FROM: Casino Magic Corp.
      711 Casino Magic Drive
      Bay St. Louis, Miss. 39520

Contact: Jay S. Osman - Chief Financial Officer, 601-466-8010 or 
josman@casinomagic.com

FOR IMMEDIATE RELEASE
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CASINO MAGIC ANNOUNCES CONSENT SOLICITATION AND PROPOSED NOTE OFFERING

     BAY ST. LOUIS, MISSISSIPPI, June 27, 1996.....  Casino Magic Corp. 
(NASDAQ:CMAG) announced today its intent to make a private placement debt 
offering pursuant to Rule 144A in the near future of approximately $145 
million aggregate principal amount of senior secured notes.  The notes will 
be secured by, among other things, the assets of the Company's planned 
Bossier City, Louisiana casino and the proceeds will be used primarily to 
develop the Bossier City Casino, repay certain indebtedness previously 
incurred with respect to the Company's proposed Louisiana gaming activities 
and make certain improvements to the Company's Biloxi casino.  The offering 
of the notes has not been registered under the Securities Act and may not be 
offered or sold without registration or an applicable exemption from 
registration.

     Casino Magic Corp. and its subsidiary issuer of outstanding $135 
million 11-1/2% First Mortgage Notes due 2001 also announced the 
commencement of a consent solicitation today with respect to such First 
Mortgage Notes in order to permit the intended issuance of the new notes and 
to effectuate certain other proposed amendments to the indenture for the 
First Mortgage Notes.

     Casino Magic Corp., a Minnesota corporation with principal offices in 
Bay St. Louis, Mississippi, operates gaming casinos in Bay St. Louis and 
Biloxi, Mississippi,; Neuquen City and San Martin de los Andes, Argentina; 
and Porto Carras and Xanthi, Greece.