Document:

EXHIBIT 10.23

                               POST CLOSING LETTER

              THE OLD EVANGELINE DOWNS, L.L.C. AND DIAMOND JO, LLC

                                 June 16, 2004

Wells Fargo Foothill, Inc., as Agent
2450 Colorado Avenue
Suite 3000 West
Santa Monica, California  90404

Ladies and Gentlemen:

      Reference  is hereby made to that  certain  Loan and  Security  Agreement,
dated as  of June 16,  2004 (as  amended,  restated,  supplemented  or otherwise
modified  from  time to  time,  the  "Loan  Agreement"),  by and  among  The Old
Evangeline Downs,  L.L.C., a Louisiana  limited  liability company ("OED"),  and
Diamond Jo, LLC (formerly known as Peninsula  Gaming  Company,  LLC), a Delaware
limited  liability  company  ("DJO"),  as borrowers  ("Borrowers"),  the lenders
identified  on the  signature  pages  thereof  (together  with their  respective
successors  and  assigns,  the  "Lenders"),  and Wells Fargo  Foothill,  Inc., a
California  corporation,  as the arranger  and agent for the Lenders  ("Agent").
Capitalized  terms used herein and not otherwise  defined  herein shall have the
meanings ascribed to them in the Loan Agreement.

      This letter  confirms our agreement  regarding the following  post-closing
items:

      1.    Not later than June 23, 2004,  Borrowers  shall deliver to Agent all
            original  certificates  representing  the  shares of  Capital  Stock
            pledged  under the Pledge  Agreement,  as well as  original  Capital
            Stock powers with respect thereto endorsed in blank; and

      2.    Not  later  than  June  30,  2004 (or such  longer  period  as Agent
            approves in  writing),  DJO shall  deliver to Agent an  amendment to
            that certain Multi-Party Blocked Account Agreement dated as of April
            16,  2004,  by  and  among  DJO,  Wells  Fargo  Foothill,  Inc.,  as
            First-Lien  Agent,  U.S. Bank National  Association,  as Second-Lien
            Agent,  and American  Trust and Savings  Bank, in form and substance
            satisfactory  to Agent,  with respect to account  number  2012474 at
            American Trust and Savings Bank.

      Borrowers  acknowledge  that the failure of  Borrowers  to comply with the
items above (the  "Post-Closing  Items")  shall  constitute  an Event of Default
under  the Loan  Agreement.  All  such  items  shall  be in form  and  substance
acceptable  to Agent.  Borrowers  and  Guarantors  acknowledge  and  agree  that
Borrowers and Guarantors shall remain responsible for all costs and

<PAGE>

expenses  incurred by Agent in  connection  with the  completion  of the matters
described  above,  which expenses shall include the fees and expenses of counsel
to Agent.

      This  letter  agreement  may be signed in multiple  counterparts,  each of
which  shall be  deemed an  original  and all of which,  taken  together,  shall
constitute one and the same  agreement.  Delivery of an executed  counterpart of
this  letter  agreement  by  facsimile  transmission  shall be as  effective  as
delivery of a manually executed counterpart hereof.

      This  letter  agreement  shall be  deemed  to be a Loan  Document  for all
purposes.

                  [Remainder of page intentionally left blank.]

<PAGE>

                          Very truly yours,

BORROWERS:                THE OLD EVANGELINE DOWNS, L.L.C.,
                          a Louisiana limited liability company

                          By:  /s/  Natalie A. Schramm
                             --------------------------------------
                          Name:   Natalie A. Schramm
                          Title:  Chief Financial Officer

                          DIAMOND JO, LLC (formerly known as
                          Peninsula Gaming Company, LLC), a Delaware
                          limited liability company

                          By:  /s/  Natalie A. Schramm
                             --------------------------------------
                          Name:   Natalie A. Schramm
                          Title:  Chief Financial Officer

GUARANTORS:               PENINSULA GAMING, LLC, a Delaware
                          limited liability company

                          By:  /s/  Natalie A. Schramm
                             --------------------------------------
                          Name:   Natalie A. Schramm
                          Title:  Chief Financial Officer

                          THE OLD EVANGELINE DOWNS CAPITAL
                          CORP., a Delaware corporation

                          By:  /s/  Natalie A. Schramm
                             --------------------------------------
                          Name:   Natalie A. Schramm
                          Title:  Chief Financial Officer

POST CLOSING LETTER

<PAGE>

Acknowledged and consented
to as of the date first above written:

