Document:

A S S I G N M E N T
                               -------------------

     THIS  ASSIGNMENT  (the "Assignment") is made and entered into this 30th day
of  August,  2000  (the  "Effective  Date"),  by  and between PNC BANK, NATIONAL
ASSOCIATION,  a  national  banking association ("Assignor") and CD ENTERTAINMENT
LTD.,  an  Ohio  limited liability company ("Assignee"), and is acknowledged and
agreed  to  by  COLONIAL  DOWNS,  L.P.,  a  Virginia  limited  partnership  (the
"Borrower"),  COLONIAL DOWNS HOLDINGS, INC., a Virginia corporation ("Holdings")
and  the  STANSLEY  RACING  CORPORATION,  a  Virginia  corporation ("Stansley").
                                R E C I T A L S:
                                ---------------

     A.     To  evidence  various  credit  facilities  and  other accommodations
extended  by  the Assignor to the Borrower, the Borrower did execute and deliver
to  the  Assignor  a Deed of Trust Note (the "Trust Note"), dated as of June 26,
1997,  in  the  original  principal  amount  of  Ten  Million and no/100 Dollars
($10,000,000.00);

     B.     To  further  evidence  various  credit  facilities  and  other
accommodations  extended  by  the  Assignor  to  the  Borrower, the Borrower did
execute and deliver to the Assignor a Revolving Credit Note (the "Credit Note"),
dated  as of June 26, 1997, in the original principal amount of Five Million and
no/100  Dollars  ($5,000,000.00);

     C.     To  both  evidence  the  Credit  and  Trust  Notes (collectively the
"Notes")  and  to  secure  payment  of  the  Notes, the Borrower did execute and
deliver  the  documents  identified  on  Schedule  1.0  attached  hereto  and
incorporated  by  reference  herein  (collectively  the  "Loan  Documents");

     D.     Assignor now wishes to assign, set over and transfer to Assignee all
of  its rights, privileges, title, interests and obligations under the Notes and
the  Loan  Documents,  and Assignee wishes to accept assignment of the same; and

     E.     Borrower,  Holdings  and  Stansley agree, acknowledge and consent to
this  Assignment.

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

     1.     INCORPORATION  OF RECITALS.  The foregoing recitals are incorporated
            --------------------------
herein  as  if  fully  rewritten  herein.

     2.     ASSIGNMENT.  Assignor  does,  as  of  the  Effective  Date,  assign,
            ----------
transfer and turn over to Assignee all of its rights, title and interest, duties
and  obligations  in  and under the Notes and Loan Documents, including, but not
limited  to,  the right to receive the payments from Borrower identified therein
and  all  of Assignor's interest in and rights of realization against any of the
collateral  identified  therein  ("Collateral").  Assignor  agrees that any sums
timely due and payable on or after the Effective Date, even if accruing prior to
the Effective Date, shall be the sole property of the Assignee, and the Assignor
does  herewith  waive  and  release  any  interest  therein.

     3.     COMPLETE  ASSIGNMENT.
            --------------------

          (a)     Notwithstanding  any language to the contrary contained in the
Notes  or  the Loan Documents, all the parties hereto acknowledge and agree that
this Assignment shall operate as an absolute, unconditional and total assignment
of  all  of Assignor's rights and duties under the Notes and the Loan Documents.
On  and after the Effective Date, Assignor shall be completely released from any
and  all obligations under the Notes or the Loan Documents and Assignee shall be
fully substituted for Assignor under each such Note and Loan Document.  Assignee
agrees  to  be  fully  and  solely  responsible for all of Assignor's duties and
liabilities  under  the  Notes  and  the Loan Documents without recourse, in any
form,  to  Assignor.

          (b)     Borrower,  Holdings  and Stansley specifically acknowledge and
agree  that Assignee shall be fully substituted for the Assignor under the Notes
and  Loan  Documents with all rights, privileges, duties, security interests and
liens  transferring  in  full to the Assignee.  Assignor acknowledges and agrees
that  on  and  after  the  Effective  Date  it shall have no rights, privileges,
interests  in  or  obligations under the Notes or the Loan Documents, including,
but  not  limited  to,  the  right  to receive  payments from the Borrower or to
realize  upon  any  of  the Collateral.  Borrower, Holdings and Stansley further
acknowledge  and agree that except for the full substitution of the Assignee for
the  Assignor, nothing contained in this Assignment shall modify, amend, change,
terminate  or  otherwise delete any provision, term or condition of the Notes or
the  Loan  Documents  each  of  which  shall  remain  in  full force and effect.

          (c)     This present Assignment is separate from and not a part of the
security  for  the  Notes.  All  rights  and  remedies  herein  conferred may be
exercised  whether  or not foreclosure proceedings are pending under the Deed of
Trust.  The  existence  of this Assignment shall not be construed as a waiver by
Assignor  or  its  successors and assigns of the right to enforce payment of the
indebtedness  evidenced  by  the  Notes, in strict accordance with the terms and
provisions  of  the  Notes  and  the  Loan  Documents.

          (d)     No  more than ten (10) days after the Effective Date, Assignor
shall  deliver  to  Assignee  any  and  all  Collateral in the possession of the
Assignor,  including,  but  not  limited to, any cash, certificates of deposits,
share  certificates,  certificates  of limited or general partnership interests,
policies  of  title  insurance,  ACCORD  statements  of  general insurance, etc.
          (e)     Notwithstanding  the  foregoing, concurrent with the execution
of  this  Assignment,  Assignor  shall  deliver  to Assignee the original Notes,
properly  endorsed  for  transfer  to  the  Assignor, together with the original
Lender's  Title  Policy(ies) insuring the real property described in the Deed of
Trust.

     4.     ENFORCEMENT.  Each  of  the  Borrower,  Holdings and Stansley agrees
            -----------
that  all  references  to "PNC", "Bank", "Lender" or any other references to the
Assignor  in  any  of the Notes or the Loan Documents shall be construed to mean
the  Assignee  hereunder.

     5.     REPRESENTATIONS AND WARRANTIES OF ASSIGNOR.  Assignor represents and
            ------------------------------------------
warrants  as  follows:

          (a)     Schedule  1.0  hereto  represents  a  complete list of all the
Notes and each of the Loan Documents.  Each of the Notes and the Loan Documents,
as  represented  on  Schedule  1.0,  are  valid,  binding and enforceable in all
respects,  are  assignable  and  that  the  rights  and  duties  thereunder  are
delegable,  and  that  this  Assignment  and  delegation  is a valid exercise of
Assignor's  rights  thereunder.

          (b)     Assignor  has  not previously sold or assigned, in any manner,
all  or  any portion of its rights, privileges, interests, duties or obligations
in  or  under  the  Notes  or  the  Loan  Documents.

          (c)     Assignor  has,  as  of  the  Effective  Date,  performed  all
obligations  required  of  it  under  the  Notes  or  the  Loan  Documents.

          (d)     As  of  the  Effective  Date,  the  outstanding  principal and
interest  under:

               (i)     the  Trust  Note  is:  Ten  Million Eighty-Eight Thousand
Eighty-Two  and 06/100 Dollars ($10,088,082.06), and interest is accruing at the
per  diem  rate  of  Two  Thousand  Six  Hundred  Sixty-Four  and 94/100 Dollars
($2,664.94);  and

               (ii)     the  Credit  Note  is:  Five Million Forty-Four Thousand
Forty-One  and  03/100 Dollars ($ 5,044,041.03), and interest is accruing at the
per  diem  rate  of  One  Thousand  Three  Hundred Thirty-Two and 46/100 Dollars
($1,332.46).

          (e)     Other  than that Forbearance Agreement dated January 11, 1999,
by and among the Assignor, the Borrower, Stansley, Jeffrey P. Jacobs, Richard E.
Jacobs  and  the  Trust created under the Richard E. Jacobs Declaration of Trust
dated  April  23,  1987,  as  amended, Assignor has not agreed to any amendment,
modification, termination or other alteration of the terms and conditions of the
Notes  or  the  Loan  Documents.

          (f)     The  Assignor  is  duly  formed,  validly existing and in good
standing  as  a  national  banking  association. The Assignor has full power and
authority  to  enter  into  this  Assignment.

          (g)     The  individual  executing  this  Assignment  on behalf of the
Assignor  has  been  duly  authorized to execute this Assignment and to bind the
Assignor  hereunder.

     6.     REPRESENTATIONS  AND  WARRANTIES OF BORROWER, HOLDINGS AND STANSLEY.
            -------------------------------------------------------------------
The  Borrower,  Holdings  and Stansley do each, jointly and severally, represent
and  warrant  as  follows:

          (a)     Each  of  the  Notes and the Loan Documents, as represented by
the  list  in  Schedule 1.0, are valid, binding and enforceable in all respects,
are assignable and that the rights and duties thereunder are delegable, and that
this  Assignment  and  delegation  is  a  valid  exercise  of  Assignor's rights
thereunder.

          (b)     Assignor  has,  as  of  the  Effective  Date,  performed  all
obligations  required  of  it  under  the  Notes  or  the  Loan  Documents.

          (c)     Other  than that Forbearance Agreement dated January 11, 1999,
by and among the Assignor, the Borrower, Stansley, Jeffrey P. Jacobs, Richard E.
Jacobs  and  the  Trust created under the Richard E. Jacobs Declaration of Trust
dated  April  23,  1987,  as  amended, Assignor has not agreed to any amendment,
modification, termination or other alteration of the terms and conditions of the
Notes  or  the  Loan  Documents.

          (d)     As  of  the  Effective  Date,  the  outstanding  principal and
interest  under:

               (i)     the  Trust  Note  is:  Ten  Million Eighty-Eight Thousand
Eighty-Two  and 06/100 Dollars ($10,088,082.06), and interest is accruing at the
per  diem  rate  of  Two  Thousand  Six  Hundred  Sixty-Four  and 94/100 Dollars
($2,664.94);  and

               (ii)     the  Credit  Note  is:  Five Million Forty-Four Thousand
Forty-One  and  03/100 Dollars ($ 5,044,041.03), and interest is accruing at the
per  diem  rate  of  One  Thousand  Three  Hundred Thirty-Two and 46/100 Dollars
($1,332.46).

          (e)     Each  of  the Borrower, Holdings and Stansley are duly formed,
validly  existing  and  in  good  standing  under the laws of the state of their
organization and are qualified to do business in every jurisdiction in which the
ownership  of  their  property  or  conduct  of  their business requires them to
qualify. Each of the Borrower, Holdings and Stansley possess all requisite power
and  authority, and all material licenses, permits and authorizations necessary,
to  own  and  operate  their  properties,  to  carry  on their businesses as now
conducted  and  presently  proposed  to  be  conducted  and  to  carry  out  the
transactions  contemplated  by  this  Assignment.
          (f)     The execution, delivery and performance of this Assignment and
all  other  agreements,  instruments  and  transactions  contemplated hereby and
thereby  to  which  each of the Borrower, Holdings and Stansley are a party have
been  duly  authorized by all requisite corporate or partnership approvals.  The
individual(s)  executing this Assignment on behalf of the Borrower, Holdings and
Stansley  have been duly authorized to execute this Assignment and to bind their
principal  hereunder.

          (g)     As  of the Effective Date, there has been no adverse change in
the  operating  results,  assets, liabilities, operations, businesses, condition
(financial or otherwise) of the Borrower, Holdings and Stansley which has had or
could  reasonably  be  expected to lead to a default under the Notes or the Loan
Documents.

          (h)     As of the Effective Date, the Borrower, Holdings and Stansley:
(i) are able to pay their debts and other obligations in a timely manner as they
become  due; (ii) are not insolvent; and (iii) each of their assets exceed their
liabilities.

     7.     REPRESENTATIONS AND WARRANTIES OF ASSIGNEE.  The Assignee represents
            ------------------------------------------
and  warrants  as  follows:

          (a)     The  Assignee  is  duly  formed,  validly existing and in good
standing  under the laws of the State of Ohio and is qualified to do business in
every  jurisdiction  in  which  its ownership of property or conduct of business
requires  it  to  qualify.  The  Assignee  possesses  all  requisite  power  and
authority,  and  all material licenses, permits and authorizations necessary, to
own  and operate its properties, to carry on its businesses as now conducted and
presently  proposed  to  be  conducted  and  to  carry  out  the  transactions
contemplated  by  this  Assignment.

          (b)     The execution, delivery and performance of this Assignment and
all  other agreements, instruments and transactions contemplated hereby to which
the  Assignee  is  a party have been duly authorized by all requisite approvals.
The  individual(s) executing this Assignment on behalf of the Assignee have been
duly  authorized  to execute this Assignment and to bind the Assignor hereunder.

     8.     OTHER  DOCUMENTS.
            ----------------

          (a)     Assignor,  Assignee,  Borrower, Holdings and Stansley agree to
deliver  and  execute any and all additional documents which may be necessary to
carry  out the purposes of this Assignment and to convey to Assignee all rights,
title  and  interest  of  Assignor  in  the  annexed  Notes  and Loan Documents.

          (b)     Should  the  Assignor  come  into possession of any documents,
instruments,  notices  or  assets  of  the Borrower, Holdings or Stansley or the
Collateral  of the same on or after the Effective Date, the Assignor shall, with
all  reasonable  dispatch,  turn  over  any such document, instrument, notice or
asset  to  the  Assignee.

     9.     ENTIRE  AGREEMENT.  This Assignment constitutes the entire agreement
            -----------------
and understanding between the parties relating to or involving in any manner the
assignment  of  Assignor's  interests  in the Notes or the Loan Documents or any
Collateral  pledged  pursuant  thereto.

     10.     NOTICES.  All  notices, demands or other communications to be given
             -------
or delivered under or by reason of the provisions of this Assignment shall be in
writing  and shall be deemed to have been given (a) when delivered personally to
the  recipient,  (b)  one  (1) business day after being sent to the recipient by
reputable  overnight  courier  service (charges prepaid), (c) three (3) business
days after posting in the United States mail having been mailed to the recipient
by  certified  or registered mail, return receipt requested and postage prepaid,
or  (d)  when sent via facsimile if a copy is delivered personally, couriered or
mailed  to  the  recipient  as set forth above.  Such notices, demands and other
communications  shall  be  sent to the parties at the addresses indicated below:

          If  to  the  Assignor,  to:

                    PNC  BANK,  National  Association
                    One  PNC  Plaza,  18th  Floor
                    249  Fifth  Avenue
                    P1-POPP-18-1
                    Pittsburgh,  PA  15219-2707
                    Attn:  Robert  G.  Radermacher
                    Telephone:  412-762-7868
                    Facsimile:  412-762-4157

               with  a  copy  to:

                    Reed  Smith  Shaw  &  McClay  LLP
                    435  Sixth  Avenue
                    Pittsburgh,  PA  15219-1886
                    Attn:  Paul  M.  Singer,  Esq.
                    Telephone:  412-288-3114
                    Facsimile:  412-288-3063

          If  to  the  Assignee,  to:

                    CD  Entertainment  Ltd.
                    1231  Main  Avenue
                    Cleveland,  Ohio  44113
                    Attn:  Jeffrey  P.  Jacobs
                    Telephone:  216-861-4080
                    Facsimile:  216-861-6315

          with  a  copy  to:

                    Hahn  Loeser  &  Parks  LLP
                    3300  BP  Tower
                    200  Public  Square
                    Cleveland,  Ohio  44114
                    Attn:  Stephen  P.  Owendoff,  Esq.
                    Telephone:  216-274-2292
                    Facsimile:  216-274-2414

<PAGE>
               If  to  the  Borrower,  Holdings  or  Stansley,  then  to:

                    Colonial  Downs  Holdings,  Inc.
                    10515  Colonial  Downs  Parkway
                    New  Kent  Virginia  23124
                    Attn:  Ian  M.  Stewart
                    Telephone:  804-966-7223
                    Facsimile:  801-966-1567

               with  a  copy  to:

                    Hirschler,  Fleischer,  Weinberg,  Cox  &  Allen
                    P.O.  Box  500
                    701  East  Byrd  Street
                    Richmond,  Virginia  23219
                    Attn:  James  L.  Weinberg,  Esq.
                    Telephone:  804-771-9500
                    Facsimile:  804-644-0957

or  to  such  other  address  or  to  the  attention of such other person as the
recipient  party  has  specified  by  prior written notice to the sending party.

     11.     NON-WAIVER.  No delay or failure by any party to exercise any right
             ----------
under  this  Assignment,  and no partial or single exercise of that right, shall
constitute  a  waiver  of  that  or  any other right, unless otherwise expressly
provided  herein.

     12.     SEVERABILITY.     If  any  term of this Assignment shall be held to
             ------------
be  invalid,  illegal  or  unenforceable, the validity of the other terms hereof
shall be in no way affected thereby.  Assignor and Assignee shall be entitled to
all  rights  and  remedies  available  at  law,  in equity or under any statute.

     13.     DEFINITIONS.  Capitalized  terms  used  in this Assignment, but not
             -----------
otherwise  defined  herein,  shall  have  the meanings given to them in the Loan
Documents.

     14.     SUCCESSORS  &  ASSIGNS.  The  covenants  and  agreements  herein
             ----------------------
contained  shall  be binding upon Assignor, Assignee, the Borrower, Holdings and
Stansley  and  their  successors  and  assigns and shall inure to the benefit of
Assignee,  its  successors,  and  assigns.

     15.     HEADINGS.  Headings  in  this Assignment are for convenience of the
             --------
reader  only  and  shall  not  be  used to interpret or construe its provisions.

     16.     GOVERNING  LAW.  This  Assignment  and  the  interpretation  and
             --------------
enforcement  thereof, will be governed and construed in accordance with the laws
of  the  Commonwealth  of  Pennsylvania,  except where specifically preempted by
federal  law.

     17.     SUBMISSION  TO  JURISDICTION  AND  VENUE:  CONSENT  TO  SERVICE  OF
             -------------------------------------------------------------------
PROCESS:  ETC.   TO  THE  FULLEST EXTENT PERMITTED BY LAW, EACH OF THE ASSIGNOR,
       -------
THE  ASSIGNEE,  THE  BORROWER,  HOLDINGS  AND  STANSLEY  HEREBY  IRREVOCABLY AND
UNCONDITIONALLY:

     (A)     AGREES  THAT  ANY  ACTION, SUIT OR PROCEEDING BY ANY PERSON ARISING
FROM  OR  RELATING  TO THIS ASSIGNMENT OR ANY STATEMENT, COURSE OF CONDUCT, ACT,
OMISSION OR EVENT IN CONNECTION WITH ANY OF THE FOREGOING (COLLECTIVELY "RELATED
LITIGATION")  TO WHICH ASSIGNOR IS OR MAY BE A PARTY MAY BE BROUGHT IN ANY STATE
OR  FEDERAL  COURT  OF  COMPETENT  JURISDICTION  SITTING  IN  ALLEGHENY  COUNTY,
PENNSYLVANIA,  SUBMITS  TO  THE  JURISDICTION  OF SUCH COURTS, AND AGREES NOT TO
BRING  ANY  RELATED  LITIGATION  IN  ANY  OTHER  FORUM.

