INTEREST RATE COLLAR AGREEMENT
                              
      THIS AGREEMENT ("Agreement") is entered into as of the
10th day  of  August,  1998,  by and between AMERISTAR
CASINOS,  INC. ("Collar  Purchaser"), and WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Collar Seller").
       WHEREAS,  Collar  Purchaser  desires  to  protect
against fluctuations  in  interest rates and has  requested
that  Collar Seller  make payments to Collar Purchaser in
the event  that  the Floating Rate exceeds the Cap Rate.
      WHEREAS, In exchange for Collar Purchaser's payment
of  an amount equal to the Collar Fee and agreement to pay
Collar Seller in  the  event  that the Floating Rate
declines below  the  Floor Rate, Collar Seller is willing to
make such payments on the terms set forth herein.
      NOW  THEREFORE, in consideration of their mutual
covenants, Collar Seller and Collar Purchaser agree as
follows:
      1.   Definitions.  The capitalized terms "Cap Amount",
"Cap Rate",  "Collar Fee", "Collar Fee Payment Date", "Collar
Interest Settlement  Payment  Dates", "Effective Date",
"Floating  Rate", "Floating  Rate Maturity", "Floor Amount",
"Floor  Rate",  "Reset Dates"  "Termination Date" and "Trade
Date"   shall  each  be  as specified  in  the  Collar
Confirmation.  All  other  capitalized terms shall have the
meanings set forth below or as otherwise set forth in this
Agreement:

           (a)   "Business Day" means a day (other than
Saturday, Sunday or holiday) on which Collar Seller is open and
conducting its customary banking transactions in the State
of California.

           (b)  "Business Day Convention" means, for
purposes  of determining each Calculation Period, that
convention specified in the Collar Confirmation for
adjusting any relevant date if it would  otherwise  fall
on a day that is not a Business Day, so that:

                    (i)   if "following" is specified, that
                    date will  be  the first following day
                    that is a Business Day;
                    
                    (ii)  if  "modified following" is
                    specified, that  date  will be the first
                    following  day that  is a Business Day
                    unless that day falls in  the  next
                    calendar month, in  which  case that
                    date  will be the first  preceding  day
                    that is a Business Day; and
                    
                    (iii)  if "preceding" is specified,
                    that date will be the first preceding
                    day that  is a Business Day.
                    
            (c)   "Calculation  Period" means, subject to
Business Day Convention, each consecutive period
designated in the Collar Confirmation, the first of which
will commence on, <PAGE>and  include the Effective Date and
extend to, but  exclude the  first Reset Date.  Each
subsequent Calculation Period,  will commence  on,  and
include the Reset Date  and  extend  to,  but exclude  the
next Reset Date.  The final Calculation Period  will
end on, but exclude, the Completion Date.

            (d)    "Collar   Confirmation"  means   a
document, substantially  in  the  form  of  Exhibit  A
hereto,  with   the information required in each blank space
completed.

           (e)  "Completion Date" shall mean the Termination
Date unless an Early Termination Date has occurred, in which
case  the Completion Date shall be the Early Termination
Date.

           (f)  "Day Count Convention" means that the
calculation of  each  Cap  Interest Settlement and Floor
Interest  Settlement will  be  based  on the actual number
of days in the  Calculation Period divided by a 360-day
year.

           (g)   "Early Termination Date" means the date, if
any, prior  to  the  Termination Date upon  which  this
Agreement  is terminated pursuant to Paragraph 4(a) below.

           (h)   "LIBOR" means, with respect to each
Calculation Period, the rate for deposits in U.S. Dollars
for a period  equal to  the  Floating Rate Maturity, which
appears on  Telerate  Page 3750 as of 11:00 AM, London Time,
on the day that is two Business Days  prior to the Reset
Date (or the Effective Date in the  case of  the initial
Period). If such rate does not appear on Telerate Page
3750, the rate for that Reset Date will be the
arithmetic mean  of  the rates quoted by major Banks in London,
selected  by Cap Seller, for a period equal to the Floating
Rate Maturity,  as of  11:00  AM, London Time, on the day
that is two Business  Days prior to the Reset Date.

             (i)  Telerate  Page  3750  means the display
designated as Page 3750 on the Dow Jones Telerate Service
(or such  other page as may replace Page 3750 on that service or
such other service  as  may  be  nominated by  the  British
Bankers Association as the information vendor  for  the  purpose of
displaying British Bankers Association Interest Settlement
Rates for U.S. Dollar Deposits).

