| (Mark      One) |                                                                                                                      |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|
| x               | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                     |
|            |                    OF THE SECURITIES EXCHANGE ACT OF1934 |

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

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

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

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

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

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

----

THE MAJESTIC STAR CASINO, LLC ANDSUBSIDIARIES

|              |                             | Page      No.                                                                                                                       |
|-------------------|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
|  PART      I |  FINANCIAL      INFORMATION |                                                                                                                                |
|              |                             |                                                                                                                                |   |
|              | Item 1.                          | Financial Statements.                                                                                                               |   |
|              |                             |                                                                                                                                |   |
|              |                             | Condensed Consolidated Balance Sheets as of      March  31, 2008 (unaudited) and December 31,      2007                   | 1 |
|              |                             |                                                                                                                                |   |
|              |                             | Condensed Consolidated Statements of Operations for the three      months ended March  31, 2008 and 2007      (unaudited) | 2 |
|              |                             |                                                                                                                                |   |
|              |                             | Condensed Consolidated Statements of Cash Flows for the three      months ended March  31, 2008 and 2007      (unaudited) | 3 |
|              |                             |                                                                                                                                |   |
|              |                             | Notes to the Condensed Consolidated Financial Statements      (unaudited)                                                           | 5 |
|              |                             |                                                                                                                                |   |
|              | Item 2.                          | Management’s Discussion and Analysis of Financial Condition      and Results of Operations.                                   | 22 |
|              |                             |                                                                                                                                |   |
|              | Item 3.                          | Quantitative and Qualitative Disclosures About Market      Risk.                                                                    | 29 |
|              |                             |                                                                                                                                |   |
|              | Item 4T.                         | Controls and Procedures.                                                                                                            | 29 |
|              |                             |                                                                                                                                |   |
| PART      II      | OTHER      INFORMATION           |                                                                                                                                |
|              |                             |                                                                                                                                |   |
|              | Item 1.                          | Legal Proceedings.                                                                                                                  | 30 |
|              |                             |                                                                                                                                |   |
|              | Item 1A.                         | Risk Factors.                                                                                                                       | 30 |
|              |                             |                                                                                                                                |   |
|              | Item 6.                          | Exhibits.                                                                                                                           | 30 |
|              |                             |                                                                                                                                |   |
|              | SIGNATURES                       | S-1                                                                                                                                 |

----

Table of Contents

PARTI                    FINANCIAL INFORMATION

ITEM 1.                      FINANCIALSTATEMENTS.

THE MAJESTIC STAR CASINO, LLC AND SUBSIDIARIES

|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------|----------------|-------------|--------|-------------------|------------|
|                                                                  |                                                                                  |                                                                           |         | March      31, |        |   | December      31, |       |
|                                                                  |                                                                                  |                                                                           |         | 2008           |        |   | 2007              |       |
| ASSETS                                                                |                                                                                  | (unaudited)                                                                    |         |           |        |   |
| Current      assets:                                                  |                                                                                  |                                                                           |         |           |        |   |
|                                                                  | Cash      and cash equivalents                                                        |                                                                           | $            | 28,521,322     |        |   | $                 | 29,216,263 |   |
|                                                                  | Restricted      cash                                                                  |                                                                           |         | 3,401,359      |        |   |              | 3,401,359  |   |
|                                                                  | Accounts      receivable, less allowance for doubtful accounts of $1,053,327      and |                                                                           |         |           |        |   |              |       |   |
|                                                                  |                                                                                  |  $1,371,930      as of March 31, 2008 and December 31, 2007, respectively |         |           | 4,402,842   |   |              |       | 5,779,838 |   |
|                                                                  | Inventories                                                                           |                                                                           |         | 1,048,167      |        |   |              | 1,088,508  |   |
|                                                                  | Prepaid      expenses and deposits                                                    |                                                                           |         | 4,221,062      |        |   |              | 2,013,891  |   |
|                                                                  | Receivable      from affiliates                                                       |                                                                           |         | 478,778        |        |   |              | 616,889    |   |
|                                                                  |                                                                                  | Total      current assets                                                      |         |           | 42,073,530  |   |              |       | 42,116,748 |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Property,      equipment and improvements, net                        |                                                                                  |                                                                           | 277,436,208  |           |        |   | 279,629,166       |       |
| Intangible      assets, net                                           |                                                                                  |                                                                           | 121,071,543  |           |        |   | 121,936,336       |       |
| Goodwill                                                              |                                                                                  |                                                                           | 47,431,442   |           |        |   | 47,431,442        |       |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Other      assets:                                                    |                                                                                  |                                                                           |         |           |        |   |              |       |
|                                                                  | Deferred      financing costs, net of accumulated amortization                        |                                                                           |         |           |        |   |              |       |   |
|                                                                  |                                                                                  | of      $9,943,449 and $9,107,124 as of March 31, 2008                         |         |           |        |   |              |       |   |   |
|                                                                  |                                                                                  | and      December 31, 2007, respectively                                       |         |           | 8,901,471   |   |              |       | 9,737,796 |   |
|                                                                  | Deferred      financing costs, pushed down from Majestic Holdco, net of               |                                                                           |         |           |        |   |              |       |   |
|                                                                  |                                                                                  | accumulated      amortization of $1,158,498 and $1,031,422 as of               |         |           |        |   |              |       |   |   |
|                                                                  |                                                                                  | March      31, 2008 and December 31, 2007, respectively                        |         |           | 1,800,241   |   |              |       | 1,927,317 |   |
|                                                                  | Other      assets                                                                     |                                                                           |         | 3,486,927      |        |   |              | 2,911,140  |   |
|                                                                  |                                                                                  | Total      other assets                                                        |         |           | 14,188,639  |   |              |       | 14,576,253 |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Total      assets                                                     |                                                                                  | $                                                                              | 502,201,362  |           |        | $      | 505,689,945       |       |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| LIABILITIES      AND MEMBER'S DEFICIT                                 |                                                                                  |                                                                           |         |           |        |   |              |       |
| Current      liabilities:                                             |                                                                                  |                                                                           |         |           |        |   |              |       |
|                                                                  | Accounts      payable                                                                 |                                                                           | $            | 3,044,394      |        |   | $                 | 4,259,475  |   |
|                                                                  | Current      portion of long-term debt                                                |                                                                           |         | 181,363        |        |   |              | 202,780    |   |
|                                                                  | Accrued      liabilities:                                                             |                                                                           |         |           |        |   |              |       |   |
|                                                                  |                                                                                  | Payroll      and related                                                       |         |           | 10,502,911  |   |              |       | 9,206,725 |   |
|                                                                  |                                                                                  | Interest                                                                       |         |           | 22,831,936  |   |              |       | 10,980,075 |   |
|                                                                  |                                                                                  | Property      and franchise taxes                                              |         |           | 13,164,956  |   |              |       | 17,897,923 |   |
|                                                                  |                                                                                  | Payable      to affiliate                                                      |         |           | -           |   |              |       | 214,288 |   |
|                                                                  |                                                                                  | Other      accrued liabilities                                                 |         |           | 15,786,618  |   |              |       | 16,475,209 |   |
|                                                                  |                                                                                  | Total      current liabilities                                                 |         |           | 65,512,178  |   |              |       | 59,236,475 |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Long-term      debt, net of current maturities                        |                                                                                  |                                                                           | 552,365,406  |           |        |   | 556,535,441       |       |
| Long-term      debt of Majestic Holdco, net of discount of $4,028,599 |                                                                                  |                                                                           |         |           |        |   |              |       |
|                                                                  | and      $5,789,771 as of March 31, 2008 and December 31, 2007,      respectively     |                                                                           |         | 59,471,401     |        |   |              | 57,710,229 |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
|                                                                  |                                                                                  | Total      liabilities                                                         |         |           | 677,348,985 |   |              |       | 673,482,145 |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Member's      deficit                                                 |                                                                                  |                                                                           | (175,147,623 | )              |        |   | (167,792,200      | )          |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |
| Total      liabilities and member's deficit                           |                                                                                  | $                                                                              | 502,201,362  |           |        | $      | 505,689,945       |       |
|                                                                  |                                                                                  |                                                                           |         |           |        |   |              |       |   |   |