     (B)     ACKNOWLEDGES THAT SUCH COURTS WILL BE THE MOST CONVENIENT FORUM FOR
ANY  RELATED  LITIGATION,  WAIVES  ANY  OBJECTION  TO THE LAYING OF VENUE OF ANY
RELATED  LITIGATION BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY RELATED
LITIGATION  BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM,
AND  WAIVES  ANY  RIGHT  TO OBJECT, WITH RESPECT TO ANY RELATED LITIGATION, THAT
SUCH  COURT  DOES  NOT  HAVE  JURISDICTION  OVER  IT;  AND

     (C)     CONSENTS  AND  AGREES TO SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
LEGAL  PROCESS  IN  ANY RELATED LITIGATION BY REGISTERED OR CERTIFIED U.S. MAIL,
POSTAGE  PREPAID, TO IT AT THE ADDRESS FOR NOTICES DESCRIBED IN THIS ASSIGNMENT,
AND  CONSENTS  AND  AGREES  THAT  SUCH SERVICE SHALL CONSTITUTE IN EVERY RESPECT
VALID  AND  EFFECTIVE  SERVICE  (BUT NOTHING HEREIN SHALL AFFECT THE VALIDITY OR
EFFECTIVENESS  OF  PROCESS  SERVED  IN  ANY  OTHER  MANNER  PERMITTED  BY  LAW).

     18.     CONSTRUCTION.  The  parties hereto have participated jointly in the
             ------------
negotiation  and  drafting  of  this  Assignment.  In  the event an ambiguity or
question  of intent or interpretation arises, this Assignment shall be construed
as  if  drafted  jointly  by the parties hereto, and no presumption or burden of
proof  shall arise favoring or disfavoring any party by virtue of the authorship
of  any  of  the  provisions  of  this Assignment.  The parties intend that each
representation,  warranty  and  covenant contained herein shall have independent
significance.  If  any  party  has  breached  any  representation,  warranty  or
covenant  contained  herein  in  any respect, the fact that there exists another
representation,  warranty  or  covenant  relating  to  the  same  subject matter
(regardless  of  the  relative  levels  of specificity) which such party has not
breached  shall  not  detract  from  or  mitigate the fact that such party is in
breach  of  the  first  representation,  warranty  or  covenant.

     19.     COUNTERPARTS.  This  Assignment  may be executed in two (2) or more
             ------------
counterparts,  each  of  which  shall  be  deemed  an original, but all of which
together  shall  constitute  one  and  the  same  instrument.

     20.     INCORPORATION.  Any  and all Schedules, Exhibits or other documents
             -------------
referred  to  herein  or  attached  hereto  are  incorporated herein as if fully
rewritten  in  this  Assignment.

     21.     ADDITIONAL  INSTRUMENTS  AND  INFORMATION.  Both  parties agree and
             -----------------------------------------
obligate themselves to promptly execute any additional documents and instruments
and take any other actions necessary and proper for the complete and expeditious
implementation and satisfaction of the provisions and intent of this Assignment.

            [The remainder of this page is left intentionally blank.]
<PAGE>
       IN WITNESS WHEREOF, the parties have signed this instrument as of
the date first written above.

Signed  in  the  presence  of:               ASSIGNOR:
                              PNC  BANK,  NATIONAL  ASSOCIATION,  A
NATIONAL  BANKING  ASSOCIATION

_______________________________          By:_________________________________
Print  name:______________________               Robert  G.  Radermacher,  Vice
President

________________________________
Print  name:_______________________

                              ASSIGNEE:

_______________________________     CD  ENTERTAINMENT  LTD.,  AN  OHIO
Printed  Name:_____________________     LIABILITY  COMPANY

                              By:  JACOBS  ENTERTAINMENT  LTD.,  an  Ohio
Limited  Liability  company,  Managing  Member
_______________________________
Print  name:_______________________          By:________________________________
                                        Jeffrey  P.  Jacobs,  President

                              BORROWER:

_______________________________     COLONIAL  DOWNS,  L.P.  A  VIRGINIA
Printed  Name:_____________________     LIMITED  PARTNERSHIP

_______________________________     By:     STANSLEY  RACING  CORP.,  a Virginia
Print  name:_______________________          corporation,  Its  sole  General
Partner

                                   By:____________________________
                                   Jeffrey  P.  Jacobs,
                                   Chairman,  Chief  Executive  Officer

<PAGE>
                              HOLDINGS:

_______________________________     COLONIAL  DOWNS  HOLDINGS,  INC.,  A
Printed  Name:_____________________     VIRGINIA  CORPORATION

_______________________________     By:_______________________________
Print  name:_______________________     Jeffrey  P.  Jacobs,
                              Chairman,  Chief  Executive  Officer

                              STANSLEY:

_______________________________     STANSLEY  RACING  CORPORATION,  A
Printed  Name:_____________________     VIRGINIA  CORPORATION

_______________________________     By:_______________________________
Print  name:_______________________     Jeffrey  P.  Jacobs,
                              Chairman,  Chief  Executive  Officer

STATE  OF  ______________     )
                         )SS.
COUNTY  OF  ____________     )

     BE  IT REMEMBERED, that on this __ day of August, 2000, before me, a Notary
Public  in and for said County and State, personally came Robert G. Radermacher,
a  Vice  President  of  PNC  BANK,  NATIONAL  ASSOCIATION,  a  national  banking
association,  who  acknowledged  that being first duly authorized, he/she signed
the foregoing instrument on behalf of said bank, and that the signing thereof is
his/her free act and deed individually and as such officer and the voluntary act
and  deed  of  said  bank.

     IN  TESTIMONY  WHEREOF,  I have hereunder subscribed my name and affixed my
notarial  seal,  on  the  day  and  year  last  aforesaid.

                              _____________________________
                                   NOTARY  PUBLIC

<PAGE>
STATE  OF  OHIO               )
                         )SS.
COUNTY  OF  CUYAHOGA          )

     BE  IT  REMEMBERED,  that  on  this  ____ day of August, 2000, before me, a
Notary  Public  in  and  for  said  County and State, personally came Jeffrey P.
Jacobs,  the  President  of JACOBS ENTERTAINMENT LTD., an Ohio limited liability
company,  who  acknowledged  that  being  first  duly  authorized, he signed the
foregoing  instrument on behalf of said company, and that the signing thereof is
his free act and deed individually and as such officer and the voluntary act and
deed  of  said  company.

     IN  TESTIMONY  WHEREOF,  I have hereunder subscribed my name and affixed my
notarial  seal,  on  the  day  and  year  last  aforesaid.

                              _____________________________
                                   NOTARY  PUBLIC

STATE  OF  OHIO          )
                    )SS.
COUNTY  OF  CUYAHOGA     )

     BE  IT  REMEMBERED,  that  on  this  ____ day of August, 2000, before me, a
Notary  Public in and for said County and State, personally came STANSLEY RACING
CORP.,  a  Virginia  corporation, as the sole general partner of COLONIAL DOWNS,
L.P.,  a  Virginia  limited  partnership,  by and through its Chairman and Chief
Executive  Officer,  Jeffrey  P.  Jacobs,  who  acknowledged  that he signed the
foregoing  instrument  on behalf of said corporation and limited partnership and
that  the  signing thereof is the voluntary act and deed of said corporation and
limited  partnership.

     IN  TESTIMONY  WHEREOF,  I have hereunder subscribed my name and affixed my
notarial  seal,  on  the  day  and  year  last  aforesaid.

                              _____________________________
                              NOTARY  PUBLIC

<PAGE>
STATE  OF  OHIO          )
                    )SS.
COUNTY  OF  CUYAHOGA     )

     BE  IT  REMEMBERED,  that  on  this  ____ day of August, 2000, before me, a
Notary  Public  in  and  for  said  County and State, personally came Jeffrey P.
Jacobs,  the  Chairman  and  Chief Executive Officer of COLONIAL DOWNS HOLDINGS,
INC.,  a  Virginia  corporation,  and  acknowledged that he signed the foregoing
instrument  on  behalf  of  said corporation and that the signing thereof is the
voluntary  act  and  deed  of  said  corporation.

     IN  TESTIMONY  WHEREOF,  I have hereunder subscribed my name and affixed my
notarial  seal,  on  the  day  and  year  last  aforesaid.
                              _____________________________
                                   NOTARY  PUBLIC
STATE  OF  OHIO          )
                    )SS.
COUNTY  OF  CUYAHOGA     )

     BE  IT  REMEMBERED,  that  on  this  ____ day of August, 2000, before me, a
Notary  Public  in  and  for  said  County and State, personally came Jeffrey P.
Jacobs, the Chairman and Chief Executive Officer of STANSLEY RACING CORPORATION,
a Virginia corporation, and acknowledged that he signed the foregoing instrument
on  behalf of said corporation and that the signing thereof is the voluntary act
and  deed  of  said  corporation.

     IN  TESTIMONY  WHEREOF,  I have hereunder subscribed my name and affixed my
notarial  seal,  on  the  day  and  year  last  aforesaid.

                              _____________________________
                                   NOTARY  PUBLIC

This  instrument  was  prepared  by
Stanley  R.  Gorom  III,  Esq.
Hahn  Loeser  &  Parks  LLP
3300  BP  Tower
200  Public  Square
Cleveland,  Ohio  44114

<PAGE>
                                  SCHEDULE 1.0

                                 Loan Documents
                                 --------------

1.     CONSTRUCTION  LOAN  AGREEMENT,  by  and  between  Colonial  Downs,  L.P.
       -----------------------------
("Borrower")  and  PNC  Bank, National Association ("PNC"), dated June 26, 1997;
       -

2.     DEED  OF  TRUST NOTE, in the amount of $10,000,000.00 made by Borrower in
       --------------------
favor  of  PNC,  dated  June  26,  1997;

3.     REVOLVING  LINE  OF  CREDIT  AGREEMENT,  by and between Borrower and PNC,
       --------------------------------------
dated  June  26,  1997;

4.     REVOLVING CREDIT NOTE, in the amount of $5,000,000.00 made by Borrower in
       ---------------------
favor  of  PNC,  dated  June  26,  1997;

5.     DEED  OF  TRUST  AND SECURITY AGREEMENT, from Borrower and Colonial Downs
       ---------------------------------------
Holdings,  Inc.  ("Holdings")  to Lawyers Title Realty Services, Inc. as Trustee
for  the  benefit  of  PNC,  filed  for  record  on  July  31,  1997;

6.     ASSIGNMENT  OF  RENTS  AND  LEASES,  made by Borrower in favor of PNC and
       ----------------------------------
filed  July  31,  1997;

7.     AGREEMENT OF GUARANTY AND SURETYSHIP (PAYMENT), made by Richard E. Jacobs
       ----------------------------------------------
for  the  benefit  of  PNC;

8.     AGREEMENT OF GUARANTY AND SURETYSHIP (PAYMENT), made by Jeffrey P. Jacobs
       ----------------------------------------------
for  the  benefit  of  PNC;

9.     AGREEMENT  OF GUARANTY AND SURETYSHIP (PAYMENT), made by Holdings for the
       -----------------------------------------------
benefit  of  PNC;

10.     AGREEMENT  OF GUARANTY AND SURETYSHIP (PAYMENT), made by Stansley Racing
        -----------------------------------------------
Corp.  ("Stansley")  for  the  benefit  of  PNC;

11.     AGREEMENT  OF  GUARANTY  AND SURETYSHIP (COMPLETION), made by Richard E.
        ----------------------------------------------------
Jacobs  for  the  benefit  of  PNC;

12.     AGREEMENT  OF  GUARANTY  AND SURETYSHIP (COMPLETION), made by Jeffrey P.
        ----------------------------------------------------
Jacobs  for  the  benefit  of  PNC;

13.     AGREEMENT  OF GUARANTY AND SURETYSHIP (COMPLETION), made by Holdings for
        --------------------------------------------------
the  benefit  of  PNC;

14.     AGREEMENT  OF GUARANTY AND SURETYSHIP (COMPLETION), made by Stansley for
        --------------------------------------------------
the  benefit  of  PNC;

15.     ASSIGNMENT  OF  CONSTRUCTION  AND  DEVELOPMENT DOCUMENTS, by and between
        --------------------------------------------------------
Borrower  and  PNC;

16.     ASSIGNMENT  OF  MANAGEMENT  AGREEMENT, by and between Borrower, Stansley
        -------------------------------------
and  PNC;

17.     ASSIGNMENT  OF  DEVELOPMENT  AGREEMENT, by and between Borrower and PNC;
        --------------------------------------

18.     PLEDGE  AGREEMENT,  between  Holdings  and  PNC;
        -----------------

19.     PLEDGE  AGREEMENT,  between  Stansley  and  PNC;
        -----------------

20.     UCC-1  FINANCING  STATEMENTS,  filed  with:
        ----------------------------

     (a)     Virginia  State  Corporation  Commission,  dated July 31, 1997; and

     (b)     New  Kent  County  Circuit  Court,  dated  July  31,  1997;

21.     HAZARDOUS  MATERIALS  CERTIFICATE  AND  INDEMNITY  AGREEMENT,  made  by
        ------------------------------------------------------------
Borrower,  Holdings,  Richard  E.  Jacobs and Jeffrey P. Jacobs in favor of PNC;

22.     SUBORDINATION  AGREEMENT,  (Second Deed of Trust to Ground Lease), among
        ------------------------
Chesapeake  Forest  Products  Company,  Delmarva Properties, Inc., Lawyers Title
realty  Services,  Inc.  and  PNC.

23.     FORBEARANCE  AGREEMENT, by and among PNC, Borrower, Stansley, Jeffrey P.
        ----------------------
Jacobs,  Richard  E.  Jacobs  and  the trust created under the Richard E. Jacobs
Declaration  of  Trust  dated  April  23,  1987,  as  amended.

<PAGE>
                                   ENDORSEMENT

     The  undersigned,  PNC  BANK,  NATIONAL  ASSOCIATION,  a  national  banking
association  ("PNC"),  does  herewith  endorse  and assign the attached original
promissory  note  to  CD  ENTERTAINMENT  LTD., an Ohio limited liability company
("CD"),  pursuant  to  and in strict accord with the terms of an Assignment from
PNC  to  CD,  dated  as  of  even  date  therewith  (the  "Assignment").

     PNC does warrant and represent that the attached note is the original Trust
Note  as  referred  to in the Assignment, and the same remains in full force and
effect.

                              PNC  BANK,  NATIONAL  ASSOCIATION,
                              a  national  banking  association.

                              By:______________________________
                              Title:_____________________________
                              Printed  Name:______________________
                              Dated:____________________________

<PAGE>
                                   ENDORSEMENT

     The  undersigned,  PNC  BANK,  NATIONAL  ASSOCIATION,  a  national  banking
association  ("PNC"),  does  herewith  endorse  and assign the attached original
promissory  note  to  CD  ENTERTAINMENT  LTD., an Ohio limited liability company
("CD"),  pursuant  to  and in strict accord with the terms of an Assignment from
PNC  to  CD,  dated  as  of  even  date  therewith  (the  "Assignment").

     PNC  does  warrant  and  represent  that  the attached note is the original
Credit Note as referred to in the Assignment, and the same remains in full force
and  effect.

                              PNC  BANK,  NATIONAL  ASSOCIATION,
                              a  national  banking  association.

                              By:______________________________
                              Title:_____________________________
                              Printed  Name:______________________
                              Dated:____________________________iii

                       AMENDED AND RESTATED LOAN AGREEMENT

                                 BY AND BETWEEN

                              COLONIAL DOWNS, L.P.,

                             COLONIAL HOLDINGS, INC.

                                       AND

                              CD ENTERTAINMENT LTD.

                         CLOSING DATE:  AUGUST 30, 2000

<PAGE>

                                TABLE OF CONTENTS

1.  DEFINITIONS     2
    -----------
1.1     DEFINITIONS.     2
1.2     INTERPRETATION.     13
1.3     ACCOUNTING  PRINCIPLES.     13
2.  AGREEMENT  TO  BORROW  AND  LEND     14
    --------------------------------
2.1     AGREEMENT  TO  BORROW  AND  LEND.     14
2.2     THE  NOTE.     14
2.3     TERM.     14
3.  LOAN  INTEREST  RATES,  PAYMENTS  AND  FEES     14
    -------------------------------------------
3.1     INTEREST  RATE  OPTIONS.     14
3.2     DEFAULT  INTEREST  AND  LATE  PAYMENT  CHARGE.     16
3.3     INTEREST  RATE  UNASCERTAINABLE.     16
3.4     PAYMENTS.     16
3.5     INTEREST  PAYMENT  DATES.     16
3.6     OPTIONAL  PREPAYMENTS.     17
3.7     PRINCIPAL  PAYMENTS.     17
3.8     ADDITIONAL  COMPENSATION  IN  CERTAIN  CIRCUMSTANCES.     17
3.9     CLOSING  FEES.     18
4.  AFFIRMATIVE  COVENANTS     18
    ----------------------
4.1     PRESERVATION  OF  EXISTENCE.     18
4.2     PAYMENT  OF  LIABILITIES,  INCLUDING  IMPOSITIONS.     18
4.3     COMPLIANCE  WITH  LAWS.     18
4.4     KEEPING  OF  RECORDS  AND  BOOKS  OF  ACCOUNT.     18
4.5     VISITATION  RIGHTS.     18
4.6     MAINTENANCE  OF  INSURANCE.     19
4.7     NOTICE.     20
4.8     PERFORMANCE  OF  OBLIGATIONS.     20
4.9     CERTIFICATE  OF  NO  REMEDIES  EVENT.     20
4.10     TITLE  TO  LAND  AND  IMPROVEMENTS.     21
4.11     FURTHER  ASSURANCES.     21
4.12     ESTOPPEL  CERTIFICATE.     21
4.13     REPAIRS.     22
4.14     EMPLOYEE  BENEFIT  PLANS.     22
4.15     NOTICES  REGARDING  MULTIEMPLOYER  PENSION  AND  WELFARE  PLANS.     22
4.16     LICENSES  AND  PERMITS.     22
5.  NEGATIVE  COVENANTS     23
    -------------------
5.1     CHANGES  IN  ORGANIZATIONAL  DOCUMENTS.     23
5.2     TRANSFER  OF  LAND  AND  IMPROVEMENTS.     23
5.3     LIQUIDATION  OR  MERGER.     23
5.4     JUDGMENTS.     23
5.5     LEASING  OF  PREMISES.     24
5.6     MATERIAL  ADVERSE  CHANGE.     24
5.7     CONDUCT  OF  BUSINESS.     25
5.8     CREATION  OF  LIENS.     25
5.9     VALUE  OF  COLLATERAL.     25
5.10     TRANSFER  OF  PERSONALTY.     25
5.11     DISPOSITION  OF  RENTS.     25
5.12     PENSION  PLANS  AND  BENEFIT  ARRANGEMENTS.     26
5.13     ERISA  PROHIBITED  TRANSACTION.     27
6.  DISBURSEMENT  MATTERS     27
     --------------------
6.1     PROCEDURES.     27
7.  REPORTING  REQUIREMENTS     28
    -----------------------
7.1     ENVIRONMENTAL  REPORTS  AND  TITLE  REPORTS.     28
8.  REPRESENTATIONS  AND  WARRANTIES     28
    --------------------------------
8.1     DUE  FORMATION;  CAPACITY.     28
8.2     POWER  AND  AUTHORITY.     30
8.3     VALIDITY  AND  BINDING  EFFECT.     30
8.4     NO  CONFLICT.     30
8.5     OTHER  AGREEMENTS.     30
8.6     NO  CONDITIONAL  DEFAULT  OR  REMEDIES  EVENT.     30
8.7     NO  LITIGATION  OR  INVESTIGATIONS.     31
8.8     FINANCIAL  STATEMENTS.     31
8.9     IMPOSITIONS.     31
8.10     TITLE  ASPECTS.     31
8.11.     ZONING  AND  GOVERNMENTAL  APPROVALS.     31
8.12     UTILITIES.     33
8.13     SECURITY  INTERESTS.     33
8.14     DEED  OF  TRUST.     33
8.15     ENVIRONMENTAL  MATTERS.     34
8.16     INSURANCE.     34
8.17     PENSION  PLANS  AND  BENEFIT  ARRANGEMENTS.     34
9.     DEFAULTS  AND  REMEDIES     35
       -----------------------
9.1     EVENTS  OF  DEFAULT.     35
9.2     REMEDIES.     37
9.3     NOTICE  OF  SALE.     39
10.     MISCELLANEOUS     39
        -------------
10.1     MODIFICATIONS,  AMENDMENTS  OR  WAIVERS.     39
10.2     NO  IMPLIED  WAIVERS;  CUMULATIVE  REMEDIES;  WRITING  REQUIRED.     39
10.3     REIMBURSEMENT  AND  INDEMNIFICATION  OF  THE  LENDER  BY  THE BORROWER;
IMPOSITIONS.     41
10.4     HOLIDAYS.     41
10.5     NOTICES.     41
10.6     SEVERABILITY.     42
10.7     GOVERNING  LAW.     42
10.8     PRIOR  UNDERSTANDING.     42
10.9     DURATION;  SURVIVAL.     42
10.10     SUCCESSORS  AND  ASSIGNS.     43
10.11     COUNTERPARTS.     43
10.12     EXCEPTIONS.     43
10.13     CONSENT  TO  JURISDICTION.     43
10.14     NO  THIRD  PARTIES  BENEFITED.     44
10.15     AUTHORITY  TO  FILE  NOTICES.     44
10.16     INTERPRETATION.     44
10.17     STATUS  OF  PARTIES.     44
10.18     BROKERAGE  FEE.     46
10.19     WAIVER  OF  JURY  TRIAL.     46

                         LIST OF SCHEDULES AND EXHIBITS
                         ------------------------------

Schedules:
---------

Schedule  I  -  Loan  Documents
Schedule  II  -  Names,  Addresses,  Telephone and Telecopier Numbers of Parties
Schedule  III  -  Excluded  Debt
Schedule  IV  -  Excluded  Equipment

Exhibits:
--------

Exhibit  A  -  Refinanced  Debt
Exhibit  B  -  Required  Deliveries  at  Closing

<PAGE>
                       AMENDED AND RESTATED LOAN AGREEMENT
                       -----------------------------------

     THIS  AMENDED AND RESTATED LOAN AGREEMENT ("Agreement") made as of the 30th
day  of  August,  2000,  by and between COLONIAL DOWNS, L.P., a Virginia limited
partnership (the "Partnership"), COLONIAL HOLDINGS, INC., a Virginia corporation
(the  "Corporation")  (the  Partnership and the Corporation shall be referred to
collectively  as  the  "Borrower"),  and  CD ENTERTAINMENT LTD., an Ohio limited
liability company (the "Lender") as assignee of and successor in interest to PNC
Bank  National  Association,  a  national  banking  association  ("PNC").

