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Black Hawk Gaming Reports Status of Proposed Merger with Gameco

21 September 2001

BLACK HAWK, Colorado-- Sept. 21, 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 in Black Hawk, today announced that it has re-filed its preliminary proxy statement with the Securities and Exchange Commission to respond to SEC comments.

Also, Black Hawk has been advised that Gameco and its financial advisors are evaluating carefully the impact of the September 11, 2001 terrorist attacks in New York City and Washington, D.C., on the capital markets and Gameco's proposed high yield debt offering. Those and ensuing events could have a materially negative impact on Gameco's ability to obtain financing for the merger. Gameco further advises that it has considered and will continue to consider alternative financing arrangements if its primary financing plans fall through, but no alternative arrangements have been finalized.

Stephen R. Roark, president of Black Hawk Gaming commented, ``Along with Gameco, we are moving forward as best we can given the unprecedented disruption in the financial markets due to the terrorist attacks in New York City and Washington D.C. The recent weakness in our common stock may indicate that investors are less confident that the transaction will be completed than they were a short time ago.''

Information Concerning Participants:

Black Hawk and its directors may be deemed to be participants in the solicitation of proxies from Black Hawk stockholders to approve the merger. Some of the directors of Black Hawk have an interest in the merger that may differ from or may be in addition to the interests of Black Hawk stockholders generally. Those interests, which are described in greater detail in the proxy statement with respect to the merger, include the interest of Mr. Jacobs in the equity of Gameco and potential employment relationships of other directors.

Black Hawk has filed and will mail to its stockholders a proxy statement containing information about Black Hawk, the proposed merger, and related matters. Stockholders are urged to read the proxy statement carefully as it contains important information that stockholders should understand before making a decision about the merger. Black Hawk will mail this proxy statement to its stockholders to seek their approval of the merger. The proxy statement as well as other filings containing information about Black Hawk, can be obtained without charge at the SEC web site. Copies of the proxy statement, when available, and Black Hawk's SEC filings will also be obtainable, without charge, from Stanley Politano, Black Hawk's Secretary at Black Hawk Gaming & Development Company, Inc., 240 Main Street, Black Hawk, Colorado 80422, (303) 582-1117.

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