     2.   Collar Fee.

           (a)   As  a  condition precedent to its acquiring
any rights  hereunder,  Collar Purchase shall pay Collar
Seller  the Collar  Fee in cleared funds, no later than 3:00
p.m., California time, on the Collar Fee Payment Date.

           (b)  In order to establish the Cap Rate and perform
its obligations under this Agreement, Collar Seller may  "hedge"
in the financial markets or otherwise make arrangements to
permit it to  carry  out its obligations under the terms of
this Agreement. Such  actions may impose various costs and
risks on Collar Seller beyond  those  which it would
otherwise incur.  Collar  Purchaser acknowledges that the
Collar Fee is nonrefundable and  reasonable compensation
for such additional risks and costs, regardless  of whether
Collar Seller in fact "hedges" in the financial markets.
<PAGE>

     3.   Payment of Interest Settlements.

           (a)   At least five Business Days prior to the
end  of each Calculation Period, Collar Seller will send
Collar Purchaser a written notice ("Settlement Notice")
specifying:

                          (i)  the amount of interest which
                    would have  accrued  on the Cap Amount
                    during  the Calculation Period at a rate
                    per annum  equal
                    to the Floating Rate;

                               (ii)  the amount of interest
                    which would  have accrued on the Cap
                    Amount  during the  Calculation Period
                    at a rate  per  annum equal to the Cap
                    Rate; and

                          (iii)  the excess, if any,  of
                    the amount computed pursuant to
                    Paragraph 3(a)(i) over the amount
                    computed pursuant to Paragraph 3(a)(ii)
                    above  ("Cap Interest Settlement").
                    
           (b)   In  addition, the Settlement  Notice  will
also include:

                               (i)   the amount of interest
                    which would have accrued on the Floor
                    Amount during the  Calculation Period at
                    a rate  per  annum equal to the Floor
                    Rate;
                    
                          (ii) the amount of interest which
                    would have  accrued on the Floor Amount
                    during  the Calculation Period at a rate
                    per annum  equal to the Floating Rate;
                    and
                    
                          (iii) the excess, if any,  of
                    the amount computed pursuant to
                    Paragraph 3(b)(i) over   the   amount
                    computed pursuant to Paragraph  3(b)(ii)
                    above ("Floor Interest Settlement").
                    
           (c)   All calculations under Paragraphs 3(a)  and
                  (b) above will be made on the basis of the
                 Day Count Convention.

           (d)   On each Collar Interest Settlement Payment
                 Date, Collar Seller will pay Collar Purchaser
                 the amount, if any, of the Cap Interest
                 Settlement that may be due by, at Collar Seller's
                 option, crediting Collar Purchaser's demand
                 deposit account  with  Collar  Seller,
                 or by check payable to Collar Purchaser and sent to
                 Collar Purchaser at the address set  forth below,
                 or by wiring funds to designated Collar Purchaser
                 account.

           (e)   On each Collar Interest Settlement Date, Collar
                 Purchaser will pay Collar Seller the amount (if any)
                 of the Floor Interest Settlement that may be due to
                 Collar Seller by, at Collar Seller's option,
                 Collar Seller's debiting Collar Purchaser's demand
                 deposit account with Collar Seller, or by wiring funds
                 to Collar Seller.
<PAGE>

     4.   Early Termination.

           (a)   This Agreement shall expire on the Termination Date
                 and neither party may terminate this Agreement
                 prior thereto;  provided, however that in the event of
                 a default by Collar  Purchaser or Collar Seller in the
                 performance of  any  of its  obligations hereunder,
                 unless such default is  cured  within five  Business
                 Days following the defaulting party's receipt of
                 written  notice thereof, the non-defaulting party
                 may  terminate this Agreement.

           (b)   In  the  event of an early termination  of this
                 Agreement pursuant to Paragraph 4(a) above, the
                 defaulting party shall promptly pay, on demand,
                 the non-defaulting party an amount equal to the
                 Termination Amount which the defaulting party
                 acknowledges to be a reasonable estimate of the
                 costs and loss of compensation incurred by the
                 non-defaulting party as a result of the default
                 and resulting early termination of this Agreement.

