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Black Hawk Gaming Reports Q4 and Year-End Results

22 February 2001

BLACK HAWK, Colorado -- (Press Release) – Feb. 22, 2001 -- Black Hawk Gaming & Development Company, Inc. (Nasdaq: BHWK), owner and operator of the Gilpin Hotel Casino in Black Hawk, Colorado, the Gold Dust West Casino in Reno, Nevada, and 75% owner and operator of The Lodge Casino at Black Hawk, today announced unaudited financial results for its fourth quarter and year ended December 31, 2000.

FOURTH QUARTER RESULTS

Net income for the fourth quarter was $616,000 or $0.14 per diluted share, versus net income of $1,480,000, or $0.36 per diluted share, in the comparable quarter in the previous year.

Stephen R. Roark, president of Black Hawk Gaming stated, ``While we managed to reduce our fourth quarter costs and expenses by $1,536,000, this decrease was offset by a decrease in revenues of $2,400,000. One key element contributing to the decrease in our revenues in the fourth quarter is the increased level of competition within the Black Hawk market. We believe these aggressive marketing campaigns should begin to stabilize in the near future. We will continue to monitor very closely our marketing programs and expenditures.''

YEAR-END RESULTS

Net income for 2000 increased to $5,461,000 from $5,423,000 for 1999. Net income per diluted share for the year was $1.31 compared to $1.30 in 1999. Total revenues for 2000 increased to $93,218,000 from $92,800,000 in 1999. Our EBITDA (earnings before interest, taxes, depreciation and amortization) for the year totaled approximately $19,666,000.

Roark added, ``We maintained earnings from our two Colorado properties despite the opening of two additional casinos in Black Hawk that increased the number of devices by approximately 18%.

In light of the additional competition, we believe our management and staff performed very well last year.

The second half of the year was a tough one for the Company due primarily to the increased competition in the marketplace. Additionally, we recently closed the acquisition of the Gold Dust West in Reno which should be accretive to our earnings and provide us with valuable geographic diversification.''

The combined operations of the Gilpin Hotel Casino, The Lodge Casino at Black Hawk and the Gold Dust West Casino in Reno, Nevada, give Black Hawk Gaming approximately 1,875 gaming devices under management.

BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.

Financial Highlights (Unaudited)

Three Months Ended Year Ended

December 31 December 31

2000 1999 2000 1999

Total Revenue $21,469,000 $23,869,000 $93,218,000 $92,800,000

Net Income $616,000 $1,480,000 $5,461,000 $5,423,000

Net Income Per

Common Share

Diluted $0.14 $0.36 $1.31 $1.30

Weighted Average

Shares Outstanding

Diluted 4,184,760 4,134,954 4,160,217 4,183,519

BALANCE SHEET DATA December 31, December 31

2000 1999

Total Assets $97,476,000 $101,080,000

Total Liabilities and Minority Interest $55,414,000 $64,581,000

Shareholders' Equity $42,062,000 $36,499,000

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