Document:

EXHIBIT 10.6

WHEREVER CONFIDENTIAL INFORMATION IS OMITTED HEREIN (SUCH OMISSIONS ARE DENOTED
BY AN ASTERISK), SUCH CONFIDENTIAL INFORMATION HAS BEEN SUBMITTED SEPARATELY TO
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT.

                                 CREDIT FACILITY
                                 ---------------

     On June 29, 2004, FOR VALUE RECEIVED, Nevada Gold & Casinos, Inc., a Nevada
corporation ("NGC"), as maker, whose principal place of business is 3040 Post
Oak Blvd., Suite 675, Houston, Texas, 77056-6588, promises to pay to the order
of  [*] (* name changed to the defined term "Lender" throughout the Agreement*),
the principal sum of up to $40,000,000.00, together with interest on the unpaid
principal balance, as advanced pursuant to the terms set forth below.  All sums
due under this Credit Facility are payable to Lender at [*], or at any other
place that Lender may designate in writing.  Both Lender and NGC are
collectively referred to as the "Parties."  Capitalized terms not otherwise
defined in this Credit Facility have the same definitions as the Amended and
Restated Security Agreement ("ARSA"), including Appendix I to the ARSA.

I.                                  RECITALS
                                    --------

A.          NGC and Lender desire to enter this Credit Facility and the ARSA
dated June 28, 2004;

B.          Lender desires to loan to NGC up to an aggregate total of all
outstanding indebtedness between Lender and NGC of $40,000,000.00, with
advancements in the minimum amount of $250,000.00 to NGC, with this Credit
Facility secured by the ARSA and the Collateral;

C.          NGC desires to borrow up to an aggregate total of all outstanding
indebtedness between Lender and NGC of $40,000,000.00, with advancements in the
minimum amount of $250,000.00 from Lender; and

D.          as of the date of this Credit Facility, and after applying the
$7,915,671.23 principal prepayment made with the first advance under this Credit
Facility, NGC owes Lender the principal amount of $3,317,499.00 pursuant to the
Amended and Restated Promissory Note between them dated June 28, 2004 (the
"Note"), and the Parties agree that NGC's ability to borrow up to $40,000,000.00
from Lender shall be reduced by the total of all outstanding indebtedness,
including but not limited to principal and accrued interest, under the Note and
under any and all debt obligations between the Parties, and that NGC shall apply
its first draw on this Credit Facility to make the $7,915,671.23 principal
prepayment on the Note as described above.

     In consideration of these matters and of the mutual promises made in this
Credit Facility, and for other good and valuable consideration, the receipt and
adequacy of which are acknowledged by the Parties, Lender and NGC agree as set
forth below.

II.                                AGREEMENTS
                                   ----------

Credit Facility                         _______
NGC-BHG/Lender/June 20004                 HTW                       Page 1 of 10

<PAGE>
A.          TERMS.  This Credit Facility shall be in the aggregate total amount
            ------
not to exceed Forty Million and No/100 Dollars ($40,000,000.00) and shall be
advanced to NGC in the minimum amount of Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) each upon written request of NGC made to Lender at [*] (or
to any other person designated by Lender).  Of this $40,000,000.00,
$3,317,499.00 has been previously advanced under the Note ("Previous Advance"),
and NGC's first draw under this Credit Facility in the amount of $7,915,671.23
has been made contemporaneously with the execution of this Credit Facility by
NGC and Lender.  The total amount of principal indebtedness owed by NGC to
Lender under the Note and this Credit Facility as of the date of this Credit
Facility is $11,233,170.23, leaving approximately $28,766,829.77 (less any
accrued and unpaid interest on the Note and this Credit Facility) available for
use by NGC under this Credit Facility.  Lender agrees to advance to NGC pursuant
to this Credit Facility a maximum amount of $40,000,000.00, and this amount
shall be offset by any and all outstanding amounts of principal and interest due
and owing at any one time by NGC to Lender under any and all debt obligations
between the Parties, including but not limited to the Note.

          For all advances under this Credit Facility, Lender shall advance
funds by wire transfer to NGC within thirty days after receipt of NGC's written
request delivered to [*], with a copy to [*], at the addresses and in the manner
set forth under "Notices" in this Credit Facility.  NGC shall bear the cost of
all wire transfer fees and all fees payable to First Allied Securities, Inc.
("First Allied"), pursuant to the agreement between NGC and First Allied for any
and all advances under this Credit Facility, which shall be deducted from the
transferred funds, unless otherwise agreed.  NGC has the right to draw funds
under the terms of this Credit Facility until May 31, 2008 ("Maturity Date"),
provided that NGC does not default as described in Section II(E) below or as
defined in the ARSA.  The total amount of principal and any accrued, unpaid
interest, and any other amounts that may be due and owing to Lender by NGC shall
be due and payable in full on the Maturity Date.  NGC may from time to time
request letters of credit from First Allied or Wells Fargo that relate to this
Credit Facility.  NGC shall bear any and all costs associated with the issuance
of any letter of credit by any entity that relates to this Credit Facility, and
shall reimburse Lender for any expenses charged to her that relate to the
issuance of a letter of credit requested by NGC that relates to this Credit
Facility.  Any letter of credit issued on behalf of NGC shall not alone
constitute an advance under this Credit Facility.

B.          COMMITMENT FEE.  NGC shall pay to Lender a commitment fee of 0.25%
            ---------------
per annum on any and all available funds under this Credit Facility that are not
drawn by NGC.  This commitment fee shall be calculated based on the average
daily balance of available funds during each calendar quarter.  The commitment
fee shall be payable to Lender for each calendar quarter on or before the fifth
day of the first month of the immediately following calendar quarter, with the
calculation of this fee beginning on the date of this Credit Facility and with
the first payment of this fee due on or before July 5, 2004.

C.          PAYMENT TERMS.  NGC agrees to pay the sums under this Credit
            --------------
Facility as follows:

     1.          payment of interest only through May 31, 2008, payable monthly
     on or before the last day of each month by check made payable to "[*],
     Separate Property," and accompanied by a letter setting forth the principal
     amount outstanding, the method of calculating interest, and the amount of
     interest paid, with copies of the check and all other correspondence
     included with Lender's check sent contemporaneously by facsimile to
     Lender's attorney/counsel, [*], at her facsimile number set forth below;

Credit Facility                         _______
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<PAGE>
     2.          all payments must be received by Lender on or before the due
                                      --------           --------------------
     date in order for the payment to be timely, and they must be received by
     ----                                                         --------
     Lender on or before the fifth day after Lender gives notice to NGC of the
     late payment to avoid a Default by NGC; and

     3.          the entire principal amount outstanding, plus any outstanding
     interest, shall be due and payable to Lender in full on or before the
     Maturity Date.

D.          INTEREST RATE.  The unpaid principal balance under this Credit
            --------------
Facility shall bear interest at the rate of eight and one-half percent (8 %) per
annum until paid.  Any matured, unpaid amount of principal shall bear interest
at the rate of eleven percent (11%) per annum until paid.    If any payment of
interest is not made on or before its due date, then the interest rate on that
payment shall increase to 11% from the date on which that interest payment began
accruing through the date on which the late interest payment is paid in full
(this provision shall not apply if the late payment is caused solely by a third
party carrier in delivering the payment to Lender if NGC has sent the payment
for delivery in a properly addressed Federal Express, Airborne Express, United
Parcel Service, or Lone Star Overnight package with delivery charges prepaid or
charged to NGC's account and the package is sent via next day overnight delivery
at least one business day in advance of the due date, or two business days if
the due date is not a business day - NGC shall not use United States Postal
Service overnight or next day delivery service for any payments).  In the event
of a Default by NGC, the interest rate on the entire outstanding principal
amount shall increase to eleven percent (11%) per annum as of the date through
which the last interest payment was duly made and shall continue at that rate
until the entire outstanding amount of principal and interest is paid in full.

E.          DEFAULT.  NGC will be in default if any of the following happens
            --------
("Default" or "Event of Default"):  (1) NGC fails to timely make the principal
payment at maturity; (2) Lender does not receive an interest payment on or
before the fifth day after Lender gives notice to NGC of the late payment; (3)
NGC defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, contractual obligation, or any agreement in favor of any
creditor or person (as "default" is defined in that instrument and after giving
effect to all applicable cure periods) and that default results in NGC owing,
through default and/or acceleration, an amount in excess of $3 million; (4) NGC
defaults on its agreement and/or subordinated loan agreement with [*] dated June
28, 2004; (5) NGC fails to timely comply with the Obligations (other than those
Obligations specifically identified in this Section); (6)  NGC breaches any
covenant, representation, or warranty in this Credit Facility or in the ARSA and
does not cure that breach within thirty days after the breach, and NGC agrees to
give Lender prompt notice of the breach; (7) NGC makes an assignment for the
benefit of creditors, files for bankruptcy protection, is adjudicated insolvent,
a receiver is appointed for IC-BH or BHG, or any involuntary proceeding is
commenced against NGC under any bankruptcy or insolvency laws and that
involuntary proceeding is not dismissed within sixty days after it is filed; (8)
NGC grants or attempts to grant to any third party a lien on the Collateral
without complying with the procedure and provisions in Section II(F) below; or
(9) a final, non-appealable judgment in litigation or arbitration is entered
against NGC where the total amount of the judgment, including actual damages,
pre- and post-judgment interest, attorney's fees, court costs, and/or punitive
damage, exceeds $3 million.  If an Event or Default occurs, then Lender shall
have all of the rights and remedies set forth in this Credit Facility and in the
ARSA.

