Document:

<PAGE>

                                                                   Exhibit 10.18

                              DEVELOPMENT AGREEMENT

     THIS DEVELOPMENT AGREEMENT is made as of this 17th day of June, 1997 by
and among the CITY OF BETTENDORF, a municipal corporation of the State of Iowa
(the "City") and LADY LUCK BETTENDORF, L.C., an Iowa limited liability company,
LADY LUCK QUAD CITIES, INC., a Delaware corporation and BETTENDORF RIVERFRONT
DEVELOPMENT COMPANY, L.C., an Iowa limited liability company (hereinafter
collectively referred to as "Lady Luck").

     WHEREAS, the City desires to assist in the participation of the
redevelopment of the former J.I. Case property; and

     WHEREAS, the acquisition of real estate and construction of certain public
access improvements (as described below) for public use will benefit the
residents of the City with additional public parking and increased access to the
riverfront; and

     WHEREAS, the site and surrounding area have been found by the City to be an
area deserving of urban renewal - economic redevelopment status, which status
authorizes the development of a tax increment financing District to fund certain
public and private improvements in District 1 under Ordinance 36-90 (the
"District"); and

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     WHEREAS, this Agreement is in the public's interest and in furtherance of
the urban renewal plan; and

     WHEREAS, this Agreement will assist in the redevelopment of such property,
provide additional parking for the downtown area and increase public access to
the riverfront; and

     WHEREAS, this Agreement shall detail certain limits on the District funds
and the manner of their expenditure; and

     WHEREAS, the purpose of this Agreement is to increase public access to the
City's riverfront and downtown, ensure both increased tax base within the
community and further job opportunities for the residents of the City; and

     WHEREAS, City participation in the below described project will diversify
the tax base by increasing commercial property development, make it more likely
that the Bettendorf Riverfront Development Company will be able to market and
fill the commercial center adjacent to the Lady Luck boat, and will springboard
other phases of expansion of the former J.I. Case site; and

     WHEREAS, in order to accomplish the foregoing purposes, Lady Luck has
assembled a development site, as more particularly set forth on Exhibit "A" (the
"Property"); and

     WHEREAS, it is a goal of this Agreement to provide the improvements called
for herein without adversely impacting the

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current revenues of the Bettendorf School District and Scott County.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.   The Project.
          -----------

     Lady Luck and the City agree to develop the Property as a joint project
which will be known as the Bettendorf Downtown Riverfront Project (the
"Project") which shall be comprised of the following elements ("Project
Improvements");

     A.   Waterfront hotel and restaurant as set forth on Exhibit "B" (the
          "Hotel");

     B.   A railroad overpass for vehicular access from State Street to the
          Hotel as set forth on Exhibit "C" (the "Overpass");

     C.   The Bettendorf Downtown Riverfront Parking Center consisting of a
          multi-level 500 car parking ramp as set forth on Exhibit "D" (the
          "Parking Facility");

     D.   An improved area for public parking on State Street as set forth on
          Exhibit "E" (the "Parking Courtyard");

     E.   The Marina with seasonal and transient docking facilities as set forth
          on Exhibit "F" (the "Marina");

     2.   Lady Luck Obligations.
          ----------------------

     A.   Lady Luck shall design and construct or cause to be constructed) the
Hotel, Overpass, Parking Facility and Marina. Lady Luck shall consult with the
City in all matters relating to the development and construction of these
improvements, and shall comply with all laws regarding site plan approvals and
permitting. This consultation shall include, without limitation, the following
matters:

          i.   The design and construction of the improvements;

          ii.  The selection, approval, hiring and discharge of engineers,
          architects, contractors, subcontractors, professionals and other third
          parties;

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          iii. The negotiation and execution of contracts, agreements,
          easements, and other documents with third parties; and

          iv.  The preparation of budgets, cost estimates, financial
          projections, statements, information and reports as Lady Luck deems
          appropriate.

     B.   The City shall not, in this consultation, unreasonably withhold or
delay its approval.

     C.   Lady Luck shall demolish the Plaza Building at 1823 State Street at
its cost (including any environmental remediation as required by applicable
law), shall backfill the building footprint with appropriate fill materials
including a top layer of soil sufficient to sustain grass (which shall be
initially sodded by Lady Luck) and shall cause the real estate (as legally
described on Exhibit "E-1") to be donated to the City for the City's use.

     D.   Lady Luck shall pay all real estate taxes imposed on the Property.

     E.   Lady Luck shall pay to the City one-half of the damages awarded to (or
the settlement amount negotiated with) the owners of the real estate fronting on
George Thuenen Drive arising out of the taking of any access thereto by the
construction of the Overpass.

     F.   For the life of bonds issued by the City to finance its obligations
hereunder, Lady Luck or its assignees shall not object to a minimum assessed
valuation of the Hotel, Parking Facility and Marina in an amount of $32 million
commencing December 31, 1997.

     G.   Lady Luck shall pay a maintenance fee of Fifty Thousand Dollars
($50,000) per year commencing on January 1 following completion of construction
of the Overpass and each year thereafter for fifteen (15) years (or a total of
fifteen (15) payments). The City shall deposit these fees into a trust and
agency account to use for the repair and/or replacement of the Overpass.
Further, in the event traffic conditions require signalization at the
intersection of State Street and George Thuenen Drive, Lady Luck will reimburse
the city for the cost of the signals and the installation thereof and any
surface modification required thereby. However, the City agrees that it will not
require such signalization during the initial traffic assessment period which
shall be the two (2) year period

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following completion of the Overpass. However, nothing in this Agreement shall
be deemed to give Lady Luck any special legal entitlements for use of the
Overpass and related site improvements.

         3.   City Obligations.
              ----------------

         A.   After the execution of this Development Agreement, the City shall
cause to be issued tax increment financing bonds or notes in sufficient amounts
to meet the obligations contained herein. Interest for said bonds or notes shall
be as established at competitive bid or pursuant to a loan agreement and private
negotiated sale. Interest and principal shall first be paid from incremental
proceeds generated solely by the Project. In the event additional proceeds are
necessary, they shall be derived from increment within the District.

         B.   The City agrees to purchase from Lady Luck the Overpass for a
purchase price equal to the documented costs of the Overpass' design,
development, construction and related site work and to pay to Lady Luck to
offset its costs of design and construction of the Parking Facility, Marina and
related site work, sums not to exceed Seven Million Five Hundred Thousand
Dollars ($7,500,000) in total, which amount shall be funded by the
aforementioned tax increment financing and advanced to the contractors per the
agreed upon construction schedule. In the event additional expenditures are
required for construction which exceed the aforementioned Seven Million Five
Hundred Thousand Dollar ($7,500,000) threshold, those excess costs shall be
borne by Lady Luck. In the event the tax increment financing proceeds are in
excess of the documented costs by Lady Luck for the design, development and
construction of the Parking Facility, Marina, Overpass and related site work,
the balance of those proceeds shall be used by the city for other Project
Improvements within the District as authorized by law. In the event insufficient
tax increment is created to fund the documented costs up to the Seven Million
Five Hundred Thousand Dollar ($7,500,000) threshold referred to above, any
annual shortfall necessary to fund the aforementioned bonds shall be covered by
the City utilizing revenues obtained from taxes and fees generated by Lady Luck.
Once the foregoing $7,500,000 threshold is established, Lady Luck Bettendorf
agrees to cover any shortfall in incremental income from the District necessary
for the payment of the bonds or notes (due to failure of the Assessor to assess
the Hotel, Parking Facility and Marina at the minimum assessed valuation of $32
million or any other reason). In the event of such a shortfall, Lady Luck
Bettendorf shall

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provide the City with sufficient funds to compensate for the shortfall, which
funds shall be treated as payments in lieu of taxes.

         C. The City shall have the ability to use all funds generated by the
coverage ratio to the extent the District provides revenues necessary for
coverage pursuant the documents for sale of the bonds. Such coverage funds may
be used by the City to repay the Bettendorf School District and Scott County any
shortfall of revenue from the existing increment incurred by virtue of this
Agreement.

