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                                 EXHIBIT 01-8K.3

FOR IMMEDIATE RELEASE:     March 7, 2001

CONTACTS:
Stephen R. Roark                                     Carl Thompson
President and Chief Financial Officer                Chief Executive Officer
Stan Politano                                        Carl Thompson Associates
Vice President                                       800-959-9677
Black Hawk Gaming & Development Co., Inc.
303-582-1117


                      BLACK HAWK GAMING AND DEVELOPMENT CO.
                           ANNOUNCES FILING OF LAWSUIT

         Black Hawk, Colorado--Black Hawk Gaming & Development Company, Inc.
(Nasdaq National Market: BHWK) announced today that it has been served with a
complaint brought by a person claiming to be a shareholder. The lawsuit purports
to be a class action and was filed in the Colorado District Court in Gilpin
County, Colorado. Black Hawk's directors were also named in the action.

         The suit alleges, among other things, that the defendants, allegedly
controlled by Jeffrey P. Jacobs, Chairman and CEO, are violating their fiduciary
duties owed to the public shareholders and are engaging in improper and unfair
dealing and wrongful and coercive conduct. This is designed, according to the
suit, to cause Black Hawk shareholders to relinquish their shares without an
adequate process to ensure that shareholders receive the highest price
obtainable.

         On February 27, it was announced that Mr. Jacobs had offered to
purchase all Black Hawk shares not owned by him for $11 per share cash. A
Special Committee of the Board consisting of three independent directors was
immediately appointed to consider the offer. The Special Committee has engaged
its own independent law firm to advise it and it is close to choosing its own
independent investment bankers to assist the Special Committee.

         The Board believes that it has met and will continue to meet its
fiduciary duties, as will the Special Committee, and that a process has been put
in place to maximize shareholder value. Therefore, the suit will be vigorously
defended.

         The plaintiff seeks, among other things, to enjoin the buy-out
transaction and asks the court to award compensatory damages and legal fees.

NOTE: News releases and other information about Black Hawk Gaming & Development
are available at http://www.bhwk.com


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