WELLS FARGO FOOTHILL, INC.,
a California corporation, as Agent

By:  /s/  Todd R. Nakamoto
   ----------------------------------
Title:  Vice President

POST CLOSING LETTEREXHIBIT 10.25

                                    GUARANTY

         This GUARANTY (this  "Guaranty") is made this 16 day of June,  2004, by
PENINSULA  CAPITAL CORP.  (formerly  known as The Old  Evangeline  Downs Capital
Corp.), a Delaware  corporation,  together with those  additional  entities that
hereafter  become  parties  hereto by executing the Form of Supplement  attached
hereto as Annex 1 (each, a "Guarantor",  and collectively,  the "Guarantors") in
favor of Wells Fargo Foothill, Inc., a California corporation,  as agent for the
Lenders (as defined in the hereinafter defined Loan Agreement) (the "Agent").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS,  pursuant to that certain  Loan and  Security  Agreement as of
even date herewith (as amended,  restated,  supplemented  or otherwise  modified
from time to time, the "Loan  Agreement";  capitalized terms used herein without
definition  shall  have  the  meanings  ascribed  to  such  terms  in  the  Loan
Agreement),  by and among The Old Evangeline Downs,  L.L.C., a Louisiana limited
liability  company  ("OED"),  and Diamond Jo, LLC  (formerly  known as Peninsula
Gaming Company, LLC), a Delaware limited liability company ("DJO"; together with
OED, hereinafter  collectively  referred to as "Borrowers" and each individually
as a "Borrower"), the Lenders party thereto from time to time and the Agent, the
Lender  Group has  agreed to extend  credit to the  Borrowers  from time to time
pursuant to the terms and conditions thereof; and

         WHEREAS,  each  Guarantor  is an Affiliate  of the  Borrowers  and each
Guarantor has determined  that its execution,  delivery and  performance of this
Guaranty  directly or  indirectly  benefits such  Guarantor,  and is within such
Guarantor's  corporate,  partnership or limited liability  company purposes,  as
applicable; and

         WHEREAS,  it is a condition  precedent to the extension of credit under
the Loan Agreement that each Guarantor  execute and deliver this Guaranty to the
Agent; and

         WHEREAS, the obligations of each Guarantor hereunder are secured by the
other Loan Documents to which such Guarantor is a party;

         NOW,  THEREFORE,  for and in  consideration of the recitals made above,
and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, each Guarantor hereby agrees as follows:

         1.  Each Guarantor hereby  guarantees to the Agent,  for the benefit of
the  Lender  Group,  the full and  prompt  payment  and  performance  of (a) all
covenants,  agreements and liabilities of the Borrowers under the Loan Documents
and all now  existing  or  hereafter  arising  Obligations  (including,  without
limitation,  any  interest,  fees  and  other  charges  in  respect  of the Loan
Agreement and the other Loan  Documents  that would accrue but for the filing of
an Insolvency  Proceeding  with respect to any  Borrower,  regardless of whether
such claim is allowed in such Insolvency Proceeding), and (b) the obligations of
each  Guarantor  and the other  Guarantors  (as  defined in the Loan  Agreement)
arising  from  this  Guaranty  and any  other  Loan  Document,  plus  reasonable
attorneys'  fees for which a written invoice has been presented to the Agent and
expenses if the  obligations  represented by this Guaranty are collected by law,
through

<PAGE>

an attorney-at-law, or under advice therefrom (all of the foregoing now existing
or  hereinafter  arising  obligations  being referred to,  collectively,  as the
"Secured Obligations").

         2.  Regardless  of whether any  proposed  guarantor or any other Person
shall become in any other way  responsible to the Lender Group,  or any of them,
for or in respect of the Secured Obligations or any part thereof, and regardless
of whether or not any Person now or hereafter  responsible  to the Lender Group,
or any of them, for the Secured  Obligations or any part thereof,  whether under
this Guaranty or otherwise,  shall cease to be so liable,  each Guarantor hereby
declares and agrees that this Guaranty shall be a joint and several  obligation,
shall be a  continuing  guaranty and shall be  operative  and binding  until the
Secured  Obligations shall have been indefeasibly paid or performed in full, the
Loan Agreement and the other Loan Documents have been  terminated and the Lender
Group shall be under no further obligation to extend any additional credit under
the Loan Agreement.