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

----

Table of Contents

THE MAJESTIC STAR CASINO, LLC AND SUBSIDIARIES

|                                                                       |   | For      The Three Months Ended |        |
|----------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                       |   | March      31,                  |        |
|                                                                       |   | 2008                            |        |   | 2007 |   |
| OPERATING      REVENUES:                                                   |   |                            |        |   |   |   |
|  Casino                                                               |   | $                               | 89,352,296  |   |   | $ | 95,130,560 |   |
| Rooms                                                                      |   |                            | 2,988,731   |   |   |   | 2,544,945 |   |
| Food      and beverage                                                     |   |                            | 6,457,033   |   |   |   | 5,875,255 |   |
|         Other                                                    |   |                            | 2,040,009   |   |   |   | 1,882,476 |   |
| Gross      revenues                                                        |   |                            | 100,838,069 |   |   |   | 105,433,236 |   |
| Less:      promotional allowances                                          |   |                            | 11,844,599  |   |   |   | 13,919,363 |   |
|  Net      operating revenues                                          |   |                            | 88,993,470  |   |   |   | 91,513,873 |   |
|                                                                       |   |                            |        |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                                         |   |                            |        |   |   |   |   |   |
| Casino                                                                     |   |                            | 24,897,532  |   |   |   | 23,658,637 |   |
| Rooms                                                                      |   |                            | 580,014     |   |   |   | 805,184 |   |
| Food      and beverage                                                     |   |                            | 2,096,677   |   |   |   | 2,670,609 |   |
|    Other                                                    |   |                            | 442,922     |   |   |   | 503,121 |   |
| Gaming      taxes                                                          |   |                            | 21,014,331  |   |   |   | 22,307,944 |   |
| Advertising      and promotion                                             |   |                            | 5,685,939   |   |   |   | 5,309,656 |   |
| General      and administrative                                            |   |                            | 14,744,031  |   |   |   | 14,205,910 |   |
| Corporate      expense                                                     |   |                            | 1,635,719   |   |   |   | 1,723,202 |   |
| Economic      incentive tax - City of Gary                                 |   |                            | 1,752,954   |   |   |   | 1,753,589 |   |
| Depreciation      and amortization                                         |   |                            | 8,284,659   |   |   |   | 8,169,652 |   |
| Gain      on disposal of assets                                            |   |                            | (13,278     | ) |   |   | (11,725 | ) |
| Total      operating costs and expenses                                    |   |                            | 81,121,500  |   |   |   | 81,095,779 |   |
|                                                                       |   |                            |        |   |   |   |   |   |
| Operating      income                                                      |   |                            | 7,871,970   |   |   |   | 10,418,094 |   |
|                                                                       |   |                            |        |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):                                               |   |                            |        |   |   |   |   |   |
| Interest      income                                                       |   |                            | 109,724     |   |   |   | 212,177 |   |
| Interest      expense                                                      |   |                            | (13,433,717 | ) |   |   | (13,578,690 | ) |
|         Interest expense - debt pushed down from Majestic Holdco |   |                            | (1,888,249  | ) |   |   | (1,684,414 | ) |
| Other      non-operating expense                                           |   |                            | (15,151     | ) |   |   | (34,665 | ) |
| Total      other expense                                                   |   |                            | (15,227,393 | ) |   |   | (15,085,592 | ) |
|                                                                       |   |                            |        |   |   |   |   |   |
| Net      loss                                                              |   | $                               | (7,355,423  | ) |   | $ | (4,667,498 | ) |
|                                                                       |   |                            |        |   |   |   |   |   |

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

----

Table of Contents

THE MAJESTIC STAR CASINO, LLC AND SUBSIDIARIES

|                                                                                      |   | For      The Three Months Ended |       |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                      |   | March      31,                  |       |
|                                                                                      |   | 2008                            |       |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                |   |                            |       |   |   |   |
| Net      loss                                                                             |   | $                               | (7,355,423 | ) |   | $ | (4,667,498 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities: |   |                            |       |   |   |   |   |   |
| Depreciation                                                                              |   |                            | 7,419,866  |   |   |   | 7,304,860 |   |
| Amortization                                                                              |   |                            | 864,793    |   |   |   | 864,792 |   |
| Amortization      of deferred financing costs                                             |   |                            | 836,325    |   |   |   | 836,325 |   |
| Amortization      of bond discount on 12 1⁄2% senior discount notes                    |   |                            |       |   |   |   |   |   |
| pushed      down from Majestic Holdco                                                     |   |                            | 1,761,173  |   |   |   | 1,557,338 |   |
| Amortization      of deferred financing costs on 12 1⁄2% senior                        |   |                            |       |   |   |   |   |   |
| discount      notes pushed down from Majestic Holdco                                      |   |                            | 127,076    |   |   |   | 127,076 |   |
| Gain      on disposal of assets                                                           |   |                            | (13,278    | ) |   |   | (11,725 | ) |
| Changes      in operating assets and liabilities:                                         |   |                            |       |   |   |   |   |   |
| Accounts      receivable, net                                                             |   |                            | 1,376,996  |   |   |   | 2,851,871 |   |
| Receivable      from affilates                                                            |   |                            | (76,177    | ) |   |   | (86,056 | ) |
| Inventories                                                                               |   |                            | 40,341     |   |   |   | (165,967 | ) |
| Prepaid      expenses and deposits                                                        |   |                            | (1,629,721 | ) |   |   | (1,224,601 | ) |
| Other      assets                                                                         |   |                            | 30,524     |   |   |   | 11,441 |   |
| Accounts      payable                                                                     |   |                            | 97,568     |   |   |   | (463,024 | ) |
| Accrued      payroll and other expenses                                                   |   |                            | 1,296,186  |   |   |   | 1,637,575 |   |
| Accrued      interest                                                                     |   |                            | 11,851,861 |   |   |   | 11,925,054 |   |
| Other      accrued liabilities                                                            |   |                            | (6,090,715 | ) |   |   | (850,134 | ) |
| Net      cash provided by operating activities                                            |   |                            | 10,537,395 |   |   |   | 19,647,327 |   |
|                                                                                      |   |                            |       |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                |   |                            |       |   |   |   |   |   |
| Additions      to property and equipment                                                  |   |                            | (6,459,859 | ) |   |   | (6,088,265 | ) |
| Increase      in Lakefront Capital Improvement Fund                                       |   |                            | (606,311   | ) |   |   | (619,795 | ) |
| Proceeds      from disposal of equipment                                                  |   |                            | 25,286     |   |   |   | 11,725 |   |
| Net      cash used in investing activities                                                |   |                            | (7,040,884 | ) |   |   | (6,696,335 | ) |
|                                                                                      |   |                            |       |   |   |   |   |   |