           (c)   "Termination Amount" means the  amount  in
                 U.S. Dollars  equal  to  the  sum of (i) the
                 arithmetic mean of the respective one-time all-in
                 fees (including documentation  costs) communicated
                 to the non-defaulting party on the earliest
                 practicable Business Day following the Early
                 Termination Date by each of three leading commercial
                 banks or investment banking firms in San Francisco,
                 Los Angeles or New York selected in good faith by
                 the non-defaulting party as the fee that it would
                 charge to assume, as of the Early Termination Date
                 all of the rights and obligations of the defaulting
                 party under this  Agreement,  and (ii)  the
                 aggregate amount of all amounts then due and owing
                 the non-defaulting  party  by  the  defaulting party
                 on the Early Termination  Date; provided, however,
                 that if one  or more  such entities  fail  so to
                 communicate such a fee, the non-defaulting party
                 is not required to seek another such entity to obtain
                 a quote and the Termination Amount shall be determined
                 on the basis of the fee or fees so communicated to the
                 non-defaulting party by the other entities.

      5.    Limitations of Liability.  In no event  shall either
party  hereto  be  liable to the other  for  loss  of profit  or indirect,
special, consequential, punitive or exemplary  damages, arising out of any
default under this Agreement.

     6.   Notices.  All notices and other communications
required or  permitted to be given hereunder shall be in
writing and shall be  deemed  served when personally
delivered or, if mailed,  upon the  first  to occur of
receipt or the expiration of  seventy-two hours   after
deposit  in  the  United  States  Postal  Service, certified
mail,  or if sent by overnight courier  service,  upon the
first to occur of receipt or 3:00 p.m. (local time at  place
of delivery) the next Business Day, addressed to Collar
Purchaser or  Collar Seller at their respective addresses
set forth in  the Collar Confirmation.

      7.    Successors; Assigns.  This Agreement shall be
binding on  and inure to the benefit of the successors and assigns
of the parties;  provided,  however, that Collar  Purchaser
shall  not, without  the  prior  written consent  of  Collar
Seller,  assign (whether  by  operation  of  law or
otherwise)  its  rights  and obligations under this
Agreement or any interest herein  and  any such  attempted
assignment shall be void and  without  force  or effect.
<PAGE>

     8.   Governing Law.  This Agreement shall be governed
by and construed in accordance with the laws of the State of
California, without giving effect to any choice of law
doctrine.

      9.    No  Third Party Beneficiary.  This Agreement and
the payments to be made by the parties hereunder are solely  for
the benefit of the parties hereto for the purposes stated
herein  and no other person or entity shall have any rights
hereunder or be a beneficiary of either party's obligations
under this Agreement.

      10.   Counterparts.  This Agreement may be executed in
any number  of  counterparts  and by each party  hereto  on
separate counterparts,  each  of which when executed and
delivered  shall constitute  an original, but all the
counterparts shall  together constitute but one and the same
instrument.

      11.   Amendments; Waivers.  Any amendment or waiver of
any right  under any provision of this Agreement shall be in
writing and,  in the case of an amendment, signed by both parties
hereto, or  in  the  case of a waiver, signed by the party
waiving  such right.   No failure or delay by either party
hereto in exercising any right, power or privilege hereunder
shall operate as a waiver thereof.

      12.   Trade Date; Interest Agreement Not Credit
Commitment. This  Agreement  shall be effective at, and as  of, 12:01
a.m., California  time, on the Trade Date.  Nothing in  this
Agreement shall be construed to (i) mean that Collar Seller
is committed to make  a  loan or extend any other credit to
Collar Purchaser,  or (ii)  amend  or  modify  any
contract,  instrument  or  document executed in connection
with any loan or other credit extended  to Collar Purchaser
by Collar Seller.

      13.  Costs, Expenses and Attorneys' Fees.  In the
event  of any  dispute  or  litigation  between  the
parties  hereto,  the prevailing  party  shall be entitled
to recover  from  the  other party, immediately upon demand,
all costs and expenses, including reasonable attorneys'
fees, incurred by the prevailing  party  in connection  with
the  enforcement  of  its  rights  and/or   the collection
of  any amounts which become due  to  it  under  this
Agreement,  and the prosecution or defense of any action  in
any way  related  to this Agreement, including any of  the
foregoing incurred in connection with any bankruptcy
proceeding relating to such other party.

      14.   Security. All obligations of the Collar
Purchaser  to the  Collar  Seller  under  this Agreement  are
secured  by the collateral  provided in that certain Credit Agreement
dated  July 8, 1998 in the amount of $125,000,000 as
evidenced in the several Security Agreements dated July 8,
1998 provided thereto.


