Document:

Exhibit 10.18

                              FLAG LUXURY RIV, LLC
                         650 Madison Avenue, 15th Floor
                               New York, NY 10022

                                                                  April 26, 2007

Via Facsimile and Hand Delivery

Riviera Holdings Corporation
2901 Las Vegas Boulevard South
Las Vegas, Nevada  89109
Attention:  Corporate Secretary
            General Counsel

CC: Gordon & Silver, Ltd.
3960 Howard Hughes Parkway
9th Floor
Las Vegas, Nevada  89169
Attention: Richard Galin

      Re:   Stockholders' Notice of Intent to Nominate Persons for Election as
            Directors of Riviera Holdings Corporation (the "Corporation")

Ladies and Gentlemen:

            Flag Luxury Riv, LLC ("Flag"), Rivacq LLC ("Rivacq") and RH1, LLC
("RH1") hereby submit this notice (this "Notice") to nominate for election as
directors of the Corporation the following persons (each, a "Nominee" and
collectively, the "Nominees") at the 2007 annual meeting of stockholders of the
Corporation (the "Annual Meeting"):

            Michael D. Rumbolz
            Larry duBoef
            W. Dan Reichartz
            Thalia M. Dondero
            Daniel W. Yih

            Flag's record address is 650 Madison Avenue, New York, NY 10022.
Flag is the beneficial owner of 418,294 shares of common stock, par value $0.001
per share (each, a "Share"), of the Corporation. Flag has been the beneficial
owner of 200,000 of such Shares since January 6, 2006, and has been the
beneficial owner of 218,294 of such Shares since August 4, 2006. Attached hereto
as Annex A are true and correct copies of stock certificates evidencing Flag's
beneficial ownership of such Shares.

            Rivacq's record address is 591 West Putnam Avenue, Greenwich, CT
06830. Rivacq is the record and beneficial owner of 627,442 Shares. Rivacq has
been the beneficial owner of 300,000 of such Shares since January 6, 2006, and
has been the beneficial owner of 327,442 of such Shares since August 4, 2006.
Attached hereto as Annex B are true and correct copies of stock certificates
evidencing Rivacq's beneficial ownership of such Shares.

            RH1's record address is c/o Torino Companies, 4445 Wagon Trail
Avenue, Las Vegas, NV 89118. RH1 is the beneficial owner of 418,294 Shares. RH1
has been the beneficial owner of 200,000 of such Shares since January 6, 2006
(and became the record owner of such 200,000 Shares on May 16, 2006), and has
been the beneficial owner of 218,294 of such Shares since August 4, 2006.
Attached hereto as Annex C are true and correct copies of stock certificates
evidencing RH1's beneficial ownership of such Shares.

            Each of Flag, Rivacq and RH1 hereby represents that it: (i) is a
record and beneficial owner of Shares entitled to vote at the Annual Meeting;
(ii) intends to deliver a proxy statement and/or form of proxy to holders of at
least the percentage of Shares required to elect the Nominees and/or otherwise
solicit proxies from stockholders of the Corporation in support of its
nomination of the Nominees; and (iii) intends to appear in person or by proxy at
the Annual Meeting to nominate for election as directors of the Corporation the
Nominees.

            If, for any reason, any Nominee is unable to stand for election at
the Annual Meeting, Flag, Rivacq and RH1 intend to nominate a person in the
place of such Nominee (a "Substitute"). In such event, at the earliest
practicable time, Flag, Rivacq and RH1 will give notice to the Corporation of
any Substitute.

            Certain information concerning the background, experience and
qualifications of the Nominees is set forth in Annex D attached hereto.

            The written consent of each Nominee to be named in the proxy
statement as a nominee and to serve as a director of the Corporation if elected
is attached hereto as Annex E.

            The Annexes and all attachments thereto are hereby incorporated into
and made a part of this Notice. Accordingly, all matters disclosed in any part
of this Notice, including the Annexes and all attachments thereto, should be
deemed disclosed for all purposes of this Notice. All upper case terms appearing
in the Annexes and all attachments thereto that are not defined in such Annexes
and attachments shall have the meanings given in the body of this Notice or the
Annexes, as applicable.