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

----

Table of Contents

|   | THE      MAJESTIC STAR CASINO, LLC ANDSUBSIDIARIES |
|--------|----------------------------------------------------|

|                                                                         |   | For      The Three Months Ended |        |
|------------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                         |   | March      31,                  |        |
|                                                                         |   | 2008                            |        |   | 2007 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                   |   |                            |        |   |   |   |
| Proceeds      from line of credit                                            |   |                            | 9,721,713   |   |   |   | 1,484,144 |   |
| Repayment      of line of credit                                             |   |                            | (13,850,000 | ) |   |   | (12,600,049 | ) |
| Repayment      of debt                                                       |   |                            | (63,165     | ) |   |   | (45,788 | ) |
| Net      cash used in financing activities                                   |   |                            | (4,191,452  | ) |   |   | (11,161,693 | ) |
|                                                                         |   |                            |        |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                    |   |                            | (694,941    | ) |   |   | 1,789,299 |   |
|                                                                         |   |                            |        |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                          |   |                            | 29,216,263  |   |   |   | 25,531,924 |   |
|                                                                         |   |                            |        |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                |   | $                               | 28,521,322  |   |   | $ | 27,321,223 |   |
|                                                                         |   |                            |        |   |   |   |   |   |
|                                                                         |   |                            |        |   |   |   |   |   |
|                                                                         |   |                            |        |   |   |   |   |   |
|                                                                         |   | For      The Three Months Ended |        |
|                                                                         |   | March      31,                  |        |
|                                                                         |   | 2008                            |        |   | 2007 |   |
| Supplemental      disclosure of cash flow information and non-cash investing |   |                            |        |   |   |   |   |   |
| and      financing activities:                                               |   |                            |        |   |   |   |   |   |
|                                                                         |   |                            |        |   |   |   |   |   |
| INTEREST      PAID, NET OF CAPITALIZED INTEREST:                             |   | $                               | 745,531     |   |   | $ | 817,036 |   |
|                                                                         |   |                            |        |   |   |   |   |   |
|                                                                         |   |                            |        |   |   |   |   |   |
| NON-CASH      INVESTING ACTIVITIES:                                          |   |                            |        |   |   |   |   |   |
| Capital      assets acquired from incurring accounts payable                 |   |                            |        |   |   |   |   |   |
|  and      accrued liabilities, net                                      |   | $                               | 3,158,342   |   |   | $ | 1,237,018 |   |
| Capital      assets transferred to prepaid rent                              |   | $                               | 577,450     |   |   | $ | - |   |

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

----

Table of Contents

NOTE1.

| ·   | A      casino-hotel located in Tunica County, Mississippi (“Barden Mississippi”      or “Fitzgeralds Tunica”); and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

Table of Contents

|                   |   |                                      |      |   |   |   |
|------------------------|--------|-------------------------------------------|-----------|--------|--------|--------|
|                   |   | For      The Three Months Ended March 31, |      |
|                   |   | 2008                                      |      |   | 2007   |   |
| Rooms                  |   | $                                         | 1,170,445 |   |   | $      | 1,108,932 |   |
| Food      and Beverage |   |                                      | 4,698,947 |   |   |   | 4,228,505 |   |
| Other                  |   |                                      | 244,662   |   |   |   | 263,530 |   |
| Total                  |   | $                                         | 6,114,054 |   |   | $      | 5,600,967 |   |
|                   |   |                                      |      |   |   |   |   |   |

|                                                |   |                                      |       |   |   |   |
|-----------------------------------------------------|--------|-------------------------------------------|------------|--------|--------|--------|
|                                                |   | For      The Three Months Ended March 31, |       |
|                                                |   | 2008                                      |       |   | 2007   |   |
| Cash      based promotional activities              |   | $                                         | 1,964,229  |   |   | $      | 5,443,253 |   |
| Slot      club and other                            |   |                                      | 1,911,477  |   |   |   | 1,946,022 |   |
| Retail      cost of rooms, food, beverage and other |   |                                      | 7,968,893  |   |   |   | 6,530,088 |   |
| Total                                               |   | $                                         | 11,844,599 |   |   | $      | 13,919,363 |   |
|                                                |   |                                      |       |   |   |   |   |   |

----

Table of Contents

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

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

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

|                                         |   |           |    |   |              |   |
|----------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                         |   | March      31, |    |   | December      31, |   |
|                                         |   | 2008           |    |   | 2007              |   |
| 9      1⁄2% senior secured notes due 2010 |   | $              | 300,000 |   |              | $      | 300,000 |   |
| 9      3⁄4% senior notes due 2011         |   |           | 200,000 |   |              |   | 200,000 |   |
| Senior      secured credit facility          |   |           | 52,297  |   |              |   | 56,425 |   |
| Capitalized      leases and other debt       |   |           | 249     |   |              |   | 313 |   |
| Long-term      debt                          |   |           | 552,546 |   |              |   | 556,738 |   |
| Less      current maturities                 |   |           | (181    | )      |              |   | (203 | ) |
| Total      long-term debt                    |   | $              | 552,365 |   |              | $      | 556,535 |   |
|                                         |   |           |    |   |              |   |   |   |

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|                                                 |   | For      The Three Months Ended |   |
|------------------------------------------------------|--------|---------------------------------|--------|
|                                                 |   | March      31,                  |   |
|                                                 |   | 2008                            |   |   | 2007 |   |
|                                                 |   | (in      thousands)             |   |
| Net      revenues:                                   |   |                            |   |   |   |   |
| Majestic      Properties                             |   | $                               | 59,438 |   |   | $ | 63,044 |   |
| Fitzgeralds      Tunica                              |   |                            | 22,727 |   |   |   | 20,520 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 6,828  |   |   |   | 7,950 |   |
| Total                                                |   | $                               | 88,993 |   |   | $ | 91,514 |   |
|                                                 |   |                            |   |   |   |   |   |   |
| Operating      income (loss):                        |   |                            |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 6,403  |   |   | $ | 9,709 |   |
| Fitzgeralds      Tunica                              |   |                            | 2,518  |   |   |   | 852 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 646    |   |   |   | 1,610 |   |
| Corporate      (1)                                   |   |                            | (1,695 | ) |   |   | (1,753 | ) |
| Total                                                |   | $                               | 7,872  |   |   | $ | 10,418 |   |
|                                                 |   |                            |   |   |   |   |   |   |
| Segment      depreciation and amortization:          |   |                            |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 4,768  |   |   | $ | 4,851 |   |
| Fitzgeralds      Tunica                              |   |                            | 2,873  |   |   |   | 2,669 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 584    |   |   |   | 620 |   |
| Corporate      (1)                                   |   |                            | 60     |   |   |   | 30 |   |
| Total                                                |   | $                               | 8,285  |   |   | $ | 8,170 |   |
|                                                 |   |                            |   |   |   |   |   |   |
| Expenditure      for additions to long-lived assets: |   |                            |   |   |   |   |   |   |
| Majestic      Properties                             |   | $                               | 559    |   |   | $ | 1,164 |   |
| Fitzgeralds      Tunica                              |   |                            | 707    |   |   |   | 4,049 |   |
| Fitzgeralds      Black Hawk                          |   |                            | 5,177  |   |   |   | 852 |   |
| Corporate                                            |   |                            | 17     |   |   |   | 23 |   |
| Total                                                |   | $                               | 6,460  |   |   | $ | 6,088 |   |