         4. Site Plan.
            ---------

         A. Within 30 days from the date of execution of this Agreement, Lady
Luck shall submit a site plan and design development documents (the "Design
Development Documents") for the area as it will look upon completion of the
Project. The Design Development Documents shall include the location and size of
all Project Improvements required by this Agreement. Lady Luck shall secure the
appropriate approvals from the City so that such documents conform to all
relevant zoning, building, fire, landscape, and stormwater detention codes which
are then in effect.

         B. The Design Development Documents shall serve as the baseline for the
construction documents. From the completion of the Design Development Documents
until the completion of the final construction documents, Lady Luck will consult
with the City prior to any major change to the Design Development Documents. The
City may also propose changes to the Design Development Documents. The
construction documents shall include all detailed final working drawings and
specifications as are usual and customary in a project of this size and scope.

         C. Subject to Unavoidable Delays, which are defined as delays as the
result of strikes, unforeseeable and unavoidable casualties, governmental
actions, judicial actions commenced by third parties, weather, floods, other
acts of God or other causes and event outside of Lady Luck's control, Lady Luck
shall have the Project Improvements completed according to the Construction
Schedule attached as Exhibit "G", to which Lady Luck and the City shall use
their best efforts to adhere. The Construction Schedule has been established to
coordinate completion times of each Project Improvement. It is the intention of
the parties that the Marina, Overpass and Parking Facility be completed prior to
the Hotel opening (or as soon thereafter as is commercially reasonable). In the
event the

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construction of the Marina is not completed before April 1 following the
completion of the Hotel, Lady Luck shall pay the City a penalty of $100,000 per
month for each month or prorated portion thereof after such April 1 date until
the completion date of the Marina, unless such delay is caused by a force
majeure in the contract of Lady Luck's Marina contractor or other cause outside
of the control of Lady Luck.

         5. Conditions Precedent.
            --------------------

         The following matters shall have been satisfied before any of the
parties to this Agreement are bound by their undertakings and obligations:

            A. Lady Luck shall have executed construction agreements for the
         Hotel, Marina, Overpass and Parking Facility.

            B. Lady Luck shall have secured a firm commitment for financing the
         construction of the Hotel and shall have received satisfactory evidence
         of sufficient funding for the aforementioned tax increment financing.

            C. Lady Luck shall have received all necessary approvals from any
         governmental agency, utility, railroad or other entity whose approval
         is required for Lady Luck's undertakings and obligations under this
         Agreement specifically including, but not limited to approval of this
         Agreement by the Iowa Racing and Gaming Commission.

            D. Each of the parties hereto shall have properly approved,
         authorized, and executed an original counterpart of this Agreement.
         Each party hereto represents and warrants to the other parties that
         this Agreement has been duly approved by its governing body, which has
         by proper proceedings authorized the execution and delivery of this
         Agreement and the performance of each and every undertaking of such
         party herein contained.

         6. Term.
            ----

         If any of the foregoing conditions precedent does not occur within
twelve (12) months of the date of this Agreement, either party may terminate
this Agreement upon written notice to the

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other party. This Agreement shall remain in full force and effect for the life
of the bonds issued by the City to finance its obligations under this Agreement.
However, the parties' obligations to pay into, maintain and administer the
repair/replacement account under paragraph 2(G) hereof shall survive and extend
beyond the term of this Agreement.

         7. Limitation Upon Encumbrance of Property.
            ---------------------------------------

         Lady Luck shall not engage in any financing or any other transaction
creating any mortgage or other encumbrances or lien upon the Project
Improvements as outlined above, except with the consent of the City which
consent shall not be unreasonably withheld. Creating encumbrances for the
purpose of obtaining funds necessary for the construction of the Project
Improvements shall not be subject to the limitations of this paragraph.

         8. Dedication to Public of Assets.
            ------------------------------

         Upon completion, the Overpass shall be transferred to the City for
general public use and without any special legal entitlements to use by any
private person. Such transfer may be by dedication, easement, or deed, as
appropriate. All transfers to the City shall be free of any liens, and shall be
without known hazard. Upon demolition, clean up and remediation, if any, of the
Plaza building site, such ground shall also be transferred to the City, free of
lien or hazards.

                                        8

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         Acquisition of these sites represents an urban renewal project within
the meaning of Iowa Code Section 403.17(24) and 384.95.

         9.    Certification of Cost.
               ---------------------

         Lady Luck agrees to allow the city reasonable access to financial
records after giving Lady Luck reasonable notice in order to verify that the
amounts listed for the Project Improvements described above have been spent
toward the completion of those Project Improvements. Lady Luck shall advise and
consult with the City or its financial advisor regarding the business plan for
the Marina and Hotel.

         10.   Maintenance by the City.
               -----------------------

         The following areas of the Project Improvements shall be maintained by
the City upon completion and transfer to the City:

         A.         All surfaces of the Overpass and any connection access ways.

         B.         All lights whose purpose is the illumination of Overpass.

         11.   Cooperation by City.
               -------------------

         The City agrees to cooperate in good faith with Lady Luck in connection
with the performance of all of the activities contemplated herein and to use all
reasonable efforts and diligence to promptly respond to any reasonable requests
or notices received by it from Lady Luck pursuant to the terms hereof. The City
further agrees to consider in good faith any

                                        9

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required variance from the terms of this Agreement regarding Lady Luck's
performance or the construction of the Project Improvements which may be
reasonably necessary to allow for the completion thereof or which the city may
reasonably determine to be in the best interests of the District and the
residents of the City.

         12.   Noncompliance/Mediation/Arbitration.
               -----------------------------------

         In the event of any breach of any covenant, agreement, restriction or
regulation contained in this Agreement, by Lady Luck or the City, the dispute
shall be first mediated and then (if necessary) arbitrated. Only after a good
faith effort to mediate such dispute has failed shall the matter proceed to
arbitration. On the written notice of either party to the other of a breach of
this Agreement, each party shall designate their representatives and shall meet
within three (3) days after receipt of the notice. The parties themselves shall
then attempt to resolve the dispute within fourteen (14) days of the meeting.
Should the parties be unable to agree upon a resolution of the dispute, the
parties agree that Federal Mediation and Conciliation Service shall be appointed
as mediator/arbitrator, whose decision(s) shall be final, and judgment may be
made and entered in any court in accordance therewith (except that either party
may petition a court of competent jurisdiction for review of errors of law).
Either

                                       10

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party may notify the mediator/arbitrator and so commence the
mediation/arbitration process. The mediator/arbitrator shall meet with the
parties to hear the dispute within ten (10) days of such notification and shall
attempt to resolve the dispute or issue his arbitration decision within fourteen
(14) days of the first meeting. Each party shall abide by the decision of the
mediator/arbitrator and shall pay the amounts, costs and expenses as awarded by
the mediator/arbitrator with the mediator/arbitrator fee to be borne equally by
both parties. The parties further agree that the nonbreaching party may
institute separate legal proceedings to enjoin the threatened or attempted
violation of any covenant, agreement, restriction or regulation contained
herein. The parties agree that specific performance may accordingly be a remedy
for and ordered by any court.

         13.      The Boat Lady Luck.
                  ------------------

                  For so long as the City has any debt outstanding (tax
increment financing or refinancing or refunding notes, bonds, or other financial
obligations) dependent upon the property taxes generated by this site (as shown
on the site plan referred to in Section 4) Lady Luck shall continue to operate
the Lady Luck boat, or a boat of similar capacity, at the site (except for the
minimum time necessary to conduct the requisite hull inspection

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required by the U.S. Coast Guard or similar governmental requirements).

         14.      Additional Projects.
                  -------------------

                  It is intended by the parties that this project is intended to
be Phase I of further development on the site. Such further development will
include expansion of the Marina and Pavilion. Within 24 months of the completion
of the improvements contained herein the parties shall develop a plan and
timetable for the next phase improvements. Lady Luck shall consult with the City
in the preparation of this development plan.

         15.      Premiere Facility.
                  -----------------

                  It is the intent of the parties that the Lady Luck boat and
new Hotel continue to be the premiere facilities in the Quad City area with
facilities and amenities warranting at least a three diamond rating by the
American Automobile Association, Mobil or such similarly published rating
service. Lady Luck shall ensure that it or its assigns and successors shall
reserve such funds as are necessary to continue to maintain these facilities in
a first class condition.

         16.      Floodwall.
                  ---------

     No construction or finished improvement shall interfere with the ability of
the City or Corps of Engineers to

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maintain the floodwall or interceptor sewer along Lady Luck property.