            Certain of the information set forth in this Notice has been
provided in accordance with the Corporation's Governance Policies (the
"Policies"). Neither the delivery of this Notice nor any delivery by Flag,
Rivacq or RH1 of additional information to the Corporation from and after the
date hereof shall be deemed to constitute an admission by Flag, Rivacq or RH1 or
any of their respective affiliates that such delivery is required or as to the
legality or enforceability of the Policies or any other matter, or a waiver by
Flag, Rivacq or RH1 or any of their respective affiliates of their right to
contest or challenge, in any way, the enforceability of the Policies or any
other matter.

            If you have any questions or issues with respect to this Notice or
the information contained herein, please immediately contact our proxy solicitor
at Innisfree M&A Incorporated, Alan Miller, at (212) 750-5833 so that we may
provide clarification.

<PAGE>

                              Very truly yours,

                              FLAG LUXURY RIV, LLC

                                 By: /s/ Paul Kanavos
                                    --------------------------------------------
                                     Name: Paul Kanavos
                                     Title: President

<PAGE>

                              RH1, LLC

                                 By: Metro Investment, LLC
                                     Its sole member

                                       By: FC208, LLC
                                           Member

                                          By: TTERB Living Trust dated 6/20/2000
                                              Its sole member

                                            By: /s/ Brett Torino
                                               ---------------------------------
                                               Brett Torino
                                               Title: Trustee

<PAGE>

                              RIVACQ LLC

                                 By: SOF U.S. Hotel Co-Invest Holdings, L.L.C.

                                       By: SOF-VII  U.S. Hotel Holdings, L.L.C.

                                          By: /s/ Barry S. Sternlicht
                                             -----------------------------------
                                             Name: Barry S. Sternlicht
                                             Title: Chief Executive Officer

                                       By: I-1/I-2 U.S. Holdings, L.L.C.

                                          By: /s/ Barry S. Sternlicht
                                             -----------------------------------
                                             Name: Barry S. Sternlicht

<PAGE>

                                                                         ANNEX D
                                                                    Attachment 1

Information about Nominee
-------------------------

(a)   Name: Michael D. Rumbolz

      Age:  53

      Business address: 7350 Dean Martin Dr. Suite 309 Las Vegas, Nevada 89139

(b)   Qualifications: Mr. Rumbolz is Chairman and Chief Executive Officer of
      Cash Systems, Inc. ("CSI"), a Nasdaq-listed provider of cash access
      services to the casino industry, and has held this position since
      January 2005. Mr. Rumbolz is also owner and Managing Director of Acme
      Gaming LLC ("Acme"), a consulting company formed in 2000 to provide
      development, merger, acquisition, strategic planning, legal, compliance
      and other services to businesses involved in the gaming industry.
      Throughout his career, Mr. Rumbolz has held various positions with
      prominent gaming companies, including Vice Chairman of the board of
      directors of Casino Data Systems Inc. from May 2000 to July 2001;
      President and Chief Executive Officer of Anchor Gaming from June 1995
      to March 2000; and Director of Corporate Development for Circus Circus
      Enterprises, Inc. (later renamed Mandalay Resort Group) from late 1992
      until June 1995. Mr. Rumbolz was a member of the Nevada State Gaming
      Control Board from 1985 to 1988 and served as Chairman and Executive
      Director of the Control Board from June 1987 through December 1988.
      From 1983 to 1985, Mr. Rumbolz served as Chief Deputy Attorney General
      for Southern Nevada.

(c)   Principal occupation or employment: See (E)(iii) below.

(d)   Class and number of shares of the Corporation that are owned beneficially
      or of record by Mr. Rumbolz or his associates (as defined in Rule 12b-2 of
      the General Rules and Regulations Under the Securities Exchange Act of
      1934, as amended): None.