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

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| NOTE      8. | 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                           |                                                                                                                                  | $      | 8,777,842         |        |   | $                  | -            |        |         | $      | 19,743,480  |        |   | $      | -            |         |         |   | $ | 28,521,322 |   |
| Restricted      cash                                     |                                                                                                                                  |   | 3,401,359         |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 3,401,359 |   |
| Accounts      receivable, net                            |                                                                                                                                  |   | 1,573,058         |        |   |               | -            |        |         |   | 2,829,784   |        |   |   | -            |         |         |   |   | 4,402,842 |   |
| Inventories                                              |                                                                                                                                  |   | 370,698           |        |   |               | -            |        |         |   | 677,469     |        |   |   | -            |         |         |   |   | 1,048,167 |   |
| Prepaid      expenses and deposits                       |                                                                                                                                  |   | 2,334,724         |        |   |               | -            |        |         |   | 1,886,338   |        |   |   | -            |         |         |   |   | 4,221,062 |   |
| Receivable      from affiliate                           |                                                                                                                                  |   | 5,148,482         |        |   |               | -            |        |         |   | 2,501,399   |        |   |   | (7,171,103   | )            |  (a)    |   |   | 478,778 |   |
| Investment      in subsidiaries                          |                                                                                                                                  |   | 163,146,694       |        |   |               | -            |        |         |   | -           |        |   |   | (163,146,694 | )            |  (b)    |   |   | - |   |
|                                                     | Total      current assets                                                                                                             |   |              | 184,752,857 |   |               |         | -           |         |   |        | 27,638,470  |   |   |         | (170,317,797 | )            |   |   |   | 42,073,530 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| Property,      equipment and improvements, net      |                                                                                                                                  |   | 138,674,352       |        |   |               | -            |        |         |   | 138,761,856 |        |   |   | -            |         |         |   |   | 277,436,208 |   |
| Intangible      assets, net                              |                                                                                                                                  |   | -                 |        |   |               | -            |        |         |   | 121,071,543 |        |   |   | -            |         |         |   |   | 121,071,543 |   |
| Goodwill                                                 |                                                                                                                                  |   |              | -           |   |               |         | -           |         |   |        | 47,431,442  |   |   |         | -            |         |   |   |   | 47,431,442 |   |
| Other      assets:                                       |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Deferred      financing costs, net                       |                                                                                                                                  |   | 8,901,471         |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 8,901,471 |   |
| Deferred      financing and transaction costs            |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
|                                                     | pushed      down from Majestic Holdco (c)                                                                                             |   |              | 1,800,241   |   |               |         | -           |         |   |        | -           |   |   |         | -            |         |   |   |   | 1,800,241 |   |
| Long-term      receivable - related party                |                                                                                                                                  |   | 160,751,891       |        |   |               | -            |        |         |   | 17,024,294  |        |   |   | (177,776,185 | )            |  (a)    |   |   | - |   |
| Other      assets                                        |                                                                                                                                  |   | 1,853,784         |        |   |               | -            |        |         |   | 1,633,143   |        |   |   | -            |         |         |   |   | 3,486,927 |   |
|                                                     | Total      other assets                                                                                                               |   |              | 173,307,387 |   |               |         | -           |         |   |        | 18,657,437  |   |   |         | (177,776,185 | )            |   |   |   | 14,188,639 |   |
| Total      assets                                        |                                                                                                                                  | $      | 496,734,596       |        |   | $                  | -            |        |         | $      | 353,560,748 |        |   | $      | (348,093,982 | )            |         |   | $ | 502,201,362 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| LIABILITIES      AND MEMBER'S DEFICIT                    |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Current      liabilities:                                |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Accounts      payable                                    |                                                                                                                                  | $      | 808,797           |        |   | $                  | -            |        |         | $      | 2,235,597   |        |   | $      | -            |         |         |   | $ | 3,044,394 |   |
| Current      portion of long-term debt                   |                                                                                                                                  |   | 143,638           |        |   |               | -            |        |         |   | 37,725      |        |   |   | -            |         |         |   |   | 181,363 |   |
| Payable      to related party                            |                                                                                                                                  |   | -                 |        |   |               | -            |        |         |   | 4,671,103   |        |   |   | (4,671,103   | )            |  (a)    |   |   | - |   |
| Accrued      liabilities:                                |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
|                                                     | Payroll      and related                                                                                                              |   |              | 3,842,315   |   |               |         | -           |         |   |        | 6,660,596   |   |   |         | -            |         |   |   |   | 10,502,911 |   |
|                                                     | Interest                                                                                                                              |   |              | 22,831,936  |   |               |         | -           |         |   |        | -           |   |   |         | -            |         |   |   |   | 22,831,936 |   |
|                                                     | Property      and franchise taxes                                                                                                     |   |              | 7,620,652   |   |               |         | -           |         |   |        | 5,544,304   |   |   |         | -            |         |   |   |   | 13,164,956 |   |
|                                                     | Other      accrued liabilities                                                                                                        |   |              | 5,273,780   |   |               |         | -           |         |   |        | 10,512,838  |   |   |         | -            |         |   |   |   | 15,786,618 |   |
| Total      current liabilities                           |                                                                                                                                  |   | 40,521,118        |        |   |               | -            |        |         |   | 29,662,163  |        |   |   | (4,671,103   | )            |         |   |   | 65,512,178 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| Due      to related parties                              |                                                                                                                                  |   | 19,524,294        |        |   |               | -            |        |         |   | 160,751,891 |        |   |   | (180,276,185 | )            |  (a)    |   |   | - |   |
| Long-term      debt, net of current maturities           |                                                                                                                                  |   | 552,365,406       |        |   |               | 300,000,000  |        |         |   | -           |        |   |   | (300,000,000 | )            |  (d)    |   |   | 552,365,406 |   |
| Long-term      debt pushed down from Majestic Holdco (e) |                                                                                                                                  |   | 59,471,401        |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 59,471,401 |   |
|                                                     | Total      liabilities                                                                                                                |   |              | 671,882,219 |   |               |         | 300,000,000 |         |   |        | 190,414,054 |   |   |         | (484,947,288 | )            |   |   |   | 677,348,985 |   |
| Member's      (deficit) equity                           |                                                                                                                                  |   | (175,147,623      | )           |   |               | (300,000,000 | )           |         |   | 163,146,694 |        |   |   | 136,853,306  |         |  (b)(d) |   |   | (175,147,623 | ) |
|                                                     | Total      liabilities and member's (deficit) equity                                                                                  |   | $                 | 496,734,596 |   |               | $            | -           |         |   | $           | 353,560,748 |   |   | $            | (348,093,982 | )            |   |   | $ | 502,201,362 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| (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).    |   |              |        |   |               |         |

