Document:

<PAGE>

                                                                    Exhibit 4.7

                               AMENDMENT NO.1 TO
                               SECURITY AGREEMENT
                               ------------------

                   This AMENDMENT NO.1 to SECURITY AGREEMENT, dated as of
February 22, 2002 (the "Amendment"), to that certain Security Agreement dated as
                        ---------
of February 8, 2002, among GAMECO, INC., (the "Issuer"), EACH OF THE GUARANTORS
                                               ------
LISTED ON THE SIGNATURE PAGES HERETO (collectively, the "Guarantors"; together
                                                         ----------
with the Issuer, the "Pledgors", and each, a "Pledgor"), in favor of WELLS
                      --------                -------

FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, in its capacity as Trustee (in such
capacity and together with any successors in such capacity, the "Trustee") under
                                                                 -------
the Indenture (as hereinafter defined).

                                RECITALS:
                                --------

                   A. The Pledgors and the Trustee entered into that certain
security agreement dated as of February 8, 2002 (the "Original Security
                                                      -----------------
Agreement"), to secure, among other things, payment and performance by the
---------
Pledgors of all the Secured Obligations (as defined in the Original Security
Agreement).

                   B. The Pledgors and the Trustee, in connection with the
execution and delivery of the Original Security Agreement, entered into that
certain indenture, dated as of February 8, 2000 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the
"Indenture"), pursuant to which the Issuer issued its 11 7/8% senior secured
 ---------
notes due 2009 (the "Senior Secured Notes") in the aggregate principal amount
                     --------------------
of $125,000,000. It is contemplated that the Issuer may, after the date
hereof, issue Additional Notes (as defined in the Indenture) and Exchange Notes
(as defined in the Indenture; the Exchange Notes, together with the Additional
Notes and the Senior Secured Notes, the "Notes"), in each case, pursuant to
                                         -----
the provisions of the Indenture.

                   C. The Pledgors have, concurrently with the execution hereof,
consummated the Pending Acquisitions contemplated by the Acquistion Documents
(as each is defined in the Original Security Agreement).

                   D. The Pledgors and the Trustee desire to amend the Original
Security Agreement (the Original Security Agreement, as amended by this
Amendment, the "Security Agreement"; capitalized terms used but not otherwise
                ------------------
defined herein shall have the meanings assigned to such terms in the Security
Agreement) in order to, among other things, (i) reflect the consummation of the
Pending Acquisitions, (ii) confirm the attachment of the Lien created by the
Security Agreement on the assets of the Pledgors acquired pursuant to the
Acquisition Documents and (iii) continue and confirm the prior pledge pursuant
to the Original Security Agreement of the Pledged Collateral (as defined in the
Original Security Agreement) as security for the payment and performance of the
Secured Obligations.

                                   AGREEMENT:
                                   ---------

<PAGE>

                                       -2-

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

             SECTION 1. Each Pledgor hereby (a) confirms and continues the
pledge and security interest in the Pledged Collateral granted by it pursuant to
the Original Security Agreement, (b) acknowledges and agrees that the pledge and
security interest in the Pledged Collateral granted by it pursuant to the
Original Security Agreement shall be in favor of the Trustee and shall continue
to secure the Secured Obligations, (c) represents that contemporaneously with
the execution and delivery of this Amendment (i) in connection with the merger
of BH Acquisition, Inc. with and into Black Hawk Gaming & Development Company,
Inc., the shares BH Acquisition, Inc. are being converted into shares of Black
Hawk Gaming & Development Company, Inc. and (ii) in connection with the merger
of Gameco Acquisition, Inc. with and into Colonial Holdings, Inc. ("Colonial
Holdings"), the shares of Gameco Acquisition, Inc. are being converted into
shares of Colonial Holdings (which, as of the date hereof, constitutes a
Non-Guarantor Restricted Subsidiary under the Indenture) and Gameco Acquisition,
Inc. will no longer be a party to the Security Agreement.