         17.      Consultation During Construction.
                  --------------------------------

                  Lady Luck will consult with representatives of the City at
least monthly during construction to discuss progress of the Project.

         18.      Risk of Loss.
                  ------------

                  Until such time as the City accepts any property deeded to it,
Lady Luck shall bear all risk of loss or risk of harm to others, occurring by
virtue of this project, and shall indemnify and hold harmless the City
therefrom.

         19.      Insufficient Funds.
                  ------------------

                  In the event Lady Luck does not fund the payment of its
obligations described herein, Lady Luck agrees to pay the City an additional
25(cent) per person for each person entering the Lady Luck boat (which
additional sums shall be used to pay these obligations), paid with and on the
same schedule as the 50(cent) currently being paid. Such fee will thereafter
continue until such obligations are paid.

         20.      Bike Path.
                  ---------

                  Lady Luck shall allow a bike path to be placed through the
Property as agreed upon by the parties. Construction of a minimum six foot
pedestrian walkway on the Overpass on Thuenen

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Drive shall be a part of that project. Construction of the bike path on other
parts of the site shall be at the City's expense.

         21.      Additional Agreements.
                  ---------------------

         From time to time hereafter without further consideration, the parties
agree to execute and deliver, or cause to be executed and delivered, such
further agreements and instruments, and shall take such other actions, as any
party may reasonably request in order to more effectively memorialize, confirm
and effectuate the intentions, undertakings and obligations contemplated by this
Agreement.

         22.      Counterparts.
                  ------------

         This Agreement may be executed in any number of counterparts with the
same effect as if the parties hereto had signed the same document. All such
counterparts shall constitute one instrument.

         Dated this 23/rd/ day of June, 1997.

                                  CITY OF BETTENDORF

                                  By___________________________________________
                                             Mayor

                                  By___________________________________________
                                             City Administrator

                                       14

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Dated this 17th day of June, 1997.

                             LADY LUCK BETTENDORF, L.C.

                             By _______________________________________________

                             By _______________________________________________

Dated this 17th day of June, 1997.

                             BETTENDORF RIVERFRONT
                             DEVELOPMENT COMPANY, L.C.

                             By________________________________________________

Dated this 17th day of June, 1997.

                             LADY LUCK QUAD CITIES, INC.

                             By________________________________________________

                                       15

<PAGE>

                       AMENDMENT TO DEVELOPMENT AGREEMENT
                       ----------------------------------

     THIS AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment") is made this
 _____ day of August, 1998, by and among GREEN BRIDGE COMPANY, an Iowa
corporation, BETTENDORF RIVERFRONT DEVELOPMENT COMPANY, L.C., an Iowa limited
liability company, LADY LUCK GAMING CORPORATION, a Delaware corporation, and
LADY LUCK BETTENDORF, L.C., an Iowa limited liability company (hereinafter
collectively referred to as "LLB") and the CITY OF BETTENDORF, a municipal
corporation of the State of Iowa (the "City").

     WHEREAS, City and LLB have entered into a Development Agreement dated
August 16, 1994 (the "Development Agreement"); and

     WHEREAS, the Development Agreement provided for a development fee to be
paid to the City of Buettendorf (the "Development Fee"); and

     WHEREAS, pursuant to 99F.10(3) of the Code of Iowa, the City is authorized
to adopt an ordinance providing for an administration fee of up to fifty cents
($.50) for each person admitted to the Lady Luck Bettendorf Casino (the
"Admission Fee"); and

<PAGE>

     WHEREAS, accordingly, the City previously approved and adopted such an
ordinance providing for an Admission Fee of fifty cents ($.50)(the "Admission
Fee Ordinance"); and

     WHEREAS, the City and LLB desire to amend and increase the Development Fee
in lieu of an Admission Fee with the increased Development Fee calculated as a
percentage of the total adjusted gross receipts; and

     WHEREAS, the parties desire to amend the Development Agreement as provided
herein.

     NOW, THEREFORE, it is agreed as follows:

     1.   Paragraph 3 of the Development Agreement is hereby amended by
renumbering that paragraph as 3A and supplementing the section with the
following:

     "3B. Commencing September 1, 1998, in lieu of the foregoing paragraph 3A,
          LLB agrees to weekly pay a Development Fee to the City (in addition to
          the license fees paid to the Riverbend Regional Authority) equal to
          1.65% of the adjusted gross receipts (as defined inss.99F.1(1) of the
          Iowa Code). In the event this Development Fee is adjusted downward by
          any future amendment of Chapter 99F of the Code of Iowa, any rule
          promulgated thereunder, or any ruling by any agency or court of
          competent jurisdiction construing the relevant law and/or regulation,
          LLB agrees to pay a fee to the City calculated to compensate the City
          for any resulting deficiency in the Development Fee (from the amount
          contemplated by this Agreement). Subject to the following conditions
          subsequent, Lady Luck Bettendorf agrees to pay to the City a minimum
          annual Development Fee of $1,020,000 (the "Floor Amount"). The Floor
          Amount will be computed on an annual basis from September 1 through

                                        2

<PAGE>

               August 31 of each year with any deficiency between the Floor
               Amount and the Development Fee due and payable on September 10,
               immediately following such year.

          3C.  The Floor Amount shall terminate at LLB's option for any year
               during which any of the following conditions subsequent occur
               which result in a decrease of adjusted gross receipt to less than
               $64,000,000:

               a) a change in Illinois gaming law resulting in dockside gaming
               in the Illinois Quad Cities;

               b) introduction and operation of a fourth casino in the Quad City
               area;

               c) removal of the Lady Luck Bettendorf vessel for a hull
               inspection if required by applicable regulation; or

               d) any change in Chapter 99F of the Code of Iowa or to the rules
               promulgated thereunder by the Iowa Racing and Gaming Commission.

               If LLB so elects to terminate the Floor Amount, the City shall
               have the corresponding option to elect to receive for such year a
               Development Fee as computed under paragraph 3A above together
               with an additional adjustment equal to the maximum amount which
               could have been charged by the City as an Admission Fee under
               99F.10(3) of the Code of Iowa"

          2.   Paragraph 5 of the Development Agreement is hereby amended by
supplementing the section with the following:

          "Paragraph 3B of this Agreement is expressly conditioned upon no
Admission Fee being charged by the City as authorized by 99F.10(30) of the Code
of Iowa. The absence of such an Admission Fee shall be a condition subsequent of
LLB's obligations under paragraph 3B hereof."

          3.   In all other aspects the parties hereto ratify and confirm the
Development Agreement.

                                        3

<PAGE>

     4.   This Amendment is expressly subject to approval by the Iowa Racing and
Gaming Commission and will be effective on the later of September 1, 1998 or the
effective date of the City's adoption of its resolution rescinding the Admission
Fee Ordinance.

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
and delivered by their duly authorized representatives as of the day and year
first above written.

                                    CITY OF BETTENDORF, IOWA

                                    By  /s/ Ann Hutchinson
                                        ------------------------------------
                                            Ann Hutchinson
                                    Title:  Mayor

                                    By  /s/ Decker P. Ploehn
                                        ------------------------------------
                                            Decker P. Ploehn
                                    Title:  City Administrator

                                    LADY LUCK BETTENDORF, L.C.

                                    By
                                        ____________________________________
                                    Title:  Manager

                                    By
                                        ____________________________________
                                    Title:  Manager

                                        4

<PAGE>

                                           BETTENDORF RIVERFRONT DEVELOPMENT
                                           COMPANY, L.C.

                                           By  /s/ Michael L. Sampson
                                               -----------------------------
                                                   Michael L. Sampson
                                           Title:  Manager

                                           GREEN BRIDGE COMPANY

                                           By  /s/ Jeffrey D. Goldstein
                                               -----------------------------
                                                   Jeffrey D. Goldstein
                                           Title:  President

                                           LADY LUCK GAMING CORPORATION

                                           By  /s/ Andrew H. Tompkins
                                               -----------------------------
                                                   Andrew H. Tompkins
                                           Title:  President

                                        5

<PAGE>

                        AMENDMENT TO OPERATOR'S CONTRACT
                        --------------------------------

         THIS AMENDMENT TO OPERATOR'S CONTRACT (the "Amendment") is made this
_____ day of August 1998, by and among GREEN BRIDGE COMPANY, an Iowa
corporation, BETTENDORF RIVERFRONT DEVELOPMENT COMPANY, L.C., an Iowa limited
liability company, LADY LUCK GAMING CORPORATION, a Delaware corporation, and
LADY LUCK BETTENDORF, L.C., an Iowa limited liability company (hereinafter
collectively referred to as the "Operator") and RIVERBEND REGIONAL AUTHORITY, an
Iowa not-for-profit corporation ("RRA").