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|                                                     |                                                                                                                                  |   | The      Majestic |        |   | The      Majestic  |         |        |         |   |        |        |   |   |         |         |         |
|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------|--------------|-------------|--------------|--------|-------------|-------------|--------|--------|--------------|--------------|--------------|
|                                                     |                                                                                                                                  |   | Star      Casino, |        |   | Star      Casino   |         |        | Guarantor    |   |        | Eliminating |   |   |         | Total        |         |
|                                                     |                                                                                                                                  |   | LLC               |        |   | Capital      Corp. |         |        | Subsidiaries |   |        | Entries     |   |   |         | Consolidated |         |
| ASSETS                                                   |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |
| Current      assets:                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |
| Cash      and cash equivalents                           |                                                                                                                                  | $      | 8,055,172         |        |   | $                  | -            |        |         | $      | 21,161,091  |        |   | $      | -            |         |         |   | $ | 29,216,263 |   |
| Restricted      cash                                     |                                                                                                                                  |   | 3,401,359         |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 3,401,359 |   |
| Accounts      receivable, net                            |                                                                                                                                  |   | 2,579,315         |        |   |               | -            |        |         |   | 3,200,523   |        |   |   | -            |         |         |   |   | 5,779,838 |   |
| Inventories                                              |                                                                                                                                  |   | 421,082           |        |   |               | -            |        |         |   | 667,426     |        |   |   | -            |         |         |   |   | 1,088,508 |   |
| Prepaid      expenses and deposits                       |                                                                                                                                  |   | 1,026,745         |        |   |               | -            |        |         |   | 987,146     |        |   |   | -            |         |         |   |   | 2,013,891 |   |
| Receivable      from affiliate                           |                                                                                                                                  |   | 4,694,778         |        |   |               | -            |        |         |   | 1,399       |        |   |   | (4,079,288   | )            |  (a)    |   |   | 616,889 |   |
| Investment      in subsidiaries                          |                                                                                                                                  |   | 154,000,148       |        |   |               | -            |        |         |   | -           |        |   |   | (154,000,148 | )            |  (b)    |   |   | - |   |
|                                                     | Total      current assets                                                                                                             |   |              | 174,178,599 |   |               |         | -           |         |   |        | 26,017,585  |   |   |         | (158,079,436 | )            |   |   |   | 42,116,748 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| Property,      equipment and improvements, net      |                                                                                                                                  |   | 141,886,772       |        |   |               | -            |        |         |   | 137,742,394 |        |   |   | -            |         |         |   |   | 279,629,166 |   |
| Intangible      assets, net                              |                                                                                                                                  |   | -                 |        |   |               | -            |        |         |   | 121,936,336 |        |   |   | -            |         |         |   |   | 121,936,336 |   |
| Goodwill                                                 |                                                                                                                                  |   |              | -           |   |               |         | -           |         |   |        | 47,431,442  |   |   |         | -            |         |   |   |   | 47,431,442 |   |
| Other      assets:                                       |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Deferred      financing costs, net                       |                                                                                                                                  |   | 9,737,796         |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 9,737,796 |   |
| Deferred      financing and transaction costs            |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
|                                                     | pushed      down from Majestic Holdco (c)                                                                                             |   |              | 1,927,317   |   |               |         | -           |         |   |        | -           |   |   |         | -            |         |   |   |   | 1,927,317 |   |
| Long-term      receivable - related party                |                                                                                                                                  |   | 171,709,437       |        |   |               | -            |        |         |   | 22,702,169  |        |   |   | (194,411,606 | )            |  (a)    |   |   | - |   |
| Other      assets                                        |                                                                                                                                  |   | 1,271,483         |        |   |               | -            |        |         |   | 1,639,657   |        |   |   | -            |         |         |   |   | 2,911,140 |   |
|                                                     | Total      other assets                                                                                                               |   |              | 184,646,033 |   |               |         | -           |         |   |        | 24,341,826  |   |   |         | (194,411,606 | )            |   |   |   | 14,576,253 |   |
| Total      assets                                        |                                                                                                                                  | $      | 500,711,404       |        |   | $                  | -            |        |         | $      | 357,469,583 |        |   | $      | (352,491,042 | )            |         |   | $ | 505,689,945 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| LIABILITIES      AND MEMBER'S DEFICIT                    |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Current      liabilities:                                |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
| Accounts      payable                                    |                                                                                                                                  | $      | 1,255,451         |        |   | $                  | -            |        |         | $      | 3,004,024   |        |   | $      | -            |         |         |   | $ | 4,259,475 |   |
| Current      portion of long-term debt                   |                                                                                                                                  |   | 156,340           |        |   |               | -            |        |         |   | 46,440      |        |   |   | -            |         |         |   |   | 202,780 |   |
| Payable      to related party                            |                                                                                                                                  |   | 311,321           |        |   |               | -            |        |         |   | 3,982,255   |        |   |   | (4,079,288   | )            |  (a)    |   |   | 214,288 |   |
| Accrued      liabilities:                                |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |
|                                                     | Payroll      and related                                                                                                              |   |              | 3,558,272   |   |               |         | -           |         |   |        | 5,648,453   |   |   |         | -            |         |   |   |   | 9,206,725 |   |
|                                                     | Interest                                                                                                                              |   |              | 10,980,075  |   |               |         | -           |         |   |        | -           |   |   |         | -            |         |   |   |   | 10,980,075 |   |
|                                                     | Property      and franchise taxes                                                                                                     |   |              | 10,875,649  |   |               |         | -           |         |   |        | 7,022,274   |   |   |         | -            |         |   |   |   | 17,897,923 |   |
|                                                     | Other      accrued liabilities                                                                                                        |   |              | 4,423,253   |   |               |         | -           |         |   |        | 12,051,956  |   |   |         | -            |         |   |   |   | 16,475,209 |   |
| Total      current liabilities                           |                                                                                                                                  |   | 31,560,361        |        |   |               | -            |        |         |   | 31,755,402  |        |   |   | (4,079,288   | )            |         |   |   | 59,236,475 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| Due      to related parties                              |                                                                                                                                  |   | 22,702,169        |        |   |               | -            |        |         |   | 171,709,437 |        |   |   | (194,411,606 | )            |  (a)    |   |   | - |   |
| Long-term      debt, net of current maturities           |                                                                                                                                  |   | 556,530,845       |        |   |               | 300,000,000  |        |         |   | 4,596       |        |   |   | (300,000,000 | )            |  (d)    |   |   | 556,535,441 |   |
| Long-term      debt pushed down from Majestic Holdco (e) |                                                                                                                                  |   | 57,710,229        |        |   |               | -            |        |         |   | -           |        |   |   | -            |         |         |   |   | 57,710,229 |   |
|                                                     | Total      liabilities                                                                                                                |   |              | 668,503,604 |   |               |         | 300,000,000 |         |   |        | 203,469,435 |   |   |         | (498,490,894 | )            |   |   |   | 673,482,145 |   |
| Member's      (deficit) equity                           |                                                                                                                                  |   | (167,792,200      | )           |   |               | (300,000,000 | )           |         |   | 154,000,148 |        |   |   | 145,999,852  |         |  (b)(d) |   |   | (167,792,200 | ) |
|                                                     | Total      liabilities and member's (deficit) equity                                                                                  |   | $                 | 500,711,404 |   |               | $            | -           |         |   | $           | 357,469,583 |   |   | $            | (352,491,042 | )            |   |   | $ | 505,689,945 |   |
|                                                     |                                                                                                                                  |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |   |   |   |
| (a)                                                      | To      eliminate intercompany receivable and payables.                                                                               |   |              |        |   |               |         |        |         |   |        |        |   |   |         |         |         |   |   |
| (b)                                                      | To      eliminate intercompany accounts and investment in      subsidiaries.                                                          |   |              |        |   |               |         |        |         |   |        |        |   |   |         |
| (c)                                                      | Reflects      the pushdown of deferred financing costs related to the issuance of the      Discount Notes of Majestic Holdco,         |   |
|                                                     |          net of amortization, pursuant to SEC Staff Accounting Bulletin 73 Topic      5(J).                            |   |
| (d)                                                      | The      Majestic Star Casino Capital Corp. is a co-obligor of the Senior Secured      Notes issued by the Company. Accordingly, such |   |              |        |   |               |         |
|                                                     | indebtedness      has been presented as an obligation of both the issuer and the co-obligor      in the above balance sheet.          |   |              |        |   |               |         |
| (e)                                                      | Reflects      the pushdown of Majestic Holdco’s Discount Notes pursuant to SEC Staff      Accounting Bulletin 73 Topic 5(J).    |   |              |        |   |               |         |