F.          ADDITIONAL LIENS.  All references in this Section to "NGC" expressly
            -----------------
include BHG, and BHG may not grant a second or any other lien on any of the
Collateral without complying with the provisions of this Section.  Before NGC
may place a second or any other lien on any or all of the Collateral in favor of
anyone other than [*], NGC must give Lender formal written notice of the name of
the proposed second or other lienholder (if known) and of the specific terms and
conditions

Credit Facility                         _______
NGC-BHG/Lender/June 20004                 HTW                       Page 3 of 10

<PAGE>
of the proposed loan transaction for which the second or other lien would be
granted (including but not limited to the closing date, interest rate, principal
amount, and maturity date), and Lender shall have seven business days from the
date on which the notice is received by her to notify NGC of her desire to make
the loan.  NGC agrees to promptly provide Lender with any documentation she
requests related to the proposed transaction with the third party in order to
assist her in making her decision.  If Lender does not respond within seven
business days, Lender shall be presumed to have declined to make the loan.  NGC
shall give Lender informal notice of its intent or desire to obtain additional
financing and grant a second or other lien on the Collateral as far in advance
as is practicable, which is presumed to be approximately thirty days before the
contemplated closing date of the transaction.  NGC is not required to resubmit
to Lender any financing resulting in a second or other lien if the closing date,
interest rate, principal amount, and/or maturity date on the final loan
transaction are equal or less favorable to Lender than the original terms
proposed by NGC.

          In the event NGC complies with this notice provision and is allowed to
grant a second or other lien on the Collateral, NGC agrees that it must comply
with all of the following provisions before it may grant an effective second or
other lien on the Collateral:

     1.          Any second or other lien given on the Collateral must be made
                                                                  ----
     expressly subordinate to Lender's lien. NGC shall ensure that the paperwork
     documenting the transaction with the second or other lienholder properly
     notifies the second and/or other lienholder of the existence of Lender's
     first lien and that the second and any other lienholder clearly
     acknowledges Lender's existence and status as first lienholder on all of
     the Collateral and that the subsequent lienholder's debt and security
     interest is subordinated to Lender.

     2.          NGC shall ensure that the paperwork documenting the transaction
     with the second and any other lienholder clearly instructs the second and
     any other lienholder that it may not even attempt to collect or execute on
     the Collateral without first ensuring that the entire first lien balance is
     paid in full and all loan or credit transactions between NGC and Lender are
     completely terminated and are no longer in effect. The second and any other
     lienholder must be required to give notice of any default by NGC to NGC and
     Lender concurrently before the second or any other lienholder may exercise
     any collection efforts against the Collateral.

     3.          NGC shall defend, at its own expense, against any claims by any
     lienholders other than Lender against the Collateral.

     4.          NGC shall keep Lender's counsel informed of the status of any
     second and any other lien and of any default or alleged default by NGC on
     the transaction secured in whole or in part by the second and/or other
     lien, and shall reimburse Lender for any and all attorney's fees, court
     costs, and expenses incurred by Lender that Lender or her counsel deemed
     necessary to protect the Collateral within thirty days after the submission
     of an invoice for the fees or expenses to NGC by Lender's counsel.

     5.          NGC shall provide Lender's counsel with fully-executed copies
     of all documents related to any transaction giving any third party a second
     or other lien on any or all of the Collateral within three business days of
     the last signature date on the transaction or the date the transaction is
     funded, whichever is earlier.

     6.          NGC shall provide to Lender's counsel on or before June 28,
     2004, copies of the fully-executed documents related to the transaction
     giving [*] a second lien and shall

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<PAGE>
     require him and his counsel to provide counsel for Lender (as set forth
     below) with copies of any and all notices, including but not limited to
     notice of default, that arise from or relate to any of his agreements with
     NGC that relate in any way to the second lien. NGC shall ensure that [*]
     agreement expressly and clearly states that his lien on the Collateral is
     subordinate to Lender's lien and security interest.

G.          NOTICE OF DEFAULT.  Lender is not required to provide NGC with any
            ------------------
notice whatsoever of any Default by NGC or any failure of NGC to timely make the
principal payment when due, save and except that Lender must give notice of a
late interest payment before that late payment is deemed a Default as described
in Section II(E)(2) above.  However, failure by Lender to give notice of a late
interest payment to NGC does not relieve NGC of its obligation to make the
payment or of the application of the default interest rate upon the failure to
timely make the interest payment as provided in Section II(E) above.

H.          CHANGE IN CONTROL.  In the event of a "Change in Control," then
            ------------------
Lender shall have the option to terminate this Credit Facility and declare the
entire unpaid principal and accrued interest (if any) due and payable from the
proceeds of the transaction upon closing of the transaction resulting in a
Change in Control.  NGC agrees to promptly inform any purchasing company or
shareholder of this obligation prior to the closing of the transaction.

          For purpose of this Credit Facility, a "Change in Control" of NGC
shall mean and shall be deemed to have occurred if:

     1.          A sale, transfer, or other disposition by NGC through a single
     transaction or a series of transactions of securities of NGC representing
     Beneficial Ownership (as defined below) of fifty (50%) percent or more of
     the combined voting power of NGC's then outstanding securities to any
     "Unrelated Person" or "Unrelated Persons" acting in concert with one
     another. For purposes of this definition, the term "Person" shall mean and
     include any individual, partnership, joint venture, association, trust
     corporation, or other entity [including a "group" as referred to in Section
     13(d)(3) of the Securities Exchange Act of 1934, as amended ("1934 Act")].
     For purposes of this definition, the term "Unrelated Person" shall mean and
     include any Person other than the Holder, NGC, a wholly-owned subsidiary of
     NGC, or an employee benefit plan of NGC; provided however, a sale to
     underwriters in connection with a public offering of NGC's securities
     pursuant to a firm commitment shall not be a Change of Control.

     2.          A sale, transfer, or other disposition through a single
     transaction or a series of transactions of all or substantially all of the
     assets of NGC to an Unrelated Person or Unrelated Persons acting in concert
     with one another.

     3.          A change in the ownership of NGC through a single transaction
     or a series of transactions such that any Unrelated Person or Unrelated
     Persons acting in concert with one another become the "Beneficial Owner,"
     directly or indirectly, of securities of NGC representing at least fifty
     (50%) percent of the combined voting power of NGC's then outstanding
     securities. For purposes of this Credit Facility, the term "Beneficial
     Owner" shall have the same meaning as given to that term in Rule 13d-3
     promulgated under the 1934 Act, provided that any pledgee of voting
     securities is not deemed to be the Beneficial Owner of the securities prior
     to its acquisition of voting rights with respect to the securities.

Credit Facility                         _______
NGC-BHG/Lender/June 20004                 HTW                       Page 5 of 10

<PAGE>
     4.          Any consolidation or merger of NGC with or into an Unrelated
     Person, unless immediately after the consolidation or merger the holders of
     the common stock of NGC immediately prior to the consolidation or merger
     are the beneficial owners of securities of the surviving corporation
     representing at least fifty (50%) percent of the combined voting power of
     the surviving corporation's then outstanding securities.

I.          COLLATERAL.  This Credit Facility is secured by the ARSA, which
            -----------
provides for a first lien security interest in the following items of Collateral
and affords Lender the right to take action against the Collateral in an Event
of Default:

     1.          a continuing security interest in all of NGC's interest in BHG,
     including but not limited to NGC's revenues from BHG and from NGC's
     ownership interest in BHG;

     2.          a continuing security interest in all of BHG's interest in the
     Isle of Capri Black Hawk, L.L.C. ("IC-BH"), including but not limited to
     BHG's revenues from and undivided percentage interest in the assets of
     IC-BH, and all of the rights, but none of the obligations, of BHG under the
     Operating Agreement;

     3.          all investment property and other property, rights, or
     interests of any description at any time issued or issuable to BHG or held
     in any securities account as an addition to, in substitution or exchange
     for or with respect to BHG's interest in IC-BH, including without
     limitation additional percentages or interests issued or given as a result
     of any amendment, reclassification, split-up, dissolution, or other limited
     liability company reorganization or property distributed pursuant to a
     reorganization or amendment of the Operating Agreement;

     4.          all distributions, proceeds, monies, income, and benefits
     arising from, by virtue of, or payable with respect to BHG's interest in
     IC-BH or NGC's interest in BHG; and

     5.          any and all notes receivable and/or cash flow rights granted to
     NGC from investments in any and all projects financed in whole or in part
     through the loan proceeds from this Credit Facility.