                                   WITNESSETH:

     WHEREAS, the Partnership formerly was indebted to PNC pursuant to a deed of
trust  note in the original principal amount of $10,000,000 and a line of credit
note  in  the original principal amount of $5,000,000, both dated as of June 26,
1997  (the  "PNC  Debt");

WHEREAS,  to  evidence  the  PNC  Debt,  the  Partnership  executed certain loan
documents  identified  on Schedule I attached hereto (the "PNC Loan Documents");
                          ----------

WHEREAS, the Lender has repaid the PNC Debt on behalf of the Partnership and, in
connection therewith, PNC has assigned to the Lender all of its right, title and
interest in and to the PNC Loan Documents pursuant to an Assignment of even date
hereof,  by  and  among  PNC,  the  Lender, the Partnership, the Corporation and
Stansley  Racing  Corp.,  a  Virginia  corporation  ("SRC");

WHEREAS, the Lender and the Partnership have revised the terms and conditions of
the repayment of the PNC Debt, as assigned to the Lender, and have set forth the
repayment  terms  in  a  consolidated  promissory note in the original principal
amount of $15,000,000 of even date herewith, made by the Partnership in favor of
the  Lender  (the  "Term  Note");

WHEREAS,  the  Corporation  is indebted to the Lender pursuant to the promissory
notes  in  the original principal amounts and containing the terms as summarized
and  set  forth  on  Exhibit  A  attached  hereto  (the  "Refinanced  Debt");
                     ----------

WHEREAS, the Corporation and the Lender have revised the terms and conditions of
the  repayment  of  the  Refinanced  Debt  and  have  agreed  to consolidate the
Refinanced  Debt  into a single promissory note in the original principal amount
of  $10,700,000,  which  amount  shall include a line of credit in the amount of
$650,000 for additional advances that the Lender has agreed to make available to
the  Corporation  (the  "Line  of  Credit  Note");  and

WHEREAS, the Lender is willing to extend the loans as set forth in the Term Note
and  the  Line  of  Credit Note upon the terms and conditions of this Agreement.

     NOW,  THEREFORE,  in consideration of their mutual covenants and agreements
hereinafter  set  forth,  and  for  other  good  and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to  be  legally  bound  hereby,  covenant  and  agree  as  follows:

1.     DEFINITIONS1.  DEFINITIONS
       -----------    -----------
1.1     DEFINITIONS.1.1     DEFINITIONS.

In  addition  to  words  and  terms  defined  elsewhere  in  this Agreement, the
following  terms  shall  have  the  following  meanings:

     "Acceleration  Event" shall mean (i) the occurrence of any uninsured damage
to or loss due to theft or destruction to any of the Collateral which a Borrower
is  financially  unable to replace or (ii) any of the Loan Documents shall cease
to  be  legal,  valid  and binding agreements, enforceable against a Borrower in
accordance  with  the respective terms thereof or shall in any way be terminated
(except  in  accordance  with  their  terms) or become judicially declared to be
ineffective  or  inoperative  or  shall  in any way cease to give or provide the
respective  liens,  security  interests,  rights,  titles,  interests, remedies,
powers  or  privileges  intended  to be created thereby or (iii) any party shall
obtain  an  order or decree in any court of competent jurisdiction enjoining the
Lender  or  a  Borrower from carrying out the terms and conditions of any of the
Loan  Documents  and such order or decree is not vacated or stayed within ninety
(90)  days  after  the  filing  thereof.

     "Affiliate" as to any Person shall mean any other Person which (i) directly
or  indirectly  controls, is controlled by, or is under common control with such
Person;  (ii) which beneficially owns or holds more than 50% of any class of the
voting  stock  (or in the case of a Person which is not a corporation, more than
50%)  of  the  equity  interest)  of  such Person; or (iii) more than 50% of the
voting  stock  (or in the case of a Person which is not a corporation, more than
50%  of the equity interest) of which is beneficially owned or held, directly or
indirectly,  by  such  Person.  "Control,"  as  used  herein,  shall  mean  the
possession,  directly  or  indirectly,  of  the  power  to  direct  or cause the
direction  of  the  management  or  policies  of  a  Person, whether through the
ownership of voting securities, by contract or otherwise, including the power to
elect  a majority of the directors or trustees of a corporation or trust, as the
case  may  be.

     "Agreement" shall mean this Amended and Restated Loan Agreement as the same
may  be  supplemented, amended, renewed or replaced from time to time in writing
by  the  parties  hereto,  including  all  schedules  and  exhibits  hereto.

     "Assignment  of  Leases  and  Rents"  shall mean that certain Assignment of
Leases  and  Rents originally made from the Partnership to PNC as collateral for
the  PNC  Debt,  which  has assigned its rights thereunder to the Lender, as the
same  may  be  amended, replaced or supplemented from time to time in writing by
the  Partnership  and  Lender.

     "Assignment  of  Management  Agreement"  shall  mean  that  Assignment  of
Management  Agreement  from  the  Partnership  and SRC originally made to PNC as
collateral  for  the  PNC  Debt, which has assigned its rights thereunder to the
Lender,  as  the same has been or may be amended in writing from time to time by
the  parties  thereto.

"Authorized  Officer"  shall  mean those persons designated by written notice to
the  Lender  from a Borrower, who are authorized to execute notices, reports and
other  documents  required hereunder.  A Borrower may amend such list of persons
from  time  to  time  by  giving written notice of such amendment to the Lender.

     "Benefit  Arrangement"  shall  mean at any time an "employee benefit plan,"
within  the meaning of Section 3(3) of ERISA, which is neither a Pension Plan, a
Multiemployer  Pension  Plan,  nor  a  Multiemployer  Welfare  Plan and which is
maintained,  sponsored  or  otherwise contributed to, by any member of the ERISA
Group.

"Borrower"  shall  mean  each  of  Colonial  Downs,  L.P.,  a  Virginia  limited
partnership  and  Colonial  Holdings,  Inc.,  a  Virginia  corporation.

"Borrower Documents" shall mean the Partnership's limited partnership agreement,
the  certificate  of  limited  partnership  and  all  amendments thereto and the
Corporation's  articles  of  incorporation,  bylaws  and all amendments thereto.

"Business  Day"  shall  mean  any day other than a Saturday or Sunday or a legal
holiday  on  which  commercial banks are authorized or required to be closed for
business  in  Cleveland,  Ohio.

"Closing  Date"  shall  mean  the  date hereof.  Closing shall take place at the
offices  of  Baker  &  Hostetler,  LLP, 3200 National City Center, 1900 East 9th
Street,  Cleveland,  Ohio  44114-3485  or  such  other  place as the parties may
agree.

"Closing Fee" shall mean the Corporation's payment to the Lender, on the Closing
Date,  of  the  amount  of  $150,000.

"COBRA  Violation" shall mean a failure by a Borrower or any member of the ERISA
Group to comply with the group health plan continuation coverage requirements of
Section  601  et  seq.  of  ERISA.

"Collateral" shall mean the real estate and personal property encumbered by each
of  the  Deed  of Trust, the Second Deed of Trust and the Hampton Deed of Trust,
the  security  pledged  pursuant to the Pledge Agreements and all other security
pledged  pursuant  to  this  Agreement  and  the  Collateral Documents, with the
exception  only  of  the  Excluded  Equipment.

"Collateral  Documents"  shall mean the Deed of Trust, the Second Deed of Trust,
the Hampton Deed of Trust, the Assignment of Rents and Leases, the Assignment of
Management  Agreement,  the  Pledge  Agreements  and  the  Financing Statements.

"Conditional  Default"  shall mean an event or condition which, with the passage
of  time,  the  giving  of notice, or a determination by the Lender, as provided
herein,  or any combination of the foregoing, would constitute a Remedies Event,
provided  that  any  failure  to make a payment required under in Section 9.l(a)
shall  not constitute a Conditional Default or a Remedies Event until the period
of  time following the due date for any payment provided for thereunder, if any,
shall  have  expired.

"Deed  of  Trust"  shall  mean that certain Deed of Trust and Security Agreement
given  by  the Partnership and the Corporation to Lawyers Title Realty Services,
Inc., a Virginia corporation, as trustee, dated as of June 26, 1997 and recorded
in the Clerk's Office of the Circuit Court of New Kent County, Virginia, at Deed
Book  247,  Page  25,  for  the  benefit  of  PNC, which has assigned its rights
thereunder  to  the  Lender,  securing among other things, the Term Note, as the
same  may be amended, replaced or supplemented from time to time in writing with
the  prior  written  consent  of  the  Lender.

"Default  Rate"  shall  mean  interest  at  a rate per annum which shall be four
percent  (4%)  above  the  Prime  Rate.

"Dollar,"  "U.  S. Dollar" and the symbol "$" shall mean the lawful money of the
United  States  of  America.

"Environmental Complaint" shall mean any written complaint setting forth a cause
of  action for personal or property damage or equitable relief, order, notice of
violation,  citation,  request  for  information  issued  pursuant  to  any
Environmental  Law  or  by an Official Body, subpoena or other written notice of
any  type  relating  to, arising out of, or issued pursuant to any Environmental
Law  or  any  Environmental  Conditions,  as  the  case  may  be.

"Environmental  Conditions"  shall  mean any adverse change in the conditions of
the  environment,  including,  without  limitation,  the  work  place,  natural
resources  (including  flora  or  fauna), soil, surface water, ground water, any
actual or potential drinking water supply sources, substrata or the ambient air,
caused  by  the  use,  handling,  storage,  treatment,  recycling,  generation,
transportation,  release,  spilling,  leaking,  pumping,  emptying, discharging,
injecting,  escaping,  leaching,  disposal, dumping, threatened release or other
management  or  mismanagement of Regulated Substances resulting from the use of,
or  operations  on,  the  Land.

"Environmental  Indemnity Agreement" shall mean that certain Hazardous Materials
Certificate  and  Indemnity  Agreement  originally  from the Partnership to PNC,
which  has  assigned  its  rights  thereunder  to the Lender, as the same may be
amended,  replaced  or  supplemented from time to time in writing by the parties
thereto  with  the  prior  written  consent  of  the  Lender.

"Environmental  Laws"  shall  mean  all federal, state and local laws, rules and
regulations,  including  permits, judicial and administrative orders, judgments,
consent decrees issued, or entered into, pursuant thereto, relating to pollution
or  protection of human health or the environment or employee safety in the work
place.

"ERISA"  shall  mean the Employee Retirement Income Security Act of 1974, as the
same may be amended or supplemented from time to time, and any successor statute
of  similar  import,  and  the rules and regulations thereunder, as from time to
time  in  effect.

"ERISA  Group"  shall  mean,  at  any  time,  a  Borrower  and  all members of a
controlled  group  of  corporations and all trades or businesses (whether or not
incorporated) under common control and all other entities which, together with a
Borrower,  are  treated  as  a single employer under Section 414 of the Internal
Revenue  Code.

"Event  of  Default"  or  "Events of Default" shall have the meaning assigned to
those  terms  in  Section  9.1.

     "Excluded  Equipment"  shall  mean the items listed on Schedule IV attached
                                                            -----------
hereto.

     "Exhibits" shall mean those schedules and exhibits attached hereto and made
a  part  hereof,  including  Schedule  I  - Loan Documents; Schedule II - Names,
Addresses,  Telephone and Telecopier Numbers of Parties; Schedule III - Excluded
Indebtedness;  Schedule IV - Excluded Equipment, Exhibit A - Refinanced Debt and
                                                 ---------
Exhibit  B  -  Required  Deliveries  at  Closing.
----------

     "Expiration  Date"  shall mean the earlier of (i) June 30, 2005, which date
is  five  (5) years following the Closing Date, as such date may be extended, or
(ii)  the  date  upon  which the Loan is accelerated pursuant to this Agreement.

"Financing  Statements" shall mean the financing statements which the Lender may
from  time  to  time  require  in  order to perfect its security interest in the
collateral described in the Deed of Trust, the Second Deed of Trust, the Hampton
Deed of Trust, the other Collateral Documents and this Agreement pursuant to the
applicable  Uniform  Commercial  Code.

     "Force  Majeure"  shall  mean  an  act of God, labor dispute, an industrial
action  of  any  kind  (including,  without  limitation, a strike, interruption,
slowdown,  and  other  similar  action  on  the  part  of labor), a lockout, war
(declared  or  undeclared),  civil  war,  sabotage,  blockage, revolution, riot,
insurrection,  civil  disturbance,  terrorism,  epidemic,  tornado,  hurricane,
landslide,  lightning,  earthquake,  flood,  storm,  fire,  adverse  weather
conditions,  act  of  eminent  domain,  laws,  rules,  regulations  or orders of
governmental  authority,  explosion,  breakage  or  accident  to  machinery  or
equipment  or pipe or transmission line or other facility, embargo, inability to
obtain  or  delay  in obtaining equipment, materials, or transport, or any event
similar  to  the  foregoing  which  is  not  within  the reasonable control of a
Borrower,  and  which  has  an  adverse  effect  on the ability of a Borrower to
perform  its  obligations.

     "Free  Cash  Flow"  shall  mean  the  earnings  of  the  Corporation  plus
depreciation and amortization less all taxes, Interest Expense, amounts expended
on  capital  expenditures,  principal payments, plus or minus any changes in the
working  capital  of  the  Corporation,  all calculated in accordance with GAAP.

     "GAAP" shall mean generally accepted accounting principles as are in effect
from  time  to  time,  and  applied on a consistent basis (except for changes in
application  in  which  a  Borrower's  independent  certified public accountants
concur)  both  as  to  classification  of  items  and  amounts.

"Governmental  Approvals"  shall  mean  all  consents, licenses, permits and all
other  authorizations  or  approvals required by Official Bodies with respect to
the  construction,  completion,  use  and  occupancy  of  the  Improvements.

"Guarantors"  shall  mean  collectively,  the  Corporation  and  SRC,  and  each
individually  a  Guarantor  and shall refer to the guaranty of the Term Note and
the  Line  of  Credit  Note.

"Guaranty"  of  any Person shall mean any obligation of such Person guaranteeing
or  in edict guaranteeing any liability or obligation of any other Person in any
manner,  whether  directly  or  indirectly,  including,  without  limiting  the
generality  of  the  foregoing,  any agreement to indemnify or hold harmless any
other Person, any performance bond or other suretyship arrangement and any other
form  of  assurance  against  loss,  except  endorsement  of negotiable or other
instruments  for  deposit  or  collection  in  the  ordinary course of business.

"Hampton  Deed of Trust" shall mean that certain Deed of Trust, dated August 26,
1998,  given  by the Partnership to David F. Belkowitz and James W. Theobald, as
trustees, for the benefit of the Corporation, recorded in the Clerk's Office for
the City of Hampton, Virginia at Deed Book 1255, Page 388, which was assigned to
the Lender by Assignment dated August 26, 1998 and recorded November 17, 1998 in
Deed  Book  1264, Page 559, securing the Line of Credit Note, as the same may be
amended  from  time  to  time.

"Hampton  SWF"  shall mean the satellite wagering facility owned and operated by
the  Partnership  located  in  Hampton,  Virginia.

"Impositions"  shall  mean  all  (i) real estate and personal property taxes and
other  taxes  and  assessments,  water and sewer rates and charges and all other
governmental charges and any interest or costs or penalties with respect thereto
and charges for any easement or agreement maintained for the benefit of the Land
and  Improvements  and  the  Hampton  SWF,  general  and  special,  ordinary and
extraordinary,  foreseen and unforeseen, of any kind and nature whatsoever which
at any time may be assessed levied or imposed upon the Land or the Improvements,
or  the  rent or income received therefrom, or any use or occupancy thereof; and
(ii)  other taxes, assessments, fees and governmental charges levied, imposed or
assessed  upon  or  against  a  Borrower  or  any  of  its  properties.

"Improvements"  shall  mean  each  of  (i)  the  horse  racing track and related
facilities  located  in  New Kent County, Virginia including a grandstand, track
kitchen,  barns  and  paddock, as such exist as of the date hereof; and (ii) the
Hampton  SWF,  including  the  trade  fixtures and all personal property located
therein,  as  such  exist  as  of  the  date  hereof.

"Indebtedness"  shall  mean,  as  to  any  Person  at  any  time,  any  and  all
indebtedness,  obligations  or  liabilities  (whether  matured  or  unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint
or  several)  of  such  Person  for  or in respect of:  (i) borrowed money, (ii)
amounts  raised  under  or  liabilities  in  respect  of  any  note  purchase or
acceptance  credit facility, (iii) reimbursement obligations under any letter of
credit,  currency  swap  agreement,  interest  rate  swap,  cap, collar or floor
agreement  or  other interest rate management device, (iv) any other transaction
(including  without  limitation forward sale or purchase agreements, capitalized
leases  and  conditional  sales  agreements)  having  the commercial effect of a
borrowing  of  money  entered  into  by such Person to finance its operations or
capital  requirements  (but  not  including  trade payables and accrued expenses
incurred  in  the  ordinary  course  of  business which are not represented by a
promissory  note  or  other evidence of indebtedness and which are not more than
thirty  days  (30)  past  due),  or  (v)  any  Guaranty  for  borrowed  money.
Indebtedness of a Borrower shall not include any excluded Indebtedness set forth
on  Schedule  III.