----

Table of Contents

| NOTE      8. | 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                                     |                                                                                                                                               |   | $                 | 31,422,809 |   |               | $      | -      |         |   | $          | 57,929,487  |   |   | $          | -            |   |   |   | $ | 89,352,296 |   |
| Rooms                                      |                                                                                                                                               |   |              | -          |   |               |   | -      |         |   |       | 2,988,731   |   |   |       | -            |   |   |   |   | 2,988,731 |   |
| Food      and beverage                     |                                                                                                                                               |   | 2,444,640         |       |   |               | -      |   |         |   | 4,012,393  |        |   |   | -          |         |   |   |   | 6,457,033 |   |
| Other                                      |                                                                                                                                               |   |              | 912,159    |   |               |   | -      |         |   |       | 1,127,850   |   |   |       | -            |   |   |   |   | 2,040,009 |   |
|                                       | Gross      revenues                                                                                                                                |   |              | 34,779,608 |   |               |   | -      |         |   |       | 66,058,461  |   |   |       | -            |   |   |   |   | 100,838,069 |   |
| Less      promotional allowances           |                                                                                                                                               |   | 3,418,200         |       |   |               | -      |   |         |   | 8,238,642  |        |   |   | 187,757    |         | (a)    |   |   | 11,844,599 |   |
|                                       | Net      operating revenues                                                                                                                        |   |              | 31,361,408 |   |               |   | -      |         |   |       | 57,819,819  |   |   |       | (187,757     | )      |   |   |   | 88,993,470 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                               |   |              | 8,806,046  |   |               |   | -      |         |   |       | 16,091,486  |   |   |       | -            |   |   |   |   | 24,897,532 |   |
| Rooms                                      |                                                                                                                                               |   |              | -          |   |               |   | -      |         |   |       | 580,014     |   |   |       | -            |   |   |   |   | 580,014 |   |
| Food      and beverage                     |                                                                                                                                               |   | 761,075           |       |   |               | -      |   |         |   | 1,335,602  |        |   |   | -          |         |   |   |   | 2,096,677 |   |
| Other                                      |                                                                                                                                               |   |              | 232,550    |   |               |   | -      |         |   |       | 210,372     |   |   |       | -            |   |   |   |   | 442,922 |   |
| Gaming      taxes                          |                                                                                                                                               |   | 9,177,561         |       |   |               | -      |   |         |   | 11,836,770 |        |   |   | -          |         |   |   |   | 21,014,331 |   |
| Advertising      and promotion             |                                                                                                                                               |   | 1,679,704         |       |   |               | -      |   |         |   | 4,193,992  |        |   |   | (187,757   | )            | (a)    |   |   | 5,685,939 |   |
| General      and administrative            |                                                                                                                                               |   | 6,254,318         |       |   |               | -      |   |         |   | 8,489,713  |        |   |   | -          |         |   |   |   | 14,744,031 |   |
| Corporate      expense                     |                                                                                                                                               |   | 1,635,719         |       |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | 1,635,719 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                               |   | 924,967           |       |   |               | -      |   |         |   | 827,987    |        |   |   | -          |         |   |   |   | 1,752,954 |   |
| Depreciation      and amortization         |                                                                                                                                               |   | 3,127,876         |       |   |               | -      |   |         |   | 5,156,783  |        |   |   | -          |         |   |   |   | 8,284,659 |   |
| Gain      on disposal of assets            |                                                                                                                                               |   | (13,278           | )          |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | (13,278 | ) |
|                                       | Total      operating costs and expenses                                                                                                            |   |              | 32,586,538 |   |               |   | -      |         |   |       | 48,722,719  |   |   |       | (187,757     | )      |   |   |   | 81,121,500 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Operating      (loss) income                                                                                                                       |   |              | (1,225,130 | )      |               |   | -      |         |   |       | 9,097,100   |   |   |       | -            |   |   |   |   | 7,871,970 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):               |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                               |   | 59,905            |       |   |               | -      |   |         |   | 49,819     |        |   |   | -          |         |   |   |   | 109,724 |   |
| Interest      expense                      |                                                                                                                                               |   | (13,433,344       | )          |   |               | -      |   |         |   | (373       | )           |   |   | -          |         |   |   |   | (13,433,717 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                      |   |              | (1,888,249 | )      |               |   | -      |         |   |       | -           |   |   |       | -            |   |   |   |   | (1,888,249 | ) |
| Other      non-operating expense           |                                                                                                                                               |   | (15,151           | )          |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | (15,151 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                               |   | 9,146,546         |       |   |               | -      |   |         |   | -          |        |   |   | (9,146,546 | )            | (c)    |   |   | - |   |
|                                       | Total      other expense                                                                                                                           |   |              | (6,130,293 | )      |               |   | -      |         |   |       | 49,446      |   |   |       | (9,146,546   | )      |   |   |   | (15,227,393 | ) |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                             |   | $                 | (7,355,423 | )      |               | $      | -      |         |   | $          | 9,146,546   |   |   | $          | (9,146,546   | )      |   |   | $ | (7,355,423 | ) |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| (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 70 Topic    5(J).                                                    |   |
| (c)                                        | To      eliminate equity in net income of subsidiaries.                                                                                            |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |

----

Table of Contents

|                                       |                                                                                                                                               |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |       |        |   |   |       |         |   |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|------------|-------------|--------|--------|------------|--------------|--------|
|                                       |                                                                                                                                               |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |       | Eliminating |   |   |       | Total        |   |
|                                       |                                                                                                                                               |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |       | Entries     |   |   |       | Consolidated |   |
| OPERATING      REVENUES:                   |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |
| Casino                                     |                                                                                                                                               |   | $                 | 36,843,659 |   |               | $      | -      |         |   | $          | 58,286,901  |   |   | $          | -            |   |   |   | $ | 95,130,560 |   |
| Rooms                                      |                                                                                                                                               |   |              | -          |   |               |   | -      |         |   |       | 2,544,945   |   |   |       | -            |   |   |   |   | 2,544,945 |   |
| Food      and beverage                     |                                                                                                                                               |   | 2,055,511         |       |   |               | -      |   |         |   | 3,819,744  |        |   |   | -          |         |   |   |   | 5,875,255 |   |
| Other                                      |                                                                                                                                               |   |              | 914,052    |   |               |   | -      |         |   |       | 968,424     |   |   |       | -            |   |   |   |   | 1,882,476 |   |
|                                       | Gross      revenues                                                                                                                                |   |              | 39,813,222 |   |               |   | -      |         |   |       | 65,620,014  |   |   |       | -            |   |   |   |   | 105,433,236 |   |
| Less      promotional allowances           |                                                                                                                                               |   | 4,940,528         |       |   |               | -      |   |         |   | 8,888,812  |        |   |   | 90,023     |         | (a)    |   |   | 13,919,363 |   |
|                                       | Net      operating revenues                                                                                                                        |   |              | 34,872,694 |   |               |   | -      |         |   |       | 56,731,202  |   |   |       | (90,023      | )      |   |   |   | 91,513,873 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:         |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Casino                                     |                                                                                                                                               |   |              | 7,387,792  |   |               |   | -      |         |   |       | 16,270,845  |   |   |       | -            |   |   |   |   | 23,658,637 |   |
| Rooms                                      |                                                                                                                                               |   |              | -          |   |               |   | -      |         |   |       | 805,184     |   |   |       | -            |   |   |   |   | 805,184 |   |
| Food      and beverage                     |                                                                                                                                               |   | 1,210,481         |       |   |               | -      |   |         |   | 1,460,128  |        |   |   | -          |         |   |   |   | 2,670,609 |   |
| Other                                      |                                                                                                                                               |   |              | 260,602    |   |               |   | -      |         |   |       | 242,519     |   |   |       | -            |   |   |   |   | 503,121 |   |
| Gaming      taxes                          |                                                                                                                                               |   | 10,353,331        |       |   |               | -      |   |         |   | 11,954,613 |        |   |   | -          |         |   |   |   | 22,307,944 |   |
| Advertising      and promotion             |                                                                                                                                               |   | 1,360,420         |       |   |               | -      |   |         |   | 4,039,259  |        |   |   | (90,023    | )            | (a)    |   |   | 5,309,656 |   |
| General      and administrative            |                                                                                                                                               |   | 5,526,568         |       |   |               | -      |   |         |   | 8,679,342  |        |   |   | -          |         |   |   |   | 14,205,910 |   |
| Corporate      expense                     |                                                                                                                                               |   | 1,723,202         |       |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | 1,723,202 |   |
| Economic      incentive tax - City of Gary |                                                                                                                                               |   | 965,452           |       |   |               | -      |   |         |   | 788,137    |        |   |   | -          |         |   |   |   | 1,753,589 |   |
| Depreciation      and amortization         |                                                                                                                                               |   | 3,060,089         |       |   |               | -      |   |         |   | 5,109,563  |        |   |   | -          |         |   |   |   | 8,169,652 |   |
| Gain      on disposal of assets            |                                                                                                                                               |   | -                 |       |   |               | -      |   |         |   | (11,725    | )           |   |   | -          |         |   |   |   | (11,725 | ) |
|                                       | Total      operating costs and expenses                                                                                                            |   |              | 31,847,937 |   |               |   | -      |         |   |       | 49,337,865  |   |   |       | (90,023      | )      |   |   |   | 81,095,779 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Operating      income                                                                                                                              |   |              | 3,024,757  |   |               |   | -      |         |   |       | 7,393,337   |   |   |       | -            |   |   |   |   | 10,418,094 |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):               |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
| Interest      income                       |                                                                                                                                               |   | 33,210            |       |   |               | -      |   |         |   | 178,967    |        |   |   | -          |         |   |   |   | 212,177 |   |
| Interest      expense                      |                                                                                                                                               |   | (13,576,846       | )          |   |               | -      |   |         |   | (1,844     | )           |   |   | -          |         |   |   |   | (13,578,690 | ) |
| Interest      expense - debt pushed down   |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |
|                                       | from      Majestic Holdco (b)                                                                                                                      |   |              | (1,684,414 | )      |               |   | -      |         |   |       | -           |   |   |       | -            |   |   |   |   | (1,684,414 | ) |
| Other      non-operating expense           |                                                                                                                                               |   | (34,665           | )          |   |               | -      |   |         |   | -          |        |   |   | -          |         |   |   |   | (34,665 | ) |
| Equity      in net income of subsidiaries  |                                                                                                                                               |   | 7,570,460         |       |   |               | -      |   |         |   | -          |        |   |   | (7,570,460 | )            | (c)    |   |   | - |   |
|                                       | Total      other expense                                                                                                                           |   |              | (7,692,255 | )      |               |   | -      |         |   |       | 177,123     |   |   |       | (7,570,460   | )      |   |   |   | (15,085,592 | ) |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
|                                       | Net      (loss) income                                                                                                                             |   | $                 | (4,667,498 | )      |               | $      | -      |         |   | $          | 7,570,460   |   |   | $          | (7,570,460   | )      |   |   | $ | (4,667,498 | ) |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |   |   |   |
| (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.                                                                                            |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |
|                                       |                                                                                                                                               |   |              |       |   |               |   |   |         |   |       |        |   |   |       |         |   |   |   |