         3.  Upon execution of this Guaranty and delivery  thereof to the Agent,
this  Guaranty  shall be deemed to be  finally  executed  and  delivered  by the
Guarantors  and shall not be subject to or affected by any promise or  condition
affecting or limiting any  Guarantor's  liability,  except as stated in the Loan
Agreement, and no statement, representation, agreement or promise on the part of
the Lender Group and the Borrowers, or any of them, or any officer,  employee or
agent thereof,  unless contained herein,  forms any part of this Guaranty or has
induced  the  making  thereof  or  shall  be  deemed  in any way to  affect  any
Guarantor's   liability   hereunder.   Each   of  the   Guarantors   absolutely,
unconditionally  and irrevocably  waives any and all right to assert any defense
(other than the defense of payment in cash in full),  set-off,  counterclaim  or
cross-claim  of any nature  whatsoever  with  respect to this  Guaranty,  or the
obligations  of such  Guarantor  under this Guaranty or the  obligations  of any
other Person or party (including,  without  limitation,  the Borrowers or any of
them)  relating to this  Guaranty or the  obligations  of any of the  Guarantors
under this Guaranty or otherwise with respect to the Secured  Obligations in any
action  or  proceeding  brought  by the  Agent  hereof to  collect  the  Secured
Obligations or any portion thereof,  or to enforce the obligations of any of the
Guarantors under this Guaranty.

         4.  The Agent may from time to time, without  exonerating  or releasing
any  Guarantor  in any way under this  Guaranty,  (i) take such further or other
security or collateral for the Secured Obligations or any part thereof as it may
deem proper, or (ii) release, discharge,  abandon or otherwise deal with or fail
to deal with any other Guarantor or other  guarantor of the Secured  Obligations
or any security or collateral therefor or any part thereof now or hereafter held
by the Agent, or (iii) amend, modify, extend,  accelerate or waive in any manner
any of the provisions, terms, or conditions of the Loan Documents, all as it may
consider  expedient or appropriate in its sole discretion.  Without limiting the
generality of the foregoing,  or of Section 5 hereof,  it is understood that the
Agent may, without exonerating or releasing any Guarantor, give up, or modify or
abstain  from  perfecting  or taking  advantage  of any security for the Secured
Obligations  and accept or make any  compositions or  arrangements,  and realize
upon any security or collateral  for the Secured  Obligations  when, and in such
manner, and with or without notice, all as the Agent may deem expedient.

         5.  Each Guarantor acknowledges and agrees that no change in the nature
or terms of the  Secured  Obligations  or any of the  Loan  Documents,  or other
agreements,  instruments or
<PAGE>

contracts  evidencing,  related to or  attendant  upon the  Secured  Obligations
(including any novation), shall discharge all or any part of the liabilities and
obligations  of such Guarantor  pursuant to this Guaranty;  it being the purpose
and intent of each  Guarantor and the Agent that the  covenants,  agreements and
all  liabilities  and  obligations  of such  Guarantor  hereunder  are absolute,
unconditional and irrevocable under any and all circumstances.  Without limiting
the  generality of the foregoing,  each  Guarantor  agrees that until all of the
covenants  and  agreements  of this  Guaranty are fully  performed,  and without
possibility  of  recourse,  whether  by  operation  of  law or  otherwise,  such
Guarantor's  undertakings  hereunder shall not be released, in whole or in part,
by any action or thing which might, but for this paragraph of this Guaranty,  be
deemed a legal or equitable discharge of a surety or guarantor,  or by reason of
any waiver,  omission of the Agent or any other member of the Lender  Group,  or
its failure to proceed  promptly or otherwise,  or by reason of any action taken
or omitted by the Agent or any member of the Lender  Group,  whether or not such
action or failure to act varies or increases  the risk of, or affects the rights
or remedies of, such Guarantor or by reason of any further  dealings between the
Borrowers  on the one  hand  and the  Agent or the  Lender  Group or any  member
thereof,  on the other hand or any other guarantor or surety, and such Guarantor
hereby expressly  waives and surrenders any defense to its liability  hereunder,
or any right of counterclaim or offset of any nature or description which it may
have or may exist based upon,  and shall be deemed to have  consented to, any of
the foregoing acts, omissions, things, agreements or waivers.

         6.  The Agent and the  Lenders or any of them  may,  without  demand or
notice  of any kind upon or to any  Guarantor,  at any time or from time to time
when any amount shall be due and payable  hereunder by any  Guarantor,  upon the
occurrence  and  during  the  continuation  of  an  Event  of  Default,  setoff,
appropriate  and  apply  to  any  portion  of  the  Secured  Obligations  hereby
guaranteed, and in such order of application as set forth in the Loan Agreement,
any deposits,  property, balances, credit accounts or moneys of any Guarantor in
the  possession of the Agent or any other member of the Lender Group under their
respective  control for any  purpose.  If and to the extent  that any  Guarantor
makes any payment to the Agent or any other Person  pursuant to or in respect of
this  Guaranty,  any claim which such Guarantor may have against any Borrower by
reason thereof shall be subject and  subordinate to the prior payment in full in
cash of the Secured Obligations.