"Insolvency  Proceedings"  shall  mean  an  action  or  proceeding  seeking  any
reorganization,  arrangement,  composition,  readjustment,  liquidation or other
similar  relief under the U.S. Bankruptcy Code or any present or future statute,
law, or regulation, or any proceedings for voluntary liquidation, dissolution or
other  winding  up,  or  the appointment of any trustee, receiver, liquidator or
conservator  or  similar official (whether in a proceeding or otherwise), or any
assignment  for  the  benefit  of  creditors  or  any  marshaling  of  assets.

     "Interest  Expense"  shall  mean,  for  any  period,  all  interest expense
incurred  by  each  Borrower  and  with  the interest payments prorated over the
applicable  period.

"Interest  Payment  Date"  shall  mean  each  date  specified for the payment of
interest  in  Section  3.5.

"Internal  Revenue  Code"  shall  mean the Internal Revenue Code of 1986, as the
same may be amended or supplemented from time to time, and any successor statute
of  similar  import,  and  the rules and regulations thereunder, as from time to
time  in  effect.

"Land"  shall  include (i) the real property owned by the Corporation identified
in Exhibit A to each of the Deed of Trust and the Second Deed of Trust; and (ii)
   ---------
the  real  property  owned  by  the  Partnership  identified in Exhibit A to the
                                                                ---------
Hampton  Deed of Trust, together with all rights in and to all easements, rights
and  privileges  benefiting  the  Land.

"Law"  shall  mean  any  law  (including  common law), or constitution, statute,
treaty,  regulation,  rule,  ordinance,  or  order  applicable  to a Borrower or
Lender, as the context so indicates, or any injunction, writ, decree or award of
any  Official  Body,  to  which  a  Borrower  or  the  Lender, as the context so
indicates,  is  a  party.

"Lease"  shall  mean  the  Agreement  to  Lease,  dated  March 21, 1997, between
Holdings  as  landlord  and  the  Partnership  as  tenant.

"Lender  Debt"  shall  mean  all  obligations, liabilities and indebtedness of a
Borrower  to  the Lender, its successors, assigns or participants, evidenced by,
arising  under or directly relating to the Loan Documents, whether as principal,
guarantor,  surety  or  otherwise,  secured  or unsecured, joint and/or several,
absolute  or  contingent,  due  or  not  due,  matured  and unmatured, original,
renewed, extended, refinanced or replaced, now existing or hereafter incurred or
created,  consensual  or  created  by  law,  and  including  principal  (whether
resulting from advances made by the Lender or from indebtedness purchased by the
Lender),  interest,  yield  protection  payments,  premiums,  fees,  expenses
(including  reasonable  collection  expenses),  taxes,  charges, commissions and
reasonable  attorneys'  fees  actually  incurred,  including  indemnification
obligations  of  a  Borrower with respect to any claims that may be made against
the  Lender  whether  arising  before  or  after  payment  of Lender Debt or any
assignment  or  participation  of  Lender  Debt,  and including all obligations,
liabilities  and indebtedness of each Borrower to the Lender incurred or arising
after  the  commencement  of  any  case by or against a Borrower under the U. S.
Bankruptcy  Code, specifically including any post-petition interest or advances.

"LIBOR"  shall  mean  the  interest  rate  per  annum  (rounded  to  the nearest
one-sixteenth  (1/16) of one percent (1%)) equal to the London Interbank Offered
Rate  as  published  in  the Wall Street Journal for a maturity equal to one (1)
                             -------------------
year,  as  reported  on  August  29,  2000.

"Lien"  shall mean any mortgage, deed of trust, pledge, lien, security interest,
charge  or  other  encumbrance or security arrangement of any nature whatsoever,
whether  voluntary  or  involuntarily  given,  including  but not limited to any
conditional  sale  or  title  retention arrangement, and any assignment, deposit
arrangement  or  lease  intended  as,  or having the effect of, security and any
filed  financing  statement  or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing),
other than any of the foregoing created under the Deed of Trust, the Second Deed
of  Trust  or  the  Hampton  Deed  of  Trust.

"Line  of  Credit  Note"  shall  mean  that certain Amended and Restated Line of
Credit  Note  in  the original principal amount of $10,700,000, representing the
balance  of  the Refinanced Debt in the amount of $10,050,000 and the additional
line  of  credit  in  the  amount  of  $650,000,  granted  by  the Lender to the
Corporation.

"Loan"  shall  mean  the  loan from the Lender to each Borrower pursuant to this
Agreement  in the aggregate principal amount of $25,700,000, as evidenced by the
Notes.

"Loan  Documents"  shall mean, collectively, the PNC Loan Documents set forth on
Schedule I attached hereto, and the loan documents evidencing the Line of Credit
 ---------
Note  as  the  same  may be amended, replaced or supplemented from time to time.
"Loan  Document"  shall  mean  any  of  the  Loan  Documents.

"Management  Agreement"  shall  mean  the  Amended  and  Restated Management and
Consulting  Agreement  among the Partnership, Stansley Management Corp., SRC and
Maryland-Virginia  Racing Circuit, Inc., a Virginia corporation, as the same may
be  amended,  replaced  or  supplemented  from  time  to  time.

"Mandatory  Principal  Payments" shall have the meaning assigned to such term in
Section  3.7  hereof.

"Material  Adverse  Change"  shall mean any set of circumstances or events which
(a)  has  or  could  reasonably  be expected to have any material adverse effect
whatsoever  upon  the  validity or enforceability of this Agreement or any other
Loan Document, (b) is or could reasonably be expected to be material and adverse
to  the  business properties, assets, financial condition, results of operations
or  prospects,  as a whole, of a Borrower or a Guarantor, (c) impairs materially
or  could  reasonably be expected to impair materially the ability of a Borrower
or  a  Guarantor to duly and punctually pay or perform its obligations under the
Loan  Documents,  or  (d)  impairs materially or could reasonably be expected to
impair  materially  the  ability  of  the  Lender  to enforce its legal remedies
pursuant  to  this  Agreement  or  any  other  Loan  Document.

"Multiemployer  Pension  Plan"  shall  mean  any  employee  pension benefit plan
(within  the  meaning  of Section 3(2) of ERISA) which is a "multiemployer plan"
within the meaning of Section 4001(a)(3) of ERISA and to which a Borrower or any
Person is then making or accruing an obligation to make contributions or, within
the  preceding  five  Plan  years,  has  made  or bad an obligation to make such
contributions.

"Multiemployer  Welfare  Plan"  shall  mean  any  employee  welfare benefit plan
(within the meaning of Section 30) of ERISA) established and maintained pursuant
to  one  or  more  collective bargaining agreements and contributed to by two or
more  unrelated  employers.

"Multiple Employer Pension Plan" shall mean a Pension Plan which has two or more
contributing sponsors (including a Borrower or any member of the ERISA Group) at
least  two  of whom are not under common control, as such a plan is described in
Sections  4063  and  4064  of  ERISA.

"Notes"  or  "Note"  shall mean, individually or collectively, the Term Note and
the  Line  of  Credit  Note.

"Official  Body"  shall  mean  any  national,  federal,  state,  local  or other
government  or  political  subdivision or any agency, authority, bureau, central
bank,  commission,  department  or  instrumentality  of  either,  or  any court,
tribunal,  grand  jury  or arbitrator, in each case whether foreign or domestic.

"PBGC"  shall mean the Pension Benefit Guaranty Corporation established pursuant
to  Subtitle  A  of  Title  IV  of  ERISA  or  any  successor.

"Pension  Plan"  shall  mean  at  any  time  an  employee  pension  benefit plan
(including  a  Multiple  Employer  Pension  Plan but not a Multiemployer Pension
Plan) which is covered by Title IV of ERISA or is subject to the minimum funding
standards  under  Section  412  of  the Code and either (i) is maintained by any
member  of  the  ERISA  Group for employees of any member of the ERISA Group, or
(ii)  has  at  any  time  within the preceding five years been maintained by any
entity  which  was at such tine a member of the ERISA Group for employees of any
entity  which  was  at  such  time  a  member  of  the  ERISA  Group.

"Permitted  Encumbrances"  shall  mean  each  of  the following:  (i) the Liens,
assignments  and security interests in favor of the Lender pursuant hereto; (ii)
the easements, restrictions, reconveyance rights and other matters created under
the Deed of Trust, the Second Deed of Trust and the Hampton Deed of Trust; (iii)
the  easements,  restrictions,  encumbrances  and other matters described in and
permitted  to  exist  under  the  terms of the Deed of Trust, the Second Deed of
Trust  and  the  Hampton  Deed  of  Trust;  (iv)  pledges  or deposits to secure
obligations  under  workers'  compensation  laws  or  similar  legislation;  (v)
deposits  of cash or readily marketable securities to secure public or statutory
obligations  of  a  Borrower; (vi) materialmen's, mechanics', vendors', or other
like  liens  incurred  in  the  ordinary  course  of  business  with  respect to
obligations  or  which  are being contested in accordance with the provisions of
this  Agreement;  (vii) liens created by or resulting from any legal proceedings
(including legal proceedings instituted by a Borrower) which are being contested
in  accordance  with  the  provisions  of  this  Agreement;  and  (viii)  zoning
restrictions,  easements,  licenses, restrictions on the use of real property or
minor  irregularities  in  title  thereto;  none  of the foregoing shall, in the
opinion  of  the  Lender, materially detract from the value or impair the use of
the  Land  and  the  Improvements,  together  with  such other matters as may be
expressly  consented  to  in writing by the Lender; and real estate taxes on the
Land  and  Improvements  not  yet  due  and  payable.

"Person" shall mean any individual, corporation, partnership, association, joint
stock  company, trust, unincorporated organization, joint venture, government or
political  subdivision  or  agency  thereof,  or  any  other  entity.

"Pledge  Agreements"  shall  mean the Pledge Agreements originally provided from
the  Corporation  and  SRC to PNC, which has assigned its interest thereunder to
Lender,  as  the same may be amended, replaced or supplemented from time to time
in  writing  by  the  Corporation,  SRC  and  the  Lender.

"Prime  Rate"  shall  mean  the  interest  rate  as published in the Wall Street
                                                                     -----------
Journal  in  the  Money  Rates  section as the "prime rate."  Each interest rate
      -
referred  to  and  determined  by  reference  to  the  Prime  Rate  shall change
automatically  from  time  to  time,  effective as of the effective date of each
change  in  the  Prime  Rate.

"Principal  Office" shall mean c/o Jacobs Entertainment, Inc., 425 West Lakeside
Avenue,  Suite  601,  Cleveland,  Ohio  44113.

"Prohibited  Transaction"  shall  mean  any prohibited transaction as defined in
Section  4975  of  the  Internal  Revenue Code or Section 406 of ERISA for which
neither an individual nor a class exemption has been issued by the United States
Department  of  Labor  and  for  which  a  statutory exemption is not available.

"Project"  shall  mean  the  Land  and  Improvements.

"Remedies  Event"  shall  mean  the  occurrence  of  an  Event  of Default or an
Acceleration  Event.

"Regulated  Substances"  shall  mean  any  substance,  including  the  chemical
compounds,  constituents  and  degradation  products  thereof,  the  generation,
manufacture,  processing, distribution, treatment, storage, disposal, transport,
recycling, reclamation, use, reuse or other management or mismanagement of which
is  regulated  by  the  Environmental  Laws.

"Regulation U" shall mean Regulation U, T, G or X as promulgated by the Board of
Governors  of  the  Federal  Reserve  System,  as  amended  from  time  to time.

"Reportable  Event"  means a reportable event described in Section 4043 of ERISA
and  regulations  thereunder  with  respect  to  a Pension Plan or Multiemployer
Pension  Plan.

"Second Deed of Trust" shall mean that certain Second Deed of Trust, dated March
21,  1997,  from the Corporation to David F. Belkowitz and James W. Theobald, as
trustees,  for  the benefit of the Lender, recorded in the Office of the Circuit
Court  of  New  Kent  County, Virginia, at Deed Book 242, Page 277, securing the
Line  of  Credit  Note,  as  the  same  may  be  amended  from  time  to  time.

"SWFs"  shall mean the satellite wagering facilities licensed to the Partnership
for  operation  by  the  Virginia  Racing  Commission.

"Solvent"  shall  mean,  with respect to any party on a particular date, that on
such  date  (i) the fair value of the property of such party is greater than the
total amount of liabilities; (ii) the present fair market value of the assets of
such party is not less than the amount that will be required to pay the probable
liability  of such party on its debts as they become absolute and matured; (iii)
such  party  is  able  to  realize  upon  its assets and pay its debts and other
liabilities,  contingent obligations and other commitments as they mature in the
normal  course of business; and (iv) such party does not intend to, and does not
believe  that it will, incur debts or liabilities beyond such party's ability to
pay  such  debts  and  liabilities  as  they  mature.
"Term  Note"  shall  mean  that  certain  Amended and Restated Note of even date
herewith,  given  by  the  Partnership  to the Lender in the aggregate principal
amount  of  $15,000,000, representing the PNC Debt as assigned to the Lender, as
the  same  may  be amended, renewed, replaced or supplemented from time to time.

"Uniform  Commercial  Code" shall mean the Uniform Commercial Code as enacted in
each  applicable  jurisdiction.

1.2     INTERPRETATION.1.2     INTERPRETATION.

     Unless the context of this Agreement otherwise clearly requires, references
to  the  plural  include  the singular, the singular the plural and the part the
whole,  "or"  has  the inclusive meaning represented by the phrase "and/or," and
"including"  has  the  meaning  represented  by  the  phrase  "including without
limitation."  References  in  this  Agreement  to  "determination"  of or by the
Lender  shall  be  deemed  to include good faith estimates by the Lender (in the
case  of  quantitative  determinations) and good faith beliefs by the Lender (in
the  case  of  qualitative  determinations).  Whenever the Lender is granted the
right  herein  to  act in its sole discretion or to grant or withhold consent or
approval,  such  right  shall  be  exercised in good faith.  The words "hereof,"
"herein,"  "hereunder"  and  similar  terms  in  this  Agreement  refer  to this
Agreement as a whole and not to any particular provision of this Agreement.  The
section and other headings contained in this Agreement and the Table of Contents
preceding  this  Agreement are for reference purposes only and shall not control
or  affect  the  construction of this Agreement or the interpretation thereof in
any  respect.  Section,  subsection,  schedule  and  exhibit  references  are to
sections, subsections, schedules and exhibits to this Agreement unless otherwise
specified.

     1.3     ACCOUNTING  PRINCIPLES.1.3     ACCOUNTING  PRINCIPLES.

     Except  as  otherwise  provided  in  this  Agreement,  all computations and
determinations  as  to  accounting  or  financial  matters  and  all  financial
statements to be delivered pursuant to this Agreement shall be made and prepared
in  accordance  with  GAAP.

<PAGE>
2.     AGREEMENT  TO  BORROW  AND  LEND2.  AGREEMENT  TO  BORROW  AND  LEND
       --------------------------------    --------------------------------

2.1     AGREEMENT  TO  BORROW  AND  LEND.2.1     AGREEMENT  TO  BORROW AND LEND.

     Subject to the terms, provisions and conditions contained in this Agreement
in reliance upon the representations and warranties set forth herein, the Lender
agrees  to  lend  to  each  Borrower  in  the aggregate, the amount of the Loan.

     2.2     THE  NOTES.2.2     THE  NOTES.

     The  Loan  is  and shall be evidenced by the Notes, and the Loan shall bear
interest  calculated  and payable as provided in Section 3 below.  Each Borrower
shall  pay  the  outstanding principal of its portion of the Loan and all unpaid
interest  accrued  on  the  Loan  and  all  other sums then owing under the Loan
Documents  in  full  on the Expiration Date.  The unpaid amounts of the Loan, as
set  forth  on  the books and records of the Lender or other holder of the Notes
maintained  in the ordinary course of business, shall be presumptive evidence of
the  principal  amount  thereof owing and unpaid, absent manifest error, but the
failure  to  record  any such amount on the books and records shall not limit or
affect  the  obligations of either Borrower hereunder or under the Notes to make
payments  of  principal  and  interest  on  the  Loan  when  due.

2.3     TERM.2.3     TERM.

     The term of the Loan shall commence on the Closing Date and shall terminate
on  the  Expiration  Date.

3.     LOAN  INTEREST  RATES, PAYMENTS AND FEES3.  LOAN INTEREST RATES, PAYMENTS
       ----------------------------------------    -----------------------------
AND  FEES
 --------

3.1     INTEREST  RATE.3.1     INTEREST  RATE  OPTIONS.

     Each  Borrower  shall  pay  interest  in  respect of the outstanding unpaid
principal  amount of its portion of the Loan at the rate per annum of LIBOR plus
three  percent  (3%)  from the date of any advance of principal.  Interest shall
accrue  based  upon a 360 day calendar year for each of the actual days elapsed.
The  Lender  shall  maintain  a  record  of each advance of principal, principal
payment,  interest  accrual  and  interest payment.  The interest rate upon each
advance of principal shall be determined as of the date of the advance and shall
remain  fixed  for  the  term  of  the  Loan  until such advance and all accrued
interest  thereon  shall  be repaid in full.  If at any time the designated rate
applicable  to  any  portion  of the Loan made by the Lender exceeds the highest
lawful  rate,  the  rate of interest on the Loan shall be limited to the highest
lawful  rate.

<PAGE>
3.2     DEFAULT  INTEREST  AND  LATE PAYMENT CHARGE.3.2     DEFAULT INTEREST AND
LATE  PAYMENT  CHARGE.

     To  the  extent  permitted  by  Law,  upon  the  occurrence  and during the
continuation  of  any  Remedies  Event,  each Borrower shall pay interest on the
entire  principal  amount  then  outstanding  and  all  other sums due under its
portion  of the Loan at a rate per annum equal to the Default Rate.  The Default
Rate  shall  accrue  before and after judgment has been entered.  In addition, a
Borrower shall pay upon demand by the Lender a late payment charge equal to five
percent (5%) of the amount of any payment due from such Borrower under the Loan,
prior  to  maturity  or acceleration, which is not received by the Lender within
ten  (10)  days  after the date such payment is due.  Each Borrower acknowledges
that the increased interest rate and the late payment charge provided for herein
reflect,  among  other things, the fact that the Loan has become a substantially
greater  risk  given  its  default  status  and  that  the Lender is entitled to
additional  compensation  for  such  risk.

3.3     INTEREST  RATE  UNASCERTAINABLE.3.3     INTEREST  RATE  UNASCERTAINABLE.

     If,  on  any date on which the interest rate set forth in Section 3.1 would
otherwise  be  determined, the Lender shall have determined (which determination
shall  be  conclusive  absent manifest error) that:  (i) adequate and reasonable
means  do  not  exist  for  ascertaining such interest rate; or (ii) an event or
condition  has occurred which materially and adversely affects the applicable U.
S.  eurodollar markets, the interest rate hereunder shall be the Prime Rate plus
4%.

