Document:

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                                                            EXHIBIT 10.53

                              AMENDED AND RESTATED
               EXCURSION BOAT SPONSORSHIP AND OPERATIONS AGREEMENT

         THIS AGREEMENT (this "Agreement") is entered into this ____ day of
___________________, 1999, by and between Iowa West Racing Association
(hereinafter referred to as "Iowa West"), an Iowa nonprofit corporation, and
Harveys Iowa Management Company, Inc. (hereinafter referred to as "Harveys"), a
Nevada corporation qualified to do business in Iowa.

                                   WITNESSETH

         WHEREAS, on or about August 22, 1994, Iowa West and Harveys entered
into that certain Excursion Boat Sponsorship and Operations Agreement (the
"Sponsorship Agreement"); and

         WHEREAS, Paragraph 14(e) of the Sponsorship Agreement requires that any
amendment or supplementation of the Sponsorship Agreement would only be
effective if it was in writing between the parties thereto; and

         WHEREAS, the parties do now wish to amend and restate the
Sponsorship Agreement as hereinafter set forth;

         NOW THEREFORE in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, receipt whereof is
hereby acknowledged, it is hereby mutually understood and agreed as follows:

         1.       LICENSE APPLICATION.

                  Iowa West shall, each year, or as otherwise required, promptly
apply to the Iowa Racing and Gaming Commission (the "Commission") pursuant to
Chapter 99F as a sponsor for a license to conduct gambling games. Harveys will
promptly, each year, or as otherwise required, apply to the Commission for a
license to operate an excursion gambling boat under Chapter 99F.

         2.       CONDITIONS PRECEDENT TO SPONSORSHIP AND OPERATIONS
                  AGREEMENT.

                  This Agreement shall be effective only upon approval of this
Agreement, and any amendments thereto, by the Commission.

         3.       NON-ASSIGNABILITY OF LICENSES.

                  Neither party may assign any of its rights, duties or
obligations under any license issued by the Commission without the prior
approval of the Commission.

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         4.       LICENSE AGREEMENT AND OPERATION FEE.

                  (a) Harveys shall pay to Iowa West an operation fee equal to
3.69 percent of the Adjusted Gross Gaming Receipts generated by the excursion
gambling boat during the term of this Agreement and any extension. Such
operation fee shall be paid monthly, on or before the 10th day of the month
following the month in which such operation fee was generated. As used herein,
the term "Adjusted Gross Gaming Receipts shall have that same meaning as set
forth in Iowa Code Section 99F.1(1).

                  (b) Harveys shall be solely responsible for the payment of all
admission fees owing to the state and local governments under Sections99F.10 of
the Iowa Code, including admission fees relating to passengers with
complimentary passes. The parties agree that the fees set forth above are the
only sums to which Iowa West is entitled under this Agreement; all such fees
paid to Iowa West are deemed and agreed to be subject to the restrictions
imposed by Sections 99F.6(4) of the Iowa Code.

                  (c) Harveys shall pay to the Commission all the wagering taxes
imposed by Section 99F.11 of the Iowa Code.

                  (d) Harveys shall indemnify and hold Iowa West harmless from
any and all claims relating to all sums due for admission fees owing to any
government entity under Sections99F.10 of the Iowa Code; including all income or
excise taxes owed to the United States or any state government, and all wagering
taxes owing to the State of Iowa under Section 99F.11 of the Iowa Code.

         5.   LICENSE APPLICATION FEES.

              Each party hereto shall be responsible for their own license
application fees and expenses resulting from this Agreement, and any application
fee required hereunder, including DCI investigation fees, attorneys fees in
connection with this Agreement, and the license applications to the Commission
contemplated hereby.

         6.   TERM OF THE AGREEMENT.

                  (a)   This Agreement shall become effective  at 12:01 A.M. on
the 1st day following both Commission approval and the close of escrow pursuant
to the Purchase Agreement between Iowa West and HBR Realty Company, Inc., and
shall terminate at 11:59 p.m. on December 31, 2010, unless extended pursuant to
6(b), below.

                  (b)   Provided that Harveys is not in default of this
Agreement, Harveys shall have the option to extend the term of this Agreement
for five (5) succeeding three (3) year terms, provided Harveys shall give
written notice of its desire to exercise each

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such option, which notice shall be delivered to Iowa West on or before 180 days
prior to December 31 in the year in which each such option expires. If Harveys
desires to exercise such option, all the terms and conditions of this Agreement
shall be applicable to such extended term.

         7.       HOLD HARMLESS AND INSURANCE REQUIREMENTS.

                  During the term of this Agreement, Harveys shall indemnify,
defend and hold harmless Iowa West, its officers, directors, employees, and
agents, from and against any and all liabilities, obligations, claims, damages,
causes of action, cost and expenses imposed upon, incurred by, or asserted
against them by reason of all operations, whether insurable or not, and any
accident, injury to or death of persons, or loss of or damage to property
occurring on the excursion gambling boat. Harveys further covenants and agrees
that it will at its own expense procure comprehensive public liability insurance
insuring both Harveys and Iowa West in an amount not less than $5,000,000.00
single limit. Said liability insurance policy shall apply with respect to all
insurable operations and functions of the excursion gambling boat. A copy of
policies of insurance protecting the interests of Iowa West shall be forwarded
directly to Iowa West.

         8.       NON-EXCLUSIVITY.

                  It is understood that Iowa West may enter into other
sponsorship agreements and in that event Iowa West agrees that the terms of such
agreements shall be at least as favorable to Iowa West as the terms set forth
herein and at least as onerous to the other operators as the terms set forth
herein. Iowa West agrees to provide a copy of such agreements to Harveys for
their review at least three (3) business days prior to execution. Harveys agrees
to review such agreements only with respect to compliance with this paragraph
and to consider all information contained therein as confidential. If, however,
the Commission determines that the Pottawattamie County area is able to support
only one excursion boat operator in addition to Bluffs Run Greyhound Park, Iowa
West agrees that Harveys will be the excursion boat operator Iowa West supports
and sponsors.

