capital expenditure program and pay our restructuring advisors and the restructuring advisors of our creditors. However, our only source of cash is from operations. If we do not prevail on disputed property tax and income tax matters in Indiana, or if our cash flows from operations should decline more rapidly than anticipated, then our liquidity could be adversely impacted if we do not further reduce expenses and our capital expenditure program which could, in turn, adverselyimpact our competitive position and our revenues. Further, the agent under our Senior Secured Credit Facility, Wells Fargo Foothill, has requested a pay down on the Senior Secured Credit Facility, citing the significant difference between the amount allowed to be outstanding (the borrowing base as defined in the loan and security agreement to the Senior Secured Credit Facility) and the actual amount outstanding. We may make a pay down to the lenders under the Senior Secured Credit Facility. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our net revenues and operating income, excluding the property tax adjustment noted below, declined year over year more significantly in the second quarter of 2009 compared to the first quarter of 2009. Net revenues in the second quarter of 2009 were $75.9 million, a reduction of $9.4 million, or 11.0%, from the same quarter last year. In the first quarter of 2009, net revenues declined 8.7%, or $7.7 million, to $81.3million. Operating income in the second quarter of 2009 was $7.0 million, a reduction of $0.1 million or 1.9% when compared to the same quarter last year.  However, operating income in the second quarter of 2009 includes a $4.8 million adjustment related to the reduction of accrued property taxes at the Majestic Properties. (See Note 7 – Commitments and Contingencies – Majestic Star Real Property Assessment Appeals to the Notes to the Condensed Consolidated Financial Statements.) In thefirst quarter of 2009, operating income was $3.4 million, a decline of $4.5 million or 56.6%. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The spending and visitation habits of our casino customers have been negatively impacted by the weakening economy, rising unemployment and instability in the housing market. At this time we cannot project when the spending/visitation habits of our customers will improve. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The results of our operations continue to be negatively impacted by the new or renovated facilities opened in 2008 and 2009 by our competitors, particularly in northwest Indiana, the market in which our Majestic Properties competes. 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 beenone of the best performing slot denominations in the market and the Majestic Properties has 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | We have been aggressive in reducing operating costs, particularly at the Majestic Properties and Fitzgeralds Tunica, due to the impact that competition and the weak economy have had on our net revenues. We have reduced labor to be in alignment with casino volumes and have also reduced labor in administrative areas by combining functions. We will continue to evaluate reductions in our operating costs and will implementthese reductions as additional opportunities are identified. We have reduced slot machine lease expenses by replacing leased slot machines with new and converted slot machines. The acquisition and conversion of slot machines and elimination of leased slot machines was part of our 2009 slot capital expenditure program (as discussed below). We will continue to explore ways of reducing expenses that will not have a detrimental impact on revenues. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Currently, our capital expenditure budget is $14.5 million for 2009. During the second quarter we increased our capital expenditure budget by $2.2 million by increasing our budget at the Majestic Properties by $0.9 million, at Fitzgeralds Tunica by $1.0 million, and at Fitzgeralds Black Hawk by $0.3 million. We increased our capital expenditure budget to include the acquisition of new slot bases at the Majestic Properties,carpet and bathroom remodel projects on the Majestic Star I vessel, the acquisition of leased slot machines at Fitzgeralds Tunica, with a projected annual lease expense savings of $0.5 million, and a table games player tracking system and additional slot purchases at Fitzgeralds Black Hawk. In the second quarter we completed a baccarat room relocation and expansion project on the Majestic Star I vessel, a buffet remodel project at Fitzgeralds Tunica and preparation for expanded gaming at Fitzgeralds Black Hawk,including increasing our table games operation with the addition of craps and roulette (see further discussion below). We also continue to acquire and convert slot machines at our casino properties. Through June 30, 2009 we have either spent or committed to spend with slot machine manufacturers and distributors $7.0 million of our $7.6 million slot capital expenditure budget. Casino remodeling projects are in process at both the Majestic Properties and Fitzgeralds Tunica. We plan to spend $1.6 million atthe Majestic Properties on new carpet and wall covering and remodeling of the cashier cages, bars, VIP lounge and restrooms. We plan to spend $1.9 million at Fitzgeralds Tunica on a new deli/grill and a high-end gaming room and VIP lounge and remodeling of the bathrooms, cashier cage, casino stage and main casino bar. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | At the Majestic Properties we have experienced greater volume since the completion of our relocated and expanded baccarat room. The new baccarat room, complete with a restaurant, better caters to our Asian customers. The new baccarat room opened during June. In July we had an increase in baccarat volumes of 14.7% compared to July 2008. We continue to modify the casino floor to create better sight lines and aisle spaceand add more popular penny slot machines. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | At Fitzgeralds Tunica we have completed the buffet remodel. The new buffet has expanded seating through elimination of the existing café, a new décor and design and food preparation action stations. With the new buffet we have greatly improved our customers’ dining experience and our ability to utilize the buffet as a marketing tool. To complement our food offering, we are also creating a deli/grilloutlet that will cater to customers who desire an expedited dining experience. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | At Fitzgeralds Black Hawk, during the first quarter, we relocated our table games pit to the first floor of our expanded casino area. The location of the pit brings greater visibility to our table games operation. This is important with the start of expanded gaming on July 2, 2009, which allows for increased betting limits from $5 to $100, 24-hour a day operation and the ability to offer the table games of craps androulette. We have expanded our hours of operations so that we are open from 8 am Friday to 2 am Monday. We currently offer ten table games, including craps and roulette. The new table games pit is adjacent to our new casino bar and includes flat screen TVs to create an area of energy and excitement, especially during sporting events. We continue to increase the number of penny slot machines, which we believe is the slot denomination most sought after by our customers. We continue to evaluate marketing programsand promotions that will drive volumes, particularly in slots. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     |   | For The Three Months Ended |   |    |   |   | For The Six Months Ended |   |    |   |