(e)   Other Information relating to Nominee:

    (i)   Mr. Rumbolz has not purchased or sold any securities of the
      Corporation within the past two years. Mr. Rumbolz does not beneficially
      own any securities of any parent or subsidiary of the Corporation. Mr.
      Rumbolz is not, and within the past year was not, a party to any contract,
      arrangement or understanding, with any person with respect to any
      securities of the Corporation, and Mr. Rumbolz has not pledged any shares
      of the Corporation's stock as collateral for a loan. Mr. Rumbolz has not
      failed to file on a timely basis any transactions in securities of the
      Corporation that were required to be reported to the Securities and
      Exchange Commission on Forms 3, 4 or 5.

    (ii)  Mr. Rumbolz has no position or office with the Corporation. Flag,
      Rivacq and RH1 have agreed to indemnify Mr. Rumbolz against all
      liabilities, costs and expenses (including reasonable legal fees and
      expenses) incurred by Mr. Rumbolz in connection with any threatened,
      pending or completed claim, demand, action, suit or proceeding to which
      Mr. Rumbolz is a party or threatened to be made a party by reason of Mr.
      Rumbolz' nomination for election as a director of the Corporation, except
      for such liabilities, costs and expenses arising from Mr. Rumbolz' fraud,
      gross negligence or willful misconduct. Neither Mr. Rumbolz nor any of his
      associates has any arrangements or understandings with any person with
      respect to any future employment by the Corporation or its affiliates. Mr.
      Rumbolz has no other arrangements or understandings with any person
      pursuant to which he was selected to be a nominee. Mr. Rumbolz has, in his
      capacity as Chief Executive Officer and beneficial owner of 2.4% of CSI's
      stock, an ongoing subcontract with Ditronics Financial Services to provide
      cash advance services to the Corporation. The approximate dollar value of
      the amount involved in this transaction is $170,000 annually. The
      approximate dollar value of Mr. Rumbolz's interest in the transaction is
      $4,080 annually. The Corporation indirectly received $204,000 in
      commissions from CSI in 2006 as a result of this transaction.

    (iii) Since January 1, 2005, Mr. Rumbolz's principal occupation has been as
      Chairman and Chief Executive Officer of CSI. CSI's principal business is
      cash access services to the casino industry, and its principal place of
      business is 7350 Dean Martin Drive, Suite 309, Las Vegas, Nevada 89139. In
      addition, since April 10, 2000, Mr. Rumbolz has been the owner and
      Managing Director of Acme. Acme's principal business is providing
      development, merger, acquisition, strategic planning, legal, compliance
      and other consulting services to businesses involved in the gaming
      industry, and its principal place of business is 2300 Green Mountain
      Court, Las Vegas, NV 89135. Mr. Rumbolz serves as a member of the board of
      directors of Employers Holdings Inc. ("EIH"), which is listed on the New
      York Stock Exchange, and is a member of both the Compensation Committee
      and the Executive Committee of EIH's board of directors. Mr. Rumbolz is
      also Chairman of the Finance Committee of EIH's board of directors. In
      addition, Mr. Rumbolz is Chairman of the board of directors of CSI.

      None of the entities referred to under this item (E)(iii) with which Mr.
      Rumbolz has been involved during the past five years is a parent,
      subsidiary, or other affiliate of the Corporation.

(f)   Independence: If elected to the Corporation's board of directors, Mr.
      Rumbolz would be deemed independent pursuant to the requirements included
      in the American Stock Exchange Company Guide.

<PAGE>

                                                                         ANNEX D
                                                                    Attachment 2

Information about Nominee
-------------------------

(a)   Name: Larry duBoef

      Age:  71

      Business address: 5 Coventry, Newport Beach, California  92660

(b)   Qualifications: Mr. duBoef is a past President of the American Cancer
      Society. From 1964 to 1985 and from 1990 to 1994, Mr. duBoef was
      President of Western Linen Rental Company ("WLRC"), a leading provider
      of room, kitchen and dining linens and uniforms to hotels and other
      businesses in Las Vegas. From 1985 to 1990, Mr. duBoef was President
      and a key developer of the Unicom radio station group ("Unicom"), which
      owned and operated several radio stations in the Western United States,
      including in Las Vegas. Mr. duBoef has served as a consultant for the
      Taj Mahal Casino in Atlantic City and for Aztar Corp.

(c)   Principal occupation or employment: See (E)(iii) below.