         9.       ASSIGNABILITY.

                  (a)   Iowa West shall not have the right, power or authority
to assign all or any portion of this Agreement or its rights hereunder or to
delegate any duties or obligations arising under this Agreement voluntarily,
involuntarily or by operation of law, without Harveys prior written consent.

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                  (b)    Harveys shall have the right, power and authority to
assign all or any portion of this Agreement or its rights hereunder or to
delegate any duties or obligations arising under this Agreement, voluntarily,
involuntarily, or by operation of law, and without Iowa West's consent subject
only to Commission or other governmental approval, if required.

                  (c)    Notwithstanding anything herein to the contrary, both
parties hereto expressly acknowledge that Iowa West may form a single purpose
subsidiary in which to receive fees derived under this and other excursion boat
sponsorship agreements.

         10.      AMENDMENT.

                  This Agreement may be amended or modified at any time, but
only by a writing signed by both parties and, if required, approved
by the Iowa Racing and Gaming Commission.

         11.      GOVERNING LAW.

                  This Agreement shall be governed by the laws of the State of
Iowa and the rules and regulations of the Commission, and each party shall be
responsible for its own compliance with all laws of the State of Iowa and the
rules of the Commission.

         12.      REPORTS, ACCOUNTING AND AUDITING.

                  (a)    Iowa West and Harveys shall prepare and file all
reports, including financial reports, as required of each such party,
respectively by Iowa law and rules and regulations of the Commission. In
addition, each party shall keep such books and records and have audits performed
as required of them, respectively, by Iowa law and the Commission. Each party
shall be responsible for providing at its own expense all audit and accounting
services for any reports and audits required by the Commission.

                  (b)    Each party agrees that the Commission and the other
party to this Agreement shall have the right to audit each parties records to
the extent necessary to provide verification of compliance under this Agreement.
In the event the Commission or either party determines that a party is not in
compliance with the terms of this Agreement, then in addition to all other
remedies provided for by law, each party shall have the right to specifically
enforce the terms and provisions of this Agreement.

         13.      DEFAULT.

                  The occurrence of any one or more of the following events
shall constitute a default by a party hereunder:

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                  (a)    Failure of the party to perform or comply with any of
the duties and obligations imposed upon said party under the terms of this
Agreement.

                  (b)    The suspension or revocation of the party's license
under Chapter 99F of the Iowa Code by the State of Iowa or the Commission.

                  (c)    The party's adjudication as a bankrupt or as insolvent,
or the appointment of a receiver or an assignment for the benefit of the
creditors by or on behalf of either party.

                  (d)    Liquidation or dissolution of the party, which
liquidation or dissolution is not caused by the other party.

If one of the foregoing acts of default occurs and is not remedied by the
defaulting party within thirty (30) days after the giving of written notice by
the non-defaulting party of said default, then the non-defaulting party shall
have all legal and equitable rights and remedies provided at law, including
termination of this Agreement, specific performance, or injunctive relief. The
remedies of the non-defaulting party shall be cumulative, and the exercise of
any one or more remedies provided at law shall not be construed as a waiver of
any other remedies. Further, no course of dealing between the parties or failure
on the part of a non-defaulting party to exercise any right or remedy shall
operate as a waiver of such right to claim a default in the future.

         14.      MISCELLANEOUS PROVISIONS.

                  (a) NOTICES. All notices, requests, demands and other
communications hereunder shall be deemed to have been given if delivered in
person or if sent by certified mail postage prepaid, or by telecopy, or by
Federal Express (or other reputable overnight delivery service) to the other
party at the following addresses:

         To Iowa West:                  Iowa West Racing Association
                                        2701 23rd Avenue
                                        P.O. Box 1562
                                        Council Bluffs, IA 51502-1562
                                        Telephone: 712-325-3133
                                        Telecopy:  712-322-2267

         with duplicate to:             James A. Campbell
                                        Peters Law Firm, P.C.
                                        233 Pearl Street
                                        P.O. Box 1078
                                        Council Bluffs, IA  51502-1078
                                        Telephone: 712-328-3157
                                        Telecopy:  712-328-9092

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         To Harveys:                    Harveys Iowa Management Company,
                                        Inc.
                                        c/o Harveys Casino Resorts
                                        Attention:  Charles W. Scharer,
                                        President
                                        P.O. Box 128
                                        Lake Tahoe, NV  89449
                                        Telephone: 775-586-6756
                                        Telecopy:  775-586-6852

         with duplicate to:             Scarpello & Alling, Ltd.
                                        Attention: Ronald D. Alling
                                        276 Kingsbury Grade, Suite 2000
                                        P.O. Box 3390
                                        Lake Tahoe, NV  89449-3390
                                        Telephone: 775-588-6676
                                        Telecopy:  775-588-4970

or to such other address or such other Person as the addressee party shall have
last designated by notice to the other parties. All Notices shall be deemed to
have been given when received. All Notices given by telecopy shall be followed
by the delivery of a hard copy of such Notice, provided that such Notice shall
be deemed to have been given when received by telecopy.

                  (b) DISPUTE. In the event a dispute arises between the parties
hereto, the parties agree to utilize appropriate alternative dispute resolution
procedures, including but not limited to arbitration. The prevailing party shall
be entitled to recover its reasonable attorney's fees and court costs, if any,
incurred in connection with such dispute.

                  (c) RELATIONSHIP OF PARTIES. Nothing in this Agreement shall
be construed to create a partnership between the parties, a relationship of
employer and employee between the parties, or a relationship of principal and
agent between the parties.