----

Table of Contents

| NOTE      8. | 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)  |                                                                                                                                            | $      | (6,949,792        | )          |   | $                  | -      |   |         | $      | 17,487,187  |        |   | $      | -            |   |   | $ | 10,537,395 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                     |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Additions      to property and equipment                       |                                                                                                                                            |   | (518,372          | )          |   |               | -      |   |         |   | (5,941,487  | )           |   |   | -            |   |   |   | (6,459,859 | ) |
| Increase      in Lakefront Capital Improvement Fund            |                                                                                                                                            |   | (606,311          | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (606,311 | ) |
| Proceeds      from disposal of equipment                       |                                                                                                                                            |   | 25,286            |       |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | 25,286 |   |
|                                                           | Net      cash used in investing activities                                                                                                      |   |              | (1,099,397 | )      |               |   | -      |         |   |        | (5,941,487  | )      |   |         | -      |   |   |   | (7,040,884 | ) |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                     |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Proceeds      from line of credit                              |                                                                                                                                            |   | 9,721,713         |       |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | 9,721,713 |   |
| Repayment      of line of credit                               |                                                                                                                                            |   | (13,850,000       | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (13,850,000 | ) |
| Advances      from (to) affiliates                             |                                                                                                                                            |   | 12,950,000        |       |   |               | -      |   |         |   | (12,950,000 | )           |   |   | -            |   |   |   | - |   |
| Repayment      of debt                                         |                                                                                                                                            |   | (49,854           | )          |   |               | -      |   |         |   | (13,311     | )           |   |   | -            |   |   |   | (63,165 | ) |
|                                                           | Net      cash provided by (used in) financing activities                                                                                        |   |              | 8,771,859  |   |               |   | -      |         |   |        | (12,963,311 | )      |   |         | -      |   |   |   | (4,191,452 | ) |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Net increase      (decrease) in cash and cash equivalents |                                                                                                                                            |   | 722,670           |       |   |               | -      |   |         |   | (1,417,611  | )           |   |   | -            |   |   |   | (694,941 | ) |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period            |                                                                                                                                            |   | 8,055,172         |       |   |               | -      |   |         |   | 21,161,091  |        |   |   | -            |   |   |   | 29,216,263 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                  |                                                                                                                                            | $      | 8,777,842         |       |   | $                  | -      |   |         | $      | 19,743,480  |        |   | $      | -            |   |   | $ | 28,521,322 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| (a)                                                            | Includes      interest expense of $1.8 million and amortization of deferred financing      costs of $0.1 million related to the amortization of |   |
|                                                           | bond      discount and deferred financing costs of Majestic Holdco's Discount      Notes.                                                       |   |              |       |   |               |   |   |         |   |        |        |   |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |

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| NOTE      8. | SUPPLEMENTAL      GUARANTOR FINANCIAL INFORMATION(CONTINUED) |
|--------------|--------------------------------------------------------------|

|                                                           |                                                                                                                                            |   | The      Majestic |       |   | The      Majestic  |   |   |         |   |        |        |   |   |         |   |
|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------------------|--------|--------|--------------|--------|-------------|-------------|--------|--------|--------------|--------|
|                                                           |                                                                                                                                            |   | Star      Casino, |       |   | Star      Casino   |   |   | Guarantor    |   |        | Eliminating |   |   | Total        |   |
|                                                           |                                                                                                                                            |   | LLC               |       |   | Capital      Corp. |   |   | Subsidiaries |   |        | Entries     |   |   | Consolidated |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES: (a)            |                                                                                                                                            | $      | 2,511,155         |       |   | $                  | -      |   |         | $      | 17,136,172  |        |   | $      | -            |   |   | $ | 19,647,327 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                     |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Additions      to property and equipment                       |                                                                                                                                            |   | (1,033,862        | )          |   |               | -      |   |         |   | (5,054,403  | )           |   |   | -            |   |   |   | (6,088,265 | ) |
| Increase      in Lakefront Capital Improvement Fund            |                                                                                                                                            |   | (619,795          | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (619,795 | ) |
| Proceeds      from disposal of equipment                       |                                                                                                                                            |   | -                 |       |   |               | -      |   |         |   | 11,725      |        |   |   | -            |   |   |   | 11,725 |   |
|                                                           | Net      cash used in investing activities                                                                                                      |   |              | (1,653,657 | )      |               |   | -      |         |   |        | (5,042,678  | )      |   |         | -      |   |   |   | (6,696,335 | ) |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                     |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |
| Proceeds      from line of credit                              |                                                                                                                                            |   | 1,484,144         |       |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | 1,484,144 |   |
| Repayment      of line of credit                               |                                                                                                                                            |   | (12,600,049       | )          |   |               | -      |   |         |   | -           |        |   |   | -            |   |   |   | (12,600,049 | ) |
| Advances      from (to) affiliates                             |                                                                                                                                            |   | 10,000,000        |       |   |               | -      |   |         |   | (10,000,000 | )           |   |   | -            |   |   |   | - |   |
| Repayment      of debt                                         |                                                                                                                                            |   | (14,873           | )          |   |               | -      |   |         |   | (30,915     | )           |   |   | -            |   |   |   | (45,788 | ) |
|                                                           | Net      cash used in financing activities                                                                                                      |   |              | (1,130,778 | )      |               |   | -      |         |   |        | (10,030,915 | )      |   |         | -      |   |   |   | (11,161,693 | ) |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents |                                                                                                                                            |   | (273,280          | )          |   |               | -      |   |         |   | 2,062,579   |        |   |   | -            |   |   |   | 1,789,299 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period            |                                                                                                                                            |   | 9,101,841         |       |   |               | -      |   |         |   | 16,430,083  |        |   |   | -            |   |   |   | 25,531,924 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                  |                                                                                                                                            | $      | 8,828,561         |       |   | $                  | -      |   |         | $      | 18,492,662  |        |   | $      | -            |   |   | $ | 27,321,223 |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |
| (a)                                                            | Includes      interest expense of $1.6 million and amortization of deferred financing      costs of $0.1 million related to the amortization of |   |
|                                                           | bond      discount and deferred financing costs of Majestic Holdco's Discount      Notes.                                                       |   |              |       |   |               |   |   |         |   |        |        |   |   |
|                                                           |                                                                                                                                            |   |              |       |   |               |   |   |         |   |        |        |   |   |         |   |   |   |   |   |   |

