Black Hawk Gaming & Development Company Reports 120% Increase in Second Quarter Earnings Per Share.

BLACK HAWK, Colo.--(BUSINESS WIRE)--July 29, 1999--

Black Hawk Gaming & Development Company, Inc. (NASDAQ National Market: BHWK), owner and operator of the Gilpin Hotel Casino and 75 percent owner and operator of The Lodge Casino at Black Hawk, both located in Black Hawk, Colorado, today announced results for its second quarter and six month period ended June 30, 1999.

SECOND QUARTER RESULTS

Net income for the second quarter increased 107 percent to $930,000 versus net income of $449,000 in the second quarter of last year. Earnings per diluted share for the second quarter increased 120 percent to 22 cents per share versus 10 cents per diluted share in the comparable quarter last year. Second quarter net revenue increased to $21,345,000 from $6,959,000 in the same quarter last year.

SIX-MONTHS RESULTS

Net income for the six-month period increased 121 percent to $1,892,000 versus $854,000 for the six-month period last year. Earnings per diluted share for the six-month period increased 125 percent to 45 cents this year versus 20 cents per share in the same period last year. Six-month net revenue increased to $41,107,000 from $7,251,000 in the corresponding period last year.

The increase in net revenue and net income is primarily attributable to the company's acquisition of the other half of the Gilpin Hotel Casino and the operation of The Lodge Casino at Black Hawk. The other half of the Gilpin was acquired on April 24, 1998 and The Lodge Casino at Black Hawk opened on June 24, 1998. Additionally, the net revenue numbers are now dramatically different, as the acquisition of the Gilpin now allows the company to report all of the revenue of the Gilpin. Previously, since the company owned only 50 percent of the Gilpin, the company reported equity in earnings of the joint venture, which represented the company's share of the pre-tax income of the Gilpin.

Jeffrey P. Jacobs, chairman of the board and CEO of Black Hawk Gaming, commented, "We are pleased with the performance of both The Lodge and the Gilpin in the second quarter. The combined gaming revenue of the two casinos represented approximately 23 percent of the gaming revenue in the City of Black Hawk in the second quarter and approximately 15 percent of the gaming revenue in Colorado in the second quarter. The same market share numbers held for the six-month period as well. Our corporate strategy remains the same as I have previously stated. We will strive to maximize the performance of both properties while pursuing growth opportunities."

The company also commented that the recent change in the gaming tax structure in Colorado combined with the elimination of the state device fee will result in an approximate savings of $1.5 million before state and federal income tax for the gaming tax year ended June 30, 2000. This move by the Gaming Commission has been applauded by the industry and the investment community. Stephen R. Roark, president and chief financial officer of the company, stated, "The Commission has made a great decision which will allow all of the casinos in the state to reallocate those tax savings into marketing, promotions and employee benefits which will help keep the gaming industry healthy. Additionally, the Commission concluded that even with the overall tax rate reduction, the citizens of Colorado will still be well served as gaming tax revenues will increase as the market grows."

The combined operations of the Gilpin Hotel Casino and The Lodge Casino at Black Hawk, give Black Hawk Gaming approximately 1,300 gaming devices under management, making it the largest gaming operator in Colorado. The company is also the largest employer in Gilpin County, with approximately 900 employees. -0-

BLACK HAWK GAMING AND DEVELOPMENT COMPANY
Financial Highlights (Unaudited)

                               For the                 For the
                         Three Months Ended       Six Months Ended
                          6/30/99   6/30/98       6/30/99    6/30/98

Net Revenue            $21,345,000 $6,959,000  $41,107,000  $7,251,000

Equity in Earnings
 of Joint Venture            $  --   $181,000        $  --  $1,018,000

Net Income                $930,000   $449,000   $1,892,000    $854,000

Earnings Per Diluted
 Share                        $.22       $.10         $.45        $.20

Weighted Average Shares
 Outstanding (Diluted)   4,173,764  4,316,939    4,163,904   4,241,633
-0-

BALANCE SHEET DATA

                               6/30/99                  12/31/98

Total Assets                 $100,202,000             $102,062,000
Total Liabilities and
 Minority Interest            $67,342,000              $71,237,000
Shareholders' Equity          $32,860,000              $30,825,000
-0-

This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Black Hawk Gaming & Development Company, Inc. files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.