Black Hawk Gaming & Development Company Reports First Quarter Net Income.

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

Black Hawk Gaming & Development Company, Inc. (NASDAQ NMS: BHWK), owner and operator of the Gilpin Hotel Casino in Black Hawk, and 75% owner and operator of The Lodge Casino at Black Hawk, today announced results for its first quarter ended March 31, 1999.

Net income for the first quarter increased to $963,000 or 23 cents per diluted share, versus net income of $405,000, or 10 cents per diluted share, in the comparable quarter last year. First quarter net revenue increased to $19,762,000 from $292,000 in the same quarter last year.

The increase in net revenue and net income is attributable to the company's acquisition of the half of the Gilpin Hotel Casino it did not already own, 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 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 net income of the Gilpin.

Jeffrey P. Jacobs, Chairman of the Board and CEO of Black Hawk Gaming, commented, "Both the Lodge and the Gilpin performed well in the first quarter. Our immediate goal is to maximize the performance of both properties while pursuing expansion opportunities for the company. The City of Black Hawk has about 1,000 more devices in place this year versus last year, and next year the city will see an additional 1,500 to 2,000. Our plan is to continue to be a market leader in Black Hawk. However, to significantly grow this company, we must diversify into other jurisdictions. This is what we are planning to do in the near term."

The company also announced that its annual meeting will be held on Friday, June 11, at 9. a.m. at The Lodge Casino at Black Hawk.

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 and the company employs approximately 900 people. -0-

            BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.
                   Financial Highlights (Unaudited)

                                    For the Three Months Ended
                                3/31/99                    3/31/98

Net Revenue                  $19,762,000                   $292,000
Equity in
 Earnings of Joint Venture           ---                    837,000
Net Income                       963,000                    405,000
Net Income Per Common Share
  Basic                            $0.24                      $0.10
  Diluted                          $0.23                      $0.10
Weighted Average
 Shares Outstanding
  Basic                        4,087,000                  3,948,000
  Diluted                      4,181,000                  4,141,000

                                3/31/99                   12/31/98

Total Assets                  99,210,000                102,062,000
Long-Term Debt                50,118,000                 51,978,000
Shareholder's Equity          31,788,000                 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.