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

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| ·   | The      $32.2 million expansion of Fitzgeralds Black Hawk is anticipated to be      substantially complete in June 2008. This expansion will add more      amenities for our guests and increase the number of slot machines from      approximately 600 to approximately 1,000. We have incurred $27.5 million      through March 31, 2008 on this project and have budgeted the remaining      $4.7 million for the completion of theproject. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| ·   | On      January 1, 2008, a statewide smoking ban that includes casino floors went      into effect in Colorado. The ban negatively affected revenues      at Fitzgeralds Black Hawk, although we have not yet been able to      quantify the effect. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | We      continue to strive to control costs without hurting our competitiveness.      However, given the difficulties in raising capital in the current      financial market conditions and our lower cash flows, it will be very      difficult for us to compete by providing new or enhanced amenities to our      customers.  As a result, we may need to increase promotional and      marketing expense to drive visitation to our casinos.  Also, our      limitations on capital expenditures may cause us to rely more on      leasing slot equipment so that we have the slot product that      customers desire, which is more costly in the long    run. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                      |                                                                                              |   | For      The Three Months Ended |   |   |    |   |
|-------------------------------------------|---------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------|--------|
|                                      |                                                                                              |   | March      31,                  |   |   | Percent |   |
|                                      |                                                                                              |   | 2008                            |   |   | 2007    |   |   | Change |   |
| Net      revenues:                        |                                                                                              |   |                            |   |   |    |   |   |   |
| Majestic      Properties                  |                                                                                              | $      | 59,438                          |   |   | $       | 63,044 |   |   |   | -5.7 | % |
| Fitzgeralds      Tunica                   |                                                                                              |   | 22,727                          |   |   |    | 20,520 |   |   |   | 10.8 | % |
| Fitzgeralds      Black Hawk               |                                                                                              |   | 6,828                           |   |   |    | 7,950  |   |   |   | -14.1 | % |
|       Total |                                                                                              |   | $                               | 88,993 |   |    | $      | 91,514 |   |   |   | -2.8 | % |
|                                      |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |   |
| Casino      revenues:                     |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |
| Majestic      Properties                  |                                                                                              | $      | 59,313                          |   |   | $       | 66,469 |   |   |   | -10.8 | % |
| Fitzgeralds      Tunica                   |                                                                                              |   | 22,338                          |   |   |    | 20,106 |   |   |   | 11.1 | % |
| Fitzgeralds      Black Hawk               |                                                                                              |   | 7,701                           |   |   |    | 8,556  |   |   |   | -10.0 | % |
|       Total |                                                                                              |   | $                               | 89,352 |   |    | $      | 95,131 |   |   |   | -6.1 | % |
|                                      |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |   |
| Operating      income (loss):             |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |
| Majestic      Properties                  |                                                                                              | $      | 6,403                           |   |   | $       | 9,709  |   |   |   | -34.0 | % |
| Fitzgeralds      Tunica                   |                                                                                              |   | 2,518                           |   |   |    | 852    |   |   |   | 195.7 | % |
| Fitzgeralds      Black Hawk               |                                                                                              |   | 646                             |   |   |    | 1,610  |   |   |   | -59.9 | % |
| Corporate      (1)                        |                                                                                              |   | (1,695                          | )      |   |    | (1,753 | ) |   |   | 3.3 | % |
|       Total |                                                                                              |   | $                               | 7,872  |   |    | $      | 10,418 |   |   |   | -24.4 | % |
|                                      |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |   |
|                                      |                                                                                              |   |                            |   |   |    |   |   |   |   |   |   |   |
| (1)                                       | Corporate      expenses reflect professional fees, payroll, benefits, travel and other      costs |   |
|                                      | associated      with our corporate staff and are not allocated to the      properties.            |   |                            |   |   |    |
|                                      |                                                                                              |   |                            |   |   |    |

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ITEM3. 

ITEM4T. 

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PARTII                     OTHER INFORMATION

ITEM 1. 

ITEM1A.  

ITEM 6. 

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

| Exhibit      No. |                 | Description      of Document                                                                                                                                                                                                                                                                                                 |
|------------------|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                 |                                                                                                                                                                                                                                                                                                                         |
| 10.1             |                 | Amendment      Number Eight, dated as of March 31, 2008, among The Majestic Star Casino,      LLC, certain subsidiary signatories thereto, the lender signatories and      Wells Fargo Foothill, Inc. as Agent (filed as Exhibit 10.1 to the      Company’s Current Report on Form 8-K dated April 4, 2008)  |
| 31.1*            |                 | Certification      of Chief Executive Officer pursuant to Rule 15d-14 of the Securities      Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                |
|             |                 |                                                                                                                                                                                                                                                                                                                         |
| 31.2*            |                 | Certification      of Chief Financial Officer pursuant to Rule 15d-14 of the Securities      Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                |
|             |                 |                                                                                                                                                                                                                                                                                                                         |
| 32*              |                 | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                            |
|             |                 |                                                                                                                                                                                                                                                                                                                         |
|             |                 |                                                                                                                                                                                                                                                                                                                         |
|             |                 |                                                                                                                                                                                                                                                                                                                         |
|             |                 |
|             |                 |
| *                | Filed      herewith. |
|             |                 |                                                                                                                                                                                                                                                                                                                         |

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SIGNATURES

| Dated:      May 15, 2008                                          |
|-------------------------------------------------------------------|
|                                                              |   |
| THE      MAJESTIC STAR CASINO, LLC                                |
|                                                              |   |
|  /s/      Don H. Barden                                      |   |
| Don      H. Barden                                                |
| Chairman,      President and Chief Executive Officer              |
| (Principal      Executive Officer)                                |
|                                                              |   |
|  /s/ Jon S.      Bennett                                     |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |   |
|                                                              |   |
| THE      MAJESTIC STAR CASINO CAPITAL CORP.                       |
|                                                              |   |
|  /s/      Don H. Barden                                      |   |
| Don      H. Barden                                                |
| President      and Chief Executive Officer                        |
| (Principal      Executive Officer)                                |
|                                                              |   |
|  /s/ Jon S.      Bennett                                     |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |
|                                                              |
| THE      MAJESTIC STAR CASINO CAPITAL CORP. II                    |
|                                                              |
|  /s/ Don H.      Barden                                      |   |
| Don      H. Barden                                                |
| President      and Chief Executive Officer                        |
| (Principal      Executive Officer)                                |
|                                                              |
|  /s/Jon      S. Bennett                                      |   |
| Jon      S. Bennett                                               |
| Senior      Vice President, Chief Financial Officer and Treasurer |
| (Principal      Financial and Accounting Officer)                 |
|                                                              |

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