             SECTION 2. Amendment
                        ---------

             (a)      The Original Security Agreement is hereby amended as
                      follows:

               (i)    Schedule 1.l(a) is hereby deleted in its entirety and
                      --------------
Exhibit A annexed hereto is inserted in lieu thereof;
---------

               (ii)   Schedule 1.1(b) is hereby deleted in its entirety and
                      ---------------
Exhibit B annexed hereto is inserted in lieu thereof;
---------

               (iii)  Schedule 1.1(c) is hereby deleted in its entirety and
                      ---------------
Exhibit C annexed hereto is inserted in lieu thereof;
---------

               (iv)   Schedule 1.1(d) is hereby deleted in its entirety and
                      ----------------
Exhibit D annexed hereto is inserted in lieu thereof;
---------

               (v)    Schedule 1.1(e) is hereby deleted in its entirety and
                      ---------------
Exhibit E annexed hereto is inserted in lieu thereof;
---------

               (vi)   Schedule 1.1(f) is hereby deleted in its entirety and
                      ----------------
Exhibit F annexed hereto is inserted in lieu thereof;
---------

               (vii)  Schedule 1.1(g) is hereby deleted in its entirety and
                      ---------------
Exhibit G annexed hereto is inserted in lieu thereof;
---------

               (viii) Schedule 1.1(h) is hereby deleted in its entirety and
                      ----------------
Exhibit H annexed hereto is inserted in lieu thereof;
---------

<PAGE>

                                       -3-

               (ix)   Schedule 3.4(a) is hereby deleted in its entirety and
                      ---------------
Exhibit I annexed hereto is inserted in lieu thereof;
---------

               (x)    Schedule 3.4(b) is hereby deleted in its entirety and
                      ---------------
Exhibit J annexed hereto is inserted in lieu thereof;
---------

               (xi)   Schedule 3.4(c) is hereby deleted in its entirety and
                      ---------------
Exhibit K annexed hereto is inserted in lieu thereof;
---------

               (xii)  Schedule 3.4(f) is hereby deleted in its entirety and
                      ---------------
Exhibit L annexed hereto is inserted in lieu thereof;
---------

               (xiii) Schedule 4.l3 is hereby deleted in its entirety and
                      -------------
Exhibit M is inserted in lieu thereof; and
---------

               (xiv)  Schedule 6.3 is hereby deleted in its entirety and
                      ------------
Exhibit N annexed hereto is inserted in lieu thereof;
---------

               (b)    Each Pledgor hereby agrees that Pledged Securities,
Intercompany Notes and other items of Pledged Collateral listed on the Exhibits
to this Amendment shall be deemed to be and shall become part of the Pledged
Collateral and shall secure all Secured Obligations.

               SECTION 3. Representations and Warranties. The Pledgors
                          ------------------------------
hereby confirm, reaffirm and restate the representations and warranties made
by it in the Original Security Agreement and all such representations and
warranties are true and correct in all material respects as of the date hereof.

               SECTION 4. Miscellaneous.
                          -------------
               (a)    This Amendment shall not constitute a consent to or waiver
or modification of any other provision, term or condition of the Security
Agreement.

               (b)    All terms, provisions, covenants, representations,
warranties, agreements and conditions contained in the Security Agreement shall
remain in full force and effect except as expressly provided herein.

               (c)    From and after the execution of this Amendment by the
parties hereto, each reference in the Original Security Agreement to "this
Agreement", "hereof", "herein", "hereby" or words of like import referring to
the Security Ageement shall be deemed to be a reference to the Original Security
Agreement as amended by this Amendment.

               (d)    This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but al1 such
counterparts together shall constitute but one and the same instrument.

<PAGE>

                                      -4-

               (e)    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
                      ------------------------------------------------------
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
-------------------------------------------------------------------------------
OF CONFLICT OF LAWS.
-------------------

<PAGE>

                  IN WITNESS WHEREOF, the Pledgors and the Trustee have caused
this Amendment to be duly executed and delivered by their duly authorized
officers as of the date first above written.