         WHEREAS, Operator and RRA have entered into an Operator's Contract
dated August 11, 1994 (the "Operator's Contract"); and

         WHEREAS, the parties desire to amend the Operator's Contract as
provided herein.

         NOW, THEREFORE, it is agreed as follows:

         1.   Paragraph 5 of the Operator's Contract is hereby amended to read
in its entirety as follows:

         "5.  Commencing on September 1, 1998 and continuing for the term of
              this Contract, the Operator shall pay a fee to RRA equal to 4.1%
              of the adjusted gross receipts (as defined in Section 99F.1(1) of
              the Iowa Code). In order to assist RRA in its budgeting and grant
              process, subject to the foregoing conditions subsequent, Operator
              agrees to pay RRA a minimum annual fee of $3,000,000.00 (the
              "Floor Amount"). The Floor Amount will be reconciled on an annual
              basis from September 1

<PAGE>

              through August 31 of each year with any deficiency between the
              Floor Amount and the accumulated weekly percentage fee due and
              payable on September 10, immediately following such year. The
              Floor Amount shall be automatically terminated for any year during
              which any of the following conditions subsequent occur which
              result in a decrease of adjusted gross receipts to less than
              $64,000,000.00:

         a.)  a change in Illinois gaming law resulting in dockside gaming in
              the Illinois Quad Cities;

         b.)  introduction and operation of a fourth casino in either Rock
              Island or Scott Counties;

         c.)  removal of the Lady Luck Bettendorf vessel for a hull inspection
              if required by applicable regulation; or

         d.)  any change in Chapter 99F of the Iowa Code or regulations
              promulgated by the Iowa Racing and Gaming Commission (IRGC).

         From said sums, RRA shall be responsible for all of its administrative
costs, the annual DCI investigation of its board members as may be required, all
legal expenses, salaries, and all related costs associated with RRA's
administration of the license. Operator covenants and agrees to pay all charges
as required by IRGC. Operator agrees to hold RRA harmless for any such charges
required by IRGC. The Operator shall provide at its expense, all necessary
documentation to establish to the reasonable satisfaction of RRA and IRGC the
computation of the fee set forth above. Operator agrees to pay to RRA and to
account to RRA as required to comply with IRGC's rules and regulations. Operator
shall pay the percentage fee required herein weekly by 12:00 Noon on Friday
following the completion of each calendar week."

         2.   Paragraph 7 of the Operator's Contract is hereby amended by
increasing the termination fee from $500,000.00 to $1,000,000.00 which fee shall
be payable within thirty (30) days.

                                       2

<PAGE>

         3.   In all other respects the parties hereto ratify and confirm the
Operator's Contract.

         4.   This Amendment is expressly subject to approval by the Iowa Racing
and Gaming Commission and will be effective on September 1, 1998. Operator
further agrees to pay all legal and accounting expenses of RRA related to the
negotiation, preparation and approval of the Amendment.

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their duly authorized representatives as of the day
and year first above written.

                                     RIVERBEND REGIONAL AUTHORITY

                                     By ________________________________________

                                     Its President

                                     By ________________________________________

                                     Its Secretary

                                     LADY LUCK BETTENDORF, L.C.

                                     By ________________________________________

                                     Title: Manager

                                       3

<PAGE>

                                    BETTENDORF RIVERFRONT DEVELOPMENT COMPANY,
                                    L.C.

                                    By /s/ Michael L. Sampson
                                       -----------------------------------------
                                           Michael L. Sampson
                                    Title: Manager

                                    GREEN BRIDGE COMPANY

                                    By /s/ Jeffrey D. Goldstein
                                       -----------------------------------------
                                           Jeffrey D. Goldstein
                                    Title: President

                                    LADY LUCK GAMING CORPORATION

                                    By /s/ Andrew H. Tompkins
                                       -----------------------------------------
                                           Andrew H. Tompkins
                                    Title: President

                                       4<PAGE>

                                                                   Exhibit 10.19

                               OPERATOR'S CONTRACT
                               -------------------

     This agreement is made and entered into by and between the Riverboat
Development Authority (Authority) and The Connelly Group, L.P. (Connelly) as of
this 28th day of December, 1989.

     WHEREAS, in April of 1989, the State of Iowa enacted the Gambling Excursion
Riverboat Bill, which authorities, by local option, limited gambling activity on
excursion boats on the Mississippi, Missouri, and inland rivers, lakes and
reservoirs in Iowa; and

     WHEREAS, pursuant to the provisions of the enactment, residents of Scott
County, Iowa, approved such gambling activity for any area within Scott County,
Iowa; and

     WHEREAS, the Authority is an Iowa non-profit corporation with its principal
place of business in Scott County, Iowa, which corporation was formed for the
purpose of making an application to the Iowa Racing and Gaming Commission for an
excursion gambling boat license; and

     WHEREAS, Connelly has or will enter into a development agreement with the
City of Davenport, Iowa for the implementation of certain development within the
City of Davenport provided that the Authority and Connelly are granted licenses
to operate excursion boats; and

     WHEREAS, Connelly has or will enter into a lease with the City of Davenport
for the use of the Davenport levee to dock and operate an excursion gaming boat;
and

     WHEREAS, Connelly wishes to enter into a contract with the Authority as an
operator of an excursion gambling boat pursuant to the rules and regulations of
the Iowa Racing and Gaming Commission.

     NOW THEREFORE, for and in consideration of the mutual covenants herein
contained, it is agreed as follows:

     1. That Connelly acknowledges and requests that the Authority make an
application for an Iowa excursion boat gambling license designating Connelly as
an operator all pursuant to the provisions of the Iowa Code Chapter 99F, and all
related chapters of the Iowa Code.

     2. That the application so submitted to the Iowa Racing and Gaming
Commission on behalf of the Authority and on behalf of Connelly as an operator
shall provide that Connelly will operate a gambling excursion boat docked
exclusively in the City of Davenport, Iowa.

     3. That Connelly shall be responsible for the payment of all application
fees to the Iowa Racing and Gaming Commission and all fees or expenses charged
by the Iowa Department of Criminal Investigation for background check and
investigation of all Authority Board members and Connelly. It is understood that
Connelly will pay, in addition to any initial fees, any and all additional fees
or charges made by the Iowa Racing and Gaming Commission and/or the Iowa
Department of Criminal Investigation.

     4. Connelly will provide advances against future admissions fees as
hereinafter provided for to pay for all reasonable costs incurred by the
Authority. The Authority anticipates that such expenses shall not exceed
$25,000, which amount shall include, but not be limited to all

<PAGE>

                                      -2-

legal and accounting expenses, secretarial and general administration and office
start-up costs. Additional advances will be made by Connelly on an "as needed"
basis up to a total of $50,000. Connelly shall have the right to review any
request for such additional advances. All reasonable requests by the Authority
up to $50,000 will be granted.

     All advances shall be repaid at the end of the first year of operation from
the admissions fees provided for in paragraph 8 hereof. In the event that the
license application on behalf of the Authority and/or Connelly is denied, the
Authority shall return to Connelly, all remaining unspent advances. The
Authority shall not be required to reimburse Connelly for any advances spent by
the Authority prior to the denial of the license.

     5. This contract shall run form the date of execution until the termination
of the initial license period for the Authority and for Connelly as issued by
the Iowa Racing and Gaming Commission. It is anticipated that the license will
be issued for a three year period to commence in May of 1991, and run through
May of 1994. It is agreed that in any event, this contract shall terminate on
May 1, 1994. Provided, however, that so long as Connelly has substantially
complied with the Iowa Racing and Gaming Commission rules, and the Authority's
gaming license is renewed. Connelly is hereby granted the right to renew this
agreement for succeeding three year periods, the last of which shall terminate
on the anniversary date of the license in the year 2000 or at such later date to
which Scott County may extend its referendum and the Authority's license is
extended.