      <PAGE>IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first written
above.

Collar Seller:                     Collar Purchaser:

WELLS FARGO BANK,             AMERISTAR CASINOS, INC.
NATIONAL ASSOCIATION



By:/s/Oliver  Perin          By:/s/Thomas Steinbauer
Name:  Oliver Perin          Name:  Thomas Steinbauer
Title: Vice  President       Title:  Senior Vice President/
                                     Chief Financial Officer


<PAGE>



                                                  August 10,1998

Ameristar Casinos, Inc.
3773 Howard Hughes Parkway, Suite 490S
Las Vegas, Nevada 89109
ATTENTION: Thomas Steinbauer
(702) 567-7030
VIA FAX: (702) 369-8860

Dear Thomas,

     The purpose of this letter agreement ("Collar Confirmation") is
to confirm the terms and conditions of the Collar Transaction entered
into between Wells Fargo Bank, N.A. ("Collar Seller") and Ameristar
Casinos, Inc. ("Collar  Purchaser"). This Collar Confirmation is
effective at, and as of, 12:01 a.m., California time, on the Trade Date
specified below.

     This confirmation supplements, forms part of, and is subject to 
that Interest Rate Collar Agreement between Collar Seller and Collar
Purchaser dated August 10, 1998.  In the absence of any other such
agreement, this communication itself constitutes a binding agreement
setting forth the essential terms of the Collar Transaction.

      The terms of the Collar Transaction to which this Collar
Confirmation relates are as follows:

Collar Purchaser:             Ameristar Casinos, Inc.
Collar Seller:                Wells Fargo Bank, N.A.

Trade Date:                   August 10,1998
Effective Date:               August 12,1998
Termination Date:             June 30, 2003

Cap Amount:                   $50,000,000
Floor Amount:                 $50,000,000

Collar Fee:                   $0
Collar Fee Payment Date:      not applicable
<PAGE>
Floating Rate:                LIBOR

Cap Rate:                     6.75%
Floating Rate Maturity:       3 months
Reset Date:                   The last day of each March, June, September,
                              and December, subject to adjustment in
                              accordance with the designated Business Day
                              Convention. The first reset date is August
                              12, 1998.
                         
Floor Rate:                   5.39%

Day Count Convention:         Actual/360 days
Business Day Convention:      modified following

Calculation Period:           From the last day of each March, June,
                              September, and December, beginning with
                              August 12, 1998, up to the last day of the
                              following three month period, continuing
                              until the Termination Date, subject to
                              adjustment in accordance with the designated
                              Business Day Convention.

Collar Interest Settlement
Payment Dates:                The last day of each March, June, September,
                              and December, beginning with September  30,
                              1998, continuing up to and including the
                              Termination Date, subject to adjustment
                              in accordance with the designated Business
                              Day convention.


Account Details:
      Payments to Collar Seller:         Made via Debit to DDA #4159-550797
      Payments to Collar Purchaser:      Made via credit to DDA #4159-550797

Security:                     All obligations of the Collar Purchaser to the
                              Collar Seller under this Agreement are secured
                              by the collateral provided in that certain
                              Credit Agreement dated July 8, 1998 in the
                              amount of $125,000,000 as evidenced in
                              the several Security Agreements dated July 8,
                              1998 provided thereto.
Addresses for Notices:

     Collar Purchaser:   Ameristar Casinos, Inc.
                         3773 Howard Hughes Parkway, Suite 490S
                         Las Vegas, Nevada 89109
                         Attention:  Thomas Steinbauer
                         (702) 567-7030
<PAGE>
                         FAX:  (702) 369-8860
                         
                         
     Collar Seller:      Wells Fargo Bank, National Association
                         420 Montgomery Street, 6th Floor
                         MAC:  0101-063
                         San Francisco, CA 94163
                         Attention:  Oliver Perin
                         (415) 394-4011
                         FAX:  (415) 956-9581
                          
      Please confirm that the foregoing correctly sets forth the terms
of our agreement by signing this facsimile and sending it as a return
acknowledgment to Kelly Johnson's attention  (FAX:(415)  956-9581.  Collar
agreement documents will follow via overnight delivery.  If you have any
questions, please call me at (415) 394-4011.

                              Sincerely,




CONFIRMED BY:  /s/ Thomas Steinbauer
NAME:          Thomas Steinbauer
TITLE:         Vice President and Chief Financial Officer
DATE:          August 10, 1998