         7.  The creation or existence from time to time of Secured  Obligations
in excess of the amount committed to or outstanding on the date of this Guaranty
is  hereby  authorized,  without  notice to any  Guarantor,  and shall in no way
impair or affect this Guaranty or the rights of the Agent or any other member of
the Lender Group herein.  Anything herein to the contrary  notwithstanding,  the
liability of any Guarantor  hereunder shall not exceed the amount which would be
enforceable  in a  bankruptcy,  insolvency or other  similar  proceeding  giving
effect  to  fraudulent  conveyance  and  other  similar  laws  relating  to  the
insolvency of debtors.

         8. Upon the bankruptcy or winding up or other distribution of assets of
any  Borrower or of any surety or  guarantor  (other than a  Guarantor)  for any
Obligations  of the  Borrowers  to the  Lender  Group,  the  rights of the Agent
against any  Guarantor  shall not be affected or impaired by the omission of the
Agent or any other  member of the Lender  Group to prove its claim,  or to prove
the full  claim,  as  appropriate,  against  the  Borrowers  or any  such  other
guarantor  or surety and the Agent may prove such  claims as it sees fit and may
refrain from
<PAGE>

proving any claim and in its discretion may value as it sees fit or refrain from
valuing  any  security  held by it without  in any way  releasing,  reducing  or
otherwise  affecting  the  liability  to the Agent and the other  members of the
Lender Group of each of the Guarantors.

         9.  Any amount received by the Agent from whatsoever source and applied
toward the payment of the  Secured  Obligations  shall be applied in  accordance
with the terms of the Loan Agreement.

         10.  Each Guarantor hereby absolutely, unconditionally  and irrevocably
expressly waives, except to the extent such waiver would be expressly prohibited
by applicable law, the following: (a) notice of acceptance of this Guaranty, (b)
notice of the  existence  or creation of all or any of the Secured  Obligations,
(c)  presentment,  demand,  notice of  dishonor,  protest and all other  notices
whatsoever  (other than the notices  expressly  required  hereunder or under any
other Loan  Document to which such  Guarantor is a party),  (d) all diligence in
collection or protection of or realization  upon the Secured  Obligations or any
part  thereof,  any  obligation  hereunder,  or  any  security  for  any  of the
foregoing,  (e) all rights to enforce any remedy which Agent or any other member
of the Lender  Group may have  against the  Borrowers,  and (f) until all of the
Secured  Obligations shall have been indefeasibly paid or satisfied in full, all
rights of subrogation, indemnification,  contribution and reimbursement from any
Borrower,  and (g) any benefit of, or right to participate in, any collateral or
security now or hereinafter  held by the Agent or any other member of the Lender
Group in respect of the  Secured  Obligations.  If a claim is ever made upon the
Agent or any other member of the Lender  Group for the  repayment or recovery of
any amount or amounts  received  by such Person in payment of any of the Secured
Obligations  and such Person  repays all or part of such amount by reason of (i)
any  judgment,  decree  or order  of any  court or  administrative  body  having
jurisdiction over such Person or any of its property,  or (ii) any settlement or
compromise  of any such claim  effected by such  Person with any such  claimant,
including any Borrower,  then in such event each Guarantor  agrees that any such
judgment,  decree,  order,  settlement or compromise  shall be binding upon such
Guarantor,  notwithstanding  any revocation  hereof or the  cancellation  of any
promissory note or other instrument  evidencing any of the Secured  Obligations,
and such Guarantor  shall be and remain  obligated to such Person  hereunder for
the amount so repaid or recovered to the same extent as if such amount had never
originally been received by such Person.

         11.  Agent and the other members of the Lender Group may, to the extent
permitted under the Loan Agreement,  sell, assign or transfer all or any part of
the Secured  Obligations,  and in such event each and every permitted  assignee,
transferee,  or holder of all or any of the Secured  Obligations  shall have the
right to enforce this  Guaranty,  by suit or otherwise,  for the benefit of such
permitted  assignee,  transferee  or  holder  as  fully  as  if  such  assignee,
transferee or holder were herein by name specifically given such rights,  powers
and benefits.