                  (d) SUCCESSORS AND ASSIGNS. This Agreement and all of the
obligations, duties and rights of the parties hereunder shall inure to and be
binding upon the heirs, successors and assigns of the parties to the extent that
assignment is permitted under Paragraph 9 above.

                  (e) COMPLETE AGREEMENT. This Agreement embodies the entire
operating agreement between the parties and may be amended or supplemented only
by an instrument in writing executed by the parties against whom the enforcement
is sought. In addition to the acts and deeds recited in this agreement and
contemplated herein, the parties hereto shall execute any and all additional
agreements as may be necessary to consummate the transactions contemplated by
this agreement and to fulfill the intentions of this agreement.

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                  (f) WARRANTIES SURVIVE.  All representations, warranties, and
indemnities set forth in this agreement shall survive the execution hereof.

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

                  (h) TIME IS OF THE ESSENCE. Time is of the essence of this
agreement and each and every provision contained herein.

                  (i) CONSTRUCTION. This Agreement shall be construed to comply
with all applicable Iowa laws, Commission rules and regulations relating to the
excursion boat gambling, and may be amended from time to time in order to comply
with such laws, Commission rules and regulations.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK -
                            TEXT CONTINUES ON PAGE 8]

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                  (j) HEADINGS. Paragraph headings herein are for reference
purposes only.

         IN WITNESS WHEREOF, these parties do execute this Agreement as of the
date first above noted at Council Bluffs, Iowa.

IOWA WEST RACING ASSOCIATION

By: /s/ Lynn G. Grobe
   -------------------------------------
         LYNN G. GROBE, Vice-President

By: /s/ Joseph D. Lehan
   -------------------------------------
         JOSEPH D. LEHAN ,Secretary

HARVEYS IOWA MANAGEMENT COMPANY, INC.

By: /s/ Charles W. Scharer
   -------------------------------------
         CHARLES W. SCHARER, President

By: /s/ John J. McLaughlin
   -------------------------------------
         JOHN J. MCLAUGHLIN, Secretary

                                        8<PAGE>

                                                        EXHIBIT 10.54

                              MANAGEMENT AGREEMENT

                                 by and between

                       HARVEYS BR MANAGEMENT COMPANY, INC.
                              a Nevada corporation,

                                       and

                      IOWA WEST RACING ASSOCIATION, an Iowa
                             nonprofit corporation.

                            DATED October 6, 1999

<PAGE>

                              MANAGEMENT AGREEMENT

         THIS MANAGEMENT AGREEMENT (this "Agreement") is made and entered into
on this 6th day of October, 1999 by and between Iowa West Racing
Association, an Iowa nonprofit corporation ("Iowa West") and Harveys BR
Management Company, Inc., a Nevada corporation ("HBRMC").

                                    RECITALS

         WHEREAS, Iowa West is licensed by the Iowa State Racing and Gaming
Commission ("IRGC") to conduct a greyhound racing facility with pari-mutuel
wagering and to operate gambling games therein (said pari-mutuel racetrack
facility and casino operation located in Council Bluffs, Iowa and commonly known
as Bluffs Run Casino is referred to hereinafter as the "Facility"); and

         WHEREAS, HBRMC is a wholly owned subsidiary of Harveys Casino Resorts,
a Nevada corporation, an experienced owner/operator and manager of hotels and
casinos in various gaming jurisdictions; and

         WHEREAS, HBR Realty Company, Inc. ("HBRRC") is a wholly owned
subsidiary and real estate holding company of Harveys Casino Resorts and is an
affiliate of HBRMC; and

         WHEREAS, HBRRC has, pursuant to that certain Purchase and Sale
Agreement and Joint Escrow Instructions dated _____________, 1999 (the "Purchase
Agreement"), acquired certain of Iowa West's operating assets, including, but
not limited to, the Facility, the underlying land, parking areas, buildings,
facility structures, furniture, fixtures and equipment (excluding gaming
equipment) and working capital related to the Facility (the "Assets"); and

         WHEREAS, pursuant to the terms of that certain Lease as of the date
hereof (the "Lease") HBRRC has leased the Facility and the other Assets to Iowa
West for operation thereof under its licenses with IRGC; and

         WHEREAS, Iowa West desires to contract with HBRMC for management of the
Facility and the gaming operations conducted thereon, including, without
limitation, pari- mutuel wagering on live or simulcast greyhound or horse
racing, slot machines and any and all other wagering-related entertainment
conducted or at any time permitted to be conducted at the Facility (the "Gaming
Operations"), in accordance with the terms and conditions of this Agreement and
in conformance with IRGC regulations and all other applicable ordinances,
regulations, requirements, standards or laws of any federal, state, county or
municipal body (collectively "Laws")

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         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, it is understood and agreed between Iowa West and HBRMC as
follows:

         1.       MANAGEMENT SERVICES TO BE PERFORMED:

                  Iowa West hereby appoints and engages HBRMC as manager and
operator of the Facility and the Gaming Operations and grants HBRMC the
exclusive authority to manage, control, and operate the same on behalf of Iowa
West subject to the terms and conditions of this Agreement and HBRMC agrees and
accepts such engagement, to perform the following services for Iowa West:

                  Iowa West authorizes HBRMC to exclusively perform, and HBRMC
agrees to perform, at HBRMC's sole cost and expense, all management functions
and to make all management decisions necessary or appropriate, in HBRMC's sole
and absolute discretion, for the operation of the Facility and the Gaming
Operations in conformance with applicable governmental laws, ordinances and
regulations, and the terms of Iowa West's licenses granted by the IRGC necessary
for the continued operation of the Facility and the Gaming Operations (the
"Licenses"), and in accordance with the terms and conditions of this Agreement.