Lender shall maintain possession of the Collateral and any and all powers of
attorney necessary to enforce her security interest in any or all of the
Collateral until any and all amounts due under this Credit Facility are paid in
full and this Credit Facility is terminated, and/or until she exercises her
rights against the Collateral in an Event of Default.

J.          PROTECTION OF COLLATERAL; INDEMNIFICATION.  Consistent with the
            ------------------------------------------
terms of this Credit Facility, as long as any amounts are owed to Lender under
this Credit Facility, NGC agrees that it will use its best efforts to defend
against the attempts of any creditor who tries to take any of the Collateral.
NGC also agrees that it will use its best efforts to protect the Collateral; to
prevent any loss, theft, substantial damage, destruction, sale, or encumbrance
to or of any of the Collateral; and to defend against any actual or attempted
levy, seizure, or attachment of or on any of the Collateral.  In the event
Lender finds it necessary to take action to protect the Collateral against the
actions of third parties or against any wrongful conduct of NGC or any failure
by NGC to use its best efforts to protect the Collateral, NGC agrees that it
shall indemnify Lender for any attorney's fees, court costs, and any and all
other expenses incurred in her efforts to protect the Collateral.  NGC
understands and agrees that it shall promptly reimburse Lender for any and all
of these expenses, but

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NGC-BHG/Lender/June 20004                 HTW                       Page 6 of 10

<PAGE>
in no event shall these attorney's fees and expenses be paid later than thirty
days after the date on which they are submitted to NGC.

K.          LIMITATION ON USE OF CREDIT FACILITY PROCEEDS.  NGC may use the
            ----------------------------------------------
proceeds from this Credit Facility for any legitimate business purpose. However,
NGC agrees and understands that it may not use any of the loan proceeds from
this Credit Facility to fund litigation or arbitration against Lender or to
defend against litigation or arbitration instituted against NGC by Lender. NGC
may not use the proceeds of this Credit Facility to prepay any of the
$3,317,499.00 in principal remaining due and owing by NGC to Lender under the
Note.

L.          PREPAYMENT.  NGC may prepay without any penalty any of the principal
            -----------
or accrued interest drawn through this Credit Facility at any time and from time
to time.  In the event NGC prepays under this Credit Facility, the prepayment
shall first be applied to interest and then to the principal amount outstanding.
If NGC chooses to prepay any principal amount outstanding, the prepayment shall
not prevent NGC from drawing up to the maximum amount available under the terms
of this Credit Facility after the prepayment is received by Lender.  Because
this Credit Facility is a revolving credit facility, NGC shall be able to draw
any amounts of at least $250,000.00 from Lender freely and without any objection
from her during the term of this Credit Facility (i) as long as NGC does not
attempt to draw an amount that would cause NGC's total outstanding indebtedness
to Lender under the Note, this Credit Facility, and any other indebtedness
between the Parties to exceed $40,000,000.00, and/or (ii) as long as NGC is not
in Default.

M.          FURTHER ASSURANCES.  NGC agrees to execute all other documents and
            -------------------
instruments reasonably requested by Lender or her attorney to effectuate the
intent of this Credit Facility upon written request by Lender or her attorney
after the date of this Agreement.

N.          WAIVER.  In the event of a Default as defined in Section II(E) above
            -------
or in the ARSA, NGC (a) waives presentment for payment, notice of protest,
notice of intent to accelerate, notice of acceleration, and all other notices,
filing of suit, and diligence in collecting this Credit Facility or enforcing
any other security with respect to this Credit Facility, although Lender agrees
that she must comply with all UCC requirements for sale of collateral; (b)
agrees to any substitution, surrender, subordination, waiver, modification,
change, exchange, or release of any security or the release of the liability of
any Parties primarily or secondarily liable on this Credit Facility; and (c)
consents to any extension or postponement of time for payment of this Credit
Facility and to any other indulgence with respect to this Credit Facility
without notice.  No failure or delay on the part of Lender in exercising any of
her rights, powers, or privileges under this Credit Facility shall operate as a
waiver of that right, power, or privilege.

O.          AMENDMENT OR MODIFICATION.  This Credit Facility may not be modified
            --------------------------
or amended in any way unless the modification or amendment is in writing and is
signed by all Parties.  Any document purporting to amend or modify this Credit
Facility shall be of no force or effect unless the document expressly states
that it is intended to amend or modify the Credit Facility and it is signed by
all Parties to this Credit Facility.

P.          ATTORNEYS' FEES AND COSTS OF LITIGATION.  If all monies due and
            ----------------------------------------
owing under this Credit Facility are not paid in full at maturity, regardless of
how the maturity may be brought about, or if, after an Event of Default,  this
Credit Facility is collected or attempted to be collected through the initiation
or prosecution of any suit or through any probate, bankruptcy, or any other
judicial proceedings, or is placed in the hands of an attorney for collection,
NGC shall pay, in addition to all

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<PAGE>
other amounts owing under this Credit Facility, all actual expenses of
collection, all court costs, and reasonable attorney's fees incurred by Lender
upon demand for payment by Lender or her attorney.

Q.          AUTHORITY.  NGC represents that it has full power, authority and
            ----------
legal right to execute and deliver this Credit Facility and the ARSA, and that
this Credit Facility and the ARSA constitute valid and binding obligations of
NGC.  BHG represents that it has full power, authority, and legal right to
execute and deliver the ARSA and the ARSA constitutes a valid and binding
obligation of BHG.

R.          GOVERNING LAW AND VENUE.  This Credit Facility and the rights and
            ------------------------
obligations of the Parties under this Credit Facility shall be governed by the
laws of the United States of America and by the laws of the State of Texas, and
is performable in Montgomery County, Texas.  Chapter 346 of the Texas Finance
Code does not apply to this Credit Facility.

S.          BUSINESS DAY.  If any action is required or permitted to be taken
            -------------
under this Credit Facility on a Sunday, legal holiday, or other day on which
banking institutions in the State of Texas are authorized or required to close,
the action shall be taken on the immediately PRECEDING business day, and, to the
                                 ----------------------------------
extent applicable, interest on the unpaid principal balance shall continue to
accrue at the applicable rate.

T.          USURY SAVINGS CLAUSE.  The Parties to this Credit Facility intend to
            ---------------------
comply with the usury laws applicable to this Credit Facility.  Accordingly, the
Parties agree that no provision in this Credit Facility or in any related
documents (if any) shall require or permit the collection of interest in excess
of the maximum rate permitted by law.  If any excess interest is provided for or
contracted for in this Credit Facility, or charged to NGC or any other person
responsible for payment, or received by Lender, or if any excess interest is
adjudicated to be provided for or contracted for under this Credit Facility or
adjudicated to be received by Lender or her heirs, successors, or assigns, then
the Parties expressly agree that this paragraph shall govern and control and
            ---------------
that neither NGC nor any other party liable for payment of the Credit Facility
shall be obligated to pay the amount of excess interest.  Any excess interest
that may have been collected shall be, at Lender's option, either applied as
credit against any unpaid principal amount due or refunded to NGC.  The
effective rate of interest shall be automatically subject to reduction to the
maximum lawful contract rate allowed under the usury laws of the State of Texas
as they are now or subsequently construed by the courts of the State of Texas.

U.          NOTICES.  Any and all notices or communications related in any way
            --------
to this Agreement may be given by certified mail with return receipt requested,
by receipted courier, by overnight delivery service, or by hand delivery and
sent to the persons at the addresses set forth for each party below, or they may
be given by facsimile transmission or by e-mail transmission if the intended
recipient has affirmatively stated that notice may be delivered by facsimile or
e-mail and the intended recipient has provided a valid facsimile number and/or
e-mail address.  Any notice delivered by facsimile or e-mail sent or for which a
return receipt is received at any time before 5:00 p.m. on a business day shall
be deemed to be delivered on that date.  Any facsimile or e-mail notice not
received by 5:00 p.m. on a business day shall be deemed to be received on the
first following business day.

