<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>                   6-MOS
<FISCAL-YEAR-END>                          SEP-30-1997
<PERIOD-START>                             OCT-01-1996
<PERIOD-END>                               MAR-31-1997
<CASH>                                           2,811
<SECURITIES>                                         0
<RECEIVABLES>                                      272
<ALLOWANCES>                                         0
<INVENTORY>                                        363
<CURRENT-ASSETS>                                 4,837
<PP&E>                                           2,679
<DEPRECIATION>                                   2,039
<TOTAL-ASSETS>                                   7,488
<CURRENT-LIABILITIES>                           48,153
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             1
<OTHER-SE>                                    (40,666)
<TOTAL-LIABILITY-AND-EQUITY>                     7,488
<SALES>                                              0
<TOTAL-REVENUES>                                24,203
<CGS>                                                0
<TOTAL-COSTS>                                   14,678
<OTHER-EXPENSES>                                12,814
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               2,136
<INCOME-PRETAX>                                (5,425)
<INCOME-TAX>                                   (1,763)
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (3,662)
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0