         12.  This Guaranty is a continuing guaranty of the Secured  Obligations
and all liabilities to which it applies or may apply under the terms hereof, and
such Secured  Obligation and liabilities shall be conclusively  presumed to have
been created in reliance  hereon.  No failure or delay by the Agent or any other
member of the Lender  Group in the  exercise of any right,  power,  privilege or
remedy shall operate as a waiver thereof,  and no single or partial  exercise by
the Agent or any other  member of the Lender  Group of any right or remedy shall
preclude other

<PAGE>

or further  exercise thereof or the exercise of any other right or remedy and no
course of dealing  between any  Guarantor,  the Agent or any other member of the
Lender Group shall  operate as a waiver  thereof.  No action by the Agent or any
other member of the Lender Group permitted  hereunder shall in any way impair or
affect this Guaranty.  For the purpose of this Guaranty, the Secured Obligations
shall  include,  without  limitation,  all  Obligations  (other  than  the  FF&E
Obligations)  of the  Borrowers to the Agent and the other members of the Lender
Group, notwithstanding any right or power of any third party, individually or in
the name of the Borrowers  and the Lender  Group,  or any of them, to assert any
claim  or  defense  as  to  the  invalidity  or  unenforceability  of  any  such
Obligation,  and no such claim or defense shall impair or affect the obligations
of any Guarantor hereunder.

         13.  This  Guaranty  shall  be  binding  upon  the  Guarantors,   their
respective  successors and assigns and inure to the benefit of the Agent and the
other members of the Lender Group and their  respective  successors and assigns.
No Guarantor may assign its rights or  obligations  under this Guaranty  without
the prior written consent of the Agent. No alteration or waiver of this Guaranty
or of any of its terms,  provisions  or  conditions  shall be  binding  upon the
parties against whom  enforcement is sought unless made in writing and signed by
an  authorized  officer  of such  party.  If at any  time all or any part of any
payment  theretofore applied by Agent or any other member of the Lender Group to
any of the Secured  Obligations  is or must be rescinded or returned by Agent or
any other member of the Lender Group for any reason  whatsoever  (including  the
insolvency, bankruptcy or reorganization of any Guarantor or any Borrower), such
Secured Obligations shall, for the purposes of this Guaranty, to the extent that
such payment is or must be rescinded or returned, be deemed to have continued in
existence, notwithstanding such application by Agent or such other member of the
Lender Group, and this Guaranty shall continue to be effective or be reinstated,
as the  case  may  be,  as to  such  Secured  Obligations,  all as  though  such
application by Agent or such other member of the Lender Group had not been made.

         14.  This is a guaranty of payment and not of collection.  In the event
the Agent makes a demand upon any Guarantor under this Guaranty,  such Guarantor
shall be held and  bound to the Agent  directly  as  debtor  in  respect  of the
payment of the amounts hereby  guaranteed.  The Guarantors  shall be jointly and
severally liable for the payment and performance of their obligations hereunder.
All costs and expenses,  including reasonable and documented attorneys' fees and
expenses,  incurred  by the  Agent in  obtaining  performance  of or  collecting
payments due under this Guaranty to the extent  permitted by the Loan Agreement,
shall be deemed part of the Secured  Obligations  guaranteed  hereby. Any notice
or,  demand which the Agent may wish to give shall be served upon any  Guarantor
in the fashion prescribed for notices in the Loan Agreement in care of Peninsula
Gaming  Partners,  LLC at the  following  address  (or at such other  address as
Guarantors  may  designate  in  written  notice to Agent) and the notice so sent
shall be deemed to be served as set forth in the Loan Agreement:

                                    [NAME OF APPLICABLE GUARANTOR]
                                    c/o Peninsula Gaming Partners, LLC
                                    400 E. Third Street, P.O. Box 1750
                                    Dubuque, Iowa  52004
                                    Attn: Natalie Schramm
                                    Fax No. (563) 690-2190

                                    and

<PAGE>

                                    [NAME OF APPLICABLE GUARANTOR]
                                    c/o Peninsula Gaming Partners, LLC
                                    11100 Santa Monica Boulevard, 10th Floor
                                    Los Angeles, California  90025
                                    Attn: M. Brent Stevens
                                    Fax No. (310)914-6476

         with copies to:            MAYER, BROWN, ROWE & MAW LLP
                                    1675 Broadway
                                    New York, New York 10019
                                    Attn:  Ron Brody, Esq.
                                    Fax No. (212) 262-1910

         15.  Each Guarantor  expressly  represents  and  acknowledges  that any
financial  accommodations  by the  Lender  Group  to the  Borrowers,  including,
without  limitation,  the extension of credit under the Loan Agreement,  are and
will be of direct interest, benefit and advantage to such Guarantor.