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<PAGE>
<TABLE>
<CAPTION>
          Notices to NGC:                          with a copy sent contemporaneously to:
          ---------------                          ---------------------------------------
<S>       <C>                                      <C>
          H. Thomas Winn, President                Thomas C. Pritchard
          Nevada Gold & Casinos, Inc.              Brewer & Pritchard, P.C.
          3040 Post Oak Blvd., Suite 675           Three Riverway, Suite 1800
          Houston, Texas  77056_6588               Houston, Texas  77056_1969
          Facsimile number:  (713) 621-6919        Facsimile number:  (713) 209-2921
          E-mail address:  tom@nevadagold.com      E-mail address:  pritchard@bplaw.com
          Notice may be delivered by facsimile or  Notice may be delivered by facsimile or
          e-mail with proof of receipt.            e-mail with proof of receipt.
</TABLE>

          Notices to Lender:
          -----------------

          [*]

          with copies sent contemporaneously to:
          -------------------------------------

          [*]

NGC understands and agrees that any notice given or attempted to be given by it
to Lender is not effective unless the notice was contemporaneously provided to
                                                 -----------------
all other persons identified above or subsequently identified to NGC by Lender
and shall be deemed to have been given to Lender upon providing notice to [*]
and [*] as set forth above.  Any of the above contact information or designated
representatives for the purpose of notice may be changed by a party or an
authorized representative of a party providing written notice in the manner set
forth above to the other party, and the new contact information or
representative will then become effective.

V.          ASSIGNABILITY; BINDING EFFECT.  NGC may not assign any of its rights
            ------------------------------
or remedies under this Credit Facility to any other person or entity without the
express written consent of Lender.  Lender may assign any of her rights or
remedies under this Credit Facility to any other person or entity at any time
and for any reason, and the consent of NGC shall not be required for any
assignment to be effective.  This Credit Facility and the terms, covenants,
conditions, provisions, obligations, undertakings, rights, and benefits of it
shall be binding upon and shall inure to the benefit of the Parties executing
this Agreement and their respective heirs, successors, and allowed assigns.

W.          INCORPORATION OF OTHER DOCUMENTS.  The Parties agree that the
            ---------------------------------
Amended and Restated Security Agreement dated June 28, 2004, is incorporated by
reference in this Credit Facility for all purposes as if fully set forth at
length.

     Dated the 29th day of June, 2004.
MAKER:
-----

Nevada Gold & Casinos, Inc.

Credit Facility                         _______
NGC-BHG/Lender/June 20004                 HTW                       Page 9 of 10

<PAGE>
By:  ______________________________
     H. Thomas Winn, President
HOLDER:
------

[*]
_______________________________

Agreed and acknowledged solely for the collateral pledged as security in Section
II(I) above and all other provisions related to that collateral:

Blackhawk Gold, Ltd.

By:  ______________________________
     H. Thomas Winn, President

Credit Facility                         _______
NGC-BHG/Lender/June 20004                 HTW                      Page 10 of 10

<PAGE>EXHIBIT 10.7

WHEREVER CONFIDENTIAL INFORMATION IS OMITTED HEREIN (SUCH OMISSIONS ARE DENOTED
BY AN ASTERISK), SUCH CONFIDENTIAL INFORMATION HAS BEEN SUBMITTED SEPARATELY TO
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT.

                     AMENDED AND RESTATED SECURITY AGREEMENT
                     ---------------------------------------

     This Amended and Restated Security Agreement ("ARSA") is made as of June
28, 2004 (the "Effective Date"), by and between Nevada Gold & Casinos, Inc., a
Nevada corporation ("NGC"), and its wholly-owned subsidiary, Blackhawk Gold,
Ltd., a Colorado corporation ("BHG"), both with their principal places of
business at 3040 Post Oak Blvd., Suite 675, Houston, Texas 77056-6588; and [*]
(* name changed to the defined term "Lender" throughout the Agreement*), an
individual who resides in [*], as her separate property.

I.                                  RECITALS
                                    --------

A.          Through loan documents dated December 23, 1999, Lender loaned to NGC
$7,000,000.00.  The loan documents were comprised of a Term Note, a Continuing
Loan Agreement, and a Security Agreement, each dated December 23, 1999, between
NGC and Lender.  Subsequently, pursuant to the Amendment to Continuing Loan
Agreement and Term Note dated March 31, 2001, Lender loaned to NGC an additional
$6,000,000.00, for an aggregate total amount loaned to NGC of $13,000,000.00.
The December 23, 1999, Continuing Loan Agreement and Term Note and the March 31,
2001, Amendment to Continuing Loan Agreement and Term Note are collectively
referred to in this ARSA only as the "Original Loan Documents."  The Original
                         ----
Loan Documents have been completely amended and restated by the Amended and
Restated Secured Promissory Note dated June 28, 2004 (the "Note").  The Note is
incorporated by reference in this ARSA for all purposes as if fully set forth at
length.

B.          To induce Lender to make the loans provided for in the Original Loan
Documents, to induce Lender to loan to NGC the additional amounts under the
Note, and to induce Lender to loan an additional amount to NGC under a credit
facility dated June 28, 2004 (the "Credit Facility"), up to a maximum aggregate
principal amount of outstanding indebtedness owed by NGC to Lender of $40
million (and possibly additional amounts if the parties agree), NGC and BHG have
agreed to grant a security interest in certain collateral described below as
security for the repayment of the loans.  The parties agree that this Amended
and Restated Security Agreement is intended to completely modify and replace the
original Security Agreement dated December 23, 1999, and any amendments to that
Security Agreement that may exist.

C.          BHG is a wholly-owned subsidiary of NGC.  BHG, by and through the
action of its board of directors, determined in 1999 that it could reasonably
expect to benefit, directly or indirectly, from granting a lien upon the
collateral described below in order to secure the loans to NGC pursuant to the
Original Loan Documents, and it reconfirms that determination in this ARSA.

II.                                AGREEMENTS
                                   ----------

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  1 of 13
<PAGE>
     In consideration of the above items and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
parties agree to the following terms and conditions:

A.          DEFINED TERMS.  Attached to this ARSA is Appendix I, which contains
            --------------
definitions of specific capitalized terms used in this ARSA as well as in the
Note.  Appendix I is incorporated by reference into this ARSA for all purposes.
The definitions in Appendix I shall control unless the context of the usage of a
term requires a different definition.  Terms not defined in this ARSA (including
Appendix I) or in the Note that are defined in the Texas Uniform Commercial
Code, as amended and effective as of January 1, 2004 (the "UCC"), have the
meanings specified in the UCC, and the definitions specified in Article 9 of the
UCC control in the case of any conflicting definitions in the UCC.  The singular
number includes the plural and vice versa.  Captions of sections in this ARSA do
not limit the terms of those sections.

B.          SECURITY INTEREST.  To secure the payment and performance of the
            ------------------
Obligations (as that term is defined in Appendix I), NGC and BHG grant to Lender
a security interest (the "Security Interest") in the following described
property, and all of their products and proceeds, whether now owned or
subsequently acquired (collectively called the "Collateral"):

     1.          a continuing security interest in all of NGC's interest in BHG,
     including but not limited to NGC's revenues from BHG and from NGC's
     ownership interest in BHG;

     2.          a continuing security interest in all of BHG's interest in the
     Isle of Capri Black Hawk, L.L.C. ("IC-BH"), including but not limited to
     BHG s revenues from and undivided percentage interest in the assets of
     IC-BH, and all of the rights, but none of the obligations, of BHG under the
     Operating Agreement;

     3.          all investment property and other property, rights, or
     interests of any description at any time issued or issuable to BHG or held
     in any securities account as an addition to, in substitution or exchange
     for or with respect to BHG s interest in IC-BH, including without
     limitation additional percentages or interests issued or given as a result
     of any amendment, reclassification, split-up, dissolution, or other limited
     liability company reorganization or property distributed pursuant to a
     reorganization or amendment of the Operating Agreement;

     4.          all distributions, proceeds, monies, income, and benefits
     arising from, by virtue of, or payable with respect to BHG s interest in
     IC-BH or NGC's interest in BHG; and

     5.          any and all notes receivable and/or cash flow rights granted to
     NGC from investments in any and all projects financed in whole or in part
     through the loan proceeds from this Note.

Lender shall maintain possession of the Collateral and any and all powers of
attorney necessary to enforce her security interest in any or all of the
Collateral until any and all amounts due under the Note, the Credit Facility,
and/or any other instrument or agreement between the Parties are paid in full
and the instruments are all terminated, and/or until she exercises her rights
against the Collateral in an Event of Default, and/or the Collateral is
substituted as provided in the respective instrument and she no longer has any
security interest in any of the Collateral under any instrument.