                                          GAMECO INC.,
                                               as Pledgor

                                          By: /s/ Jeffrey P. Jacobs
                                              ----------------------------------
                                              Name: Jeffrey P. Jacobs
                                              Title: President

                                          BH ACQUISTION, INC.,
                                               as a Guarantor and a Pledgor

                                          By: /s/ Jeffrey P. Jacobs
                                              ----------------------------------
                                              Name: Jeffrey P. Jacobs
                                              Title: President

                                          GAMECO ACQUISITION, INC.,
                                               as a Guarantor and a Pledgor

                                          By: /s/ Jeffrey P. Jacobs
                                              ----------------------------------
                                              Name: Jefrrey P. Jacobs
                                              Title: President

                                          WELLS FARGO BANK MINNESOTA,
                                          NATIONAL ASSOCIATION, as Trustee

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

                                       N-1

<PAGE>

                 IN WITNESS WHEREOF, the Pledgors and the Trustee have caused
this Amendment to be duly executed and delivered by their duly authorized
officers as of the date first above written.

                                          GAMECO, INC.,
                                               as Pledgor

                                          By: __________________________________
                                              Name: Jeffrey P. Jacobs
                                              Title: President

                                          BH ACQUISTION, INC.,
                                               as a Guarantor and a Pledgor

                                          By: __________________________________
                                              Name: Jeffrey P. Jacobs
                                              Title: President

                                          GAMECO ACQUISITION, INC.,
                                               as a Guarantor and a Pledgor

                                          By: __________________________________
                                              Name: Jeffrey P. Jacobs
                                              Title: President

                                          WELLS FARGO BANK MINNESOTA,
                                          NATIONAL ASSOCIATION, as Trustee

                                          By: /s/ Joseph P. O'Donnell
                                              ----------------------------------
                                              Name: JOSEPH P. O'DONNELL
                                              Title: Corporate Trust Officer

<PAGE>

                                                                    EXHIBIT A TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------
                                SCHEDULE 1.1(a)
                                ---------------

                           Initial Pledged Interests
                           -------------------------

Pledgor: Gameco, Inc.

                                                                 PERCENTAGE OF
                                                                   ALL ISSUED
                                                                   CAPITAL OR
                                                       NUMBER     OTHER EQUITY
                            TYPE OF    CERTIFICATE       OF       INTERESTS OF
   ISSUER                   INTEREST      NO(S).       SHARES        ISSUER
-----------               ----------- -------------  ---------  ----------------

 Diversified                  L.L.C         5           100            100%
 Opportunities Group
 Ltd.

Pledgor: BH Acquisition, Inc.

                                                                 PERCENTAGE OF
                                                                   ALL ISSUED
                                                                   CAPITAL OR
                                                       NUMBER     OTHER EQUITY
                            TYPE OF    CERTIFICATE       OF       INTERESTS OF
   ISSUER                   INTEREST      NO(S).       SHARES        ISSUER
-----------               ----------- -------------  ---------  ----------------
                                          NONE

Pledgor: Gameco Acquisition, Inc.

                                                                 PERCENTAGE OF
                                                                   ALL ISSUED
                                                                   CAPITAL OR
                                                       NUMBER     0THER EQUITY
                            TYPE OF    CERTIFICATE       OF       INTERESTS OF
   ISSUER                   INTEREST      NO(S).       SHARES        ISSUER
-----------               ----------- -------------  ---------   ---------------
                                          NONE

                                      A-1

<PAGE>

                                                                EXHIBIT B TO
                                                             AMENDMENT NO- 1
                                                             ---------------

                                SCHEDULE 1.1(b)

                             Initial Pledged Shares
                             ----------------------

Pledgor: Gameco, Inc

Intercompany Notes
------------------
                                                                  PERCENTAGE OF
                                                                   ALL ISSUED
                                                                    CAPITAL OR
                                                       NUMBER      OTHER EQUITY
                          CLASS OF   CERTIFICATE         OF        INTERESTS OF
   ISSUER                   STOCK       NO(s).         SHARES         ISSUER
--------------------    ------------ -----------    -----------  ---------------

Black Hawk Gaming &        Common          2           1,000            100%
Development Company, Inc.

