October 3, 1996
                                
Dominic J. Magliarditi
735 Helmhill Avenue
Las Vegas, Nevada  89123

          Re:  Merger Agreement / Employee Matters

Dear Nick:

          This letter is intended to implement the provisions of
Section 6.9 of the Merger Agreement (as amended by the Second
Amendment thereto dated September 27, 1996) in the context of
your currently pending application for gaming licensure in
Nevada.

          Ameristar understands that your application is likely
to be heard by the Nevada Gaming Control Board during the month
of November.  Ameristar hereby confirms that it will enter into
an employment agreement with you as contemplated by Section 6.9,
provided that until such time as your license is granted, you
shall not become an officer of Ameristar as set forth in such
section.  In all other respects, the employment agreement shall
contain the material terms described in Section 6.9 of the Merger
Agreement.

          Except as amended hereby, the agreements between the
parties set forth in the Merger Agreement, as amended through the
Second Amendment, shall continue in full force and effect.

          To confirm your agreement with the foregoing, please
sign this letter in the place indicated below.

                              Very truly yours,


                              /s/ Brian Katz
                              Brian Katz,
                              Vice President

Reviewed and approved


/s/ Dominic J. Magliarditi
Dominic J. Magliarditi
Date: October 3, 1996