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                                                                    EXHIBIT 10.7


                 BLACK HAWK GAMING & DEVELOPMENT COMPANY, INC.

                       SUBSCRIPTION FOR SUBSCRIPTION NOTE


         For value received, the receipt and sufficiency of which are hereby
acknowledged, the undersigned, Robert D. Greenlee ("Purchaser"), hereby
subscribes for a convertible note (the "Subscription Note") of Black Hawk
Gaming & Development Company, Inc., a Colorado corporation ("Seller"), which
Subscription Note is convertible into 57,143 Shares at a price of $5.25 per
Share. Capitalized terms used but not defined herein shall have the meaning
assigned to such terms in that certain Amended and Restated Purchase Agreement
entered into as of even date herewith, by and between Seller and Diversified
Opportunities Group Ltd. (the "Purchase Agreement").

         Purchaser hereby acknowledges that he has been furnished with a copy
of the Purchase Agreement and has read and understands the terms thereof.

         The Subscription Note being subscribed for hereunder is being acquired
pursuant to Section 2(d) of the Purchase Agreement, and shall be paid for in
cash and acquired at such time as Diversified Opportunities Group Ltd. pays the
remaining $4,500,000 for the Note as described in Section 2(b)(ii) of the
Purchase Agreement.

         The Subscription Note (and the Shares into which the Subscription Note
are convertible) being subscribed for hereunder are being acquired for
Purchaser's own account and not with a view to, or for resale in connection
with, any distribution or public offering thereof within the meaning of the
Securities Act of 1933 (the "1933 Act").  Purchaser understands that the Shares
have not been registered under the 1933 Act by reason of their contemplated
issuance in a transaction believed to be exempt from the registration and
prospectus delivery requirements of the 1933 Act pursuant to Section 4(2)
thereof, and in transactions believed to be exempt from the registration and/or
qualification provisions of the appropriate state securities laws.  Purchaser
has such knowledge and
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experience in financial and business matters that he is capable of
independently evaluating the risks and merits of purchasing and acquiring the
Shares.

         IN WITNESS WHEREOF, the undersigned has executed and delivered this
Subscription for Shares as of the 12th day of November, 1996.



                                                   /s/ ROBERT D. GREENLEE       
                                                   -----------------------------
                                                   Robert D. Greenlee





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