                  Said functions and decisions shall include, without
limitation:

                  a.       Financial management of the Facility and Gaming
                           Operations, including, without limitation,
                           maintenance of the books of account and records on a
                           daily, monthly and annual basis in accordance with
                           accepted accounting procedures and practices;
                           preparation of financial statements; development of
                           appropriate budgets for development, marketing,
                           maintenance and operation of the Facility and Gaming
                           Operations; establishment and management of
                           appropriate operating and reserve accounts; and
                           payment of all applicable taxes and preparation of
                           all returns necessary in connection therewith;

                  b.       Negotiation and execution of contracts in the name
                           of HBRMC or HBRRC for the operation of the Facility
                           and the Gaming Operations (other than those contracts
                           which by law or by their terms must be in the name of
                           Iowa West as holder of the Licenses or contracts
                           which remain in the name of Iowa West pursuant to
                           Paragraph 6.1.10 of the Purchase Agreement which
                           contracts may be in the name of Iowa West),
                           including, without limitation, asset acquisition and
                           financing thereof, agreements and arrangements with
                           concessionaires, licensees, tenants, suppliers,
                           subcontractors or other intended users of the
                           Facility, janitorial, garbage removal, security, food
                           service, insurance, legal and accounting services,
                           and other related operational services;

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                  c.       Advertising and promotion of the Facility and Gaming
                           Operations;

                  d.       Preparing, with the aid and assistance of Iowa West,
                           any and allreports to the IRGC as may be required by
                           the rules and regulations of the IRGC;

                  e.       Selecting, hiring, terminating, supervising and
                           establishing salary, compensation and benefits for a
                           general manager for the Facility and for all other
                           employees and personnel necessary for the operation
                           of the Facility and Gaming Operations. All personnel
                           shall be employed by HBRMC and not by Iowa West and
                           HBRMC shall have absolute discretion in hiring,
                           supervising, directing, discharging and determining
                           the compensation, benefits and terms of employment of
                           such personnel;

                  f.       Making or causing to be made all necessary repairs,
                           replacements, corrections and maintenance to the
                           Facility and Assets and as shall be required to
                           comply with all Laws;

                  g.       Taking such reasonable actions as may be necessary
                           to comply with any and all Laws, affecting the
                           Facility or the Gaming Operation or with any other
                           authority having jurisdiction thereover, including
                           the IRGC (hereinafter, "Governmental Authorities");

                  h.       Procuring and maintaining property, casualty and
                           liability insurance in amounts and coverages as will
                           be sufficient in light of the operations contemplated
                           at the Facility but in no event less than that
                           necessary to conform to reasonable industry standards
                           for similar businesses or operations; naming Iowa
                           West as a named insured on all policies of liability
                           insurance so maintained.

                  i.       Contract and pay for auditing services necessary to
                           maintain the Licenses of Iowa West for the Bluffs
                           Run Casino and to pay for all licensing fees due to
                           the State of Iowa for such Licenses. (collectively
                           "Auditing and License Fees").

                  j.       Doing all other things necessary or desirable for
                           the day to day administration, management,
                           maintenance and operation of the Facility and the
                           Gaming Operations.

         2.       MUTUAL COVENANTS AND DUTIES.

                  The parties agree to utilize their mutual best efforts for the
financial success

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of the Facility and the Gaming Operations and for the continuation of the
Licenses.

                  Iowa West covenants and agrees that it shall, during the term
of this Agreement, take all necessary actions and use its best efforts to retain
the Licenses. Iowa West further covenants and agrees, during the term of this
Agreement, to use its reasonable best efforts to (i) promote gaming activities
in Pottawattamie County, Iowa, including, without limitation, dog racing,
land-based casinos and river boat casinos, (ii) preserve and advance the
relationship between Iowa West and each of the City of Council Bluffs, the
County of Pottawattamie, the State of Iowa and all Governmental Authorities, and
(iii) support any measures in support of the foregoing as reasonably requested
by HBRMC, including, without limitation, any law, referendum or bill that may
affect the operation of the Facility or the Gaming Operations.

                  HBRMC covenants and agrees to use its best efforts to support
and promote the continuation of greyhound racing in the State of Iowa and to
reasonably cooperate with Iowa West in connection with same.

                  In addition to the actions recited herein and contemplated to
be performed, executed and/or delivered by HBRMC and Iowa West, each party
hereto agrees to perform, execute and/or deliver or cause to be performed,
executed and or delivered any and all such further acts, instruments and
assurances as may be reasonably required to effectuate the transactions
contemplated hereby, including, without limitation, providing any information
requested by the IRGC or any of its duly authorized representatives.

         3.       MANAGEMENT FEE.

                  During the term hereof Iowa West shall receive the first Five
Million Dollars ($5,000,000.00) in Cash Flow, as defined hereinbelow, (the
"Initial Payment"), and after payment thereof, HBRMC shall be paid a management
fee ("Management Fee") equal to eighty percent (80%) of the Cash Flow. The
parties agree that HBRMC shall have no recourse against Iowa West or any
property of Iowa West, other than the Operating Account (as hereinafter
defined), for payment of the Management Fee.

                  "Cash Flow" as used herein, means, for any period, all
revenues and income of any kind, directly or indirectly derived from use or
operation of the Facility and Gaming Operations, including, without
limitation, pari-mutuel commissions, simulcast income, Gaming Operations
wins, parking and admissions, merchandise sales, food, beverage, and
entertainment income, rentals or other payments from lessees, sublessees and
concessionaires and the proceeds of the sale of any Gaming Equipment, as
defined herein, LESS all costs and expenses with respect to the Facility and
Gaming Operations, including, without limitation, the Initial Payment and
"Tenant's Retained Amounts" (as defined in the Lease) purses, pari-mutuel
taxes and fees, all Audit and License Fees, gaming taxes and fees,
complimentary items, departmental operating expenses, selling, general and
administrative expenses,

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expenditures for purchasing, leasing and maintaining Gaming Equipment
(including, without limitation contracts which may be in the name of Iowa
West as permitted hereunder), auditing expenses, greyhound adoption costs,
and property taxes but excluding depreciation, amortization, and Iowa West's
administrative expenses and charitable contributions. Cash Flow shall be
determined on the accrual basis of accounting in accordance with generally
accepted accounting principles.