Jalou II Inc.              Common          3           1,000            100%

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      B-1

<PAGE>

                                                                    EXHIBIT C TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                SCHEDULE 1.1(c)
                                ---------------

             Initial Intercompany Notes and Supporting Obligations
             -----------------------------------------------------

Pledgor: Gameco, Inc.

Intercompany Notes
------------------

<TABLE>
<CAPTION>
                            PRINCIPAL        DATE 0F                             MATURITY
      ISSUER                 AMOUNT         ISSUANCE         INTEREST RATE         DATE
--------------------     -------------  ----------------    ---------------   ---------------
<S>                      <C>            <C>                 <C>               <C>
Colonial Holdings,       $ 5,700,000    February 22, 2002         9.96%        February 1, 2009
Inc.

Colonial Downs, L.P.     $10,000,000    February 22, 2002         9.96%        February 1, 2009
</TABLE>

Supporting Obligations
----------------------

Amended and Restated Term Notes by and between Colonial Holdings, Inc. and
Gameco, Inc. dated as of February 22, 2002.

Amended and Restated Term Notes by and between Colonial Downs, LP and Gameco,
Inc. dated as of February 22, 2002.

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      C-1

<PAGE>

                                                                    EXHIBIT D TO
                                                                  AMENDMENT NO.1
                                                                  --------------

                                SCHEDULE 1.1(d)
                                ---------------

                                  Prior Liens
                                  -----------

                                                FILE
  DEBTOR     JURISDICTION    SECURED PARTY    NUMBER/DATE    COLLATERAL
---------  ---------------  ---------------  -------------  -------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      D-1

<PAGE>

                                                                    EXHIBIT E TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------
                                SCHEDULE 1.1(e)
                                ---------------

                                   Copyrights
                                   ----------

                                  REGISTRATION/
 REGISTRATION/                    APPLICATION
APPLICATION NO.                      DATE       COPYRIGHTS  COUNTRY  DESCRIPTION
---------------                   ------------- ----------  -------  -----------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      E-1

<PAGE>

                                                                    EXHIBIT F TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 1.1(f)
                                 ---------------

                                    Licenses
                                    --------

NAME OF AGREEMENT                      PARTIES               DATE OF AGREEMENT
-----------------                      -------               -----------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      F-1

<PAGE>

                                                                    EXHIBIT G TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 1.1(g)
                                 ---------------

                                     Patents
                                     -------

Registrations:

  REGISTRATION                    REGISTRATION
     NUMBER                           DATE             COUNTRY      DESCRIPTION
  ------------                    ------------         -------      -----------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

Applications:

  APPLICATION                     APPLICATION
    NUMBER                           DATE              COUNTRY      DESCRIPTION
  -----------                     -----------          -------      -----------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      G-1

<PAGE>

                                                                    EXHIBIT H TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 1.1(h)
                                 ---------------

                                   Trademarks
                                   ----------

Registrations:

  REGISTRATION                    REGISTRATION
     NUMBER                           DATE             COUNTRY      DESCRIPTION
--------------                    ------------         -------      -----------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

Applications:

  APPLICATION                     APPLICATION
    NUMBER                           DATE              COUNTRY      DESCRIPTION
-------------                     ------------         -------      -----------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      H-1

<PAGE>

                                                                    EXHIBIT I TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 3.4(a)
                                 ---------------

                     Instruments and Tangible Chattel Paper
                     --------------------------------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      I-1

<PAGE>

                                                                    EXHIBIT J TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 3.4(b)
                                 ---------------

                            Initial Deposit Accounts
                            ------------------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      J-1

<PAGE>

                                                                    EXHIBIT K TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 3.4(c)
                                 ---------------

               Initial Securities Accounts and Commodity Accounts
               --------------------------------------------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      K-1

<PAGE>
                                                                    EXHIBIT L TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                 SCHEDULE 3.4(f)
                                 ---------------

                             Commercial Tort Claims
                             ----------------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      L-1

<PAGE>

                                                                   EXHIBIT M TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                  SCHEDULE 4.13
                                  -------------

                               Required Consents
                               -----------------

Pledgor: Gameco, Inc.