(d)   Class and number of shares of the Corporation that are owned beneficially
      or of record by Mr. duBoef or his associates (as defined in Rule 12b-2 of
      the General Rules and Regulations Under the Securities Exchange Act of
      1934, as amended): None.

(e)   Other Information relating to Nominee:

    (i)   Mr. duBoef has not purchased or sold any securities of the
      Corporation within the past two years. Mr. duBoef does not beneficially
      own any securities of any parent or subsidiary of the Corporation. Mr.
      duBoef is not, and within the past year was not, a party to any contract,
      arrangement or understanding with any person with respect to any
      securities of the Corporation, and Mr. duBoef has not pledged any shares
      of the Corporation's stock as collateral for a loan. Mr. duBoef has not
      failed to file on a timely basis any transactions in securities of the
      Corporation that were required to be reported to the Securities and
      Exchange Commission on Forms 3, 4 or 5.

    (ii)  Mr. duBoef has no position or office with the Corporation. Flag,
      Rivacq and RH1 have agreed to indemnify Mr. duBoef against all
      liabilities, costs and expenses (including reasonable legal fees and
      expenses) incurred by Mr. duBoef in connection with any threatened,
      pending or completed claim, demand, action, suit or proceeding to which
      Mr. duBoef is a party or threatened to be made a party by reason of Mr.
      duBoef's nomination for election as a director of the Corporation, except
      for such liabilities, costs and expenses arising from Mr. duBoef's fraud,
      gross negligence or willful misconduct. Mr. duBoef has no other
      arrangements or understandings with any person pursuant to which he was
      selected to be a nominee. Neither Mr. duBoef nor any of his associates has
      any arrangements or understandings with any person with respect to (A) any
      future employment by the Corporation or its affiliates or (B) any future
      transactions to which the Corporation or any of its affiliates will or may
      be a party.

    (iii) For the past five years, Mr. duBoef's principal occupation has been
      the oversight of his personal real estate interests. Mr. duBoef serves as
      a director for WLRC. WLRC is a privately held company whose principal
      business is the provision of room, kitchen and dining linens and uniforms
      to hotels and other businesses in Las Vegas. Mr. duBoef also serves as a
      director for Unicom. Unicom is a privately held company whose principal
      business is ownership and operation of radio stations in the Western
      United States.

      Neither of the entities referred to under this item (E)(iii) with which
      Mr. duBoef has been involved during the past five years is a parent,
      subsidiary, or other affiliate of the Corporation.

(f)   Independence: If elected to the Corporation's board of directors, Mr.
      duBoef would be deemed independent pursuant to the requirements included
      in the American Stock Exchange Company Guide.

<PAGE>

                                                                         ANNEX D
                                                                    Attachment 3

Information about Nominee
-------------------------

(a)   Name: W. Dan Reichartz

      Age:  60

      Business address: Post Office Box 777027, Henderson, Nevada  89077

(b)   Qualifications: Mr. Reichartz is the general partner of DR&DR, Limited
      Partnership ("DR&DR"), a private firm that provides strategic planning,
      concept and design development, marketing and management services to
      the gaming, hotel and resort industry. From 1986 to 1996, Mr. Reichartz
      was President and Chief Operating Officer of Caesars Palace Hotel and
      Casino, Las Vegas. From 1984 to 1986, Mr. Reichartz was Vice-President
      and General Manager of The Waldorf-Astoria Hotel in New York. From 1976
      to 1984, Mr. Reichartz occupied various positions, including President
      and Treasurer, with Virginia Hot Springs, Inc., operator of The
      Homestead in Hot Springs, Virginia and other resort locations.

(c)   Principal occupation or employment: See (E)(iii) below.

(d)   Class and number of shares of the Corporation that are owned beneficially
      or of record by Mr. Reichartz or his associates (as defined in Rule 12b-2
      of the General Rules and Regulations Under the Securities Exchange Act of
      1934, as amended): None.