         16.  [Intentionally Omitted.]

         17.  Each Guarantor hereby represents and warrants that:

         (a) such  Guarantor  is duly  organized,  validly  existing and in good
standing  under the laws of the  jurisdiction  of its  organization  and has the
corporate or company  power and authority and the legal right to own and operate
property,  to lease the  property  such  Guarantor  operates  under lease and to
conduct the business in which such Guarantor is currently engaged;

         (b) such Guarantor has the corporate or company power and authority and
the legal right to execute and deliver,  and to perform its  obligations  under,
this Guaranty and the other Loan Documents to which it is a party, and has taken
all  necessary   company  action  to  authorize  the  execution,   delivery  and
performance of this Guaranty and each of the other Loan Documents to which it is
a party;

         (c) this Guaranty and each of the other Loan Documents to which it is a
party  constitutes  a legal,  valid and  binding  obligation  of such  Guarantor
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium or
similar laws  affecting  the  enforcement  of  creditors'  rights  generally and
general equitable  principles  (whether  enforcement is sought by proceedings in
equity or at law);

<PAGE>

         (d) the  execution,  delivery and  performance of this Guaranty and the
other Loan  Documents  to which it is a party will not violate any  provision of
any  governmental   requirement  or  material  contractual  obligation  of  such
Guarantor  and will not result in or require the creation or  imposition  of any
Lien on any of the  properties  or  revenues of such  Guarantor  pursuant to any
governmental requirement or contractual obligation of such Guarantor;

(e) no consent or  authorization  of, filing with, or other act by or in respect
of, any arbitrator or governmental  authority and no consent of any other Person
(including,  without  limitation,  stockholder or creditor of such Guarantor) is
required in connection with the execution,  delivery,  performance,  validity or
enforceability of this such Guaranty or any other Loan Document to which it is a
party; and

(f) no  litigation,  investigation  or proceeding of or before any arbitrator or
governmental  authority  is  pending  or, to the  knowledge  of such  Guarantor,
threatened by or against such Guarantor or against such  Guarantor's  properties
or revenues  (1) with  respect to this  Guaranty  or any other Loan  Document to
which it is a party or any of the transactions contemplated hereby or thereby or
(2) which could reasonably be expected to cause a Material Adverse Change.

         The foregoing  representations  and warranties  shall be deemed to have
been  made by each  Guarantor  on each  date of each  borrowing  under  the Loan
Agreement on and as of such date of borrowing as though made hereunder on and as
of such date.

         18. Each Guarantor hereby irrevocably and unconditionally:

         (a)  submits  for  itself  and its  property  in any  legal  action  or
proceeding relating to this Guaranty and the other Loan Documents to which it is
a party, or for recognition and enforcement of any judgment in respect  thereof,
to the jurisdiction set forth in Section 13(b) of the Loan Agreement;

         (b) consents that any such action or proceeding  may be brought in such
courts and waives any objection  that it may now or hereafter  have to the venue
of any such  action  or  proceeding  in any such  court or that  such  action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

         (c) agrees that service of process in any such action or proceeding may
be effected by mailing a copy thereof by  registered  or certified  mail (or any
substantially  similar form of mail),  postage prepaid, to such Guarantor at its
address set forth in Section 14 hereof; and

         (d) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law.

         19. EACH GUARANTOR  HEREBY  KNOWINGLY,  INTENTIONALLY,  IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY
IN ANY LEGAL ACTION OR  PROCEEDING  RELATING TO THIS  GUARANTY OR ANY OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY,  INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

<PAGE>

         20. This Guaranty shall be construed and interpreted in accordance with
the internal  laws of the State of New York,  without  regard to the conflict of
laws  principles  thereof other than Sections  5-1401 and 5-1402 of the New York
General Obligations Law.

         21. Upon payment in full of all Secured Obligations as provided herein,
this Guaranty  shall  terminate  and the Agent shall take all action  reasonably
requested  by  Guarantors  (at the  expense of the  Borrower or  Guarantors)  to
evidence the termination of this Guaranty.

         22. This Guaranty may be executed in any number of  counterparts,  each
of which shall be deemed to be an original,  but all such separate  counterparts
shall  together  constitute  but one  and the  same  instrument.  Delivery  of a
counterpart hereof via facsimile  transmission shall be as effective as delivery
of a manually executed counterpart hereof.

