EMPLOYMENT AGREEMENT

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Exhibit 10.8

EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT (the "Agreement") is made this 15 ^th  day of May, 2008, by and between MTR Gaming Group, Inc. ("MTR" or the "Company"), having an address of State Route 2, South, Chester, West Virginia 26034, and David Hughes, having an address of c/o MTR Gaming Group, Inc., State Route 2 South, Chester, WV 26034 ("Executive").

        WHEREAS, Executive is currently an at-will employee of the Company serving as Executive Vice President of Strategic Operations.

        WHEREAS, the Company wishes to employ Executive as Corporate Executive Vice President and CFO of MTR Gaming and further wishes to enter into an agreement with Executive in order to afford Executive certain long-term benefits as well as to reflect the terms and conditions of Executive's employment relationship to the Company.

        NOW THEREFORE, the parties, in reliance upon the mutual promises and covenants herein contained, do hereby agree as follows:

        1.      Term.     The Company hereby agrees to employ Executive, and Executive agrees to serve the Company, in the capacity indicated above for a two year period commencing on May 15, 2008 (the "Employment Date"), and ending on May 15, 2010.

        2.      Duties and Services.     During the Period of Employment, Executive agrees to serve the Company as its Corporate Executive Vice President and CFO of MTR Gaming, and in such other office of MTR and/or its Affiliates to which Executive may be elected or appointed, and to perform such other reasonable and appropriate duties as may be requested of Executive by the President and CEO of the Company (the "CEO"), in accordance with the terms herein set forth. Executive shall devote such of his/her time, energy and skill during regular business hours to the business and affairs of the Company and its Affiliates and to the promotion of their interests as is required.. Executive shall report directly to and shall be subject to the direction of the Company's Chief Executive Officer. Executive shall perform those duties customarily performed by the Chief Financial Officer of a publicly traded corporation, including but not limited to assuming primary responsibility for the Company's reporting and disclosure requirements imposed by the Securities and Exchange Commission and Nasdaq.

        3.      Compensation.

        (a)    Base Salary.     The base salary of the Executive for services pursuant to the terms of this Agreement shall be $390,000.00 per year, payable in bi-monthly installments or on such other terms as may mutually be agreed upon by the Company and Executive. Executive's base salary shall be subject to an automatic cost-of-living increase of five percent (5%) on the first of January each year of this Agreement, and shall be subject to periodic increase by the Company's Compensation Committee in its sole discretion.

        (b)    Discretionary Cash Bonus.     Executive shall be entitled to periodic cash bonuses of at minimum 10% of base pay payable on January 1 of each year with the ability to earn additional discretionary bonuses at the sole discretion of the Company's Compensation Committee.

        (c)    Benefit Plans and Fringe Benefits.     Executive shall receive such employment fringe benefits and shall be entitled to participate in other employee benefit plans, including without limitation any health insurance, pension plan, profit-sharing plan, savings plan, life insurance and disability insurance plans and the like made available by the Company now or in the future to its executives as the Company's Compensation Committee may periodically award in its discretion based on the

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Executive's performance, subject to and on a basis consistent with the terms, conditions and overall administration of such benefit plans.

        (d)    Long Term Incentives.     As soon as practicable after the date of execution of this Agreement, the MTR will grant to Executive non-qualified options to purchase 30,000 shares of MTR's common stock. The exercise price of those options will be the Nasdaq Official Close Price of the stock on the date of grant. The 30,000 options shall be fully vested upon grant.

        (e)    Automobile Allowance.     During the Period of Employment, Executive shall be entitled to $700 per month toward the lease or purchase, insurance and maintenance of an automobile.

        (f)     Vacation.     Executive shall be entitled to five (5) weeks of paid vacation annually to be taken at a time or times mutually satisfactory to Executive and the Company. Accrued vacation time not utilized by Executive due to business commitments may be carried over to the following year (provided, however, that Executive shall not in any event utilize more than six weeks of vacation in any twelve month period) or paid to Executive at the end of the year as additional compensation at Executive's election.

        (g)    Expenses.     All travel and other expenses incident to the rendering of services by Executive hereunder, including the expenses associated with gaming licensing in any state in which the Company or one of its affiliates requests Executive to become licensed, shall be paid by the Company. The Company shall also provide Executive a Company cellular telephone, or, at the Company's election, reimburse Executive for the cost of a cellular phone and monthly service charges maintained by Executive. If any such expenses are paid in the first instance by Executive, the Company shall reimburse him/her therefore on presentation of the appropriate documentation required by the Internal Revenue Code of 1986, as amended (the "Code"), or Treasury Regulations promulgated thereunder, or otherwise required under the Company's policy with respect to such expenses.

        (h)    Working Facilities.     The Company shall provide Executive with an office, secretarial, administrative and other assistance, and such other facilities and services as shall be suitable to his/her position and appropriate for the performance of his/her duties.

        4.      Early Termination.

        (a)   This Agreement will terminate automatically, and neither party shall have any further obligations or duties under this Agreement, in the event that state regulatory authorities find Executive unsuitable to hold the position provided herein, except for obligations accrued under Section 3(a) and 3(b) as of the date of termination.

        (b)   Notwithstanding the provisions of Section 2 hereof, Executive may be discharged by the Company for Cause (as defined in Section 4(d) hereof), in which event the Period of Employment hereunder shall cease and terminate and neither party shall have any further obligations or duties under this Agreement, except for obligations accrued under Section 3(a) and 3(b) as of the date of termination. In addition, the Period of Employment shall cease and terminate upon the earliest to occur of the following events: (i) the death of Executive or (ii) at the election of the CEO (subject to the Americans With Disabilities Act), the inability of Executive by reason of physical or mental disability to continue the proper performance of his duties hereunder for a period of 180 consecutive days. Upon termination of the Period of Employment as a result of the Executive's death or disability, in consideration for Executive or his and beneficiaries releasing the Company from any claims, damages or causes of action, the Company shall pay to Executive or his estate, as the case may be, a lump sum amount equal to the greater of (i) the base salary described in Section 3(a) hereof for the remaining term of the Agreement, or (ii) the amount of base salary to which Executive would have been entitled to receive for the one (1) year following his/her death or disability.

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        (c)   In the event Executive is discharged by the Company other than for the reasons set forth in Paragraph 4(b) above, Executive shall have no further obligations or duties under this Agreement. In the event of termination of the Period of