(e)   Other Information relating to Nominee:

    (i)   Mr. Reichartz has not purchased or sold any securities of the
      Corporation within the past two years. Mr. Reichartz does not beneficially
      own any securities of any parent or subsidiary of the Corporation. Mr.
      Reichartz is not, and within the past year was not, a party to any
      contract, arrangement or understanding with any person with respect to any
      securities of the Corporation, and Mr. Reichartz has not pledged any
      shares of the Corporation's stock as collateral for a loan. Mr. Reichartz
      has not failed to file on a timely basis any transactions in securities of
      the Corporation that were required to be reported to the Securities and
      Exchange Commission on Forms 3, 4 or 5.

    (ii)  Mr. Reichartz has no position or office with the Corporation. Flag,
      Rivacq and RH1 have agreed to indemnify Mr. Reichartz against all
      liabilities, costs and expenses (including reasonable legal fees and
      expenses) incurred by Mr. Reichartz in connection with any threatened,
      pending or completed claim, demand, action, suit or proceeding to which
      Mr. Reichartz is a party or threatened to be made a party by reason of Mr.
      Reichartz' nomination for election as a director of the Corporation,
      except for such liabilities, costs and expenses arising from Mr.
      Reichartz' fraud, gross negligence or willful misconduct. Mr. Reichartz
      has no other arrangements or understandings with any person pursuant to
      which he was selected to be a nominee. Neither Mr. Reichartz nor any of
      his associates has any arrangements or understandings with any person with
      respect to (A) any future employment by the Corporation or its affiliates
      or (B) any future transactions to which the Corporation or any of its
      affiliates will or may be a party. Notwithstanding the foregoing, Mr.
      Reichartz' son is employed by Expedia, Inc., a NASDQ-listed provider of
      on-line reservation services to hotels. Expedia, Inc. may provide such
      services to the Corporation.

    (iii) Mr. Reichartz' principal occupation is general partner of DR&DR.
      DR&DR's principal business is the provision of strategic planning, concept
      and design development, marketing and management services to the gaming,
      hotel and resort industry, and its principal address is 18 Castle Oaks
      Court, Las Vegas, Nevada, 89141.

      None of the entities referred to under this item (E)(iii) with which Mr.
      Reichartz has been involved during the past five years is a parent,
      subsidiary, or other affiliate of the Corporation.

(f)   Independence: If elected to the Corporation's board of directors, Mr.
      Reichartz would be deemed independent pursuant to the requirements
      included in the American Stock Exchange Company Guide.

<PAGE>

                                                                         ANNEX D
                                                                    Attachment 4

Information about Nominee
-------------------------

(a)   Name: Thalia M. Dondero

      Age:  86

      Business address: 2931 Pinehurst Dr., Las Vegas, Nevada  89109

(b)   Qualifications: Ms. Dondero has served on the Board of Regents of the
      Nevada System of Higher Education ("BOR") since 1996, and has served
      two terms as Chair and one term as Vice Chair of the BOR. Ms. Dondero
      serves on numerous committees at The University of Nevada, Las Vegas
      ("UNLV") and is Chair of UNLV's Investment Committee. Prior to her
      tenure at the BOR, Ms. Dondero served 20 years with the Clark County
      Commission, including three terms as Chair and one term as Vice Chair.
      Ms. Dondero also currently serves on the Board of Trustees of Summerlin
      Hospital and the Resource Advisory Council of the Nevada Bureau of Land
      Management. Ms. Dondero has also served as Chair of the Clark County
      Liquor and Gaming Licensing Board.

(c)   Principal occupation or employment: See (E)(iii) below.

(d)   Class and number of shares of the Corporation that are owned beneficially
      or of record by Ms. Dondero or her associates (as defined in Rule 12b-2 of
      the General Rules and Regulations Under the Securities Exchange Act of
      1934, as amended): None.

(e)   Other Information relating to Nominee:

    (i)   Ms. Dondero has not purchased or sold any securities of the
      Corporation within the past two years. Ms. Dondero does not beneficially
      own any securities of any parent or subsidiary of the Corporation. Ms.
      Dondero is not, and within the past year was not, a party to any contract,
      arrangement or understanding with any person with respect to any
      securities of the Corporation, and Ms. Dondero has not pledged any shares
      of the Corporation's stock as collateral for a loan. Ms. Dondero has not
      failed to file on a timely basis any transactions in securities of the
      Corporation that were required to be reported to the Securities and
      Exchange Commission on Forms 3, 4 or 5.

