FOURTH AMENDMENT

                                       TO

                              EMPLOYMENT AGREEMENT

                                       OF

                                 ROBERT VANNUCCI



         This FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT dated as of March 24,
2003 ("FOURTH AMENDMENT"), by and between RIVIERA HOLDINGS CORPORATION ("RHC"),
and its wholly-owned subsidiary, RIVIERA OPERATING CORPORATION ("ROC")
(collectively the "COMPANY"), and ROBERT VANNUCCI ("EXECUTIVE").

         WHEREAS, the parties entered into an Employment Agreement on July 1,
1998 ("AGREEMENT");

         WHEREAS, the parties amended the AGREEMENT by way of an AMENDMENT TO
EMPLOYMENT AGREEMENT dated October 1, 2000 ("AMENDMENT");

         WHEREAS, the parties further amended the AGREEMENT by way of a SECOND
AMENDMENT TO EMPLOYMENT AGREEMENT and THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
dated July 1, 2002, ("SECOND AMENDMENT"), dated March 3, 2003, ("THIRD
AMENDMENT"), respectively; and

         WHEREAS, the parties desire to further amend its AGREEMENT and
amendments thereto by way of this FOURTH AMENDMENT.

         NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth, the parties hereto agree to amend the AGREEMENT and all amendments
thereto as follows:

1. Paragraph 4(b) of the AMENDMENT shall be amended in its entirety to read as
follows:

(b)  Restricted  Stock:

(i) Commencing April 1, 2003, and continuing for each quarter during the TERM of
AGREEMENT, EXECUTIVE shall receive in EXECUTIVE's sole discretion, either a cash
payment of $25,000 less  applicable  taxes,  or $25,000 of RHC Restricted  Stock
from treasury  stock at the closing  price on the first day of each quarter,  or
next business day as applicable; and

(ii)  Commencing  April 1, 2003,  EXECUTIVE  shall receive in  EXECUTIVE's  sole
discretion,  either  cash or RHC  Restricted  Stock from  treasury  stock at the
closing  price on March 15, of each  applicable  year,  or next  business day as
applicable, in an amount equal to the EXECUTIVE level incentive earned (e.g., at
one-hundred  percent  (100%),  EXECUTIVE  awarded an additional  $100,000 in RHC
Restricted Stock at market price from treasury stock).

2. In the event  there is a  conflict  between  this  FOURTH  AMENDMENT  and the
AGREEMENT  or  amendments  thereto,  the terms of this  FOURTH  AMENDMENT  shall
control.

3. Except as changed by this FOURTH AMENDMENT, all other terms and conditions of
the AGREEMENT and all amendments thereto shall remain in full force and effect.

         IN WITNESS WHEREOF, the parties hereto have agreed to this FOURTH
AMENDMENT TO EMPLOYMENT AGREEMENT as of the day and year first written above.

COMPANY:                                            EXECUTIVE:

RIVIERA HOLDINGS CORPORATION                         ROBERT VANNUCCI
and its wholly-owned subsidiary
RIVIERA OPERATION CORPORATION



By:______________________________                   __________________________
     WILLIAM L. WESTERMAN                            ROBERT VANNUCCI
     Chief Executive Officer