     6. Connelly as operator, shall be responsible for the payment of all annual
licensing fees as required by the Iowa Racing and Gaming Commission, the payment
of all premiums or any additional fees required by the Iowa Racing and Gaming
Commission under the provisions of Chapter 997 and its regulations and any
amendments thereto, or any other provisions of the Iowa Code, all of which are
required in order to maintain an excursion boat gambling license. The operator
shall be responsible for the payment to the Authority of all wagering taxes as
assessed upon the adjusted gross receipts pursuant to Iowa Code Section 99F, and
assessed by the Iowa Racing and Gaming Commission. All such payments shall be
made by the operator in a timely fashion to the Authority, to enable the
Authority to make payments as required by statute and by the rules and
regulations of the Iowa Racing and Gaming Commission.

     7. The operator agrees to provide all necessary accounting and verification
required by the Iowa Racing and Gaming Commission to determine the adjusted
gross receipts in order to determine the gaming taxes as assessed pursuant to
Iowa Code Chapter 99F, and shall comply with all reasonable requests of the
Authority and/or Iowa Racing and Gaming Commission, or any other regulating
body, to determine the extent of the gaming tax, and further agrees to make any
payments required in a timely fashion.

     8. During the initial term of this lease, the operator shall pay an
admissions charge to the Authority equal to $2.00 for all admissions either paid
or complimentary, excepting only actual and necessary officials and employees of
the Authority and operator, and all other persons actually working on the
excursion gambling boat as more particularly set forth under the rules of the
Iowa Racing and Gaming Commission and Chapter 997. From said sum, the Authority
shall be responsible for all of its administrative costs, the annual DCI
investigation of its board members as required, all legal expenses, salaries,
and all related costs associated with the administration of the license. In
addition, the Authority covenants and agrees to pay to the City of Davenport an
amount of up to $.50 per admission as set by city ordinance, and shall further
pay an amount of $.50 on the admissions as required by the Iowa Racing and
Gaming Commission thereunder. Any increase in the $.50 charge per admission for
the City of Davenport

<PAGE>

                                      -3-

or the Iowa Racing and Gaming Commission shall be born by Connelly. The operator
shall provide at its expense, all necessary accounting and documentation to
establish to the reasonable satisfaction of the Authority and the Iowa Racing
and Gaming Commission the number of all admissions. The operator agrees to pay
to the Authority and to account to the Authority as required to comply with the
Iowa Racing and Gaming Commission rules and regulations.

     In the event that this contract is extended as contemplated in Paragraph 5,
during the first three year extension, (the years beginning April 1, 1994,
through March 31, 1997), the Authority shall have the right to increase the per
person admissions charge in an amount equal to one-half of the percentage
increase, if any, in the Consumer Price Index hereafter called "Index" for
Chicago, Illinois for all items of the Bureau of Labor Statistics of the United
States Department of Labor. Such an increase shall be calculated by multiplying
the $2.00 admissions charge by the fraction which is obtained by utilizing the
Index rate as of April 1, 1991, (Base Rate) as the denominator, and the excess
of the Index rate as of April 1, 1994, over the Base Rate as the numerator and
dividing the resulting fraction by 2. The resulting fraction, when multiplied by
the present rate of $2.00 will constitute the increase which when added to $2.00
will constitute the extension rate, provided, however, that the extension rate
shall not exceed $3.00. Any such increase shall be included within an extension
agreement. In the event that this contract is extended for an additional, or
third, three year period (the years beginning April 1, 1997 and ending March 31,
2000), the Authority shall have the right to increase the admissions charge in
an amount equal to one-half of the percentage increase, if any, in the Consumer
Price Index, hereinafter called "Index" for Chicago, Illinois for all items of
the Bureau of Labor Statistics of the United States Department of Labor. Such an
increase shall be calculated by multiplying the initial $2.00 admissions charge
by the fraction which is obtained by utilizing the Base Rate, as the denominator
and the excess of the rate as of April 1, 1997, over the Base Rate, as the
numerator and dividing the resulting fraction by 2. The resulting fraction, when
multiplied by the initial rate of $2.00 will constitute the increase, which when
added to $2.00 will constitute the extension rate; provided, however that the
extension rate shall not exceed $4.00. Any such increase shall be included
within an extension agreement. For all purposes hereof, in the event this
"Index" is no longer in existence, then the successor index, it if exists, or
the index most similar to the "Index" shall be used for purposes of this
agreement. Notwithstanding the right of the Authority to increase the per person
admissions charge as set forth above, no such increase shall be permitted,
implemented or paid for any year if the Connelly Group's gambling operations
will not generate a net profit for such year after taking into account such
increase. By way of example, assume for the year beginning on April 1, 1994, and
ending March 31, 1995, that Connelly's net profit on gambling operations was
$100,000, that 400,000 persons has been charged admissions for such year, and
that the increase calculated as set forth above, before this limitation, would
be $.50. In this example, the Authority could not collect the increase in the
admissions rate for such year because the effect of the increase would be to
make Connelly unprofitable for the year (e.g., 400,000 admissions x $.50 =
$200,000 of additional Connelly expense which exceeds $100,000 of net profits).
For purposes of this agreement, net profit shall mean the net profit reflected
on the financial statement submitted to the Iowa Racing and Gaming Commission at
year end, reduced by the principal portion of Connelly's debt service. For
fiscal years beginning on April 1, 1994, any increases as set forth above will
be calculated on a year to year basis using the above formula and any permitted
increases shall be paid to the Authority by Connelly in a lump sum within
fifteen (15) days after the submission of the above year and financial
statements to the Iowa Racing and Gaming Commission for the year in question
beginning with the year ending March 31, 1995.

     9. The operator agrees to hold the Authority harmless and to defend it from
any and all claims arising out of the operator's operation of its gambling and
excursion boat and any

<PAGE>

                                      -4-

related activity of the operator as required by this agreement, city and county
ordinances, or state or federal statutes, and all regulations promulgated
thereunder. The operator shall be responsible for the payment of all legal
expenses incurred by the Authority in defense of any such claim, and all costs
attributable thereto including payment of any settlements, damage awards and
interest thereon. The operator shall not be responsible for any acts or
omissions of the Authority, and the indemnity shall not apply thereto.

     10. The Authority agrees to submit to the Iowa Racing and Gaming Commission
on behalf of the operator, any reasonable requests of the operator to amend its
operation or its authority. The parties recognize that Connelly anticipates the
need for additional excursion gaming boat(s) and the Authority does agree to
support requests with the Iowa Racing and Gaming Commission for additional
boat(s) at such time as Connelly believes such additions to be financially
feasible.

     11. The operator, its parent, successor or assigns, or any entity that it,
its parent, successor or assigns affiliate with, hereby agree not to enter into
any agreement to operate a gambling excursion boat from any port-of-call or
docking facility within the areas of Scott, County, in Iowa, and Rock Island,
County in Illinois during the term of this agreement and any extensions, and for
a period of eighteen (18) months after the termination of this agreement
provided, however that this clause shall not be effective if this contract is
terminated by the Authority without cause.

     12. The operator agrees to provide the Authority approximately 1,200 square
foot of suitable office space at its Davenport facility without charge to the
Authority.

     13. The Authority agrees with the operator that it will not enter into any
agreements with any operators, and will not make application to the Racing and
Gaming Commission for any operator, to operate gambling excursion boats within
the City of Davenport, Iowa without first obtaining the written consent of the
operator which may be withheld by the operator for any reason in operator's sole
and absolute discretion. In addition, the Authority agrees to take all
reasonable steps available to the Authority to prevent any other operator or
excursion boat gambling license holder from having or acquiring a port-of-call
or operations site within the City of Davenport without the written prior
permission of the operator.

     14. The operator agrees, subject to all applicable Iowa and federal laws,
to dock its gambling excursion boat during the winter or off season, at the
facilities it leases from the City of Davenport, and to the extent permitted by
the Iowa Racing and Gaming Commission and consistent with prudent business
judgment, to maintain casino style gambling operation on he boat on a year
around basis.