    (ii)  Ms. Dondero has no position or office with the Corporation. Flag,
      Rivacq and RH1 have agreed to indemnify Ms. Dondero against all
      liabilities, costs and expenses (including reasonable legal fees and
      expenses) incurred by Ms. Dondero in connection with any threatened,
      pending or completed claim, demand, action, suit or proceeding to which
      Ms. Dondero is a party or threatened to be made a party by reason of Ms.
      Dondero's nomination for election as a director of the Corporation, except
      for such liabilities, costs and expenses arising from Ms. Dondero's fraud,
      gross negligence or willful misconduct. Ms. Dondero has no other
      arrangements or understandings with any person pursuant to which he was
      selected to be a nominee. Neither Ms. Dondero nor any of her associates
      has any arrangements or understandings with any person with respect to (A)
      any future employment by the Corporation or its affiliates or (B) any
      future transactions to which the Corporation or any of its affiliates will
      or may be a party.

    (iii) For the past five years, Ms. Dondero's principal occupation is holding
      elected office to the BOR. The BOR's principal business is to set policies
      and approve budgets for Nevada's public system of higher education, and
      its principal business address is 5550 W. Flamingo Road, Suite C-1, Las
      Vegas, Nevada 89103.

      The entity referred to under this item (E)(iii) with which Ms. Dondero has
      been involved during the past five years is not a parent, subsidiary, or
      other affiliate of the Corporation.

(f)   Independence: If elected to the Corporation's board of directors, Ms.
      Dondero would be deemed independent pursuant to the requirements included
      in the American Stock Exchange Company Guide.

<PAGE>

                                                                         ANNEX D
                                                                    Attachment 5

Information about Nominee
-------------------------

(a)   Name: Daniel Yih

      Age:  48 until April 28, 2007, after which 49

      Business address: 700 Ardsley Rd., Winnetka, Illinois  60093

(b)   Qualifications: Mr. Yih is a portfolio principal and Chief Operating
      Officer of GTCR Golder Rauner, LLC ("GTCR"), a private equity firm, and
      held this position since September 2000. Mr. Yih intends to resign from
      his position with GTCR at the end of April 2007. From June 1995 until
      March 2000, Mr. Yih was a general partner of Chilmark Partners, L.P., a
      private equity firm. Mr. Yih has served on the board of directors of
      Starwood Hotels & Resorts Worldwide, Inc. ("HOT"), one of the world's
      leading hotel operators, since August 1995.

(c)   Principal occupation or employment: See (E)(iii) below.

(d)   Class and number of shares of the Corporation that are owned
      beneficially or of record by Nominee or his associates (as defined in
      Rule 12b-2 of the General Rules and Regulations Under the Securities
      Exchange Act of 1934, as amended): Mr. Yih is the beneficial owner of
      9,400 Shares held in brokerage accounts in his name. Mr. Yih is not the
      holder of record of any securities of the Corporation that he does not
      beneficially own. Other than the holdings described in this item (d),
      neither Mr. Yih nor any of his associates beneficially owns any
      securities of the Corporation.

(e)   Other Information relating to Nominee:

    (i)   On December 28, 2005, Mr. Yih bought 4,400 Shares. On March 22, 2006,
      Mr. Yih bought 5,000 Shares. Mr. Yih does not beneficially own any
      securities of any parent or subsidiary of the Corporation. Mr. Yih is not,
      and within the past year was not, a party to any contract, arrangement or
      understanding with any person with respect to any securities of the
      Corporation, and Mr. Yih has not pledged any shares of the Corporation's
      stock as collateral for a loan. Mr. Yih has not failed to file on a timely
      basis any transactions in securities of the Corporation that were required
      to be reported to the Securities and Exchange Commission on Forms 3, 4 or
      5.