3.4     PAYMENTS.3.4     PAYMENTS.

     All  payments and prepayments to be made in respect of principal, interest,
the  Closing  Fee  or  other amounts due from a Borrower to the Lender hereunder
shall be payable prior to 12:00 noon, Eastern Time, on the date when due without
presentment,  demand,  protest  or  notice  of any kind, all of which are hereby
expressly  waived  by  a  Borrower,  and  without  setoff, counterclaim or other
deduction  of any nature, and an action therefor shall immediately accrue.  Such
payments  shall  be  made to the Lender at its Principal Office in U. S. Dollars
and in immediately available funds.  The Lender's statement of account ledger or
other  relevant record shall, in the absence of manifest error, be conclusive as
the  statement  of the amount of principal of and interest on the Loan and other
amounts  owing  under  this  Agreement  and shall be deemed an "account stated."

     3.5     INTEREST  PAYMENT  DATES.3.5     INTEREST  PAYMENT  DATES.

     Interest on the Loan shall be due and payable in arrears on the first (1st)
day  of  each  calendar  month  commencing on September 1, 2000 and on the first
(1st)  day of each calendar month thereafter throughout the term of the Loan and
on  the  Expiration  Date  or  upon  acceleration  of  a  Note.

     3.6     OPTIONAL  PREPAYMENTS.3.6     OPTIONAL  PREPAYMENTS.

     A  Borrower  shall have the right at its option from time to time to prepay
its portion of the Loan in whole or part at any time without premium or penalty.
Whenever  a  Borrower desires to prepay any part of the Loan, it shall provide a
prepayment  notice  to  the  Lender at least five (5) Business Days prior to the
date  of  prepayment  setting  forth the date, which shall be a Business Day, on
which  the  proposed prepayment is to be made, and the total principal amount of
such prepayment, which shall not be less than $100,000.  The principal amount of
the  portion of the Loan for which a prepayment notice is given shall be due and
payable  on  the  date  specified  in  such  prepayment  notice.

3.7     PRINCIPAL  PAYMENTS.3.7     PRINCIPAL  PAYMENTS.

     Beginning on June 30, 2002 and on June 30 of each calendar year thereafter,
throughout  the  remaining  term  of  the  Loan, each Borrower shall make annual
payments  (the  "Mandatory  Principal  Payments")  of  the outstanding principal
balance  of  its portion of the Loan in the amount of $1,000,000.  Additionally,
with  each  Mandatory  Principal  Payment, the Corporation shall make additional
principal payments as available in the amount of fifty percent (50%) of its Free
Cash  Flow  for the previous year ended December 31, as repayment of the Line of
Credit  Note.

     3.8     ADDITIONAL COMPENSATION IN CERTAIN CIRCUMSTANCES.3.8     ADDITIONAL
COMPENSATION  IN  CERTAIN  CIRCUMSTANCES.

     (a)     Increased  Costs  or  Reduced  Return on Borrowing, Other Expenses,
             -------------------------------------------------------------------
Etc.  If:  (a)  the  Lender  incurs any expense, cost, claims or fees ("Costs"),
either  at  the  time  of  the  closing of the refinancing of the PNC Debt or at
anytime  thereafter  in connection with the refinancing of the PNC Debt and such
Costs  are  passed  through or charged to the Lender thereunder; or (b) any law,
guideline  or  interpretation  or  any  change  in  any  Law,  guideline  or
interpretation  or  application  thereof  by  any Official Body charged with the
interpretation  or  administration  thereof  or  compliance  with any request or
directive  (whether or not having the force of Law) of any central bank or other
Official  Body  shall  result  in a Cost to the Lender, then the Lender may from
time  to  time  notify a Borrower of the amount determined in good faith, (which
determination  shall  be  conclusive  absent  manifest error) to be necessary to
compensate  the Lender for such Cost.  Such notice shall set forth in reasonable
detail  the  basis for such determination.  Such amount shall be due and payable
by  such  Borrower to the Lender within ten (10) Business Days after such notice
is  given.

     3.9     CLOSING  FEES.3.9     CLOSING  FEES.

     The  Borrower agrees to pay to the Lender on or before the Closing Date, as
consideration  for  the  Loan,  the  Closing  Fee.

4.     AFFIRMATIVE  COVENANTS4.  AFFIRMATIVE  COVENANTS
       ----------------------    ----------------------

     Each  Borrower  hereby  covenants and agrees that, from the date hereof and
until the Notes have been paid in full and all other obligations hereunder shall
have  been  performed  and  discharged,  it  shall  comply at all times with the
following  affirmative  covenants:

4.1     PRESERVATION  OF  EXISTENCE.4.1     PRESERVATION  OF  EXISTENCE.

     Each Borrower shall maintain its existence and its license or qualification
and good standing in each jurisdiction in which the nature of its business makes
such  licensing  or  qualification  necessary  or  appropriate.

4.2     PAYMENT  OF  LIABILITIES,  INCLUDING  IMPOSITIONS.4.2     PAYMENT  OF
LIABILITIES,  INCLUDING  IMPOSITIONS.

     Each  Borrower  shall duly pay and discharge all liabilities to which it is
subject  or  which  are  asserted against it at such times and in the manner set
forth  in  the  Deed  of Trust, the Second Deed of Trust and the Hampton Deed of
Trust,  as  applicable.

4.3     COMPLIANCE  WITH  LAWS.4.3     COMPLIANCE  WITH  LAWS.

     Each  Borrower  shall  comply  with  all  applicable  Laws  in all material
respects,  including,  but  not  limited  to,  all  Environmental  Laws.

     4.4     KEEPING  OF RECORDS AND BOOKS OF ACCOUNT.4.4     KEEPING OF RECORDS
AND  BOOKS  OF  ACCOUNT.

     Each  Borrower  shall  maintain and keep proper books of record and account
which  enable  it  to  issue financial statements and reports and in which full,
true  and  correct  entries  shall  be  made in all material respects of all its
dealings  and  business  and  financial  affairs.

4.5     VISITATION  RIGHTS.4.5     VISITATION  RIGHTS.

     Each  Borrower  shall permit any of the officers or authorized employees or
representatives  of  the  Lender to visit and inspect the Project and to examine
and  make  excerpts from its books and records and discuss its affairs, finances
and  accounts  with  its  officers,  all  in  such reasonable detail and at such
reasonable  times  during  normal  business hours and as often as the Lender may
reasonably  request,  provided  (i)  the  Lender shall provide reasonable notice
prior  to any visit or inspection and a reasonable opportunity to participate in
such  visit  or  inspection, and (ii) the Lender agrees to keep confidential any
information  obtained  that  is  not  generally  available  to  the  public.

4.6     MAINTENANCE  OF  INSURANCE.4.6     MAINTENANCE  OF  INSURANCE.

     (a)     Each  Borrower  shall  obtain  the insurance coverages specified in
this  Section  4.6(a).  The insurer issuing any such policy shall certify to the
Lender  that  (1)  losses will be adjusted only with the approval of the Lender,
(2)  loss payments will be payable to the Lender, such payments to be applied in
the  manner set forth in the Deed of Trust, Second Deed of Trust or Hampton Deed
of Trust, as applicable, either to the restoration, repair or replacement of the
Improvements or to the payment of the Loan, (3) the interest of the Lender shall
be  insured  regardless  of  any  breach  or  violation  by  a  Borrower  of any
warranties, declarations or conditions contained in such policy, and (4) if such
insurance  is  canceled  or materially changed or if any reinsurance is canceled
for any reason whatsoever, such insurer will promptly notify the Lender and such
cancellation  or  change shall not be effective as to the Lender for thirty (30)
days after receipt by the Lender of such notice.  Each Borrower shall deliver to
the  Lender  evidence  of each renewal policy in a form acceptable to the Lender
not less than thirty (30) days prior to the expiration of the original policy or
preceding  renewal  policy  (as  the case may be); and to deliver to the Lender,
upon  the Lender's request, receipts or other evidence that the premiums thereon
have  been paid in accordance with the Policy.  The insurer or reinsurer for all
such  policies shall be rated A-IX by A.M. Best, or such other rating reasonably
acceptable  to  the  Lender.  The  form, content, insurers and reinsurers of all
insurance  policies  required under this Agreement and the Deed of Trust, Second
Deed  of Trust or Hampton Deed of Trust, as applicable, shall be satisfactory to
the  Lender  in  accordance  with the standards established in this Section 4.6.

     (i)     Fire  and  Extended Coverage Insurance.  Fire and Extended Coverage
             --------------------------------------
Insurance  insuring  the  Improvements  and  all  materials  (installed  and
uninstalled),  supplies  and other personal property on the Land against loss or
damage  by  fire, vandalism, burglary, theft, riot, earthquake and other hazards
insured  against  by  extended  coverage  insurance  and  such  other  insurance
(including,  but not linked to, business interruption insurance covering loss of
net  earnings,  including rental income, and costs associated with the period of
project  restoration,  malicious  mischief insurance and flood insurance if in a
Federal  flood  prone area) as may be specified by the Lender from time to time,
in  amounts  acceptable  to  the Lender and to be evidenced by an Accord Form 27
Evidence of Insurance (or such other equivalent form as may be acceptable to the
Lender).

(ii)     Public  Liability Insurance.  Commercial general liability insurance in
         ---------------------------
connection  with  the  Land and Improvements, and automobile liability insurance
covering  all  motor vehicles used in connection with the Land and Improvements,
all  in  amounts  and  with  insurers reasonably acceptable to the Lender.  Each
Borrower  shall  cause  the  insurer to name the Lender as an additional insured
under  such  coverage.

     (iii)     Workers'  Compensation  Insurance.  Workers'  compensation  and
               ---------------------------------
employer's  liability  insurance  covering  all liability in connection with the
Land  and  Improvements  under applicable Laws with respect to each Borrower and
the  Contractor.

     (b)     Each  Borrower  shall  insure its properties and assets (other than
the  Land  and  Improvements  which  are  required  to  be insured in the manner
provided  in subsection (a) above) against loss or damage by fire and such other
insurable  hazards  as  such  assets  are  commonly  insured (including business
interruption)  and  in such amounts as similar properties and assets are insured
by prudent companies in similar circumstances carrying on similar businesses and
against  public  liability for damages and against other risks (including errors
and  omissions)  in  amounts  normally  carried by prudent companies carrying on
similar  businesses  and  reasonably  satisfactory  to  the  Lender.

4.7     NOTICE.4.7     NOTICE.

     Each  Borrower  shall  give  prompt written notice to the Lender (a) of any
action or proceeding instituted by or against it which constitutes a Conditional
Default  or  a  Remedies  Event  under  this Agreement, or (b) of a default by a
Borrower  under any other material contract, instrument or agreement to which it
is  a party or by which it or any of its properties or assets may be bound or to
which  it or any of its properties or assets may be subject, which default could
be  reasonably  expected  to  result  in  a  Material  Adverse  Change.

     4.8     PERFORMANCE  OF  OBLIGATIONS.4.8     PERFORMANCE  OF  OBLIGATIONS.

     Each  Borrower shall duly pay, perform and discharge all of its obligations
hereunder  and  under  the  other  Loan  Documents.

4.9     CERTIFICATE  OF  NO  REMEDIES  EVENT.4.9     CERTIFICATE  OF NO REMEDIES
EVENT.

     At the reasonable request of the Lender, each Borrower shall furnish to the
Lender  a certificate signed by an officer of such Borrower, that to the best of
his or her knowledge, such Borrower has kept, observed, complied with, fulfilled
and  performed  in  all  material respects every term, covenant and condition in
this Agreement and the other Loan Documents on its part to be kept and performed
(or,  if  such  should  not  be  the  fact,  specifying  the  nature  of  such
non-compliance); that no Conditional Default or Remedies Event exists (or if one
exists,  specifying  the  nature  thereof);  that  no  event  has occurred or is
threatened  which  if continued would permit the holder of any Indebtedness of a
Borrower  or to which its property is subject to accelerate the maturity thereof
or  enforce  any  Lien  securing  the  same;  that  no  material  litigation  or
administrative  proceeding  has been instituted by or against a Borrower (or, if
such  should  not be the fact, then the facts and circumstances relating to such
event  or  litigation  in  detail) and covering such other matters relating to a
Borrower,  the  Loan  or  the  Collateral  as the Lender may reasonably require.

4.10     TITLE TO LAND AND IMPROVEMENTS.4.10     TITLE TO LAND AND IMPROVEMENTS.

     Except as approved by the Lender in writing, each Borrower shall retain its
interest  in  the  Land  and  Improvements  until  the  Lender  Debt  has  been
indefeasibly  paid  in  cash  and  satisfied  in  full.

4.11     FURTHER  ASSURANCES.4.11     FURTHER  ASSURANCES.

     Each Borrower shall, from time to time, at its expense, faithfully preserve
and  protect  the  Lender's lien on and security interest in the Collateral as a
continuing  first  priority  perfected  lien,  subject  only  to  the  Permitted
Encumbrances,  and  shall  take  such  other action as the Lender may reasonably
request  from  time  to time in order to preserve, perfect and protect the liens
granted  under  the  Collateral  Documents, to exercise and enforce the Lender's
rights  and  remedies thereunder and with respect to the Collateral and to carry
out  the  terms  of  this  Agreement  and  the  other  Loan  Documents.

4.12     ESTOPPEL  CERTIFICATE.4.12     ESTOPPEL  CERTIFICATE.

     At any time or times, within ten (10) Business Days after written demand by
the  Lender  therefor,  each  Borrower shall deliver to the Lender a certificate
duly  executed  and  in  form reasonably satisfactory to the Lender, stating and
acknowledging,  to the best of a Borrower's knowledge, the then unpaid principal
balance,  and interest due and unpaid under the Loan, the fact that there are no
defenses,  offsets or counterclaims thereto (or, if such should not be the fact,
then  the  facts  and  circumstances  relating  to  such  defenses,  offsets  or
counterclaims)  and  such  other  matters  as the Lender may reasonably require.

4.13     REPAIRS.4.13     REPAIRS.

     Each Borrower shall maintain and keep the Land and the Improvements and all
properties  and  assets of such Borrower in good working order and condition and
make  all  necessary  and  proper  repairs  and  replacements  thereto.

4.14     EMPLOYEE  BENEFIT  PLANS.4.14     EMPLOYEE  BENEFIT  PLANS.

     The  Borrower  and  all members of the ERISA Group shall comply with ERISA,
the  Internal  Revenue  Code and other applicable Laws applicable to any of them
with  respect  to  Benefit  Arrangements,  Pension  Plans, Multiemployer Pension
and/or  Welfare  Plans,  except where such failure, alone or in conjunction with
any  other  failure,  would  not  result  in a Material Adverse Change.  Without
limiting  the  generality  of  the  foregoing, a Borrower shall cause all of the
Pension Plans maintained by such Borrower or any member of the ERISA Group to be
funded  in  accordance with the minimum funding requirements of ERISA, and shall
make,  in  a  timely  manner,  all  contributions  due to Pension Plans, Benefit
Arrangements  and  Multiemployer  Pension  and  Welfare Plans, except where such
failure,  alone  or in conjunction with any other failure, would not result in a
Material  Adverse  Change.

     4.15     NOTICES  REGARDING  MULTIEMPLOYER  PENSION  AND WELFARE PLANS.4.15
NOTICES  REGARDING  MULTIEMPLOYER  PENSION  AND  WELFARE  PLANS.

     Promptly  upon  becoming  aware of the occurrence thereof, a Borrower shall
notify the Lender (including the nature of the event and, when known, any action
taken  or threatened by the Internal Revenue Service, the Department of Labor or
the  PBGC  with  respect  thereto)  of:

     (a)     any  Prohibited  Transaction which could subject such Borrower to a
civil  penalty  assessed pursuant to Section 502(i) of ERISA or a tax imposed by
Section  4975  of the Internal Revenue Code in connection with any Multiemployer
Pension  or  Welfare  Plan;  and

     (b)     any  partial  or  complete  withdrawal  by  such  Borrower  from  a
Multiemployer  Pension  or  Welfare  Plan  or  assertion  thereof,  where  such
withdrawal  or  asserted withdrawal is likely to result in withdrawal liability.

4.16     LICENSES  AND  PERMITS.4.16     LICENSES  AND  PERMITS.

     Each Borrower shall take all actions necessary to maintain and keep in good
standing  all  licenses, permits and other approvals necessary for the operation
and  occupancy  of the Land and Improvements and for the conduct of horse racing
and  wagering at the Land and Improvements.  Each Borrower shall keep the Lender
advised  of  the  status of such licenses, permits and other approvals and shall
provide  the  Lender  with  copies  of  any  notices  from  the  Virginia Racing
Commission  or  other  Official Body threatening the suspension or revocation of
any  such  license, permit or approval promptly following the receipt thereof by
such  Borrower.

5.     NEGATIVE  COVENANTS5.  NEGATIVE  COVENANTS
       -------------------    -------------------

     Each  Borrower  hereby  covenants and agrees that, from the date hereof and
until  the Lender Debt has been paid in full and all other obligations hereunder
shall  have been performed and discharged, it shall comply at all times with the
following  negative  covenants:

5.1     CHANGES  IN  ORGANIZATIONAL  DOCUMENTS.5.1     CHANGES IN ORGANIZATIONAL
DOCUMENTS.

     Each  Borrower  shall  not  amend  or  modify,  or  permit the amendment or
modification  of,  in  any  material  respect,  the  Borrower  Documents without
providing  prior  written  notice  to the Lender and obtaining the prior written
consent  of  the  Lender.

5.2     TRANSFER  OF  LAND  AND  IMPROVEMENTS.5.2     TRANSFER  OF  LAND  AND
IMPROVEMENTS.

Each  Borrower  shall  not  voluntarily  or  by  operation  of  law, directly or
indirectly,  sell,  convey,  transfer, assign, pledge, encumber, or permit to be
sold,  conveyed, transferred, assigned, pledge, or encumbered its interest in or
any  part of the Land or the Improvements, or any license issued by the Virginia
Racing  Commission,  without the prior written consent of the Lender having been
obtained.  Any  transaction  which is prohibited under this Section 5.2 shall be
null  and  void to the extent permitted by applicable Law.  The Lender shall not
be  under any obligation to allege or show any impairment of the Collateral, and
the  Lender may pursue any legal or equitable remedies for default, without such
allegation  or  showing,  notwithstanding  the  foregoing.

5.3     LIQUIDATION  OR  MERGER.5.3     LIQUIDATION  OR  MERGER.

     Each  Borrower  shall not liquidate, dissolve, consolidate or merge with or
into  any  other  corporation,  partnership  or other entity or permit any other
corporation, partnership or other entity to consolidate or merge with or into it
without  the  prior  written  consent  of  the  Lender.

5.4     JUDGMENTS.5.4     JUDGMENTS.

     Each  Borrower  shall not permit any formal judgment obtained against it in
excess  of  $50,000  to remain unpaid for a period of thirty (30) days following
the  entry  thereof  without obtaining a stay of execution or bonding or causing
such  judgment  to  be  bonded.

5.5     LEASING  OF  PREMISES.5.5     LEASING  OF  PREMISES.

          Except  as  may  be  permitted under the Deed of Trust, Second Deed of
Trust  or Hampton Deed of Trust, a Borrower shall not, without the prior written
approval  of  the  Lender, terminate, amend, modify, extend, enter into, or give
any  consent  to  any  tenant  under any lease, with the exception of the Lease.

5.6     MATERIAL  ADVERSE  CHANGE.5.6     MATERIAL  ADVERSE  CHANGE.

     Each  Borrower  shall  not take any action or omit to take any action which
would  cause  a  Material  Adverse  Change in the business, assets, operation or
financial  condition,  of  a  Borrower  to  occur.