     15. It is agreed that this contract is intended to comply with, and is
subject to all the rules and regulations of the Iowa Racing and Gaming
Commission, the ordinances of the City of Davenport, and the laws of the State
of Iowa and of the United States of America. The terms of this contract are
subject to amendment to comply with any of said requirements or any changes in
any laws or regulations. In the event that any provision of this contract is
determined to be invalid by a court of competent jurisdiction, the remaining
provisions of the contract shall remain in full force and effect.

     16. The operator agrees that it will provide, at its expense, within the
time requirements set forth by the regulations of the Iowa Racing and Gaming
Commission, all necessary audits of financial transactions and conditions of the
operations conducted by the

<PAGE>

                                      -5-

operator, as well as audits of the financial transactions, and conditions of the
operator's total operations as required by the rules and regulations of the Iowa
Racing and Gaming Commission.

     17. The Authority agrees that in the event the Authority enters into a
contract with another operator, the financial terms of which are, in the
judgment of Connelly, more favorable than those provided for herein, this
contract shall be amended to provide for any such more favorable financial terms
from and after the date of the execution of any such contract with another
operator.

     18. The operator and the Authority do hereby agree and covenant with each
other to comply with the terms of Iowa Code Section 997, all chapters of the
Iowa Code, the U.S. Federal Code, all City ordinances of the City of Davenport,
and any and all regulations promulgated pursuant to any such laws as duly
adopted. Both parties represent and covenant with each other that they will
cooperate with each other in order to achieve their mutual goals.

     19. This agreement embodies the entire agreement between the parties and
may be amended or supplemented only by an instrument in writing executed by the
parties against whom the enforcement is sought.

     20. All representations, warranties and indemnities set forth in this
agreement shall survive the execution hereof.

     21. This agreement may be executed in a number of identical counterparts,
and if so executed, each such counterpart is deemed an original for all
purposes, and all such counterparts shall collectively constitute one agreement.

     22. This agreement binds the parties hereto and inures to the benefit of
their respective heirs, personal representatives, successors or assigns.

     23. In addition to the acts and deeds recited in this agreement and
contemplated herein, the parties hereto shall execute any and all additional
agreements as may be necessary to consummate the transactions contemplated by
this agreement and to fulfill the intentions of this agreement.

     24. Time is of the essence of this agreement and each and every provision
contained herein.

     25. In the event a dispute arises between the parties, hereto, each party
shall be responsible for paying its own attorney's fees and court costs, if any,
incurred in connection with such dispute.

     26. If and in the event of a dispute arising hereunder, venue is vested in
the Iowa District Court where venue is proper, or in any Federal District Court
which has jurisdiction. Connelly acknowledges that it has negotiated this
agreement in Scott County, Iowa, and has made numerous business contacts and
entered into agreements relating to matters sufficient to confer jurisdiction on
the Iowa District Court in and for Scott County.

     27. The parties hereto represent to each other that each has the full
right, power and authority to enter into this agreement and to fully perform its
obligations. The persons executing this agreement warrant and represent that
each has the authority to executed in the capacity stated and to bind the
parties hereto.

<PAGE>

                                      -6-

     28. Connelly shall not have the right to assign this agreement without the
prior written consent of the Iowa Racing and Gaming Commission and the
Authority.

     29. If, and in the event, any provision of this agreement is determined to
be invalid for any reason, it shall be severed and all other provisions not
determined invalid shall continue with full force and affect.

     30. No failure by either party hereto, at any time, to require the
performance by the other of any term of this agreement, shall in any way affect
the right of either party to enforce such terms, nor shall any waiver, by either
party of any terms hereof be taken or held to be a waiver of any other provision
of this agreement. No waiver of any term or provision of this agreement shall be
effective unless the same is in writing, signed by the parties hereto.

     31. This agreement is entered into in the State of Iowa and shall be
construed in accordance therewith, and all of the rights and obligations
hereunder shall be determined in accordance with the laws of the State of Iowa.

     This agreement is signed and entered into the day and year first written.

THE CONNELLY GROUP, L.P.                    RIVERBOAT DEVELOPMENT AUTHORITY

By:  Dalls III, Inc.                        By: /s/ Mary Ellen Chamberlin
   -------------------------------------       ---------------------------------
     Its General Partner

By:_____________________________________    By: /s/ Robert H. Gallagher
     Alan Bernthaler,                          ---------------------------------
     Vice-President

<PAGE>

                        AMENDMENT TO OPERATOR'S CONTRACT
                        --------------------------------

     WHEREAS, the Riverboat Development Authority (Authority) and the Connelly
Group L.P. (Connelly) have entered into an operator's contract dated December
28, 1989; and

     WHEREAS, the parties wish to amend the contract.

     NOW THEREFORE for and in consideration of the mutual covenants herein
contained, it is agreed to amend the original contract by adding the following:

     1. Paragraph 8 of the original agreement shall be amended by adding the
following language, to-wit:

     In no event shall Connelly receive any portion of any admissions fee
     charged to admit an individual onto an excursion gaming boat operated
     pursuant to this Operator's Contract. All such admissions fees collected by
     Connelly shall be paid exclusively to the Authority.

     2. It is understood that neither Connelly nor the Authority shall by lease,
contract, understanding or arrangement of any kind, grant, assign, or turn over
to any person or entity the operation of any excursion gambling boat operated
pursuant to the authority of a license issued to either Connelly or the
Authority by the Iowa Racing and Gambling Commission. This paragraph in no way
prohibits Connelly from entering into a management contract providing same is
approved by the Authority and by the Iowa Racing and Gaming Commission.

     3. Any management contract entered into by Connelly shall provide that it
is subject to the terms and conditions of this operator's contract and further
that all the obligations, rights, privileges, and duties provided for in the
operator's contract shall apply to any such management contract.

     4. Connelly and the Authority hereby jointly accept the responsibility for
compliance with the act and all laws of the State of Iowa and the rules of the
Commission.

     5. Connelly and the Authority agree that the Commission and each of them
shall have the right to audit each other's records to the extent necessary to
provide verification of compliance under this Agreement.

<PAGE>

                                      -2-

     6. In addition to any other monies paid to the Authority, hereunder,
Connelly agrees that if the win from gambling in any given year exceeds
$44,000,000 the Authority will be paid an amount equal to two percent (2%) of
any such excess win over $44,000,000.

     7. In the event either Connelly or the Authority is deemed by the other or
the Commission not to be in compliance with the terms of this Agreement, the
non-breaching party or the Commission shall be entitled to specific performance
of the terms of this Agreement. Further, the parties agree that in the event of
any operational default, the defaulting party shall be required to cure such
default to the satisfaction of the Commission. In the event said party does not
cure the default to the satisfaction of the Commission, then the non-defaulting
party may, at its option, after obtaining written approval from the Commission
and giving the other party thirty (30) days written notice and opportunity to
cure, declare this Agreement terminated.

     8. That in all other respects, the original contract and amendment thereto
are hereby ratified and confirmed.

     Dated this 1/st/ day of March, 1990.

THE CONNELLY GROUP, L.P.                       RIVERBOAT DEVELOPMENT AUTHORITY

By:  Dalls, III, Inc                           By:______________________________
   ----------------------------------------            Mary Ellen Chamberlin
     Its General Partner                               President

By:  /s/ John E. Connelly                      By:  /s/ Robert H. Gallagher
   -----------------------------------------      ------------------------------
     John Connelly, President                           Robert H. Gallagher
                                                        Secretary

<PAGE>

                        AMENDMENT TO OPERATOR'S CONTRACT
                        --------------------------------

     WHEREAS, the Riverboat Development Authority (Authority) and the Connelly
Group L.P. (Connelly) have entered into an operator's contract dated December
28, 1989; and

     WHEREAS, the parties wish to amend the contract.

     NOW THEREFORE for and in consideration of the mutual covenants herein
contained, it is agreed to amend the original contract by adding the following:

     1. Paragraph 8 of the original agreement shall be amended by adding the
following language, to-wit:

     In no event shall Connelly receive any portion of any admissions fee
     charged to admit an individual onto an excursion gaming boat operated
     pursuant to this Operator's Contract. All such admissions fees collected by
     Connelly shall be paid exclusively to the Authority.