    (ii)  Mr. Yih has no position or office with the Corporation. Flag Luxury
      Riv, LLC, Rivacq LLC and RH1, LLC have agreed to indemnify Mr. Yih against
      all liabilities, costs and expenses (including reasonable legal fees and
      expenses) incurred by Mr. Yih in connection with any threatened, pending
      or completed claim, demand, action, suit or proceeding to which Mr. Yih is
      a party or threatened to be made a party by reason of Mr. Yih's nomination
      for election as a director of the Corporation, except for such
      liabilities, costs and expenses arising from Mr. Yih's fraud, gross
      negligence or willful misconduct. Mr. Yih has no other arrangements or
      understandings with any person pursuant to which he was selected to be a
      nominee. Neither Mr. Yih nor any of his associates has any arrangements or
      understandings with any person with respect to (A) any future employment
      by the Corporation or its affiliates or (B) any future transactions to
      which the Corporation or any of its affiliates will or may be a party.

    (iii) From September 2000 through April 2007, Mr. Yih's principal occupation
      was Chief Operating Officer of GTCR. GTCR's principal business is private
      equity investment and the management of its investment holdings. The
      principal business address of GTCR is 6100 Sears Tower, Chicago, Illinois
      60606. Commencing May 1, 2007, Mr. Yih's principal occupation will be as a
      private investor. Since August, 1995, Mr. Yih has served on the board of
      directors of HOT, which is listed on the New York Stock Exchange and is
      one of the world's leading hotel operators. Mr. Yih also serves as a
      financial expert on the Audit Committee of HOT's board of directors. Mr.
      Yih currently provides consulting services to Starwood Capital Group (an
      entity controlled by Barry Sternlict) on a no-fee basis, and Starwood
      Capital Group has agreed to reimburse Mr. Yih for out-of-pocket expenses
      incurred by Mr. Yih while providing such services.

      None of the entities referred to under this item (E)(iii) with which Mr.
      Yih has been involved during the past five years is a parent, subsidiary,
      or other affiliate of the Corporation.

(f)   Independence: If elected to the Corporation's board of directors, Mr. Yih
      would be deemed independent pursuant to the requirements included in the
      American Stock Exchange Company Guide.Exhibit 10.19

                              FLAG LUXURY RIV, LLC
                         650 Madison Avenue, 15th Floor
                               New York, NY 10022

                                                                  April 26, 2007

Via Facsimile and Hand Delivery

Riviera Holdings Corporation
2901 Las Vegas Boulevard South
Las Vegas, Nevada  89109
Attention: Corporate Secretary
           General Counsel

CC: Gordon & Silver, Ltd.
3960 Howard Hughes Parkway
9th Floor
Las Vegas, Nevada  89169
Attention: Richard Galin

      Re:   Inspection of Stocklist Materials

Ladies and Gentlemen:

      Flag Luxury Riv, LLC ("Flag") hereby makes demand described herein of
Riviera Holdings Corporation (the "Corporation"). Flag's record address is 650
Madison Avenue, New York, NY 10022. Flag is the record and beneficial owner of
418,294 shares of common stock, par value $0.01 per share, of the Corporation
(the "Shares"). Attached hereto as Annex A are true and correct copies of stock
certificates evidencing Flag's record and beneficial ownership of the Shares. As
a stockholder of the Corporation, Flag hereby demands, pursuant to Section
78.105 of the Nevada Revised Statutes and the common law of the State of Nevada,
the right to inspect, through their authorized representatives, no later than
May 3, 2007, during normal business hours, the following documents and records
of the Corporation, and to make copies or abstracts therefrom. As used herein,
"stock" shall refer to any class or series of stock of the Corporation entitled
to vote at the Corporation's 2007 Annual Meeting of Stockholders (the "Annual
Meeting"), and "stockholders" shall refer to all persons who own shares of any
class or series of stock of the Corporation entitled to vote at the Annual
Meeting:

      (a) A complete record or list of the Corporation's stockholders, certified
by the Corporation or its transfer agent, showing the names and addresses of
each stockholder and the number of shares of stock registered in the name of
each such stockholder, as well as the names, addresses and share amounts held by
participants in dividend reinvestment plans and/or employee plans, in each case
as of the record date for the 2007 Annual Meeting of stockholders (the "Record
Date");