III.                      REPRESENTATIONS AND COVENANTS
                          -----------------------------

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  2 of 13
<PAGE>
A.          REPRESENTATIONS.  NGC and BHG represent to Lender as follows:
            ----------------

     1.          NGC and BHG are the respective legal and beneficial owners of
     the Collateral;

     2.          to the best of NGC's and BHG's knowledge, no dispute, setoff,
     or counterclaim exists with respect to any part of the Collateral;
     3.          the Collateral is owned by NGC and BHG, respectively, free and
     clear of any pledge, mortgage, hypothecation, lien, charge, encumbrance, or
     security interest except as previously held by Lender or as created or
     permitted in this ARSA, and except for the second lien given in favor of
     [*], which NGC and BHG both warrant and represent is secondary and
     subordinated to Lender's lien on the Collateral;

     4.          the BHG Interest, as defined in Appendix I, constitutes the
     entire ownership interest of NGC in BHG, and no other shares of capital
     stock in BHG have ever been issued to NGC or to any other person or entity
     since December 23, 1999;

     5.          the IC-BH Interest, as defined in Appendix I, constitutes the
     entire ownership interest of BHG in IC-BH, and no other Units in IC-BH have
     ever been issued to BHG, NGC, or to any other person or entity since
     December 23, 1999;

     6.          there are no restrictions upon the transfer of any of the
     Collateral other than as set forth in the Operating Agreement or as may
     appear on the face of any ownership certificates in BHG and IC-BH;

     7.          NGC and BHG have the full power, authority, and legal right to
     transfer their respective items of Collateral free of any encumbrances and
     without obtaining the consent of any other person or entity that has not
     already been obtained;

     8.          the execution and delivery of this ARSA, and the performance of
     its terms, will not result in any violation of any provision of the
     Operating Agreement or violate or constitute a default under the terms of
     any material agreement, material indenture or other instrument, license,
     judgment, decree, order, law, statute, ordinance, or other governmental
     rule or regulation applicable to NGC or to BHG or any of their respective
     property;

     9.          this ARSA is a valid assignment of and creates a valid first
     lien upon and security interest in the Collateral and the proceeds of the
     Collateral;

     10.         NGC is organized under the laws of Nevada and its exact legal
     name is that as is set forth in the opening paragraph of this ARSA, and BHG
     is organized under the laws of Colorado and its exact legal name is that as
     is set forth in the opening paragraph of this ARSA;

     11.         NGC does not conduct business under any other name (although it
     does have several wholly-owned subsidiaries that conduct business under
     their own names), and BHG does not conduct business under any other name;
     and

     12.         BHG shall not vote any of its units in IC-BH or amend the
     Operating Agreement in any manner that would cause the IC-BH Interest or
     any part of it to be governed under Article 8 of the Colorado UCC.

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  3 of 13
<PAGE>
The representations set forth in items 1 through 12 of this Section shall be
deemed given again whenever NGC and/or BHG deliver additional Collateral that
may be required by this ARSA.

B.          COVENANTS.  NGC and BHG covenant to do the following:
            ----------

     1.          deliver to Lender's designated agent any certificates or
     instruments that represent NGC's interest in BHG and BHG*s interest in
     IC-BH or the Collateral, and to notify IC-BH that a security interest in
     the IC-BH Interest has been granted to Lender in the form attached to this
     ARSA as Exhibit A, and upon an Event of Default give irrevocable directions
             ---------
     to IC-BH in the form of Exhibit B attached to this ARSA to pay all
                             ---------
     distributions on the Collateral directly to Lender;

     2.          from time to time promptly execute and deliver to Lender all
     other assignments, certificates, proxies, entitlement orders, supplemental
     writings, and financing statements, and do all other acts and things that
     Lender may reasonably request in order to evidence the assignment and
     perfect and enforce the security interest granted in this ARSA;

     3.          promptly furnish to Lender or her attorney or agent with any
     and all information or writings that Lender or her attorney or agent may
     reasonably request concerning the Collateral;

     4.          promptly notify Lender and her attorney of any claim, action,
     or proceeding affecting the Security Interest title to the Collateral or
     any part of the Security Interest or Collateral, and at the request of
     Lender, appear in and defend, at their own expense, the action or
     proceeding;

     5.          notify Lender immediately if either of them becomes aware of
     the occurrence of any Event of Default or of any fact, condition, or event
     that only with the giving of notice or passage of time or both, could
     become an Event of Default, or the failure of either NGC or BHG to observe
     any of their responsibilities under this ARSA;

     6.          if an event of default occurs, then NGC and BHG, jointly and
     severally, shall promptly pay to Lender the amount of all court costs,
     reasonable attorney*s fees, and expenses of litigation incurred by Lender
     in enforcing this ARSA;

     7.          if an Event of Default occurs and continues, promptly deliver
     all proceeds constituting part of the Collateral to Lender as and when
     first received by BHG or NGC;

     8.          without the prior written consent of Lender, not agree to the
     release, termination, compromise, amendment, or adjustment of the
     membership interest of BHG in IC-BH, any distribution percentages with
     respect to its membership interest in IC-BH, the Collateral, or the
     Operating Agreement in any manner that is materially adverse to Lender; and

     9.          not sell, assign, or transfer the Collateral or the lien
     created by this ARSA, nor create any other lien or security interest in, or
     otherwise encumber the BHG Interest or the IC-BH Interest or any of the
     Collateral, nor permit any of the Collateral to be or become subject to any
     financing statement, lien, attachment, execution, sequestration, or other
     legal

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  4 of 13
<PAGE>
     or equitable process, nor any lien or encumbrance of any kind other than as
     permitted by this Agreement.

C.          ADDITIONAL LIENS.  All references in this Section to "NGC" expressly
            -----------------
include BHG, and BHG may not grant a second or any other lien on any of the
Collateral without complying with the provisions of this Section.  Before NGC
may place a second or any other lien on any or all of the Collateral in favor of
anyone other than [*], NGC must give Lender formal written notice of the name of
the proposed second or other lienholder (if known) and of the specific terms and
conditions of the proposed loan transaction for which the second or other lien
would be granted (including but not limited to the closing date, interest rate,
principal amount, and maturity date), and Lender shall have seven business days
from the date on which the notice is received by her to notify NGC of her desire
to make the loan.  NGC agrees to promptly provide Lender with any documentation
she requests related to the proposed transaction with the third party in order
to assist her in making her decision.  If Lender does not respond within seven
business days, Lender shall be presumed to have declined to make the loan.  NGC
shall give Lender informal notice of its intent or desire to obtain additional
financing and grant a second or other lien on the Collateral as far in advance
as is practicable, which is presumed to be approximately thirty days before the
contemplated closing date of the transaction.  NGC is not required to resubmit
to Lender any financing resulting in a second or other lien if the closing date,
interest rate, principal amount, and/or maturity date on the final loan
transaction are equal or less favorable to Lender than the original terms
proposed by NGC.

     In the event NGC complies with this notice provision and is allowed to
grant a second or other lien on the Collateral, NGC agrees that it must comply
with all of the following provisions before it may grant an effective second or
other lien on the Collateral:

     1.          Any second or other lien given on the Collateral must be made
                                                                  ----
     expressly subordinate to Lender's lien. NGC shall ensure that the paperwork
     documenting the transaction with the second or other lienholder properly
     notifies the second and/or other lienholder of the existence of Lender's
     first lien and that the second and any other lienholder clearly
     acknowledges Lender's existence and status as first lienholder on all of
     the Collateral and that the subsequent lienholder's debt and security
     interest is subordinated to Lender.

     2.          NGC shall ensure that the paperwork documenting the transaction
     with the second and any other lienholder clearly instructs the second and
     any other lienholder that it may not even attempt to collect or execute on
     the Collateral without first ensuring that the entire first lien balance is
     paid in full and all loan or credit transactions between NGC and Lender are
     completely terminated and are no longer in effect. The second and any other
     lienholder must be required to give notice of any default by NGC to NGC and
     Lender concurrently before the second or any other lienholder may exercise
     any collection efforts against the Collateral.

     3.          NGC shall defend, at its own expense, against any claims by any
     lienholders other than Lender against the Collateral.

     4.          NGC shall keep Lender's counsel informed of the status of any
     second and any other lien and of any default or alleged default by NGC on
     the transaction secured in whole or in part by the second and/or other
     lien, and shall reimburse Lender for any and all attorney's fees, court
     costs, and expenses incurred by Lender that Lender or her counsel deemed
     necessary to protect the Collateral within thirty days after the submission
     of an invoice for the fees or expenses to NGC by Lender's counsel.

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  5 of 13
<PAGE>
     5.          NGC shall provide Lender's counsel with fully-executed copies
     of all documents related to any transaction giving any third party a second
     or other lien on any or all of the Collateral within three business days of
     the last signature date on the transaction or the date the transaction is
     funded, whichever is earlier.

     6.          NGC shall provide to Lender's counsel on or before June 28,
     2004, copies of the fully-executed documents related to the transaction
     giving [*] a second lien and shall require him and his counsel to provide
     counsel for Lender (as set forth below) with copies of any and all notices,
     including but not limited to notice of default, that arise from or relate
     to any of his agreements with NGC that relate in any way to the second
     lien. NGC shall ensure that [*] agreement expressly and clearly states that
     his lien on the Collateral is subordinate to Lender's lien and security
     interest.