     2. It is understood that neither Connelly nor the Authority shall by lease,
contract, understanding or arrangement of any kind, grant, assign, or turn over
to any person or entity the operation of any excursion gambling boat operated
pursuant to the authority of a license issued to either Connelly or the
Authority by the Iowa Racing and Gaming Commission. This paragraph in no way
prohibits Connelly from entering into a management contract providing same is
approved by the Authority and by the Iowa Racing and Gaming Commission.

     3. Any management contract entered into by Connelly shall provide that it
is subject to the terms and conditions of this operator's contract and further
that all the obligations, rights, privileges, and duties provided for in the
operator's contract shall apply to any such management contract.

     4. Connelly and the Authority hereby jointly accept the responsibility for
compliance with the act and all laws of the State of Iowa and the rules of the
Commission.

     5. Connelly and the Authority agree that the Commission and each of them
shall have the right to audit each other's records to the extent necessary to
provide verification of compliance under this Agreement.

<PAGE>

                                       2

     6. In the event either Connelly or the Authority is deemed by the other or
the Commission not to be in compliance with the terms of this Agreement, the
non-breaching party or the Commission shall be entitled to specific performance
of the terms of this Agreement. Further, the parties agree that in the event of
any operational default, the defaulting party shall be required to cure such
default to the satisfaction of the Commission. In the event said party does not
cure the default to the satisfaction of the Commission, then the non-defaulting
party may, at its option, after obtaining written approval from the Commission
and giving the other party thirty (30) days written notice and opportunity to
cure, declare this Agreement terminated.

     7. That in all other respects, the original contract between the parties is
hereby ratified and confirmed.

     Dated this 9/th/ day of February, 1990.

THE CONNELLY GROUP, L.P.                     RIVERBOAT DEVELOPMENT AUTHORITY

By:  Dalls, III, Inc.                        By: /s/ Mary Ellen Chamberlin
   ------------------------------------         --------------------------------
     Its General Partner                             Mary Ellen Chamberlin
                                                     President

By:____________________________________      By: /s/ Robert H. Gallagher
     Alan Bernthaler                            --------------------------------
     Vice-President                                  Robert H. Gallagher
                                                     Secretary

<PAGE>

                        AMENDMENT TO OPERATOR'S CONTRACT
                        --------------------------------

         WHEREAS, the Riverboat Development Authority (Authority) and the
Connelly Group L.P. (Connelly) have entered into an operator's contract dated
December 28, 1989; and

         WHEREAS, the parties wish to amend Paragraph 8 of the contract in order
to provide that Connelly will pay the $.50 per admission directly to the City of
Davenport, and will further pay the admissions charges as required by the Iowa
Racing and Gaming Commission; and

         WHEREAS, it is the intention of the parties hereto that the Authority
be placed in the same position substantially as it was at the time the original
contract between the parties was executed on December 28, 1989.

         NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, it is agreed to amend the original contract as follows:

         1. The original Paragraph 8 contained in the Operator's Contract dated
December 28, 1989, is hereby deleted, and the following language is substituted
therefore.

         During the initial term of this lease, the operator shall pay an
admissions charge to the Authority equal to $1.00 for the first 500,000
admissions, and $1.50 for all admissions in excess thereof. Payment shall be for
all admissions, either paid or complimentary, excepting only actual and
necessary officials and employees of the Authority and Operator, and all other
persons actually working on the excursion gambling boat as more particularly set
forth under the rules of the Iowa Racing and Gaming Commission and Chapter 99F.
From said sum, the Authority shall be responsible for all of its administrative
costs, the annual DCI investigation of its Board members as required, all legal
expenses, salaries, and all related costs associated with the administration of
the license. Connelly covenants and agrees to pay to the City of Davenport, all
amounts as required by the City of Davenport, and shall further be responsible
for the payment of all charges as required by the Iowa Racing and Gaming
Commission. Connelly agrees to hold the Authority Harmless for any charge,
except as specifically stated in the immediately preceding sentence, required by
the City of Davenport, and/or any charges required by the Iowa Racing and Gaming
Commission. The Operator shall provide at its expense, all necessary accounting
and documentation to establish to the reasonable satisfaction of the Authority,
the City of Davenport, and the Iowa Racing and Gaming Commission, the number of
all admissions. The Operator agrees to pay to the Authority and to account to
the Authority as required to comply with the Iowa Racing and Gaming Commission's
rules and regulations. The Operator shall pay said sums as required herein
weekly by 12:00 Noon on the Friday following the completion of each calendar
week.

         In the event that this contract is extended as contemplated in
paragraph 5, during the first three year extension, (The years beginning April
1, 1994 through March 31, 1997), the Authority shall have the right to increase
the per person admissions charge in an amount equal to one-half of the
percentage increase, if any, in the Consumer Price Index hereinafter called
"Index" for Chicago, Illinois for all items of the Bureau of Labor Statistics of
the United States Department Labor. Such an increase shall be calculated by
multiplying the $1.00 or the $1.50 admissions charge, depending on the number of
admissions, by the fraction which is obtained by utilizing the index rate as of
April 1, 1991, (Base Rate) as the denominator, and the excess of the Index Rate
as of April 1, 1994, over the Base Rate as the numerator and dividing the
resulting fraction by two. The resulting fraction, when multiplied by the
present rate of $1.00 or $1.50 depending on the number of admissions, will
constitute the increase which, when added to the present rate will

<PAGE>

                                        2

constitute the extension rate provided, however, that the extension rate shall
not exceed the maximum of $2.25. Any increase shall be included within an
extension agreement. In the event that this contract is extended for an
additional, or third, three year period, (the years beginning April 1, 1997, and
ending March 31, 2000), the Authority shall have the right to increase the
admissions charge in an amount equal to one-half of the percentage increase, if
any, in the "index". Such an increase shall be calculated by multiplying the
initial $1.00 or $1.50 admissions charge, depending on the number of admissions,
by the fraction which is obtained by utilizing the Base Rate, as the denominator
and the excess of the rate as of April 1, 1997, over the Base Rate, as the
numerator, and dividing the result by two. The resulting fraction, when
multiplied by the initial rate of $1.00 or $1.50 depending on the number of
admissions, constitutes the extension rate, provided, however, that the
extension rate shall not exceed $3.00. Any such increase shall be included
within an extension agreement. For all purposes hereof, in the event this
"Index" is no longer in existence, then the successor index, if it exists, or
the Index most similar to the "Index" shall be used for purposes of this
agreement. Notwithstanding the right of the Authority to increase the per person
admissions charge as set forth above, no such increase shall be permitted,
implemented or paid for any year if the Connelly Group's gambling operations
will not generate a net profit for such year after taking into account such
increases. By way of example, assume for the year beginning on April 1, 1994,
and ending March 31, 1995, that Connelly's net profit on gambling operations was
$100,000, that 400,000 persons had been charged admissions for such year, and
that the increase calculated as set forth above, before this limitation, would
be $.50. In this example, the Authority could not collect the increase in the
admissions rate for such year because the effect of the increase would be to
make Connelly unprofitable for the year (e.g., 400,000 admissions x $.50 =
$200,000 of additional Connelly expense which exceeds $100,000 of net profits).
For purposes of this agreement, net profit shall mean the net profit reflected
on the financial statement submitted to the Iowa Racing and Gaming Commission at
year end, reduced by the principal portion of Connelly's debt service. For
fiscal years beginning on April 1, 1994, any increases as set forth above will
be calculated on a year to year basis using the above formula and any permitted
increases shall be paid to the Authority by Connelly in a lump sum within
fifteen (15) days after the submission of the above year end financial
statements to the Iowa Racing and Gaming Commission for the year in question
beginning with the year ending March 31, 1995.

         In no event shall Connelly receive any portion of any admissions fees
charged to admit an individual onto an excursion boat operated pursuant to this
operator's contract. All such admissions fees collected by Connelly, shall be
paid to the Authority, the City of Davenport, or the Iowa Racing and Gaming
Commission.

         2. That in all other respects, the original contract and the amendments
thereto, are hereby ratified and confirmed.

         Dated this _________________ day of January, 1991.