      (b) A magnetic computer tape or cartridge containing the list of the
holders of the Corporation's stock requested in paragraph (a) above as of the
Record Date, showing the names, addresses and number of shares held by such
stockholders, such computer processing data as is necessary for Flag to make use
of such magnetic computer tape or cartridge, and a printout of such magnetic
computer tape or cartridge for verification purposes;

      (c) All daily transfer sheets showing changes in the names, addresses and
number of shares of the Corporation's stockholders which are in or come into the
possession of the Corporation or its transfer agent, or which can reasonably be
obtained from brokers, dealers, banks, clearing agencies or voting trustees or
their nominees, from the date of the stockholder list referred to above to the
conclusion of the next meeting of stockholders of the Corporation;

      (d) All information in or which comes into the Corporation's possession,
or which can reasonably be obtained from brokers, dealers, banks, clearing
agencies or voting trustees or their nominees concerning the names, addresses
and number of shares held by the participating brokers and banks named in the
individual nominee names of Cede & Co. or other similar nominees, including
respondent bank lists;

      (e) All information in or which comes into the Corporation's possession or
control, or which can reasonably be obtained from brokers, dealers, banks,
clearing agencies, voting trustees or other nominees relating to the names of
the beneficial owners of the Corporation's stock ("NOBOs") pursuant to Rule
14b-1(c) or Rule 14b-2(c) under the Securities Exchange Act of 1934, as amended,
in the format of a printout in descending order balance. If such information is
not in the Corporation's possession, custody or control, such information should
be requested from the ADP Investor Communications Services;

      (f) All lists and computer tapes, processing data and printouts described
in (b) above, containing the name, address and number of shares of the
Corporation's stock attributable to any participant in any employee stock
ownership plan, employee stock purchase plan, or other employee compensation or
benefit plan of the Corporation in which the decision whether to vote shares of
Common Stock held by such plan is made, directly or indirectly, individually or
collectively, by the participants in the plan and the method(s) by which Flag or
its agents may communicate with each such participant;

      (g) A stop list or stop lists relating to any shares of stock of the
Corporation and any additions or deletions from the date of the list referred to
in paragraph (a) above;

      (h) A list of all stockholders owning 1,000 or more shares of Corporation
stock arranged in descending order as to each class or series as of the most
recent date available;

      (i) All omnibus proxies and related respondent bank proxies and listings
issued pursuant to Rule 14b-2 under the Securities Exchange Act of 1934, as
amended, which are now or hereafter in the Corporation's possession or control,
or which can reasonable be obtained by the Corporation; and

      (j) The information and records specified in the foregoing paragraphs
should be as of the Record Date and any other alternative record date for
stockholder action set by the Corporation's board of directors, by operation of
law or otherwise for the Annual Meeting.

      Flag further demands that modifications, additions or deletions to any and
all information referred to in paragraphs (a) through (j) above be immediately
furnished to Flag as such modifications, additions or deletions become available
to the Corporation or its agents or representatives.

      Flag will bear the reasonable costs incurred by the Corporation in
connection with the production of the above information.

      Attached hereto as Annex B is the sworn affidavit of Mitchell Nelson,
Secretary of Flag, stating that the inspection of the information described
above is not desired for a purpose which is in the interest of a business or
object other than the business of the Corporation and that Flag has not at any
time sold or offered for sale any list of stockholders of any domestic or
foreign corporation or aided or abetted any person in procuring any such record
of stockholders for any such purpose.

      The purpose of this demand is to enable Flag to communicate with other
stockholders of the Corporation concerning solicitation of proxies from such
stockholders to vote their shares at the Annual Meeting.

      Please advise Flag's proxy solicitor at Innisfree M&A Incorporated, Alan
Miller, at (212) 750-5833, as promptly as practicable when and where the items
demanded above will be made available to Flag. Please also advise Mr. Miller
immediately whether you voluntarily will supply the requested information.

                                        Very truly yours,

                                        FLAG LUXURY RIV, LLC

                                        By: /s/ Paul Kanavos
                                           -------------------------------------
                                           Name: Paul Kanavos
                                           Title: President

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