D.          PROTECTION OF COLLATERAL; INDEMNIFICATION.  Consistent with the
            ------------------------------------------
terms of this ARSA, the Note, and the Credit Facility, as long as any amounts
are owed to Lender under the Note or the Credit Facility, NGC agrees that it
will use its best efforts to defend against the attempts of any creditor who
tries to take any of the Collateral.  NGC also agrees that it will use its best
efforts to protect the Collateral; to prevent any loss, theft, substantial
damage, destruction, sale, or encumbrance to or of any of the Collateral; and to
defend against any actual or attempted levy, seizure, or attachment of or on any
of the Collateral.  In the event Lender finds it necessary to take action to
protect the Collateral against the actions of third parties or against any
wrongful conduct of NGC or any failure by NGC to use its best efforts to protect
the Collateral, NGC agrees that it shall indemnify Lender for any attorney's
fees, court costs, and any and all other expenses incurred in her efforts to
protect the Collateral.  NGC understands and agrees that it shall promptly
reimburse Lender for any and all of these expenses, but in no event shall these
attorney's fees and expenses be paid later than thirty days after the date on
which they are submitted to NGC.

IV.             EFFECTS OF AND REMEDIES FOR AN EVENT OF DEFAULT
                -----------------------------------------------

A.          NOTICE OF DEFAULT.  Lender is not required to provide NGC with any
            ------------------
notice whatsoever of any Default by NGC or any failure of NGC to timely make the
principal payment when due, save and except that Lender must give notice of a
late interest payment before that late payment is deemed a Default as described
in the Note, Credit Facility, or other applicable loan document.  However,
failure by Lender to give notice of any late interest payment to NGC does not
relieve NGC of its obligation to make the payment or of the application of the
default interest rate upon the failure to timely make the interest payment as
provided in Section 4 of the Note or as provided in the Credit Facility.

B.          ADJUSTMENTS AND DISTRIBUTIONS.  If an Event of Default has occurred
            ------------------------------
and continues, all payments and distributions of any nature pertaining to the
Collateral shall be delivered to Lender to be applied toward payment of the
Obligations.  If any of the Collateral is converted into another type of
property or if any money or other proceeds are paid or delivered to or for
credit to the account of NGC or BHG as a result of either of their rights in the
Collateral, all of that property, money, and other proceeds are part of the
Collateral.  After an Event of Default, NGC and BHG will immediately pay and
deliver all property, money, and other proceeds of Collateral that either of
them has or has received to Lender, and NGC and BHG shall take all other steps
necessary to ensure Lender has control over the Collateral.  In this event, and
if Lender so requests, NGC and BHG will promptly endorse or assign all other
property and proceeds to Lender and deliver to Lender all proceeds that require
perfection by possession under the UCC and that Lender does not already have.
If any of this

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  6 of 13
<PAGE>
property requires any additional security agreement, financing statement, or
other writing to create or perfect a security interest in favor of Lender, NGC
and BHG shall promptly execute and deliver or cause to be executed and delivered
to Lender any document or instrument Lender deems is reasonably necessary or
proper for those purposes.  Lender shall not be liable for any error, omission,
or delay occurring in the settlement, collection, or payment related to the
IC-BH Interest or the Collateral or of any property or instrument received
pursuant to this ARSA.

C.          REMEDIES.  If an Event of Default occurs and continues, in addition
            ---------
to any other rights and remedies that Lender may have under this ARSA, under the
UCC, or otherwise, Lender may, to the extent permitted by applicable law and at
her discretion, and without notice to NGC or  BHG except as specifically
provided, take any one or more of the following actions without liability except
to account for property actually received by her, and NGC and BHG agree that it
is commercially reasonable for Lender to do any of the following:

     1.          cease making any further advances or loans to NGC or any of its
     related entities under this Credit Facility or any other instrument, and
     any obligation of Lender to make any further advances or loans to NGC shall
     terminate;

     2.          receive the income, property, and other distributions related
     to the Collateral and hold them or apply them to the Obligations in any
     order selected by Lender;

     3.          exchange any of the Collateral for other property upon a
     reorganization, dissolution, or other readjustment and, in connection with
     the exchange, deposit any of the Collateral with any committee or
     depository upon any terms that Lender may determine;

     4.          in her name, or in the name of NGC and/or BHG, demand, sue for,
     collect, or receive any money or property at any time payable with respect
     to any of the Collateral and, in connection with these efforts, endorse
     notes, checks, drafts, money orders, and other instruments in the name of
     NGC or BHG, as applicable;

     5.          apply any cash held as Collateral to the Obligations and reduce
     her claim to judgment or foreclose or otherwise enforce the Security
     Interest, in whole or in part, by any available procedure;

     6.          make any compromise or settlement deemed advisable with respect
     to any of the Collateral;

     7.          renew, extend, or otherwise change the terms and conditions of
     any of the Collateral or the Obligations;

     8.          take or release any other collateral as security for any of the
     Collateral or the Obligations;

     9.          add or release any guarantor, endorser, surety, or other party
     to any of the Collateral or the Obligations;

     10.         without demanding performance or making any other demand,
     advertisement, or notice of any kind (except the notice specified in the
     Note for the late payment of interest, and the notice specified below of
     public sale or private sale if required under the UCC) to or upon NGC
     and/or BHG (as applicable), or upon any other person (all of which are, to
     the

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  7 of 13
<PAGE>
     extent permitted by law, expressly waived), immediately convert the
     Collateral or any part of it into cash, and sell or otherwise dispose of
     or, if appropriate, issue entitlement orders with respect to, or deliver
     the Collateral or any part of it or interest in it in one or more parcels
     at public or private sale or sales at Lender* office or elsewhere, at any
     price and on any terms (including, without limitation, a requirement that
     any purchaser of any of the Collateral purchase the Collateral for
     investment without any intention to make any distribution of it) that she
     deems best, for cash or on credit, or for future delivery without
     assumption of any credit risk, with any purchaser to purchase the
     Collateral at any sale free from any right of equity of redemption in NGC
     or BHG (as applicable), and this right or equity is expressly waived and
     released by NGC and BHG;

     11.         request an appropriate court to appoint a receiver for the
     Collateral, or any part of it, and NGC and BHG, by their execution of this
     ARSA, both consent to the appointment of a receiver; and

     12.         exercise any other rights she may have under this ARSA, under
     the UCC, or otherwise. NGC and BHG grant to Lender an irrevocable power of
     attorney regarding the Collateral, and all rights, powers, and remedies of
     an owner and all of the rights, powers, and remedies set forth above in
     this ARSA, exist through this power of attorney until all of the
     Obligations have been paid and performed in full.

The sale of any part of the Collateral shall not exhaust Lender*  power of sale
on the remaining Collateral.  The proceeds of any disposition of the Collateral
or other action by Lender shall be applied in any order or manner determined
solely by Lender, any instruction from NGC or BHG to the contrary
notwithstanding.  NGC and BHG both waive and agree not to assert any rights or
privileges that they may have under Sec.9.112 of the UCC, save and except its
right to receive any surplus under Sec.Sec.9.502(b), 9.504(a), and/or 9.504(b),
and NGC and BHG shall be liable for any deficiency if the proceeds of any sale
or other disposition of the Collateral are insufficient to pay all amounts to
which Lender is entitled.  Lender is under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges, or options expressly or
implicitly granted to Lender in this ARSA, and Lender is not responsible for any
failure to do so or delay in so doing.

D.          NOTIFICATION OF SALE.  Reasonable notification of the time and place
            ---------------------
of any public or private sale or disposition of the Collateral, shall be sent to
NGC and BHG and to any other person entitled under law to notice; provided that
if any of the Collateral threatens to decline speedily in value or is of the
type customarily sold on a recognized market, Lender may sell, issue entitlement
orders, or otherwise dispose of the Collateral without notification,
advertisement, or other notice of any kind.  NGC and BHG both agree that notice
sent or given not less than seven calendar days prior to the taking of the
action to which the notice relates is reasonable notice for purposes of this
Section.

E.          ENFORCEMENT OF RIGHTS.  NGC and BHG agree that it is commercially
            ----------------------
reasonable for Lender to exercise her rights related to the Collateral in any
manner and in any order Lender may determine.  Nothing contained in this ARSA
requires Lender to sell all or any part of the Collateral or to collect, or
attempt to collect, any sum payable by reason of the Collateral before Lender
may assert liability and collect the Obligations, nor is Lender obligated to
attempt to collect the Obligations before selling all or any part of the
Collateral.  Lender may, without foreclosing on the Collateral, collect and
otherwise enforce all amounts owing under the Note on the Collateral or any
proceeds or otherwise enforce all of NGC's, BHG*s, or Lender* rights under the
Note or in any of the Collateral and apply those collections as provided in this
ARSA, or she may foreclose on the Collateral.  Lender may hold funds as
additional Collateral or may, at her discretion, apply them to the Obligations.