<PAGE>

                                        3

THE CONNELLY GROUP, L.P.                        RIVERBOAT DEVELOPMENT AUTHORITY

By  /s/ Dalls III, Inc.                         By ____________________________
  -----------------------------------
        its General Partner

By  /s/ Ralph J. Vaclavik                       By ____________________________
  -----------------------------------
        Ralph J. Vaclavik
        Assistant Treasurer

<PAGE>

                        AMENDMENT TO OPERATOR'S CONTRACT
                        --------------------------------

         WHEREAS, the Riverboat Development Authority (Authority) and The
Connelly Group, L.P., its successors and assigns (Connelly) have entered into an
Operator's Contract dated December 28, 1989; and

         WHEREAS, the contract has been, from time to time, amended; and

         WHEREAS, it is the intention of the parties to amend said contract to
provide for its extension, and to provide for changes in the initial financial
provisions.

         NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, it is agreed to amend the original contract and amendments thereto as
follows:

         1.   Paragraph No. 8 of the original contract is amended to read as
              follows:

              "From and after the approval of this amendment, and for the period
         of this contract, Connelly shall pay the Authority as follows:

              A.    $27,500 per week, which payment shall be received by the
                    Authority by 12:00 Noon each Friday.

              B.    Annual payment equal to 2% of the adjusted gaming receipts
                    as defined in Iowa Code Section 99F.1(11), over $34,000,000
                    for each fiscal year, commencing July 1, 1994. Payments
                    shall be made on the 15th day of July of each year. The
                    first payment shall be due July 15, 1995.

              C.    Annual payment equal to $1.50 for each admission, either
                    paid or complimentary, excepting any actual and necessary
                    officials and employees of the Authority and Connelly, and
                    all other persons actually working on the excursion gambling
                    boat as more particularly set forth under the rules of the
                    Iowa Racing and Gaming Commission and Chapter 99F of the
                    Iowa Code in excess of 1,117,579 based upon each contract
                    year. A contract year shall be from April 1, through March
                    31, of the subsequent year. Payment shall be due on or
                    before the 15th day of

                                        1

<PAGE>

                                        2

                           April of each year, the first payment to be made on
                           or before April 15, 1995. It is understood that the
                           Authority has been receiving payments weekly from
                           Connelly since April 1, 1994. Connelly shall be given
                           credit against the payment of $1.50 for all
                           admissions in excess of 1,117,579 in an amount equal
                           to that amount of money paid to the Authority in
                           excess of $27,500 per week from and after April 1,
                           1994, up to and including March 31, 1995.

                                    From said sums, the Authority shall be
                           responsible for all of its administrative costs, the
                           annual DCI investigation of its board members as
                           required, all legal expenses, salaries, and all
                           related costs associated with the administration of
                           the license. Connelly covenants and agrees to pay the
                           City of Davenport, all sums of money as required by
                           the City of Davenport, and further to be responsible
                           for the payment of all charges as required by the
                           Iowa Racing and Gaming Commission.

                                    Connelly agrees to hold the Authority
                           harmless any charge required by the City of Davenport
                           and/or any charges required by the Iowa Racing and
                           Gaming Commission. Connelly shall provide, at its
                           expense, all necessary accounting and documentation
                           to establish to the reasonable satisfaction of the
                           Authority, the City of Davenport, and the Iowa Racing
                           and Gaming Commission, the number of all admissions.
                           Connelly agrees to pay to the Authority and to
                           account to the Authority as required to comply with
                           the Iowa Racing and Gaming Commission's rules and
                           regulations.

                  D.       In no event shall Connelly  receive any portion of
                           any admissions fees charged to admit an individual
                           onto the excursion operated pursuant to this
                           contract. All such admission fees collected by
                           Connelly, shall be

<PAGE>

                                        3

                  paid to the Authority, the City of Davenport, or the Iowa
                  Racing and Gaming Commission.

            2.    Paragraph No. 5 of the original contract is hereby amended to
                  read as follows:

                  A.   This contract shall run from the date of execution  until
                       March 31, 1998; provided, however, that so long as
                       Connelly has substantially complied with the Iowa Racing
                       and Gaming Rules, and the Authority's gaming license is
                       renewed and/or in effect, the parties will negotiate
                       thereafter for succeeding three year periods the
                       extension of this agreement, the last of which shall
                       terminate on the anniversary date of the license in the
                       year to which Scott County may extend its referendum and
                       the Authority's license is so extended.

            3.    This amendment, and any further amendments hereto, are
expressly subject to the approval of the Iowa Racing and Gaming Commission. In
the event that the Iowa Racing and Gaming Commission requires any amendment of
this contract, all parties agree to make a best efforts attempt to negotiate in
good faith, such additional terms as are acceptable to the Iowa Racing and
Gaming Commission. Further, in the event that Chapter 99F of the Code of Iowa is
amended to permit the imposition of the state gaming taxes based on percentage
of revenue, the parties agree to make a best efforts attempt to negotiate in
good faith, a replacement operator's fee based upon a percentage of the revenue
that reasonably equates to the fees to be paid to the Authority under the terms
of the contract and amendments thereto.

            4.    The Authority hereby agrees that subject to the approval of
the Iowa Racing and Gaming Commission, Connelly is granted the right to move the
turnstile from its present location to the entrance of the present guest service
center.

<PAGE>

                                        4

         5. That in all other respects, the terms of the original contract, and
the amendments thereto that are not in direct conflict with this amendment are
hereby ratified and affirmed.

         Dated this 30th day of September, 1994.

                        RIVERBOAT DEVELOPMENT AUTHORITY

                        By  /s/ Mary Allen Chamberlin
                           -----------------------------------------------------
                                Mary Allen Chamberlin, President

                        By  /s/ Robert H. Gallagher
                           -----------------------------------------------------
                                Robert H. Gallagher, Secretary

                        THE CONNELLY GROUP, L.P. by its General Partner,
                        PRESIDENT RIVERBOAT CASINO-Iowa, Inc,

                        By  /s/ Edward Ellers
                           -----------------------------------------------------
                                Edward Ellers, President

                        By _________________________________________

<PAGE>

                                   RESOLUTION

     WHEREAS, the Operator's Contract is amended between the Riverboat
Development Authority and The Connelly Group, L.P. expires by its terms on March
1, 1998; and

     WHEREAS, the Riverboat Development Authority and the The Connelly Group,
L.P. wish to extend the Operator's Contract as originally drawn and amended
through February 28, 2002.

     BE IT HEREBY RESOLVED that Mary Ellen Chamberlin as President, and Robert
H. Gallagher as Secretary of the Riverboat Development Authority is hereby
authorized to execute any and all documents necessary in order to extend the
contract between the Riverboat Development Authority and the President Riverboat
Casino, Inc., up to and including February 28, 2002.

     BE IT FURTHER RESOLVED that in all other respects, the original written
agreements between the Riverboat Development Authority and the Connelly Group,
L.P., including all amendments thereto, are hereby ratified and affirmed.

     Dated this 24/th/ day of February, 1998.

                                         /s/ Mary Ellen Chamberlin
                                         ---------------------------------------
                                             Mary Ellen Chamberlin, President

                                         /s/ Robert H. Gallagher
                                         ---------------------------------------
                                             Robert H. Gallagher, Secretary

<PAGE>

                        AMENDMENT TO OPERATOR'S AGREEMENT

     WHEREAS, the Riverboat Development Authority and the Connelly Group, L.P.,
originally entered into an Operator's Agreement dated December 28, 1989; and

     WHEREAS, the contract has from time to time been amended; and

     WHEREAS, it is the intentions of the parties to amend said contract to
provide for its extension up to and including February 28, 2002.

     NOW THEREFORE, for and in consideration of the mutual covenants and
agreements contained, it is agreed as follows:

     1. The original Operator's Agreement between the Riverboat Development
Authority and the Connelly Group, L.P., dated December 28, 1989, is hereby
extended up to and including February 28, 2002.

     2. In all other respects, the original agreement and all amendments
executed thereto, are hereby ratified and confirmed.

     Dated this 1/st/ day of March, 1998.

     RIVERBOAT DEVELOPMENT AUTHORITY

                               By  /s/ Mary Ellen Chamberlin
                                 -----------------------------------------------
                                       Mary Ellen Chamberlin, President

                               By  /s/ Robert H. Gallagher
                                 -----------------------------------------------
                                       Robert H. Gallagher, Secretary

                                            THE CONNELLY GROUP, L.P. BY
                                       PRESIDENT RIVERBOAT CASINO IOWA, INC.
                                                ITS GENERAL PARTNER

                               By_______________________________________________
                                                Vice-President

                                        1

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