                  The Management Fee shall be calculated and paid to HBRMC on a
weekly basis and in arrears, commencing on the first (1st) day of the second
(2nd) full week of the term of this Agreement. At the end of each fiscal year,
the actual Cash Flow of the Facility shall be reconciled with the weekly Cash
Flow by the certified public accountants then serving the Facility and, if
necessary, an adjusting payment or refund shall be made. Such fees shall be
cumulative and shall not abate until paid to HBRMC.

                  Iowa West acknowledges that the Management Fee provided for
herein reflects the premium paid by HBRMC to acquire the Assets of Iowa West
pursuant to the Purchase Agreement and the amounts received thereunder. Said
premium and amounts affect the share of Cash Flow to Iowa West in this Agreement
and the lease payments under the Lease. The parties hereto further agree that
Iowa West shall have no obligation to provide any funds for the operation of the
Facility and the Gaming Operations other than revenues and income derived during
the term of this Agreement from the use or operation of the Facility and Gaming
Operations. To the extent that such revenue in any period is insufficient to pay
the costs and expenses of operation of the Facility and the Gaming Operations,
HBRRC shall advance funds for such costs and expenses. Repayment of such
advances shall be made from Cash Flow. All expenses incurred in the operation of
the Facility and Gaming Operations shall be deemed expenses and obligations of
HBRMC and not of Iowa West.

                  Notwithstanding anything contrary contained in this Agreement,
all funds collected by HBRMC for the account of Iowa West shall be deposited in
an operating account ("Operating Account") at an FDIC insured bank located in
Council Bluffs, Iowa, or Omaha, Nebraska. All funds collected by HBRMC for the
account of Iowa West shall be used by HBRMC and held in the Operating Account to
pay the Management Fee and operating expenses of the Facility as provided
herein. Funds may be withdrawn or disbursed from the Operating Account only upon
the signature of HBRMC, as agent for Iowa West.

         4.       TERM.

                  This Agreement shall commence as of the date hereof and
continue thereafter for a period of twenty-five (25) years (the "Initial
Period"), unless earlier terminated as provided herein.

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<PAGE>

                  This Agreement shall automatically renew, on the same terms
and conditions, for successive terms equal to the Initial Period unless HBRMC
shall give Iowa West written notice of its intention not to so renew not less
than thirty (30) days prior to the expiration of the then current term.

         5.       ADVISORY COMMITTEE.

                  Iowa West and HBRMC shall create an advisory committee
("Advisory Committee") for the purpose of advising Iowa West and HBRMC with
respect to policies and general oversight of the Gaming Operations at the
Facility. HBRMC shall first appoint certain of its representatives to the
Advisory Committee and Iowa West shall then appoint an equal number of its
representatives, subject to HBRMC's reasonable right of approval. The Advisory
Committee shall appoint a chair who shall preside at all meetings (to be held in
Council Bluffs, Iowa, or such other location as the members of the Advisory
Committee shall select) and a secretary who shall keep a written record of all
meetings of the Committee. Matters for consideration by the Committee may be
introduced by either party hereto and the chairperson shall thereupon establish
a meeting or other method for dialogue to be taken within Fifteen (15) business
days after having received the notice of the matter to be considered. All
matters so considered along with all budgets, plans or other documents of any
type revealed to the Advisory Committee shall be considered and treated as
confidential information and each party agrees not to reveal, disclose or allow
to be revealed or disclosed any such confidential information obtained from the
other party to any third party. Disclosure of such information shall not be
prohibited if such information is or becomes a matter of public record or public
knowledge or is otherwise required to be disclosed by government authority or by
court order.

                  It is understood and agreed that any action on the part of the
Advisory Committee is advisory only and that no official action may be taken,
and no recommendation of the Advisory Committee shall be binding, unless it is
adopted by the respective parties as to matters within their respective province
as set forth in this Agreement. Matters which the Advisory Committee may address
include, but are not limited to, the review of capital and operating budgets,
long and short term business plans, licensing issues, and resolution of disputes
between the parties.

                  HBRMC shall prepare and submit to the Advisory Committee a
proposed annual operating and capital expenditures budget by the end of its
fiscal year. The Advisory Committee shall meet and review the budget as soon
as practicable after receipt. Iowa West shall serve in an consulting role as
to the advisability of any such budgets for the operation of the Facility and
the Gaming Operations.

         6.       GAMING EQUIPMENT

                                      6
<PAGE>

                  All slot machines and gaming equipment for which Licenses are
required, including any replacement parts, repairs, additions, substitutions,
and accessories thereto (plus the disposition price of said property sold but
not replaced to the extent such disposition price was not included in Cash Flow)
(the "Gaming Equipment") in place at the date of commencement of this Agreement
or acquired during the term of this Agreement, shall be owned by Iowa West for
all purposes. During the term of this Agreement, HBRMC, in its sole discretion,
to the extent permitted by applicable law, may acquire for the benefit of Iowa
West, by purchase lease or otherwise, additional Gaming Equipment as it sees
fit. Iowa West agrees to cooperate in the purchase of any Gaming Equipment
provided for in the capital expenditure budget of the Facility. The costs of any
such Gaming Equipment shall be a deduction from Cash Flow as set forth in
Section 3 hereof. Any financing obtained by HBRMC with respect to additional
Gaming Equipment or any lease of such Gaming Equipment, shall be without
recourse to Iowa West, except for any security interest that may be created in
such Gaming Equipment.