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  8 of 13
<PAGE>
Lender may attempt to collect from any person liable to NGC and/or BHG to
deliver any proceeds related to the Collateral, by suit or otherwise, any sums
due and to otherwise to enforce NGC and/or BHG*s rights regarding those
proceeds.

F.          POWER OF ATTORNEY.
            ------------------

     1.          NGC appoints Lender, and her successors and assigns, as NGC*s
     attorney-in-fact (without requiring her to act in that capacity), with full
     power of substitution, to do any act that NGC is obligated to do by this
     ARSA, including but not limited to the power to do the following: (a)
     endorse the name of NGC on all checks, drafts, money orders, or other
     instruments for the payment of monies that are payable to NGC and
     constitute collections of the Collateral; (b) execute in the name of NGC
     any schedules, assignments, instruments, documents, financing statements,
     applications for registration, and other papers to perfect, preserve, or
     enforce the Security Interest; (c) exercise all rights of NGC in the
     Collateral, save and except NGC's voting rights, which pass to Lender only
                                                                           ----
     after an Event of Default has occurred and continues; (d) make collections
     and execute all papers and instruments and do all other things it deems
     appropriate to preserve and protect the Collateral and to protect Lender*
     interest in the Collateral; (e) release any party liable on the Collateral
     and to give receipts and acquittances and compromise disputes related to
     the Collateral; (f) release security for any Collateral; (g) make
     withdrawals from deposit accounts and other accounts with any financial
     institution, wherever located, into which proceeds from the Collateral may
     have been deposited and to apply those funds to the payment of the
     Obligations; and (h) do all acts and things and execute all documents in
     the name of NGC or otherwise, that Lender reasonably deems are necessary,
     proper, and convenient in connection with the preservation, perfection, and
     enforcement of her rights under this ARSA.

     2.          BHG appoints Lender, her successors and assigns, as BHG*s
     attorney-in-fact (without requiring her to act in that capacity), with full
     power of substitution, to do any act that BHG is obligated to do by this
     ARSA, including but not limited to the power to do the following: (a)
     endorse the name of BHG on all checks, drafts, money orders, or other
     instruments for the payment of monies that are payable to BHG and
     constitute collections of the Collateral; (b) execute in the name of BHG
     any schedules, assignments, instruments, documents, financing statements,
     applications for registration, and other papers to perfect, preserve, or
     enforce the Security Interest; (c) exercise all rights of BHG in the
     Collateral, save and except BHG's voting rights, which pass to Lender only
                                                                           ----
     after an Event of Default has occurred and continues; (d) make collections
     and execute all papers and instruments and do all other things it deems
     appropriate to preserve and protect the Collateral and to protect Lender*
     interest in the Collateral; (e) release any party liable on the Collateral
     and to give receipts and acquittances and compromise disputes related to
     the Collateral; (f) release security for any Collateral; (g) make
     withdrawals from deposit accounts and other accounts with any financial
     institution, wherever located, into which proceeds from the Collateral may
     have been deposited and to apply those funds to the payment of the
     Obligations; and (h) do all acts and things and execute all documents in
     the name of BHG or otherwise, that Lender reasonably deems are necessary,
     proper, and convenient in connection with the preservation, perfection, and
     enforcement of her rights under this ARSA.

All persons dealing with Lender shall be fully protected in treating the powers
and authorities conferred by this paragraph as continuing in full force and
effect until advised by Lender that all Obligations are finally paid.  The
powers and authority granted pursuant to this ARSA are made for valuable
consideration, are coupled with an interest, are irrevocable so long as any part
of the

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page  9 of 13
<PAGE>
Obligations is unpaid, and shall not be terminated prior to full and final
payment of all of the Obligations, nor shall they be affected by any act of NGC
or BHG or any other person or by operation of law, including, without
limitation, the dissolution, death, disability, or incompetency of any person.
Lender agrees she will not exercise her powers as attorney-in-fact until an
Event of Default occurs and continues.

V.                          MISCELLANEOUS PROVISIONS
                            ------------------------

A.          NOTICES.  Any notice required or permitted by this ARSA shall be
            --------
effective if given in accordance with the provisions set forth in Section 23 of
the Note.

B.          DUTIES OF LENDER.  Lender* duty regarding the Collateral at any time
            -----------------
prior to full and final payment of all of the Obligations is solely to use
reasonable care in the custody and preservation of the Collateral.  Lender is
deemed to have exercised reasonable care in the custody and preservation of the
Collateral if the Collateral is accorded treatment substantially equal to that
which Lender accords her own property.  Lender has no responsibility for
ascertaining or taking action with respect to fixing or preserving rights
against prior parties to the Collateral, calls, conversions, exchanges,
maturities, tenders, or other matters relative to any Collateral or for
informing NGC or BHG of these matters regardless of whether Lender has or is
deemed to have any knowledge of these matters.  Lender is not required to take
any steps necessary to preserve any rights in the Collateral against prior
parties or to protect, perfect, preserve, or maintain any security interest
given to secure the Collateral.  Lender is not liable for her failure to use due
diligence in the collection of the Obligations, or for her failure to give
notice to NGC or BHG of default in the payment of the Obligations, or in the
payment of or upon any security, whether pledged under this ARSA or otherwise,
nor for a decline in the market value of the Collateral.

C.          INDEMNIFICATION.  NGC and BHG both agree to indemnify and to hold
            ----------------
Lender harmless, in the absence of Lender* gross negligence or willful
misconduct, from and against any loss, claim, demand, or expense (including
attorneys* fees) by reason, or in any manner related to, the Collateral or the
foreclosure sale or other disposition and subsequent ownership of any part of
the Collateral, including but not limited to (1) any claim that may arise
because of any alleged breach of warranty concerning the Collateral; and (2) any
claims that any transferee of an interest in IC-BH has any liability for
existing or future obligations of IC-BH in excess of the transferee's interest
in IC-BH (a) through the terms of the Operating Agreement, (b) through the
failure of NGC, BHG, or IC-BH to comply with the Operating Agreement, (c)
through the failure of NGC, BHG, or IC-BH to comply with any state or federal
statute, rule, regulation, order, or decree, or (d) due to Lender* efforts to
enforce payment of the Obligations or the Collateral, including expenses
incurred in satisfying any applicable securities and banking laws.

D.          EXPENSES.  If an Event of Default under this ARSA, the Note, or the
            ---------
Credit Facility occurs, NGC and BHG, jointly and severally, shall promptly pay,
upon demand, any and all reasonable attorney's fees and out-of-pocket expenses
incurred by Lender related to the Event of Default to the extent permitted by
applicable law, but in no event shall these attorney's fees and expenses be paid
later than thirty days after the date on which they are submitted to NGC.
Additionally, NGC and BHG, jointly and severally, shall promptly pay all costs,
expenses, taxes, assessments, insurance premiums, court costs, reasonable
attorneys* fees, expenses of litigation, expenses of sales, and other similar
and related expenses incurred by Lender to enforce her rights and remedies under
this ARSA, regardless of whether they are incurred before or after the
occurrence of an Event of Default or incurred in connection with the perfection,
preservation, or defense of the Security Interest, or the custody, protection,
collection, repossession, enforcement, or sale of the

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page 10 of 13
<PAGE>
Collateral.  All of these expenses shall become part of the Obligations and
shall bear interest at the Default Rate (as defined in the Note) from the date
paid or incurred by Lender or her attorney until paid by NGC or BHG.

E.          FINANCING STATEMENT.  NGC and BHG both authorize Lender to file
            --------------------
financing statements (and, if necessary or appropriate, sign NGC's and BHG*s
names, respectively, on financing statements) describing the Collateral.  A
carbon, photographic, or other reproduction of this ARSA or a financing
statement describing the Collateral shall be sufficient as a financing statement
to the full extent permitted by applicable law.

F.          FURTHER ASSURANCES.  NGC agrees to execute all other documents and
            -------------------
instruments reasonably requested by Lender or her attorney to effectuate the
intent of this ARSA upon written request by Lender or her attorney after the
date of this Agreement.

G.          AMENDMENT AND WRITTEN WAIVER.  No waiver, modification, or
            -----------------------------
alteration of any provision of this ARSA, nor consent to any departure from the
terms of it, or from the terms of any other document, shall be effective unless
it is in writing and signed by NGC, BHG, and Lender, and any executed waiver
shall be effective only for the specific purpose and in the specific instance
set forth in that document.  Any document purporting to amend or modify this
ARSA shall be of no force or effect unless the document expressly states that it
is intended to amend or modify the ARSA and it is signed by all parties to this
ARSA.  No waiver by Lender of any Event of Default shall be deemed to be a
waiver of any other or subsequent Event of Default nor shall the waiver be
deemed to be a continuing waiver.

