<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BLUE DIAMOND
HOTEL & CASINO, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          SEP-30-1996
<PERIOD-START>                             OCT-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                           3,282
<SECURITIES>                                         0
<RECEIVABLES>                                      273
<ALLOWANCES>                                         0
<INVENTORY>                                        387
<CURRENT-ASSETS>                                 5,594
<PP&E>                                           2,622
<DEPRECIATION>                                   1,792
<TOTAL-ASSETS>                                   8,441
<CURRENT-LIABILITIES>                           47,229
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             1
<OTHER-SE>                                    (38,789)
<TOTAL-LIABILITY-AND-EQUITY>                     8,441
<SALES>                                              0
<TOTAL-REVENUES>                                12,270
<CGS>                                                0
<TOTAL-COSTS>                                    7,399
<OTHER-EXPENSES>                                 6,436
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,079
<INCOME-PRETAX>                                (2,644)
<INCOME-TAX>                                       859
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (1,785)
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0