<PAGE>
5.7     CONDUCT  OF  BUSINESS.5.7     CONDUCT  OF  BUSINESS.

     Each  Borrower  shall  not  conduct any business or activity, the nature of
which  would  differ in any material respect from that presently conducted by it
or  contemplated  hereunder  without  the  Lender's  prior  written  consent.

     5.8     CREATION  OF  LIENS.5.8     CREATION  OF  LIENS.

     Except  for  Permitted  Encumbrances  and  except as otherwise specifically
contemplated  by  the  Loan  Documents,  each  Borrower shall not create, incur,
assume or suffer to exist or be created, or permit any pledge of, or any deed of
trust,  mortgage,  Lien, charge, security interest or encumbrances of any nature
with  respect  to  the Land or the Improvements, or assign, pledge or in any way
transfer  or  encumber  its  rights  to  receive  income  from  the  Land or the
Improvements.

5.9     VALUE  OF  COLLATERAL.5.9     VALUE  OF  COLLATERAL.

     Each  Borrower shall not take any action which would result in any material
impairment  of  the  value  of  any  Collateral.

5.10     TRANSFER  OF  PERSONALTY.5.10     TRANSFER  OF  PERSONALTY.

     Except  as  provided  under the Permitted Encumbrances, each Borrower shall
not  voluntarily  or  by operation of law, directly or indirectly, sell, assign,
transfer,  encumber,  pledge, mortgage, hypothecate, convey or otherwise dispose
of  any  interest  in or any part of any personalty located upon the Land or the
Improvements  or  used or intended to be used in connection therewith, or any of
the  licenses,  permits  or  other  approvals  necessary  for  the operation and
occupancy  of the Land and Improvements, the conduct of live racing at the horse
racing  facility  in  New  Kent  County,  Virginia,  or  the conduct of wagering
activities  at  the  Hampton SWF, provided that each Borrower may dispose of any
worn  out personal property as long the same is promptly replaced, to the extent
necessary,  with  personal  property  that  is  the functional equivalent of the
replaced  property  within  such  time  as would not impair the operation of the
Project.

5.11     DISPOSITION  OF  RENTS.5.11     DISPOSITION  OF  RENTS.

     Except  as provided in the Loan Documents, and except as provided under the
Permitted  Encumbrances,  each Borrower shall not consent to or commit any sale,
conveyance, pledge, mortgage, hypothecation or other disposition of any rents or
other  funds  arising  from  the  Land  or  the  Improvements.

<PAGE>
5.12     PENSION  PLANS  AND  BENEFIT  ARRANGEMENTS.5.12     PENSION  PLANS  AND
BENEFIT  ARRANGEMENTS.

     A  Borrower  and  members  of  the  ERISA  Group  shall  not:

(a)     fail  to  satisfy  the  minimum  funding  requirements  of ERISA and the
Internal  Revenue  Code  with  respect  to  any  Pension  Plan;

(b)     request  a minimum funding waiver from the Internal Revenue Service with
respect  to  any  Pension  Plan;

(c)     engage  in  a  Prohibited  Transaction  with  any  Pension Plan, Benefit
Arrangement  or  Multiemployer  Pension  or  Welfare  Plan  which,  alone  or in
conjunction  with  any  other circumstances or set of circumstances resulting in
liability  under  ERISA,  would  constitute  a  Material  Adverse  Change;

(d)     permit  the aggregate actuarial present value of all benefit liabilities
(whether  or  not  vested)  under  each  Pension  Plan,  determined  on  a  plan
termination  basis,  as  disclosed in the most recent actuarial report completed
with  respect  to  such Plan, to exceed, as of any actuarial valuation date, the
fair  market  value  of  the  assets  of  such  Plan;

(e)     fail  to  make when due any contribution to any Multiemployer Pension or
Welfare Plan that such Borrower or any member of the ERISA Group may be required
to  make  under  any  agreement  relating to such Multiemployer Plan, or any Law
pertaining  thereto;

(f)     withdraw  (completely  or  partially)  from any Multiemployer Pension or
Welfare  Plan  or  withdraw  (or  be  deemed  under  Section 4062(e) of ERISA to
withdraw)  from any Multiple Employer Pension Plan, where any such withdrawal is
likely  to  result  in  a  material liability of a Borrower or any member of the
ERISA  Group;

(g)     terminate,  or  institute  proceedings  to  terminate, any Pension Plan,
where  such  termination  is     likely  to  result in a material liability to a
Borrower  or  any  member  of  the  ERISA  Group;

(h)     make any amendment to any Pension Plan with respect to which security is
required  under  Section  307  of  ERISA;  or

(i)     fail  to  give  any  and  all  notices  and  make  all  disclosures  and
governmental  filings  required  under ERISA or the Internal Revenue Code, where
such  failure  is  likely  to  result  in  a  Material  Adverse  Change.

<PAGE>
5.13     ERISA  PROHIBITED  TRANSACTION.5.13     ERISA  PROHIBITED  TRANSACTION.

     Neither  a  Borrower,  nor members of the ERISA Group shall take any action
which  would  result  in  the Loan constituting a Prohibited Transaction between
such  Borrower  and  Lender.

6.     DISBURSEMENT  MATTERS6.  DISBURSEMENT  MATTERS
       ---------------------     --------------------

     6.1     PROCEDURES.6.1     PROCEDURES.

     The Lender shall make disbursements upon the mutual agreement of a Borrower
and  the  Lender,  subject  to satisfaction of all the conditions to Closing set
forth  herein.  The Lender shall not be obligated to make any disbursement until
a  Borrower,  at  its  expense,  shall  have  fulfilled  all  conditions of this
Agreement  applicable  thereto,  including, without limitation, the delivery and
approval  of the items referred to on Exhibit B attached hereto on or before the
                                      ---------
Closing  Date,  and  satisfaction  of  the  following  conditions:

     (a)     No  portion  of the Improvements shall have been damaged by fire or
other  casualty and no condemnation or taking of the Land or the Improvements or
any  material  portion  thereof  shall  be  pending  or  threatened;

(b)     The Lender shall have received all duly executed Loan Documents; and the
Collateral  Documents and other documents to be placed of record shall have been
duly  recorded  and  filed  in  all  appropriate  offices;

(c)     The  security  interest  in  all  property  described  in the Collateral
Documents  shall  have  been duly perfected and shall be a valid and enforceable
first  lien  subject to Permitted Encumbrances except with respect to the Second
Deed  of  Trust  which  shall  be  a  valid  and  enforceable  second  lien;

(d)     The  Closing  Fee  shall  have  been paid on or before the Closing Date.

(e)     No  Remedies  Event  or  Conditional  Default shall have occurred and be
continuing  under  this  Agreement,  or  any  of  the  other Loan Documents; and

(f)     The representations and warranties of each Borrower contained in Article
8  hereof  shall  be  true  and  accurate  on  and as the Closing Date, and each
Borrower  shall  have  performed  and complied with all covenants and conditions
hereof.

<PAGE>
7.     REPORTING  REQUIREMENTS7.  REPORTING  REQUIREMENTS
       -----------------------    -----------------------

7.1     ENVIRONMENTAL  REPORTS  AND  TITLE REPORTS.7.1     ENVIRONMENTAL REPORTS
AND  TITLE  REPORTS.

     (a)     Title  Reports.  At  option  of the Lender, once each calendar year
             --------------
until  the  Lender  Debt  has  been repaid in full, the Lender may request and a
Borrower  shall  deliver  within  fifteen  (15) days of such request, an updated
title  report  on  the  Project, prepared and issued by the same title insurance
company  that  provided  to the Lender the lender's policy of title insurance in
connection  with the assignment of the Deed of Trust.  After the occurrence of a
Remedies  Event  and  so  long  thereafter  as  such Remedies Event shall remain
uncured, a Borrower will furnish such title reports, endorsements or policies as
the  Lender  shall  require.  If  a Borrower fails to deliver the title updates,
reports,  endorsements or policies required pursuant to this Section, the Lender
may  obtain  such  item(s)  and  Borrower  will  reimburse  the Lender for costs
incurred  upon  demand.

(b)     Environmental  Reports  Within  sixty (60) days following the request of
        ----------------------
the  Lender,  which,  in  the absence of a Remedies Event, or prior to such time
that  the  Lender  believes  that  there  has been a breach of the Environmental
Indemnity  Agreement,  may be made once each calendar year (but such request may
be  made  at  any  time following the occurrence of a Remedies Event and so long
thereafter  as  such  Remedies  Event shall remain uncured, or if the Lender has
reason  to  believe  there  has  been  a  breach  of the Environmental Indemnity
Agreement  until  the  Loan  has been repaid in full), a Borrower shall cause an
environmental  audit  of  the  Project  to  be  prepared  at Borrower's sole and
reasonable  cost  and expense, which environmental audit will be in the form and
performed by a consultant approved by the Lender, and if the applicable Borrower
does  not  respond  to  the  Lender's request within sixty (60) days, the Lender
shall  cause  an  environmental  audit  of  such  Project and, upon demand, such
Borrower  will  reimburse  the  Lender  for  all  costs  incurred.

     8.     REPRESENTATIONS  AND  WARRANTIES8.  REPRESENTATIONS  AND  WARRANTIES
            --------------------------------    --------------------------------

The  Borrower  hereby  warrants  and  represents  to  the  Lender  as  follows:

8.1     DUE  FORMATION;  CAPACITY.8.1     DUE  FORMATION;  CAPACITY.

     Each  Borrower  is  duly  organized,  validly existing and in good standing
under the Laws of the Commonwealth of Virginia, and has full power and authority
to  own  or lease and operate properties, and to conduct is affairs as now being
conducted  and  as  proposed  to  be conducted.  The sole general partner of the
Partnership  is  SRC  and  the  sole  limited  partner of the Partnership is the
Corporation.

<PAGE>
8.2     POWER  AND  AUTHORITY.8.2     POWER  AND  AUTHORITY.

     Each  Borrower has full power and authority to enter into, execute, deliver
and  carry  out  this  Agreement  and  the other Loan Documents to which it is a
party,  and  to perform its partnership obligations hereunder and thereunder and
all  such  actions have been duly authorized by all necessary proceedings on its
part.

8.3     VALIDITY  AND  BINDING  EFFECT.8.3     VALIDITY  AND  BINDING  EFFECT.

     This  Agreement  and  the  other  Loan  Documents  which are required to be
executed  and  delivered  prior  to  Closing  Date pursuant to the terms of this
Agreement,  have  been  duly and validly executed and delivered by each Borrower
and, to the best knowledge of each Borrower, by all other parties thereto.  This
Agreement  and  the  other  Loan  Documents  constitute legal, valid and binding
obligations  of  each  Borrower  enforceable against it in accordance with their
respective  terms.

8.4     NO  CONFLICT.8.4     NO  CONFLICT.

     Neither  the  execution  and  delivery of this Agreement and the other Loan
Documents  nor  the  consummation  of  the  transactions  herein  or  therein
contemplated,  nor  compliance  with the terms and provisions hereof or thereof,
will  conflict  with,  constitute a default under or result in any breach of (i)
the  terms  and  conditions  of the Borrower Documents; (ii) the Lease Agreement
between  the  Borrower  and the Partnership for the horse racing facility in New
Kent  County, Virginia; or (ii) any Governmental Approval, any applicable Law or
any  material agreement or instrument to which a Borrower is a party or by which
a  Borrower  or  the  Property  (as defined in the Deed of Trust, Second Deed of
Trust  or  Hampton  Deed  of  Trust)  is  bound.

8.5     OTHER  AGREEMENTS.8.5     OTHER  AGREEMENTS.

     Each Borrower is not a party to any agreement or instrument that materially
and  adversely  affects  its present or proposed business, properties or assets,
operation  or  conditions,  financial  or otherwise and is not in default of the
performance,  observance,  or  fulfillment  of  any of the material obligations,
covenants  or  conditions  set  forth in any material agreement or instrument to
which  it  is a party, including the Lease Agreement between the Corporation and
the  Partnership  for  the  horse  racing facility in New Kent County, Virginia.

     8.6     NO  CONDITIONAL  DEFAULT  OR  REMEDIES EVENT.8.6     NO CONDITIONAL
DEFAULT  OR  REMEDIES  EVENT.

     No  Conditional  Default  has  occurred  and no condition exists or will be
caused  by any disbursement of Loan proceeds which will constitute a Conditional
Default  or  Remedies  Event.

8.7     NO LITIGATION OR INVESTIGATIONS.8.7     NO LITIGATION OR INVESTIGATIONS.

     There is no pending or, to a Borrower's knowledge, threatened litigation or
governmental investigation which questions the capacity, ability or authority of
a  Borrower to execute, deliver and perform the provisions of the Loan Documents
to  which  it  is  a  party,  or  if  determined  adversely to a Borrower, would
reasonably  be  expected  to  cause  a  Material  Adverse  Change.

8.8     FINANCIAL  STATEMENTS.8.8     FINANCIAL  STATEMENTS.

     The information, financial statements and other financial data furnished by
a  Borrower  to  the  Lender  are  true and correct in all material respects and
present  fairly  the  financial  condition  of a Borrower as of the date of such
statements  or  data.

8.9     IMPOSITIONS.8.9     IMPOSITIONS.

     All  returns for Impositions required to have been filed by a Borrower have
been  timely  filed and payment has been made, or will be made prior to the date
upon which any penalty or fine may be imposed, for all Impositions which have or
may become due pursuant to said returns or to assessments received except to the
extent that any such Imposition may be contested in a manner consistent with the
Deed  of  Trust,  Second  Deed  of  Trust  and  Hampton  Deed  of  Trust.

8.10     TITLE  ASPECTS.8.10     TITLE  ASPECTS.

     Each  Borrower has a good and marketable title to the Land, subject only to
Permitted  Encumbrances.  Each  Borrower  has  been  granted  all  easements
appropriate  for  the  operation  of  the  Improvements.

     8.11.     ZONING  AND  GOVERNMENTAL  APPROVALS.8.11.     ZONING  AND
GOVERNMENTAL  APPROVALS.

     To  the  best  knowledge  of  each  Borrower,  the use and occupancy of the
Improvements  conforms  in  all  material  respects  to all applicable Laws, all
existing  Governmental  Approvals and all covenants, conditions and restrictions
contained  in  a  deed,  lease  or  other  instrument  or  agreement covering or
affecting all or any portion of the Land.  All Governmental Approvals (except to
the  extent  the  same  are of a nature so as not to be obtainable until a later
stage  of construction or completion of the Improvements) have been obtained and
are  valid  and  in  full  force  and  effect.

<PAGE>
8.12     UTILITIES.8.12     UTILITIES.

     All  utility  and municipal services necessary for the use and occupancy of
the  Improvements  are  available  to  the  Land and have sufficient capacity to
operate  the  Improvements  for their intended purposes, including water supply,
storm  and  sanitary  sewer  facilities,  electricity  and telephone facilities.

8.13     SECURITY  INTERESTS.8.13     SECURITY  INTERESTS.

     Upon  proper  filing and continuation and the Lender's receipt of the stock
of  SRC,  pledged  under the Pledge Agreements, the Liens and security interests
granted  or to be granted to the Lender pursuant to this Agreement and the other
Loan Documents, as assigned from PNC, constitute and will continue to constitute
valid  perfected  first priority security interests under the Uniform Commercial
Code, Virginia law or other applicable Law, entitled to all the rights, benefits
and  priorities  provided  by  the  Uniform Commercial Code, Virginia law or any
other  Law.

8.14     DEED  OF  TRUST.8.14     DEED  OF  TRUST.

     (a)     The Liens granted in the Deed of Trust, as assigned from PNC to the
Lender  and  granted  in the Hampton Deed of Trust, constitute a valid perfected
first  priority  Lien  under applicable Law, and the property secured thereby is
subject  to  no  other  prior  Liens  or  encumbrances  except for the Permitted
Encumbrances.  All action as is necessary or advisable to establish (and assign,
as  applicable)  such  Lien  and  its  priority  as  described  in the preceding
sentence,  including  recordation  of  the Deed of Trust and the Hampton Deed of
Trust  and  any  necessary  assignments  thereof in the appropriate offices, the
payment  of  any  transfer  fees,  recording  fees  or  other fees will be taken
promptly following the Closing Date, and there will be, upon execution, delivery
and  recordation  of  the  assignment of the Deed of Trust, no necessity for any
further  action  in  order  to protect, preserve and continue such Lien and such
priority.

          (b)     The  Lien  granted  in  the  Second Deed of Trust, as amended,
constitutes a valid perfected second Lien under applicable law, and the Property
secured  thereby  is  subject to no other prior Liens or encumbrances except for
the  Permitted  Encumbrances.  All  such  action as is necessary or advisable to
establish  such  Lien  and  its  priority as described in the preceding sentence
including  recordation  of  an  Amendment  to  the  Second  Deed of Trust in the
appropriate  offices,  the payment of any transfer fees, recording fees or other
fees will be taken as soon as possible following the Closing Date and there will
be  upon  execution, delivery and recordation of an Amendment to the Second Deed
of  Trust, no necessity for any further action to protect, preserve and continue
such  Lien  and  such  priority.

     8.15     ENVIRONMENTAL  MATTERS.8.15     ENVIRONMENTAL  MATTERS.

     The Environmental Indemnity Agreement is hereby incorporated herein by this
reference.

8.16     INSURANCE.8.16     INSURANCE.

     All  insurance policies and bonds furnished to the Lender by a Borrower are
valid and in full force and effect.  No notice has been given or claim made and,
to  the  best of each Borrower's knowledge, no grounds presently exist to cancel
or  void  any  of  such  policies  or  bonds  or to reduce the coverage provided
thereby.  In  each  Borrower's  reasonable  judgment,  such  policies  and bonds
provide  adequate  coverage in amounts sufficient to insure the assets and risks
of  a  Borrower  in  accordance  with  prudent  business  practices.

8.17     PENSION  PLANS  AND  BENEFIT  ARRANGEMENTS.8.17     PENSION  PLANS  AND
BENEFIT  ARRANGEMENTS.67

     (a)     A  Borrower and each member of the ERISA Group are in compliance in
all  material  respects  with any applicable provisions of ERISA with respect to
all  Benefit  Arrangements,  Pension Plans and Multiemployer Pension and Welfare
Plans.  There  has  been  no  Prohibited Transaction with respect to any Benefit
Arrangement or any Pension Plan or, to the best knowledge of such Borrower, with
respect  to  any  Multiemployer  Pension Plan or Multiple Employer Pension Plan,
which  could  result  in  any  material  liability of such Borrower or any other
member  of  the ERISA Group.  A Borrower and all members of the ERISA Group have
made  when  due  any  and  all  payments required to be made under any agreement
relating  to a Multiemployer Pension Plan or a Multiple Employer Pension Plan or
any Law pertaining thereto.  With respect to each Pension Plan and Multiemployer
Pension  Plan,  a Borrower and each member of the ERISA Group (i) have fulfilled
in  all  material respects their obligations under the minimum funding standards
of  ERISA,  (ii) have not incurred any liability to the PBGC, and (iii) have not
had asserted against them any penalty for failure to fulfill the minimum funding
requirements  of  ERISA.

          (b)     To  the  best of each Borrower's knowledge, each Multiemployer
Pension  or  Welfare  Plan  and  Multiple  Employer  Pension Plan is able to pay
benefits  thereunder  when  due.

     (c)     Neither  Borrower  nor  any  other  member  of  the ERISA Group has
instituted  or  intends     to  institute  proceedings  to terminate any Pension
Plan.