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      M-1

<PAGE>

                                                                    EXHIBIT N TO
                                                                 AMENDMENT NO. 1
                                                                 ---------------

                                  SCHEDULE 6.3
                                  ------------

                           Violations or Proceedings
                           -------------------------

Pledgor: Gameco, Inc

NONE

Pledgor: BH Acquisition, Inc.

NONE

Pledgor: Gameco Acquisition, Inc.

NONE

                                      N-1<PAGE>

                                                                     Exhibit 4.8

                  BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.
                                 240 Main Street
                           Black Hawk, Colorado 80422

February 22, 2002

Wells Fargo Bank Minnesota, National Association
Corporate Trust Services
213 Court Street - Suite 902
Middletown, CT 06457

Ladies and Gentlemen:

     Reference is made to that certain security agreement (as amended, amended
and restated, supplemented or otherwise modified from time to time, the
"Security Agreement"; capitalized terms used but not otherwise defined herein
 ------------------
shall have the meanings assigned to such terms in the Security Agreement), dated
as of February 8, 2002, among Gameco, Inc. (the "Issuer"), each of the
                                                 ------
Guarantors listed on the signature pages thereto or from time to time party
thereto by execution of a joinder agreement, and Wells Fargo Bank Minnesota,
National Association, as Trustee (in such capacity and together with any
successors in such capacity, the "Trustee").
                                  -------

     This letter supplements the Security Agreement and is delivered by the
undersigned, BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC., a Colorado
corporation (the "New Pledgor"), pursuant to Section 3.5 of the Security
                  --- -------                -----------
Agreement. The New Pledgor hereby agrees to be bound as a Guarantor and as a
Pledgor by all of the terms, covenants and conditions set forth in the Security
Agreement to the same extent that it would have been bound if it had been a
signatory to the Security Agreement on the execution date of the Security
Agreement and without limiting the generality of the foregoing, hereby grants
and pledges to the Trustee, for its benefit and for the benefit of the Secured
Parties, as collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the Secured Obligations, a Lien on and security interest in, all of its
right, title and interest in, to and under the Pledged Collateral and expressly
assumes all obligations and liabilities of a Guarantor and Pledgor thereunder.
The New Pledgor hereby makes each of the representations and warranties and
agrees to each of the covenants applicable to the Pledgors contained in the
Security Agreement.

     Attached hereto are supplements to each of the schedules to the Security
Agreement with respect to the New Pledgor. Such supplements shall be deemed to
be part of the Security Agreement.

     This agreement and any amendments, waivers, consents or supplements hereto
may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts together shall constitute
one and the same agreement.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

<PAGE>

     IN WITNESS WHEREOF, the New Pledgor has caused this letter agreement to be
executed and delivered by its duly authorized officer as of the date first above
written.

                                   BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.

                                             /s/ Stephen R. Roark
                                   By: ___________________________________
                                       Name:  Stephen R. Roark
                                       Title: President

AGREED TO AND ACCEPTED:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
as Trustee

        /s/ Joseph P. O'Donnell
By: ________________________________
    Name:  Joseph P. O'Donnell
    Title: Corporate Trust Officer

<PAGE>

                             Schedule to Exhibit 4.8
                             -----------------------

                                Omitted Documents
                                -----------------

Document                   Party
--------                   -----

Joinder Agreement          Gold Dust West Casino, Inc.

Joinder Agreement          Black Hawk/Jacobs Entertainment, LLC

Joinder Agreement          Gilpin Hotel Venture

Joinder Agreement          Gilpin Ventures, Inc.

Joinder Agreement          Jalou II Inc.

Joinder Agreement          Winner's Choice Casino, Inc.

Joinder Agreement          Diversified Opportunities Group Ltd.

Joinder Agreement          Jalou L.L.C.

Joinder Agreement          Houma Truck Plaza & Casino, L.L.C.

Joinder Agreement          Jalou-Cash's L.L.C.

Joinder Agreement          JACE, Inc.

Joinder Agreement          Lucky Magnolia Truck Stop and Casino L.L.C.

Joinder Agreement          Bayou Vista Truck Plaza and Casino, L.L.C.

Joinder Agreement          Raceland Truck Plaza and Casino, L.L.C.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]