H.          BENEFIT.  This ARSA is binding upon and inures to the benefit of
            --------
NGC, BHG, and Lender and their respective heirs, legal representatives,
successors, and assigns, provided that neither NGC nor BHG may assign any
rights, powers, duties, or obligations under this ARSA without the prior written
consent of Lender.

I.          REMEDIES CUMULATIVE.  All rights and remedies of Lender under this
            --------------------
ARSA are cumulative of each other and of every other right or remedy that Lender
may otherwise have at law or in equity or under any other document for the
enforcement of the security interest or the enforcement of any duties of BHG or
any other party liable in respect to the Obligations.  The exercise by Lender of
one or more rights or remedies shall not in any way affect her right to exercise
any of her other rights or remedies, or to subsequently exercise the same rights
or remedies in the future.

J.          COURSE OF DEALING.  No course of dealing between NGC, BHG, and
            ------------------
Lender, nor any failure or delay by Lender in exercising any of her rights,
powers, or privileges under this ARSA or under the Note shall operate as a
waiver of any of Lender's rights, powers, or privileges; nor shall any single or
partial exercise of any right, power, or privilege under this ARSA or the Note
preclude any other or further exercise of that right, power, or privilege or the
exercise of any other right, power or privilege.

K.          SEVERABILITY.  The invalidity of any one or more phrases, sentences,
            -------------
clauses, paragraphs, or sections of this ARSA shall not affect the remaining
portions of this ARSA.  If any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this ARSA are invalid, or operate to render
this ARSA invalid, then this ARSA shall be construed as if the invalid phrase or
phrases, sentence or sentences, clause or clauses, paragraph or paragraphs, or
section or sections had not been inserted.

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page 11 of 13
<PAGE>
L.          SATISFACTION OF OBLIGATIONS.  Upon the full and final satisfaction
            ----------------------------
of all of the Obligations, as determined by Lender, this ARSA shall terminate,
and Lender shall deliver to NGC and to BHG, at their expense, the Collateral
remaining in her possession that has not been sold or otherwise applied pursuant
to this ARSA.

M.          GOVERNING LAW.  The substantive laws of the State of Texas govern
            --------------
the validity, construction, enforcement, and interpretation of this ARSA unless
the laws of the State of Texas require the application of the laws of another
state.  This ARSA is performable in Montgomery County, Texas.

N.          CONTROLLING DOCUMENT.  To the extent that this ARSA conflicts with
            ---------------------
or is in any way incompatible with any other loan document concerning the
Obligations that involves any loan of funds by Lender to NGC and/or BHG, any
promissory note or credit facility shall control over any other document, and if
the promissory note or credit facility does not address an issue, then each
other loan document executed by Lender shall control to the extent that it deals
most specifically with an issue.

O.          INCORPORATION OF OTHER DOCUMENTS.  The Parties agree that the
            ---------------------------------
Amended and Restated Secured Promissory Note and the Confidential Compromise
Settlement Agreement and Release between the Parties and both dated June 28,
2004, are incorporated by reference in this Note for all purposes as if fully
set forth at length.

     The parties have executed this Security Agreement to be effective as of
June 28, 2004.

DEBTOR:                                 DEBTOR:
------                                  ------

BLACKHAWK GOLD, LTD.                    NEVADA GOLD & CASINOS, INC.

By: _________________________________   By: ____________________________________
    H. Thomas Winn, President               H. Thomas Winn, President
    3040 Post Oak Blvd., Suite 675          3040 Post Oak Blvd., Suite 675
    Houston, Texas  77056-6588              Houston, Texas  77056-6588

SECURED PARTY:
-------------

[*]

_____________________________________
Lender

Amended and Restated Security Agreement     _______
NGC-BHG-Lender/June 2004                      HTW                  Page 12 of 13
<PAGE>
                     APPENDIX I TO THE AMENDED AND RESTATED
                     --------------------------------------
                               SECURITY AGREEMENT
                               ------------------

           BETWEEN NEVADA GOLD & CASINOS, INC., BLACKHAWK GOLD, LTD.,
                         AND LENDER, DATED JUNE 28, 2004

                                   DEFINITIONS
                                   -----------

     The "BHG INTEREST" means all of NGC*s ownership interest in BHG, which is
represented by certificate no. 1 in the amount of 1,000 shares of common stock
in BHG, dated May 15, 1997, and issued to NGC, and which constitute all of the
shares of capital stock issued to any person or entity by BHG.

     "DEFAULT" and "EVENT OF DEFAULT" both mean that NGC will be in default if
any of the following happens:

     (a)  NGC fails to timely make the principal payment at maturity;

     (b)  Lender does not receive an interest payment on or before the fifth day
after Lender gives notice to NGC of the late payment;

     (c)  NGC defaults under any loan, extension of credit, security agreement,
purchase or sales agreement, contractual obligation, or any agreement in favor
of any creditor or person (as "default" is defined in that instrument and after
giving effect to all applicable cure periods) and that default results in NGC
owing, through default and/or acceleration, an amount in excess of $3 million;

     (d)  NGC fails to timely comply with the Obligations (other than those
Obligations specifically identified in this definition);

     (e)  NGC breaches any covenant, representation, or warranty in this Note,
the Credit Facility, or in the ARSA and does not cure that breach within thirty
days after the breach, and NGC agrees to give Lender prompt notice of the
breach;

     (f)  NGC makes an assignment for the benefit of creditors, files for
bankruptcy protection, is adjudicated insolvent, a receiver is appointed for
IC-BH or BHG, or any involuntary proceeding is commenced against NGC under any
bankruptcy or insolvency laws and that involuntary proceeding is not dismissed
within sixty days after it is filed;

     (g)  NGC grants or attempts to grant to any third party a lien on the
Collateral without complying with the procedure and provisions in Section II(C),
entitled "Second Lien," in the ARSA; or

     (h)  a final, non-appealable judgment in litigation or arbitration is
entered against NGC where the total amount of the judgment, including actual
damages, pre- and post-judgment interest, attorney's fees, court costs, and/or
punitive damage, exceeds $3 million.

     "IC-BH" means Isle of Capri Black Hawk, L.L.C., a Colorado limited
liability company.

APPENDIX I TO THE AMENDED AND RESTATED SECURITY AGREEMENT
NGC-BHG-LENDER/JUNE 2004                                             PAGE 1 OF 2
<PAGE>
     The "IC-BH INTEREST" means all of BHG*s ownership interest in IC-BH, and
all of NGC's ownership interest in BHG, and represented by the following
certificates representing Units and shares of common stock as follows:

          IC-BH Certificate No. 8 for 360 Units dated February 16, 1998, issued
          to BHG;
          IC-BH Certificate No. 10 for 40 Units dated February 16, 1998, issued
          to BHG;
          IC-BH Certificate No. 11 for 30 Units dated August 17, 1998, issued to
          BHG; and
          BHG Certificate No. 1 for 1,000 shares of common stock dated May 15,
          1997, issued to NGC.

The IC-BH Units issued to BHG and described above constitute all of the Units
issued by IC-BH to BHG.

     "OBLIGATIONS" means any and all of the duties, responsibilities, and
obligations of NGC and BHG under the Note, the Credit Facility, and this ARSA,
and to repay all amounts advanced by Lender pursuant to this ARSA and the Note,
the Credit Facility, and to pay the expenses described in Sections III(C)(4),
III(D), and V(D) of the ARSA, and the obligations of NGC and/or BHG:

          (a)  to pay the principal of, interest on, and any other indebtedness
     arising from the Note in accordance with its terms, and all valid renewals,
     extensions, modifications, and amendments of the Note or any part of it,
     and any future advances made pursuant to the Note;

          (b)  to pay the principal of, interest on, and any other indebtedness
     arising from the Credit Facility in accordance with its terms, and all
     valid renewals, extensions, modifications, and amendments of the Credit
     Facility or any part of it, and any future advances made pursuant to the
     Credit Facility;

          (c)  to repay to Lender all amounts advanced by Lender under the
     Original Loan Documents, this ARSA, the Note, or the Credit Facility to or
     on behalf of NGC;

          (d)  to comply with and to perform fully all of the terms and
     provisions of the Note, this ARSA, the Credit Facility, and the Compromise
     Settlement Agreement and Release entered into between the Parties on the
     same date as this ARSA; and

          (e) to reimburse Lender for all of Lender (1) reasonable expenses and
     costs that NGC and BHG are obligated to pay, jointly and severally,
     pursuant to the terms of this ARSA, the Note, or the Credit Facility,
     excluding interest and principal payment obligations, within the time
     provided for payment.

     "OPERATING AGREEMENT" means the Isle of Capri Black Hawk, L.L.C. Amended
and Restated Operating Agreement.

APPENDIX I TO THE AMENDED AND RESTATED SECURITY AGREEMENT
NGC-BHG-LENDER/JUNE 2004                                             PAGE 2 OF 2
<PAGE>

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