         23. Each reference  herein to any right granted to,  benefit  conferred
upon or power  exercisable  by the  "Agent"  shall be a  reference  to Agent for
itself and for the other members of the Lender  Group,  and each action taken or
right exercised  hereunder shall be deemed to have been so taken or exercised by
Agent for the benefit of and on behalf of the Lender Group.

         24. Any new  Subsidiary  (whether  by  acquisition  or  creation)  of a
Borrower  (other  than a CFC) is  required  to enter into a  Guaranty.  Upon the
execution and delivery of Annex 1 by such new Subsidiary,  such Subsidiary shall
become a  Guarantor  hereunder  with the same force and effect as if  originally
named as a Guarantor herein. The execution and delivery of any instrument adding
an  additional  Guarantor  as a party to this  Guaranty  shall not  require  the
consent of any Guarantor hereunder. The rights and obligations of each Guarantor
hereunder shall remain in full force and effect  notwithstanding the addition of
any new Guarantor hereunder.

         25. Each provision of this Guaranty shall be severable from every other
provision  of  this   Guaranty  for  the  purpose  of   determining   the  legal
enforceability of any specific provision.

         26. All  representations,  warranties  and covenants of each  Guarantor
contained herein shall survive the execution and delivery of this Guaranty.

         27. This Guaranty, together with the other Loan Documents, reflects the
entire   understanding   of  the  parties  with  respect  to  the   transactions
contemplated  hereby and shall not be  contradicted  or  qualified  by any other
agreement, oral or written, before the date hereof.

         28.  Headings and numbers  have been set forth  herein for  convenience
only. Unless the contrary is compelled by the context,  everything  contained in
each Section applies equally to this entire Guaranty.

         29. Notwithstanding anything herein to the contrary, to the extent that
any  Guarantor  or any other party makes any payment on the Secured  Obligations
that is  subsequently  invalidated,  declared  to be  fraudulent,  avoidable  or
preferential,  set aside or is required to be repaid to a trustee, receiver, the
estate of such Guarantor or any other party under any  bankruptcy  act, state or
Federal  law,  common law or equitable  cause (such  payment  being  hereinafter
referred to as a "Voided Payment"),  then, to the extent of such Voided Payment,
that portion of

<PAGE>

the  Secured  Obligations  that had been  previously  satisfied  by such  Voided
Payment shall be revived and continue in full force and effect as if such Voided
Payment had never been made. In the event that a Voided  Payment is sought to be
recovered  from the Agent or any other member of the Lender Group,  an "Event of
Default"  under the Loan  Agreement  shall be deemed to have  occurred and to be
continuing from the date of such recovery from the Agent or such other member of
the Lender  Group of such  Voided  Payment  until the full amount of such Voided
Payment is fully and finally  restored to the Agent or such other  member of the
Lender  Group  and until  such time the  provisions  of this  Guaranty,  and the
guaranty provided herein, shall be in full force and effect.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Guaranty as of the date first above written.

GUARANTORS:                         THE OLD EVANGELINE DOWNS
                                    CAPITAL CORP., a Delaware corporation

                                    By:   /S/  NATALIE A. SCHRAMM
                                       -----------------------------------------
                                       Name:  Natalie A. Schramm
                                       Title:  Chief Financial Officer

Guaranty
<PAGE>

                                     ANNEX 1

                                       to

                                    GUARANTY

                               FORM OF SUPPLEMENT

         THIS  SUPPLEMENT NO. __ (this  "Supplement")  dated as of __________ to
the Guaranty dated as of June ___, 2004 (as amended,  restated,  supplemented or
otherwise  modified from time to time,  the  "Guaranty"),  by Peninsula  Capital
Corp.  (formerly known as The Old Evangeline  Downs Capital  Corp.),  a Delaware
corporation,  and those  additional  entities  that  thereafter  become  parties
thereto (each a "Guarantor" and collectively,  the "Guarantors") and Wells Fargo
Foothill,  Inc., a California corporation,  as agent for the Lenders (as defined
in the hereinafter defined Loan Agreement) (the "Agent").