                  Upon termination of this Agreement at any time and for
whatever reason, Iowa West agrees to pay HBRMC the then fair market value of all
Gaming Equipment in use at the Facility as of the date hereof, as determined by
a mutually selected "Manufacturer," as defined in Section 99F.1(13) of the Iowa
Code from time to time.

                  Iowa West agrees to permit HBRMC to maintain all Gaming
Equipment in good condition and repair and HBRMC shall so maintain such Gaming
Equipment; keep it insured against al1 risks of loss or damage; and keep it free
of all liens, security interests or other encumbrances whatsoever, except that
arising from financing that may be arranged by HBRMC.

         7.       DEFAULT; BREACH; REMEDIES:

                  7.1 DEFAULT; BREACH. A "Default" is defined as a failure by
Iowa West, HBRMC or HBRRC to keep, observe or perform any covenant, agreement,
term or provision of this Agreement, the Purchase Agreement or the Lease,
including without limitation, the failure by Iowa West to take all necessary
actions and use all good faith efforts to retain its Licenses . A "Breach" is
defined as the occurrence of a Default and the failure by Iowa West, HBRMC, or
HBRRC, as the case may be, to cure such Default prior to expiration of the
applicable grace period, if any.

                  7.2 BREACH BY IOWA WEST, HBRMC OR HBRRC. A Default by Iowa
West as to the material covenants, agreements, terms, or provisions of this
Agreement, the Purchase Agreement or the Lease to be observed, complied with or
performed by Iowa West, where such Default continues for a period of thirty (30)
days after Iowa West's receipt of written notice thereof by or on behalf of
HBRMC, shall constitute a Breach of this Agreement, the Purchase Agreement and
the Lease; provided, however, if the nature of the Default is such

                                      7
<PAGE>

that more than thirty (30) days are reasonably required for its cure, then
Iowa West shall not be deemed to be in Breach of this Agreement, the Purchase
Agreement or the Lease if Iowa West commences such cure within said thirty
(30) day period and thereafter diligently pursues the cure thereof, and
provided further that failure to pay the Management Fee under this Agreement
or the Rental or other amounts due under the Lease shall not constitute a
Default under this Agreement unless such failure is due to the wrongful
interference by Iowa West with the ability of HBRMC to withdraw funds from
the Operating Account.

                  A Default by HBRMC or by HBRRC as to material covenants,
agreements, terms or provisions of this Agreement, the Purchase Agreement or the
Lease to be observed, complied with or performed by HBRMC or HBRRC, as
applicable, where such Default continues for a period of thirty (30) days after
HBRMC's or HBRRC's, as applicable, receipt of written notice thereof by or on
behalf of Iowa West shall constitute a Breach of this Agreement, the Purchase
Agreement and the Lease; provided, however, if the nature of the Default is such
that more than thirty (30) days are reasonably required for its cure, then HBRMC
or HBRRC, as applicable, shall not be deemed to be in Breach of this Agreement,
the Purchase Agreement or the Lease if HBRMC or HBRRC, as applicable, commences
such cure within said thirty (30) day period and thereafter diligently pursues
the cure thereof.

                  7.3 INJUNCTIVE RELIEF. As long as existing or similar
restrictions are contained in the law of Iowa as are now contained in Section
99F.4A(2) of the Iowa Code, Iowa West acknowledges it is essential that it
maintain its existence and the Licenses, and its failure to do so may result in
irreparable injury and substantial economic damage to HBRMC, and should Iowa
West reasonably appear to HBRMC to cease its activities or threaten to terminate
its existence, it is agreed that unless such action by Iowa West is due to
actions of HBRMC or HBRRC, including, without limitation, any Breach of this
Agreement, the Lease or the Purchase Agreement by HBRMC or HBRRC. HBRMC shall be
entitled to immediately commence legal proceedings and be entitled to injunctive
relief both PENDENTE LITE and permanently without the requirement of the posting
of a bond since HBRMC's remedy at law would be inadequate or insufficient.

                  7.4 CURE OF DEFAULT. In the event HBRRC or HBRMC fails or
refuses to pay when due any tax or assessment relating to the Facility or to the
Gaming Operations that are to be paid by HBRRC or HBRMC on behalf of Iowa West,
except when being protested in good faith by HBRRC or HBRMC in a good manner
that will not jeopardize the Licenses , then Iowa West may pay the same, and the
amount so paid by Iowa West shall be immediately reimbursed by HBRMC.

                  7.5 NON-RECOURSE Except in the event of fraud or intentional
misconduct on the part of Iowa West (in which case this Section 7.5 shall not
apply to Iowa West), neither Iowa West nor its partners (general or limited),
shareholders, directors, officers, successors or assigns shall have any personal
liability, responsibility or obligation for the performance of any obligation of
Iowa West hereunder and HBRMC agrees that in no event shall any

                                      8
<PAGE>

monetary judgments for such Breach or Default be sought or secured against
any of the foregoing.

                      Except in the event of fraud or intentional misconduct
on the part of HBRMC, HBRMC's parents, affiliates, shareholders, successors
or assigns shall have no personal liability, responsibility or obligation for
the performance of any obligation of HBRMC hereunder and Iowa West agrees
that in no event shall any monetary judgments for such Breach or Default be
sought or secured against any of the foregoing.

                  7.6 CHANGE IN LAW. In the event that Iowa West is unable to
maintain the Licenses to conduct Gaming Operations due to the failure of the
voter referendum in the year 2002, or due to a change in the laws of the State
of Iowa or the laws of the United States, this Agreement shall terminate as of
such date, and the parties shall be relieved of further obligations hereunder.
In such event, HBRMC shall distribute the funds in the Operating Account first
to pay all expenses of operation of the Facility and Gaming Operations
(excluding any Rent or Management Fees), then to any amounts owed Iowa West
under this Agreement, the Lease and the Purchase Agreement, then to payment of
the Rent and Management Fees.