(d)     No  event  requiring  notice  to  the PBGC under Section 302(f)(4)(A) of
ERISA  has  occurred  or  is  reasonably  expected  to occur with respect to any
Pension  Plan, and no amendment with respect to which security is required under
Section  307  of ERISA has been made or is reasonably expected to be made to any
Plan.

(e)     The  aggregate  actuarial  present  value  of  all  benefit  liabilities
(whether  or  not  vested)  under  each  Pension  Plan,  determined  on  a  loan
termination  basis,  as  disclosed  in,  and  as of the date of, the most recent
actuarial  report for such Plan, does not exceed the aggregate fair market value
of  the  assets  of  such  Pension  Plan.

(f)     Neither Borrower nor any other member of the ERISA Group has incurred or
reasonably expects to incur any material withdrawal liability under ERISA to any
Multiemployer  Pension  or  Welfare  Plan  or  Multiple  Employer  Pension Plan.
Neither  Borrower  nor  any other member of the ERISA Group has been notified by
any  Multiemployer  Pension  Plan  or  Multiple  Employer Pension Plan that such
Multiemployer Pension Plan or Multiple Employer Pension Plan has been terminated
within  the  meaning  of  Title  IV of ERISA, and, to the best knowledge of each
Borrower,  no  Multiemployer  Pension  Plan or Multiple Employer Pension Hart is
reasonably expected to be reorganized or terminated, within the meaning of Title
IV  of  ERISA.

(g)     To  the  extent  that any Benefit Arrangement is insured, a Borrower and
all  members  of  the ERISA Group have paid when due all premiums required to be
paid for all periods through and including the Closing Date.  To the extent that
any  Benefit Arrangement is funded other than with insurance, a Borrower and all
members  of  the ERISA Group have made when due all contributions required to be
paid  for all periods through and including the Closing Date.  There has been no
COBRA  violation by either Borrower or any member of the ERISA Group which could
result  in  any  material  liability  to  such  Borrower.

9.     DEFAULTS  AND  REMEDIES9.     DEFAULTS  AND  REMEDIES
       -----------------------       -----------------------

     9.1     EVENTS  OF  DEFAULT.9.1     EVENTS  OF  DEFAULT.

     The  following shall be deemed to be Events of Default under this Agreement
(whatever  the reason therefor and whether voluntary, involuntary or effected by
operation  of  Law):

     (a)     A  Borrower shall fail to make any payment of principal or interest
with  respect  to the Loan within ten (10) days following the date on which such
payment  shall  become due (except for the payment of principal and interest due
on the Expiration Date, which if not paid in full on such date, shall constitute
on Event of Default), or a Borrower shall fail to pay within ten (10) days after
written  notice  any  other  amount  owing  hereunder  or  under  the other Loan
Documents;

(b)     Any  representation  or  warranty  made at any time by a Borrower or any
Guarantor  herein  or  in  any other Loan Documents or in any certificate, other
instrument  or  written  statement  furnished  by  a  Borrower  or any Guarantor
pursuant  to the provisions hereof or thereof, shall prove to have been false or
misleading  in  any  material  respect;

(c)     A  Borrower  shall fail to make any deposit of funds required under this
Agreement within ten (10) days after written demand by the Lender or such longer
period  of  time,  if  any,  expressly  provided  for  in  this  Agreement;

(d)     A  Borrower  shall  fail  to comply with any other covenant contained in
this Agreement or any of the other Loan Documents which calls for the payment of
money  and shall not cure that failure within ten (10) days after written demand
by  the  Lender;

(e)     A  Borrower  or  any  Guarantor  shall  fail to comply with any covenant
contained in this Agreement or any of the other Loan Documents, other than those
defaults  referred  to in the other subparagraphs of this Section 9.1, and shall
not  cure  that  failure within thirty (30) days after written notice thereof by
the  Lender  to  such Borrower and the Guarantors or such shorter period of time
for cure specified in any Loan Document (such grace period to be applicable only
in  the event such default can be remedied by corrective action of such Borrower
or  the  applicable  Guarantor  as  determined  by  the Lender in its reasonable
discretion),  provided  that,  in the event that such default cannot be remedied
with  reasonable  due diligence during such thirty (30) day period, such default
shall  not  constitute  an  Event  of  Default  so  long as such Borrower or the
applicable  Guarantor  continues  with  reasonable  due  diligence to attempt to
remedy  the  same  for  such additional period of time as may be required not to
exceed  an  additional  ninety  (90)  days;

(f)     A Borrower or any Guarantor shall cease to be Solvent or shall be unable
to  pay its respective debts as the same shall mature or there shall be filed by
or  against  (unless  dismissed  within  sixty  (60)  days after any involuntary
filing)  such  Borrower  or any Guarantor a petition in bankruptcy or a petition
seeking  the appointment of a receiver, trustee or conservator for such Borrower
or  any  Guarantor  or  any  portion  of  its  respective  properties or seeking
reorganization  or to effect a plan or other arrangement with or for the benefit
of  creditors,  or  a  Borrower  shall consent to the appointment of a receiver,
trustee  or  conservator;

(g)     Any  Lien or encumbrance, other than a Permitted Encumbrance, is entered
against the Land or Improvements and such Lien or encumbrance is not discharged,
vacated  or  bonded  within fifteen (15) Business Days after the filing thereof;

(h)     Any  final  judgment(s)  for  the  payment of money in excess of $50,000
shall  be  entered  against  a  Borrower  or  any  Guarantor  by  a court having
jurisdiction  which  is not discharged, vacated, bonded or stayed pending appeal
within  a period of thirty (30) days from the date of entry of such judgment(s);

(i)     Any  of the following occurs: (i) any Reportable Event, which the Lender
determines  in good faith constitutes grounds for the termination of any Pension
Plan  by the PBGC or the appointment of a trustee to administer or liquidate any
Pension Plan, shall have occurred and be continuing; (ii) proceedings shall have
been  instituted  or  other  action  taken  to  terminate any Pension Plan, or a
termination  notice shall have been file with respect to any Pension Plan; (iii)
a  trustee  shall be appointed to administer or liquidate any Pension Plan; (iv)
the  PBGC  shall give notice of its intent to institute proceedings to terminate
any  Pension  Plan  or  Pension  Plans  or to appoint a trustee to administer or
liquidate  any  Pension  Plan;  and, in the case of the occurrence of (i), (ii),
(iii)  or  (iv)  above, the Lender determines in good faith that the amount of a
Borrower's  liability  is  likely  to  cause  a  Material  Adverse Change; (v) a
Borrower  or  any member of the ERISA Group shall fail to make any contributions
when  due  to a Pension Plan or a Multiemployer Pension Plan; (vi) a Borrower or
any  member  of  the ERISA Group shall make any amendment to a Pension Plan with
respect  to  which  security  is  required  under  Section 307 of ERISA; (vii) a
Borrower or any member of the ERISA Group shall withdraw completely or partially
from  a Multiemployer Pension Plan; (viii) a Borrower or any member of the ERISA
Group  shall  withdraw  (or  shall  be  deemed under Section 4062(e) of ERISA to
withdraw)  from  a  Multiple  Employer Pension Plan; or (ix) any applicable Law,
rule  or  regulation  is  adopted,  changed  or  interpreted by any governmental
authority  or agency or court with respect to or otherwise affecting one or more
Pension  Plans,  Multiemployer  Pension  Plans or Benefit Arrangements and, with
respect  to any of the events specified in (v), (vi), (vii), (viii) or (ix), the
Lender  determines  in  good  faith that any such occurrence would be reasonably
likely  to materially and adversely affect the total enterprise represented by a
Borrower  and  the  other  members  of  the  ERISA  Group;

(j)     An  Event of Default shall occur under any other note, loan agreement or
other  credit  facility  between  a  Borrower  and  the  Lender;  or

(k)     An  acceleration  of  the  maturity  of any Indebtedness in an amount in
excess  of  $100,000  shall occur under any note, loan agreement or other credit
facility  between  a  Borrower  and  any  party  other  than  the  Lender.

9.2     REMEDIES.9.2     REMEDIES.

     Following  the  occurrence of a Remedies Event, the Lender may exercise any
or  all  of  the  following  rights  and  remedies:

     (a)     The  Lender  may  declare  the unpaid principal amount of the Notes
then  outstanding and all interest accrued thereon and all other indebtedness of
each  Borrower  to the Lender hereunder and thereunder to be immediately due and
payable,  without  presentment,  demand,  protest  or notice of any kind, all of
which  are  hereby  expressly  waived.

(b)     The  Lender  shall  have  the right, in addition to all other rights and
remedies  available to it, without notice to each Borrower or the Guarantors, to
setoff  against  and  apply to the then unpaid balance of the Loan and all other
obligations of such Borrower hereunder or under any other Loan Document any debt
owing  to,  and  any  other  funds  held  in  any manner for the account of such
Borrower.

(c)     Whether  or  not  the  Lender shall have accelerated the maturity of the
Loan pursuant to any of the foregoing provisions of this Section 9.2, the Lender
may proceed to protect and enforce the Lender's rights by suit in equity, action
at  law and/or other appropriate proceeding, for the specific performance of any
covenant  or  agreement  contained in this Agreement or the other Loan Documents
and,  as  to any amount that shall have become due, by declaration or otherwise,
proceed  to  enforce  the  payment  thereof  or  to  enforce  any other legal or
equitable  right  of  the  Lender.

(d)     From  and  after  the  date  on  which  the  Lender has taken any action
pursuant to this Section 9.2 and until the Notes have been paid in full, any and
all  proceeds  received  by the Lender from any sale or other disposition of any
Collateral,  or  any  part  thereto  or  the exercise of any other remedy by the
Lender,  shall  be  applied  as  follows:

     (i)     first,  to  reimburse  the Lender for out-of-pocket costs, expenses
and  disbursements, including without limitation, reasonable attorneys' fees and
legal  expenses  actually incurred by the Lender in connection with realizing on
any  Collateral  or  collection  of  any  obligations  of  each  Borrower or the
Guarantor under any of the Loan Documents, including advances made subsequent to
a  Remedies Event by the Lender or for the reasonable maintenance, preservation,
protection  or  enforcement  of,  or realization upon, any Collateral, including
without  limitation,  advances  for Impositions, insurance, repairs and the like
and reasonable expenses incurred to sell or otherwise realize on, or prepare for
sale  or  other  realization  on,  any  of  the  Collateral;

(ii)     second,  to  the  repayment  of  all Lender Debt, whether of principal,
interest,  fees,  expenses  or  otherwise;  and

(iii)     the  balance,  if  any,  as  required  by  Law.

     (e)     The  Lender  shall have all of the rights and remedies contained in
this  Agreement  and  the other Loan Documents (including the right to appoint a
receiver and all other rights described in the Deed of Trust).  In addition, the
Lender  shall  have  all of the rights and remedies of a secured party under the
Uniform  Commercial  Code  or  other  applicable  Law,  all  of which rights and
remedies  shall be cumulative and non-exclusive, to the extent permitted by Law.

(f)     The  Lender  shall  have  the  further  right  to  enter  the  Land  and
Improvements and take any and all actions necessary, in its judgment, to secure,
winterize,  protect  and preserve the Improvements and any materials or supplies
located  on  the  Land.

9.3     NOTICE  OF  SALE.9.3     NOTICE  OF  SALE.

     Any  notice  required  to be given to the Lender of a sale, lease, or other
disposition  of  any  Collateral  or any other intended action by the Lender, if
given  at  least fifteen (15) Business Days prior to such proposed action, shall
constitute  commercially  reasonable  and  fair notice thereof to such Borrower.

10.     MISCELLANEOUS10.     MISCELLANEOUS
        -------------        -------------

     10.1     MODIFICATIONS,  AMENDMENTS  OR  WAIVERS.10.1     MODIFICATIONS,
AMENDMENTS  OR  WAIVERS.

     The  Lender  and  a  Borrower  may  from  time  to  time enter into written
agreements  amending  or  changing  any provision of this Agreement or any other
Loan  Document  (except as otherwise expressly provided herein) or the rights of
the  Lender  or a Borrower hereunder or thereunder, or may grant written waivers
or  consents  to  a  departure  from the due performance of the obligations of a
Borrower  hereunder  or  thereunder.

     10.2     NO  IMPLIED  WAIVERS;  CUMULATIVE  REMEDIES; WRITING REQUIRED.10.2
NO  IMPLIED  WAIVERS;  CUMULATIVE  REMEDIES;  WRITING  REQUIRED.

     No  course  of  dealing and no delay or failure of the Lender in exercising
any  right,  power,  remedy  or privilege under this Agreement or any other Loan
Document  shall  affect  any  other  or  future exercise thereof or operate as a
waiver  thereof,  nor  shall  any  single  or  partial  exercise  thereof or any
abandonment or discontinuance of steps to enforce such a right, power, remedy or
privilege  preclude  any  further exercise thereof or of any other right, power,
remedy or privilege.  To the extent permitted by Law, the rights and remedies of
the  Lender  under this Agreement and any other Loan Document are cumulative and
not  exclusive  of  any  rights  or remedies which it would otherwise have.  Any
waiver,  consent  or approval of any kind or character on the part of the Lender
of  any  breach  or  default  under  this  Agreement  or  any such waiver of any
provision  or  condition  of  this  Agreement  must  be  in writing and shall be
effective  only  to  the  extent  specifically  set  forth  in  such  writing.

<PAGE>
10.3     REIMBURSEMENT  AND  INDEMNIFICATION  OF  THE  LENDER  BY  THE BORROWER;
IMPOSITIONS.10.3     REIMBURSEMENT  AND  INDEMNIFICATION  OF  THE  LENDER BY THE
BORROWER;  IMPOSITIONS.

     Each Borrower agrees unconditionally upon demand to pay to or reimburse the
Lender  and  to  indemnify,  defend  and to hold the Lender harmless against (i)
liability  for  the  payment of all reasonable out-of-pocket costs, expenses and
disbursements,  including  but  not  limited  to reasonable fees and expenses of
counsel  actually  incurred  by  the  Lender  subsequent to the Closing Date (a)
relating  to  any  amendments,  waivers  or  consents pursuant to the provisions
hereof,  and  (b)  all  liabilities,  obligations,  losses,  damages, penalties,
actions,  judgments,  suits,  costs,  expenses  or  disbursements of any kind or
nature  whatsoever  which  may  be  actually imposed on, incurred by or asserted
against  the  Lender  arising  out of this Agreement or any other Loan Document,
provided  that  a  Borrower  shall  not  be  liable  for  any  portion  of  such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs,  expenses  or  disbursements, if the same results from the Lender's gross
negligence  or  willful misconduct.  Each Borrower agrees unconditionally to pay
all  stamp,  document,  transfer,  recording or filing taxes or fees and similar
Impositions (except for taxes on the overall net income of any Lender and except
for  franchise  taxes)  now  or  hereafter determined by any Official Body to be
actually  due  and  payable  in connection with this Agreement or any other Loan
Document,  and  each Borrower agrees unconditionally to save the Lender harmless
from  and  against  any  and all present or future claims, liabilities or losses
with  respect  to  or  resulting from any omission to pay or delay in paying any
such  taxes,  fees  or  other  similar Impositions, except as otherwise provided
herein.

     10.4     HOLIDAYS.10.4     HOLIDAYS.

     Whenever  any  payment  or  action  to  be made or taken hereunder shall be
stated  to  be  due on a day which is not a Business Day, such payment or action
shall  be  made  or  taken  on  the  next  following  Business Day, and any such
extension  of  time  shall be included in computing interest or fees, if any, in
connection  with  such  payment  or  action.

     10.5     NOTICES.10.5     NOTICES.

     All  notices,  requests,  demands,  directions  and  other  communications
(collectively,  "notices")  given  to  or  made  upon any party hereto under the
provisions  of  this Agreement shall be by telephone (except for default notices
and  notices  to  the  Lender  of funding requirements) or in writing (including
telex  or facsimile communication) unless otherwise expressly required hereunder
and  shall  be delivered or sent by telex or facsimile to the respective parties
at  the  addresses  and numbers set forth on Schedule II hereto or in accordance
                                             -----------
with any subsequent written direction from any party to the others.  All notices
shall,  except  as  otherwise expressly herein provided, be effective (i) in the
case  of  telex  or facsimile, when received or when sender receives appropriate
confirmation  of  transmittal,  (ii)  in the case of hand delivered notice, when
hand  delivered,  (iii)  in  the  case  of  telephone,  when  telephoned  to the
individual  specified  in  Schedule  II,  provided, however, that in order to be
                           ------------
effective,  telephonic  notices  must  be confirmed in writing no later than the
next Business Day by letter, facsimile or telex, (iv) if given by mail, four (4)
days after such communication is deposited in the mails with first class postage
prepaid,  return  receipt  requested,  and  (v)  if  given  by  any  other means
(including  by  air  courier),  when  delivered.

10.6     SEVERABILITY.10.6     SEVERABILITY.

     The  provisions  of  this  Agreement  are intended to be severable.  If any
provision  of  this Agreement shall be held invalid or unenforceable in whole or
in  part  in  any jurisdiction such provision shall, as to such jurisdiction, be
ineffective  to the extent of such invalidity or unenforceability without in any
manner  affecting  the  validity  or  enforceability  thereof  in  any  other
jurisdiction  or  the  remaining  provisions  hereof  in  any  jurisdiction.

     10.7     GOVERNING  LAW.10.7     GOVERNING  LAW.

     This  Agreement  shall  be  deemed  to  be a contract under the Laws of the
Commonwealth of Virginia and for all purposes shall be governed by and construed
and enforced in accordance with the Laws of the Commonwealth of Virginia without
regard  to  its  conflicts  of  laws  principles.

     10.8     PRIOR  UNDERSTANDING.10.8     PRIOR  UNDERSTANDING.

     This  Agreement,  together  with  the  other Loan Documents, supersedes all
prior  understandings  and  agreements,  whether  written  or  oral, between the
parties  hereto and thereto relating to the transactions provided for herein and
therein,  including  any  prior  confidentiality  agreements  and  commitments.

10.9     DURATION;  SURVIVAL.10.9     DURATION;  SURVIVAL.

     All  representations  and  warranties  of each Borrower contained herein or
made  in  connection herewith shall survive the making of the Loan and shall not
be  waived by the execution and delivery of this Agreement, any investigation by
the  Lender,  or  payment  in full of the Notes in each case.  All covenants and
agreements  of  each  Borrower  contained  herein  relating  to  the  payment of
principal,  interest,  premiums,  additional  compensation  or  expenses  and
indemnification,  including  those  set  forth in the Notes and Sections 3.8 and
10.3  hereof,  shall  survive  payment  in  full  of  the  Notes.

<PAGE>
10.10     SUCCESSORS  AND  ASSIGNS.10.10     SUCCESSORS  AND  ASSIGNS.

     This  Agreement shall be binding upon and shall inure to the benefit of the
Lender  and  each  Borrower  and their respective successors and assigns, except
that  a  Borrower  may  not assign or transfer any of its rights and obligations
hereunder  or  any  interest  herein.  The  Lender  may,  at  its own cost, make
assignments  of  or sell participations in all or any part of the Loan to one or
more  banks  or  other entities.  In the case of an assignment, the Lender shall
provide written notice thereof to each Borrower.  Upon receipt and acceptance by
the  Lender  of  the written agreement of such assignee to be bound by the terms
hereof,  the  assignee  shall  have,  to the extent of such assignment, the same
rights,  benefits  and  obligations  as it would have if it had been a signatory
hereunder,  and  upon  surrender  of  the Notes, each Borrower shall execute and
deliver  a  replacement Note to the assignee in an amount equal to the amount of
the  portion of the Loan assumed by it and a new Note to the Lender in an amount
equal to the Loan retained by it hereunder.  In the case of a participation, the
participant's  rights  against the Lender in respect of such participation shall
be  those  set  forth  in  the  agreement executed by the Lender in favor of the
participant relating thereto and shall not include any voting rights, except for
voting  rights  limited to any increase in the principal amount of the Loan, any
reduction  in  the applicable interest rate or fees, and any postponement of any
scheduled  payment  of  principal,  interest  or  fees.  All  of  the  Lender's
obligations  under  this  Agreement  or  any  other  Loan Documents shall remain
unchanged and all amounts payable by each Borrower hereunder or thereunder shall
be  determined  as  if  the  Lender  had  not  sold  such  participation.