                                   WITNESSETH:

         WHEREAS,  pursuant to that certain Loan and Security Agreement dated as
of June ___, 2004 (as amended, restated, supplemented or otherwise modified from
time to time,  the "Loan  Agreement"),  by and among The Old  Evangeline  Downs,
L.L.C.,  a Louisiana  limited  liability  company  ("OED"),  and Diamond Jo, LLC
(formerly known as Peninsula Gaming Company,  LLC), a Delaware limited liability
company  ("DJO";  together  with OED,  hereinafter  collectively  referred to as
"Borrowers" and each  individually  as a "Borrower"),  the Lenders party thereto
from time to time and the Agent, the Lender Group has agreed to extend credit to
the Borrowers  from time to time pursuant to the terms and  conditions  thereof;
and

         WHEREAS, capitalized terms used herein and not otherwise defined herein
shall  have the  meanings  assigned  to such terms in the  Guaranty,  and if not
defined therein, in the Loan Agreement; and

         WHEREAS,  the  Guarantors  have  entered  into the Guaranty in order to
induce the extension of credit under the Loan Agreement; and

         WHEREAS,  pursuant to Section 24 of the Guaranty,  each new  Subsidiary
(whether  by  acquisition  or  creation)  of a Borrower  (other than a CFC) must
execute and deliver  the  Guaranty,  and the  execution  of the  Guaranty by the
undersigned new Guarantor or Guarantors (collectively,  the "New Guarantor") may
be  accomplished  by the execution of this  Supplement in favor of the Agent for
the benefit of the Lender Group; and

         WHEREAS,  New  Guarantor  is  a  direct  or  indirect  Subsidiary  of a
Borrower,  and New Guarantor  has  determined  that it will realize  substantial
direct  and  indirect  benefits  as a result of the  loans  and other  financial
accommodations extended to the Borrowers pursuant to the Loan Agreement, and New
Guarantor's  execution,  delivery and performance of this Guaranty is within New
Guarantor's corporate or other purposes;

<PAGE>

         NOW,  THEREFORE,  for and in  consideration  of the foregoing and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the New Guarantor hereby agrees as follows:

         SECTION  1. In  accordance  with  Section 24 of the  Guaranty,  the New
Guarantor, by its signature below, becomes a "Guarantor" under the Guaranty with
the same force and effect as if originally  named  therein as a "Guarantor"  and
the New  Guarantor  hereby (a) agrees to all of the terms and  provisions of the
Guaranty  applicable to it as a "Guarantor"  thereunder  and (b)  represents and
warrants that the  representations  and  warranties  made by it as a "Guarantor"
thereunder are true and correct on and as of the date hereof.  In furtherance of
the foregoing, the New Guarantor, as security for the payment and performance in
full in cash of the Secured Obligations,  does hereby guarantee,  subject to the
limitations  set  forth in  Section 7 of the  Guaranty,  to the  Agent,  for the
benefit  of the  Lender  Group,  the  full and  prompt  payment  of the  Secured
Obligations,   including,   without  limitation,   any  interest  thereon,  plus
reasonable  attorneys' fees and expenses if the Secured Obligations  represented
by the  Guaranty  are  collected by law,  through an  attorney-at-law,  or under
advice  therefrom.  Each  reference to a  "Guarantor"  in the Guaranty  shall be
deemed to include the New  Guarantor.  The  Guaranty is  incorporated  herein by
reference.

         SECTION 2. The New Guarantor  represents and warrants to the Agent that
this  Supplement  has been duly  executed and delivered by the New Guarantor and
constitutes its legal, valid and binding  obligation,  enforceable against it in
accordance with its terms,  except as  enforceability  thereof may be limited by
bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws affecting  creditors'  rights  generally and general  principles of
equity (regardless of whether such  enforceability is considered in a proceeding
at law or in equity).

         SECTION 3. This  Supplement  may be executed in multiple  counterparts,
each  of  which  shall  be  deemed  to be an  original,  but all  such  separate
counterparts shall together constitute but one and the same instrument. Delivery
of a  counterpart  hereof via  facsimile  transmission  shall be as effective as
delivery of a manually executed counterpart hereof.

         SECTION 4. Except as expressly  supplemented hereby, the Guaranty shall
remain in full force and effect.

         SECTION 5. This  Supplement  shall be  construed  and  enforced and the
rights  and  duties of the  parties  shall be  governed  by in all  respects  in
accordance  with the  laws  and  decisions  of the  State  of New  York  without
reference  to the  conflicts  or choice of law  principles  thereof  other  than
Sections 5-1401 and 5-1402 of the New York General Obligations Law.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the New Guarantor has duly executed this Supplement
to the Guaranty as of the day and year first above written.

NEW GUARANTOR:                      [Name of New Guarantor]

Address:                                        By:
        -------------------------------            -----------------------------
                                                Name:
        -------------------------------              ---------------------------
                                                Title:
        -------------------------------               --------------------------

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