         8.       INDEMNIFICATION

                  HBRMC shall indemnify, defend and hold Iowa West, its
affiliates, officers, directors, agents and employees, free and harmless from
all loss, liability or cost (including reasonable attorneys' fees) which Iowa
West may sustain, incur or assume as a result of any claims which may be
alleged, made, instituted or maintained against Iowa West, jointly or severally,
arising out of, or based upon the ownership, management, operation or use of the
Facility or Gaming Operations unless such loss, liability or cost results from
the gross negligence, willful misconduct or criminal conduct of Iowa West, its
officers, directors, agents or employees.

         9.       ASSIGNABILITY.

                  Iowa West shall not assign this Agreement without the express
written consent of HBRMC, which consent may be granted or withheld by HBRMC in
its sole and absolute discretion. This Agreement shall be freely assignable by
HBRMC, subject only to IRGC or other governmental approval, if required. Any
assignment by HBRMC shall not relieve HBRMC of its obligations hereunder.

                  Any assignment by Iowa West, whether or not permitted by
HBRMC, shall not release Iowa West of any of its obligations hereunder.

         10.      BINDING NATURE.

                                      9
<PAGE>

                  This Agreement is binding upon and shall inure to the benefit
of the parties hereto, and subject to the provision of the previous paragraph,
their respective successors and assigns.

         11.      RELATIONSHIP OF PARTIES.

                  HBRMC will perform all of its duties hereunder as an
independent contractor of Iowa West and this Agreement shall not be construed to
create any partnership or joint venture between Iowa West and HBRMC. HBRMC is
acting as the manager for Iowa West only in the limited capacity set forth
herein and neither party hereto shall have the authority to bind the other or
create any liability on behalf of the other, except as expressly authorized
herein. HBRMC specifically has no authority to enter into any contract or
agreement for or on behalf of Iowa West. No provision hereof shall be construed
to confer any rights or benefits on other persons than the parties hereto.

         12.      GOVERNING LAW.

                  This Agreement shall be subject to, governed by, and
interpreted in accordance with the laws of the State of Iowa, without regard to
its principles of conflicts of laws.

         13.      ARBITRATION.

                  Any dispute, controversy or claim arising out of or relating
to this Agreement, the Lease or the Management Agreement, or the Breach,
termination or validity hereof or thereof, shall be finally settled by
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association then in effect, as modified herein (the "Rules"). The
place of arbitration shall be Omaha, Nebraska. There shall be three (3)
arbitrators, of whom HBRMC shall appoint one and Iowa West shall appoint one (1)
within thirty (30) days of the receipt by the respondent of the demand for
arbitration. The two (2) arbitrators shall select the chair of the arbitration
tribunal within thirty (30) days of the appointment of the second arbitrator. If
such arbitrator is not appointed within the time limit provided herein, such
arbitrator shall be appointed by the American Arbitration Association ("AAA") in
accordance with the Rules. Any arbitrator appointed by the AAA shall be a
retired judge or a practicing attorney with no less than fifteen (15) years of
experience with large commercial cases, and an experienced arbitrator. Any
arbitration proceedings, decision or award rendered hereunder and the validity,
effect and interpretation of this arbitration agreement shall be governed by the
Iowa Arbitration Act, Section 679A of the Iowa Code. By agreeing to arbitration,
the parties do not intend to deprive any court of its jurisdiction to issue a
pre-arbitral injunction, pre-arbitral attachment or other order in aid of
arbitration proceedings and the enforcement of any award. Without prejudice to
such provisional remedies in aid of arbitration as may be available under the
jurisdiction of a court, the arbitral

                                      10
<PAGE>

tribunal shall have full authority to grant provisional remedies and to award
damages for the failure of any party to respect the arbitral tribunal's
orders to that effect. Any decision or award rendered hereunder shall be
final and binding on the parties and judgment upon such award may be entered
in any court having jurisdiction thereof. The arbitrators appointed pursuant
to this paragraph are specifically directed to consider the wide latitude in
the management of the Facility and the Gaming Operations that is vested by
the parties to this Agreement in HBRMC, whose actions and decisions shall
stand unless they are unlawful or constitute a gross abuse of HBRMC's duties
hereunder or would otherwise jeopardize the Licenses.

         14.      ATTORNEYS' FEES

                  In the event that legal action becomes necessary to resolve
any controversy or dispute arising out of this Agreement, the unsuccessful party
in the action shall reimburse the prevailing party, if any, for the reasonable
expenses and attorneys' fees and costs incurred by the prevailing party.

         15.      NOTICES.

                  All notices required or permitted by this Agreement shall be
in writing and may be delivered in person (by hand or by messenger or courier
service) or may be sent by nationally recognized air carrier who can provide
proof of delivery, or by certified or registered mail or U.S. Postal Service
Express Mail, with postage prepaid, and return receipt requested or by facsimile
transmission (with a copy sent simultaneously by U.S. mail), and shall be deemed
sufficiently given if served in a manner specified in this section. The
addresses noted below shall be that party's address for delivery or mailing for
notice purposes. Either party may, by written notice to the other party, specify
a different address for notice purposes

                                      11
<PAGE>

If to Iowa West:

Iowa West Racing Association
Attn: Tony Payne
2701 23rd Avenue
P.O. Box 1562
Council Bluffs, IA 51502-1562
Telephone: 712-325-3133
Telecopy:  712-328-9092

with duplicate to:

James A. Campbell
233 Pearl Street
Peters Law Firm, P.C.
P.O. Box 1078
Council Bluffs, IA  51502-1078
Telephone: 712-328-3157
Telecopy:  712-322-2267

If to HBRMC:

Harveys BR Management Company, Inc.
Post Office Box 128
Stateline, Nevada 89449
Attn: Charles W. Scharer
Telephone: 775-586-6756
Telecopy:  775-586-6852

with duplicate to:

Scarpello & Alling, Ltd.
276 Kingsbury Grade, Suite 200
P.O. Box 3390
Lake Tahoe, NV  89449-3390
Attn: Ronald D. Alling, Esq.
Telephone: 775-588-6676
Telecopy:  775-588-4970

                                      12
<PAGE>

and to

Skadden, Arps, Slate, Meagher & Flom LLP
300 South Grand Avenue, Suite 3400
Los Angeles, California 90071
Attn: Allan G. Mutchnik, Esq.
Telephone  213-687-5391
Telecopy   213-687-5600

                  Any notice sent by registered or certified mail, return
receipt requested, shall be deemed given on the date of delivery shown on the
receipt card, or if no delivery date is shown, the postmark thereon. Notices
delivered by United States Express Mail or overnight courier that guarantees
next day delivery shall be deemed given twenty-four (24) hours after delivery of
the same to the United States Postal Service or courier. If any notice is
transmitted by facsimile transmission or similar means, the same shall be deemed
served or delivered upon telephone confirmation of receipt of the transmission
thereof, provided a copy is thereafter also delivered via delivery or mail. If
notice is received on a Sunday or legal holiday, it shall be deemed received on
the next business day.

         16.      SEVERABILITY.

                  If any provision of this Agreement or the application of any
provision of this Agreement to any person or circumstance shall be invalid or
unenforceable to any extent, the remainder of this Agreement and the application
of such circumstances shall not be affected and shall be enforced to the
greatest extent permitted by law, to the extent
consistent with the intent hereof.

         17.      WAIVER.

                  If either party waives the performance of any term, covenant
or condition contained in this Agreement, such waiver shall not be deemed to be
a waiver of the term, covenant, or condition itself or a waiver of any
subsequent breach of the same or any other term, covenant or condition contained
in this Agreement. Failure by either party to enforce any of the terms,
covenants or conditions of this Agreement for any length of time shall not be
deemed to waive or to decrease the right of such party to insist thereafter upon
strict performance by the other party. Waiver by either party of any term,
covenant or condition contained in this Agreement may be made only by a written
document signed by such party.

         18.      COUNTERPARTS.

                  This Agreement may be executed in counterparts at different
times and places, each of which shall be deemed an original, but all of which
shall together constitute one and

                                      13
<PAGE>

the same instrument. It shall be necessary to account for only one such
counterpart in proving this Agreement

         19.      APPROVAL OF IRGC.

                  It is expressly understood and agreed that this Agreement
shall not be a binding obligation of either Iowa West or HBRMC until such time
as it is approved by the IRGC; the parties agree to cooperate in the submission
of this Agreement to the IRGC for its approval.

         20.      MODIFICATION.

                  This Agreement may not be changed, modified, renewed,
extended, canceled or discharged, or any covenant or provision waived, except by
an agreement in writing signed by the party against whom enforcement of the
change, modification, renewal, extension, discharge or waiver is sought.

         21.      ENTIRE AGREEMENT.

                  This Agreement constitutes the entire agreement between the
parties and supersedes all prior negotiations, understandings, and agreements
between HBRMC and Iowa West. Both Iowa West and HBRMC acknowledge and agree that
neither party has relied on any representations or promises in connection with
this Agreement not contained herein or in the Lease or Purchase Agreement.

         22.      CHANGE IN FACILITY OR GAMING OPERATIONS

                  In the event that the premises being leased to Iowa West
pursuant to the Lease shall be increased, decreased or otherwise modified,
HBRMC's management obligations under this Agreement shall be accordingly
expanded, diminished or modified to encompass the changes to said leased
premises. HBRMC and Iowa West agree to perform, execute and/or deliver or cause
to be performed, executed or delivered any and all such further acts,
instruments, and assurances as may be reasonably required to evidence any such
expansion, diminution or modification of HBRMC's management obligations
hereunder. Iowa West and HBRMC agree that any such expansion, diminution or
modification shall not change the calculation of the Management Fee hereunder
and that no additional consideration shall be required for any such expansion,
diminution or modification.

         23.      CHANGE IN LAWS

                  The parties hereby agree that in the event that there is a
material change in the applicable laws with respect to the Gaming Operations or
the operation of the Facility as contemplated by this Agreement, the parties
will promptly and diligently negotiate in good

                                      14
<PAGE>

faith any such required changes so that neither party suffers any economic
detriment, and each party's business objectives and economic position as
contemplated in this Agreement are preserved to the fullest extent possible.
In the event that applicable laws change to allow a transfer of the Licenses
to HBRMC (or an affiliate of HBRMC), Iowa West shall, within ten (10) days of
a written request from HBRMC (or, in the event such transfer is not
reasonably possible within such ten day period despite Iowa West's best
efforts, as soon as reasonably possible thereafter), transfer such Licenses
to HBRMC or its designee, and this Agreement shall terminate and be of no
further force or effect from the date of such transfer. In the event this
Agreement expires or terminates for this, or any other reason, the Lease
shall also terminate.

         IN WITNESS WHEREOF, the undersigned have caused their corporate names
to be hereunto affixed on the day and year first above written.

IOWA WEST RACING ASSOCIATION, AN IOWA NONPROFIT CORPORATION

                  By: /s/ Lynn G. Grobe
                      -----------------------------------
                      Lynn G. Grobe, Vice-President

                  By: /s/ Joseph D. Lehan
                      -----------------------------------
                      Joseph D. Lehan, Secretary

HARVEYS BR MANAGEMENT COMPANY, INC. A NEVADA CORPORATION

                  By: /s/ Charles W. Scharer
                      -----------------------------------
                      Charles W. Scharer, President

                                      15

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