January 6, 1999

Mr, Jim Davey
317 Salinas Drive
Henderson, NV 89014

Dear Jim,

         We are pleased to offer you the position of Director of Slot Operations
for the  Riviera  Black Hawk Casino in Black Hawk,  Colorado,  reporting  to the
General Manager,  at a starting salary of $2,884.62 per bi-weekly pay period. As
Director of Slot  Operations  you will be responsible  for the Slot  Department;
including  all operating  personnel,  the purchase and  maintenance  of all slot
machines  and related  equipment,  compliance  with all  company and  regulatory
reporting  responsibilities,  and monitoring the competitive environment to help
provide marketing direction.

         The  Director of Slot  Operations  is  considered  to be one of the key
management  positions  on the  Riviera  Black  Hawk team,  and as such,  will be
eligible to  participate  in the key employee bonus pool. The bonus pool will be
based on the performance of the property as a whole.

         Insurance  coverage  that you will  receive  as a  Riviera  Black  Hawk
employee   includes  a  $75,000  Executive  Life  Insurance  policy,  a  $75,000
accidental  death and  dismemberment  policy,  and  Riviera's  medical  plan for
surgery,  accidental  injury  and other  medical  services,  dental,  and vision
coverage  at a nominal  cost to you.  You will  receive  two (2) weeks  vacation
commencing the first year of employment,  three (3) weeks vacation commencing on
your sixth year of  employment  and four (4) weeks  vacation  commencing on your
twelfth year of employment. Once you have met the eligibility requirements,  you
may participate in the company's 401(k) program and the company's Profit Sharing
Program (see attached).








Page 2
Jim Davey
January 6, 1999


         Riviera will assume  responsibility for the expenses involved in moving
you (and your dependents),  and your household effects from Las Vegas, Nevada to
the Denver,  Colorado  area.  We reserve the right to select from three (3) bids
submitted by national moving companies.  In addition, the Riviera will reimburse
you for the sales  commission  (not to exceed  7%) on your  current  house.  The
Riviera will also pay for two house  hunting  trips that  include air fare,  car
rental, lodging and food cost (for both you and your spouse) up to five days per
trip (total for both trips not to exceed $3,500).

         You will be required to sign an agreement to reimburse  Riviera for all
relocation expenses incurred in your behalf if, for reasons within your control,
you should voluntarily  terminate your employment within twelve (12) months from
your date of hire.

         The  prerequisite  to  employment  is passing  the  requirements  for a
Colorado Gaming License and passing the company prescribed drug test.

         On behalf of the Riviera,  let me say we are looking  forward to having
you join the Riviera Black Hawk team with a start date of March 1, 1999.  Should
you have any questions regarding our offer of employment, please do not hesitate
to contact me.

Ron Johnson                                -------------------------------------
Executive Vice President                   Jim Davey


RJ/cf

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