ARTHUR ANDERSEN & CO, SC (Letterhead) 
 
                                       Arthur Andersen 
                                       Suite 4500 
                                       201 St. Charles Avenue 
                                       New Orleans LA 70170-4500 
                                       504 581 5454 
 
 
May 6, 1996 
 
 
 
Casino Magic Corp. 
711 Casino Magic Drive 
Bay St. Louis, MS  39520 
 
Re:  Form 10-Q Report for the quarter ended March 31, 1996 
 
This letter is written to meet the requirements of Regulation S-K  
calling for a letter from a registrant's independent accountants  
whenever there has been a change in accounting principle or  
practice. 
 
The Company, in the normal course of business, acquires options  
and makes land deposits in markets where gaming has not yet been  
approved or the Company has not been issued a license to operate.   
Such costs are capitalized and are classified as options and land  
deposits.  Prior to January 1, 1996, the Company expensed such  
amounts previously capitalized at the earlier of their indicated  
impairment or the expiration of the option or deposit period.  We  
have been informed that, as of January 1, 1996, the Company began  
amortizing amounts capitalized for such options and deposits over  
their related terms, while still subjecting capitalized amounts  
to appropriate impairment tests.  According to the management of  
the Company, this change was made to recognize the speculative  
nature of these options and deposits and the declining utility  
over time as the option period shortens and gaming has not been  
approved or a license to operate has not been obtained. 
 
A complete coordinated set of financial and reporting standards  
for determining the preferability of accounting principles among  
acceptable alternative principles has not been established by the  
accounting profession.  Thus, we cannot make an objective  
determination of whether the change in accounting described in  
the preceding paragraph is to a preferable method.  However, we  
have reviewed the pertinent factors, including those related to  
financial reporting, in this particular case on a subjective  
basis, and our opinion stated below is based on our determination  
made in this manner. 
 
We are of the opinion that the Company's change in method of  
accounting is to an acceptable alternative method of accounting,  
which, based upon the reasons stated for the change and our  
discussions with you, is also preferable under the circumstances  
in this particular case.  In arriving at this opinion, we have  
relied on the business judgment and business planning of your  
management. 
 
We have not audited the application of this change to the  
financial statements of any period subsequent to December 31,  
1995.  Further, we have not examined and do not express any  
opinion with respect to your financial statements for the three  
months ended March 31, 1996. 
 
Very truly yours, 
 
 
ARTHUR ANDERSEN LLP