     10.11     COUNTERPARTS.10.11     COUNTERPARTS.

     This Agreement may be executed by different parties hereto on any number of
separate  counterparts,  each of which, when so executed and delivered, shall be
an  original,  and  all  such counterparts shall together constitute one and the
same  instrument.

     10.12     EXCEPTIONS.10.12     EXCEPTIONS.

     The  representations and warranties and covenants contained herein shall be
independent  of  each  other and no exception to any representation, warranty or
covenant  shall  be  deemed  to  be  an  exception  to any other representation,
warranty  or  covenant contained herein unless expressly provided, nor shall any
such  exceptions  be  deemed  to  permit any action or omission that would be in
contravention  of  applicable  Law.

     10.13     CONSENT  TO  JURISDICTION.10.13     CONSENT  TO  JURISDICTION.

     EACH  BORROWER HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE JURISDICTION
OF  THE  COURT  OF THE CITY OF RICHMOND AND THE UNITED STATES DISTRICT COURT FOR
THE  EASTERN  DISTRICT  OF  VIRGINIA  (RICHMOND  DIVISION),  AND WAIVES PERSONAL
SERVICE  OF  ANY  AND  ALL  PROCESS  UPON IT AND AGREES THAT ALL SUCH SERVICE OF
PROCESS  BE  MADE  BY CERTIFIED OR REGISTERED MAIL DIRECTED TO A BORROWER AT THE
ADDRESSES  PROVIDED  FOR  IN  SECTION  10.5  HEREOF AND SERVICE SO MADE SHALL BE
DEEMED  TO  BE  COMPLETED UPON ACTUAL RECEIPT THEREOF.  EACH BORROWER WAIVES ANY
OBJECTION  TO  JURISDICTION  AND  VENUE  OF  ANY ACTION INSTITUTED AGAINST IT AS
PROVIDED  HEREIN  AND  AGREES  NOT  TO  ASSERT  ANY  DEFENSE  BASED  ON  LACK OF
JURISDICTION  OR  VENUE.

10.14     NO  THIRD  PARTIES  BENEFITED.10.14     NO  THIRD  PARTIES  BENEFITED.

     This Agreement is made and entered into for the sole protection and benefit
of each Borrower and the Lender.  No trust fund is created by this Agreement and
no  other persons or entities will have any right of action under this Agreement
or  any  right  against  the  Lender  to  obtain  any  proceeds  of  the  Loan.

     10.15     AUTHORITY  TO  FILE  NOTICES.10.15     AUTHORITY TO FILE NOTICES.

     Each  Borrower  irrevocably  appoints  the  Lender as its attorney-in-fact,
which  appointment  shall  be  coupled  with  an  interest,  with  full power of
substitution,  to  file  for  record, at each Borrower's cost and expense and in
each Borrower's name, any notices that the Lender considers reasonably necessary
or  desirable  to  protect  the  Collateral.

     10.16     INTERPRETATION.10.16     INTERPRETATION.

     Whenever  the  context  requires,  all  words  used in the singular will be
construed  to have been used in the plural, and vice versa, and each gender will
include any other gender.  The captions of the articles, sections, schedules and
exhibits  of  this Agreement are for convenience only and do not define or limit
any  terms  or  provisions.  In the event of a conflict between the terms of the
other  loan  Documents  and  the  terms  of  this  Agreement,  the terms of this
Agreement  shall  control.

     10.17     STATUS  OF  PARTIES.10.17     STATUS  OF  PARTIES.

     It  is understood and agreed that the relationship of the parties hereto is
that  of  borrower and lender and that nothing contained herein or in any of the
other  Loan  Documents  shall  be  construed  to constitute a partnership, joint
venture  or  co-tenancy  among  a  Borrower  or  the  Lender.

<PAGE>
10.18     BROKERAGE  FEE.10.18     BROKERAGE  FEE.

     Each  Borrower  represents  to the Lender that no broker or other person is
entitled to a brokerage fee or commission as a result of a Borrower's actions or
undertakings  and  agrees  to  hold  the  Lender  harmless  from  all claims for
brokerage  commissions  which  may  be  made  as  a  result  of  such actions or
undertakings,  if  any.

     10.19     WAIVER  OF  JURY  TRIAL.10.19     WAIVER  OF  JURY  TRIAL.

     EACH  BORROWER  AND  THE LENDER EACH WAIVES THE RIGHT TO A TRIAL BY JURY IN
ANY  ACTION  OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS
AGREEMENT  OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS RELATED
TO  ANY  OF  THE  LOAN  DOCUMENTS.  THIS  WAIVER IS KNOWINGLY, INTENTIONALLY AND
VOLUNTARILY  MADE  BY  EACH  BORROWER  AND THE LENDER AND EACH ACKNOWLEDGES THAT
NEITHER  BORROWER  NOR  THE  LENDER NOR ANY PERSON ACTING ON BEHALF OF EITHER OF
THEM HAS OR HAVE MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL
BY  JURY  OR  IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT.  EACH BORROWER AND THE
LENDER  EACH FURTHER ACKNOWLEDGES THAT EACH OF THEM HAS BEEN REPRESENTED (OR HAS
HAD  THE  OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS AGREEMENT AND IN
THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED BY ITS OWN FREE
WILL,  AND  THAT  EACH  BORROWER  AND THE LENDER EACH HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL.  EACH BORROWER AND THE LENDER EACH AGREES THAT
THE  OBLIGATIONS EVIDENCED BY THIS AGREEMENT ARE EXEMPTED TRANSACTIONS UNDER THE
TRUTH-IN-LENDING  ACT  9  15 U.S.C. SECTION 1061, ET SEQ.  EACH BORROWER AND THE
LENDER EACH FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING OF
THIS  WAIVER  PROVISION.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>
IN  WITNESS  WHEREOF,  the  parties  hereto,  by  their  officers thereunto duly
authorized, have executed this Agreement under seal as of the day and year first
above  written.

     BORROWER:
ATTEST/WITNESS:     COLONIAL  DOWNS,  L.P.,  a  Virginia
     limited  partnership

     By:     Stansley  Racing  Corp.,  a  Virginia
          corporation
     Its:     General  Partner

______________________________          By:          ________________________
                                   Name:     Ian  M.  Stewart
                                   Title:          President

BORROWER:
ATTEST/WITNESS:               COLONIAL  HOLDINGS,  INC.,
          a  Virginia  corporation

______________________________     By:          ____________________________
          Name:     Ian  M.  Stewart
          Title:          President

LENDER:
ATTEST/WITNESS:               CD  ENTERTAINMENT  LTD.,  an  Ohio
     limited  liability  company

By:     Jacobs  Entertainment,  Ltd.,  its
     Managing  Member

                                   By:     ___________________________
Name:                                   Jeffrey  P.  Jacobs,  President

<PAGE>
                                   SCHEDULE I

                                 LOAN DOCUMENTS
                                 --------------

1.     CONSTRUCTION  LOAN  AGREEMENT,  by  and  between  Colonial  Downs,  L.P.
       -----------------------------
("Borrower")  and  PNC  Bank, National Association ("PNC"), dated June 26, 1997;
       -

2.     DEED  OF  TRUST NOTE, in the amount of $10,000,000.00 made by Borrower in
       --------------------
favor  of  PNC,  dated  June  26,  1997;

3.     REVOLVING  LINE  OF  CREDIT  AGREEMENT,  by and between Borrower and PNC,
       --------------------------------------
dated  June  26,  1997;

4.     REVOLVING CREDIT NOTE, in the amount of $5,000,000.00 made by Borrower in
       ---------------------
favor  of  PNC,  dated  June  26,  1997;

5.     DEED  OF  TRUST  AND SECURITY AGREEMENT, from Borrower and Colonial Downs
       ---------------------------------------
Holdings,  Inc.  ("Holdings")  to Lawyers Title Realty Services, Inc. as Trustee
for  the  benefit  of  PNC,  filed  for  record  on  July  31,  1997;

6.     ASSIGNMENT  OF  RENTS  AND  LEASES,  made by Borrower in favor of PNC and
       ----------------------------------
filed  July  31,  1997;

7.     AGREEMENT OF GUARANTY AND SURETYSHIP (PAYMENT), made by Richard E. Jacobs
       ----------------------------------------------
for  the  benefit  of  PNC;

8.     AGREEMENT OF GUARANTY AND SURETYSHIP (PAYMENT), made by Jeffrey P. Jacobs
       ----------------------------------------------
for  the  benefit  of  PNC;

9.     AGREEMENT  OF GUARANTY AND SURETYSHIP (PAYMENT), made by Holdings for the
       -----------------------------------------------
benefit  of  PNC;

10.     AGREEMENT  OF GUARANTY AND SURETYSHIP (PAYMENT), made by Stansley Racing
        -----------------------------------------------
Corp.  ("Stansley")  for  the  benefit  of  PNC;

11.     AGREEMENT  OF  GUARANTY  AND SURETYSHIP (COMPLETION), made by Richard E.
        ----------------------------------------------------
Jacobs  for  the  benefit  of  PNC;

12.     AGREEMENT  OF  GUARANTY  AND SURETYSHIP (COMPLETION), made by Jeffrey P.
        ----------------------------------------------------
Jacobs  for  the  benefit  of  PNC;

13.     AGREEMENT  OF GUARANTY AND SURETYSHIP (COMPLETION), made by Holdings for
        --------------------------------------------------
the  benefit  of  PNC;

14.     AGREEMENT  OF GUARANTY AND SURETYSHIP (COMPLETION), made by Stansley for
        --------------------------------------------------
the  benefit  of  PNC;

15.     ASSIGNMENT  OF  CONSTRUCTION  AND  DEVELOPMENT DOCUMENTS, by and between
        --------------------------------------------------------
Borrower  and  PNC;

16.     ASSIGNMENT  OF  MANAGEMENT  AGREEMENT, by and between Borrower, Stansley
        -------------------------------------
and  PNC;

17.     ASSIGNMENT  OF  DEVELOPMENT  AGREEMENT, by and between Borrower and PNC;
        --------------------------------------

18.     PLEDGE  AGREEMENT,  between  Holdings  and  PNC;
        -----------------

19.     PLEDGE  AGREEMENT,  between  Stansley  and  PNC;
        -----------------

20.     UCC-1  FINANCING  STATEMENTS,  filed  with:
        ----------------------------

     (a)     Virginia  State  Corporation  Commission,  dated July 31, 1997; and

     (b)     New  Kent  County  Circuit  Court,  dated  July  31,  1997;

21.     HAZARDOUS  MATERIALS  CERTIFICATE  AND  INDEMNITY  AGREEMENT,  made  by
        ------------------------------------------------------------
Borrower,  Holdings,  Richard  E.  Jacobs and Jeffrey P. Jacobs in favor of PNC;

22.     SUBORDINATION  AGREEMENT,  (Second Deed of Trust to Ground Lease), among
        ------------------------
Chesapeake  Forest  Products  Company,  Delmarva Properties, Inc., Lawyers Title
realty  Services,  Inc.  and  PNC.

<PAGE>
                                     ------
                                   SCHEDULE II

                           NAMES, ADDRESSES, TELEPHONE
                        AND TELECOPIER NUMBERS OF PARTIES
                        ---------------------------------

Colonial  Downs,  L.P.
10515  Colonial  Downs  Parkway
New  Kent,  Virginia  23124
Telephone:  (804)  966-7223
Telecopier:  (804)  966-1567
Attn:  Ian  M.  Stewart

Colonial  Holdings,  Inc.
10515  Colonial  Downs  Parkway
New  Kent,  Virginia  23124
Telephone:     (804)  966-7223
Telecopier:     (804)  966-1567
Attn:  Ian  M.  Stewart,  President

with  copies  to:
----------------

James  L.  Weinberg,  Esquire
Hirschler,  Fleischer,  Weinberg
Cox  &  Allen
P.O.  Box  500
701  East  Byrd  Street
Richmond,  Virginia  23219

                                       and

Lender:

CD  Entertainment  Ltd.
c/o  Jacobs  Entertainment,  Inc.
425  West  Lakeside  Avenue,  Suite  601
Cleveland  OH  44113
Attn:  Jeffrey  P.  Jacobs,  President
Telephone:  (216)  861-4080
Telecopier:  (216)  861-6315

<PAGE>
------
With  a  copy:
--------------

Stephen  P.  Owendoff,  Esquire
Hahn  Loeser  Parks  LLP
3300  BP  America  Building
200  Public  Square
Cleveland,  Ohio  44114-2301

<PAGE>
                                  SCHEDULE III

                                  EXCLUDED DEBT
                                  -------------

1.     Reconciliation of simulcast horse racing par-mutuel pools made monthly to
settle  obligations  arising  in  the  normal  course  of  business  through the
Borrower's  "hubbing"  arrangements.  A  "hub"  coordinates  the  broadcast  of
simulcast  horse  races  from sending and receiving racetracks; the placement of
wagers  on such broadcasts; the setting of pari-mutuel odds based on such wages,
and  the  pay  out  of  winning  wagers.

2.     Any  liabilities  of  the  Borrower  for horsemen purses or contributions
thereto  to  the  extent the Borrower has funded such liabilities by deposits to
the  appropriate  accounts  pursuant  to  agreements  with  the  horsemen.

3.     Monthly  management  fee  payable  to  the  Maryland  Jockey  Club in the
ordinary  course  of business pursuant to a Management and Consulting Agreement,
dated  as  of  April  22,  1996,  by  and  among  Colonial Downs, L.P., Stansley
Management  Corp.,  Stansley Racing Corp., and Maryland-Virginia Racing Circuit,
Inc.  (an  affiliate  of  the  Maryland  Jockey  Club).

4.     Promissory Note, dated January 15, 1999, payable to the Maryland-Virginia
Racing  Circuit,  Inc.,  in  the  original  principal  amount  of  $1,450,000.

5.     Performance  bonds  for deposits to the thoroughbred and harness horsemen
purse  accounts.

<PAGE>
                                   SCHEDULE IV

                               EXCLUDED EQUIPMENT
                               ------------------

ITEM          QUANTITY
----          --------

Window  Washing  Equipment     1
Security  Camera  System
Tram  Pullers     3
Timing  Systems  (Infield  Only)
Finish  Line  Lighting
Starting  Gates      2
Harness  Gates
Mid-size  Tractors     3
Large  Tractors     3
Trash  Dumpsters
Manure  Bins  (10  x  10)  Concrete     30
Copy  Machines
Fax  Machines
Medical  Waste  Dumpster
Mutuel  Line  Office  Camera  System     10
Horse  Walkers

Tote  equipment  to be leased from Auto Tote or other nationally recognized tote
equipment  manufacturer.

Computer  equipment  to  be  used  in  connection  with  the  operation  of  the
racetrack's  pari-mutuel  operations.

Television  and  satellite  dishes  used  for  export  and  import broadcasts of
simulcast  horse  races.

Lighting  used  to  illuminate  the  racetrack  surfaces  for  night  racing.

Point  of  sale  cash  registers  for  food  and  beverage  operations.

Office  furniture  for  corporate  headquarters.

<PAGE>
                                    EXHIBIT A

                                 REFINANCED DEBT
                                 ---------------

Convertible  subordinated  note  payable to CD Entertainment, maturing September
2000,  with  interest  payable quarterly at a rate of 7.25%, collateralized by a
second  deed  of  trust  on  the  Racetrack

      $  5,500,000

Convertible subordinated note payable to CD Entertainment, maturing August 2000,
with  an  interest  rate  of  8.5%,
collateralized  by  a  deed  of  trust  on  the  Hampton  Racing  Center
      $  1,000,000

Note payable to CD Entertainment, bearing interest at the prime rate, payable in
two  equal  installments  during  the  years  2000  and  2001

      $   900,000

Note  payable  to  CD Entertainment, maturing August 2001, with monthly interest
payment  at the Lender's cost of funds plus one-half percent (approximately 8.7%
at  March  31,  2000)

                  $    300,000

Note payable to CD Entertainment, maturing September 2001, with monthly interest
payment  at the Lender's cost of funds plus one-half percent (approximately 8.7%
at  March  31,  2000)

                  $    475,000

Letter  of  Credit  to  CD  Entertainment,  maturing  September,  2000
$  1,875,000

TOTAL                  $10,050,000

<PAGE>
                                    EXHIBIT B

                         REQUIRED DELIVERIES AT CLOSING
                         ------------------------------

1.     An  opinion  or  opinions of counsel acceptable to Lender and its counsel
(including local counsel), to be delivered on the Closing Date in form and scope
satisfactory to Lender, to the effect (in addition to other matters which Lender
may  require  to  be  favorably  addressed) that (i) Borrower is duly organized,
validly  existing  and  in  good  standing  under  the  laws  of  the respective
jurisdictions of their formation; (ii) Borrower is duly qualified to do business
in the jurisdiction in which the Land is located, and Borrower has all requisite
power  and  authority  to  operate  the  Project  and to enter into, perform and
consummate  all  aspects  of the transactions contemplated hereby; (iii) neither
the  making  of the Loan nor the realization on Lender's collateral for the Loan
in  the  jurisdiction  in which the Land is located is deemed to be the doing of
business  by  Lender in such jurisdiction; (iv) the Loans and the making thereof
are  not  subject  to any state or local taxes; (v) all Loan Documents and other
documents to be executed by or on behalf of Borrower have been duly executed and
are  valid  and binding upon and enforceable against the Borrowers in accordance
with  the  respective  terms  of  each,  except  as  the  same may be limited by
bankruptcy,  insolvency  and  similar  laws  affecting  the  rights of creditors
generally;  (vi)     there  is no action, proceeding or investigation pending or
to the knowledge of counsel threatened (or any basis therefore known to counsel)
which questions the validity of the Loan or the transactions contemplated hereby
or the ability of Borrower or from performing their respective obligations under
the  Loan  Documents;  and  (vii)  the  performance  of  and compliance with the
provisions  hereof and the other documents referred to herein will not result in
or  be in conflict with or constitute a default under any agreement, instrument,
document, decree, order of which counsel is aware or any federal, state or local
law,  statute,  rule,  regulation  or  ordinance applicable to or affecting each
Borrower.

2.     Copies  of  the  articles of incorporation, bylaws and resolutions of the
Corporation  and such articles, bylaws and resolutions to be certified as of the
Closing  Date  by  the  Secretary  of  the  Borrower;

3.     Good  standing certificates (to the extent available with respect to such
entity)  of  a  recent  date  of  each Borrower and Stansley Racing Corporation;

4.     A  certificate,  to  be dated as of the Closing Date, of the identity and
incumbency  of  officers  of  each  Borrower.

5.     The  delivery  and recording, as applicable of the executed Loan Document
as  follows,  to  the  reasonable  satisfaction  of  the  Lender:
          (a)     Agreement;
          (b)     Notes;  and
          (c)     Amendment  to  Second  Deed  of  Trust.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]