|--------------------------|--------|----------------------------|--------|---------|--------|--------|--------------------------|--------|---------|--------|
|                     |   | June 30,                   |   | Percent |   |   | June 30,                 |   | Percent |   |
|                     |   | 2009                       |   | 2008    |   | Change |                     |   | 2009    |   | 2008 |   | Change |   |
| Gross revenues:          |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |
| Majestic Properties      |   | $                          | 55,251 |    | $      | 63,746 |                     |   | -13.3   | %      |   | $ | 112,192 |   | $ | 128,601 |   |   | -12.8 | % |
| Fitzgeralds Tunica       |   |                       | 22,503 |    |   | 24,793 |                     |   | -9.2    | %      |   |   | 47,780 |   |   | 52,343 |   |   | -8.7 | % |
| Fitzgeralds Black Hawk   |   |                       | 9,068  |    |   | 8,143  |                     |   | 11.3    | %      |   |   | 18,590 |   |   | 16,576 |   |   | 12.2 | % |
| Total                    |   | $                          | 86,822 |    | $      | 96,682 |                     |   | -10.2   | %      |   | $ | 178,562 |   | $ | 197,520 |   |   | -9.6 | % |
|                     |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues:            |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties      |   | $                          | 50,054 |    | $      | 58,648 |                     |   | -14.7   | %      |   | $ | 102,360 |   | $ | 118,086 |   |   | -13.3 | % |
| Fitzgeralds Tunica       |   |                       | 18,541 |    |   | 20,197 |                     |   | -8.2    | %      |   |   | 39,792 |   |   | 42,924 |   |   | -7.3 | % |
| Fitzgeralds Black Hawk   |   |                       | 7,329  |    |   | 6,504  |                     |   | 12.7    | %      |   |   | 15,014 |   |   | 13,332 |   |   | 12.6 | % |
| Total                    |   | $                          | 75,924 |    | $      | 85,349 |                     |   | -11.0   | %      |   | $ | 157,166 |   | $ | 174,342 |   |   | -9.9 | % |
|                     |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Casino revenues:         |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties      |   | $                          | 50,333 |    | $      | 58,743 |                     |   | -14.3   | %      |   | $ | 102,559 |   | $ | 118,056 |   |   | -13.1 | % |
| Fitzgeralds Tunica       |   |                       | 17,685 |    |   | 19,672 |                     |   | -10.1   | %      |   |   | 38,087 |   |   | 42,010 |   |   | -9.3 | % |
| Fitzgeralds Black Hawk   |   |                       | 8,348  |    |   | 7,435  |                     |   | 12.3    | %      |   |   | 17,092 |   |   | 15,137 |   |   | 12.9 | % |
| Total                    |   | $                          | 76,366 |    | $      | 85,850 |                     |   | -11.0   | %      |   | $ | 157,738 |   | $ | 175,203 |   |   | -10.0 | % |
|                     |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss): |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Majestic Properties      |   | $                          | 9,801  |    | $      | 7,824  |                     |   | 25.3    | %      |   | $ | 14,660 |   | $ | 14,227 |   |   | 3.0 | % |
| Fitzgeralds Tunica       |   |                       | 1,086  |    |   | 394    |                     |   | 175.9   | %      |   |   | 3,893 |   |   | 2,912 |   |   | 33.7 | % |
| Fitzgeralds Black Hawk   |   |                       | 329    |    |   | 376    |                     |   | -12.3   | %      |   |   | 812 |   |   | 1,021 |   |   | -20.5 | % |
| Corporate (1)            |   |                       | (4,208 | )       |   | (1,452 | )                        |   | -189.9  | %      |   |   | (8,943 | ) |   | (3,146 | ) |   | -184.2 | % |
| Total                    |   | $                          | 7,008  |    | $      | 7,142  |                     |   | -1.9    | %      |   | $ | 10,422 |   | $ | 15,014 |   |   | -30.6 | % |
|                     |   |                       |   |    |   |   |                     |   |    |   |   |   |   |   |   |   |   |   |   |   |

| (1)    | Corporate expenses reflect payroll, benefits, travel and other costs associated with our corporate staff,  |   |
|--------|------------------------------------------------------------------------------------------------------------|--------|
|   | plus restructuring fees of $2.6 million and $5.8 million for the three and six months ended June 30, 2009, |   |
|   | respectively, and are not allocated to the properties.                                                     |   |

----

----

----

----

----

----

----

----

----

| Exhibit No. |            | Description of Document                                                                                                                                                                                                    |
|-------------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |            |                                                                                                                                                                                                                       |
| 10.1        |            | Employment Agreement entered into as of April 3, 2009 by and between The Majestic Star Casino, LLC and Michael Darley (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 3, 2009).  |
| 10.2        |            | The Majestic Star Casino, LLC 2009 Executive Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 3, 2009).                                                            |
| 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. |
|        |            |                                                                                                                                                                                                                       |

----

| Dated: August 14, 2009                                       |
|--------------------------------------------------------------|
|                                                         |   |
| 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)                 |
|                                                         |

----