EXHIBIT 5.1


                          [JONES VARGAS LETTERHEAD]

                              September 19, 2000


Santa Fe Gaming Corporation
4949 North Rancho Road
Las Vegas, NV 89130

Re:  Registration Statement on Form S-8 - 1995 Non-Employee Director Stock
     Option Plan (the "Plan")

Ladies and Gentlemen:

     We have acted as special Nevada counsel to Santa Fe Gaming Corporation, a
Nevada corporation ("SFG") in connection with the registration by SFG on the
Registration Statement on Form S-8 (the "Registration Statement"), filed with
the Securities and Exchange Commission (the "Commission"), under the Securities
Act of 1933, as amended (the "Securities Act"), of 100,000 shares (the "Shares")
of SFG's common stock, par value $0.01 per share (the "SFG Common Stock").

     For the purpose or rendering the opinions contained herein, we have
reviewed the Plan and the corporate actions taken by SFG in connection with the
authorization of the Shares and have made such legal inquires as we deem
necessary.

     In rendering the opinions contained herein, we have assumed and relied on
the following: (a) the authenticity of all documents submitted to us as
originals; (b) the conformity to original documents of all documents submitted
to us as certified, conformed, photostatic or facsimile copies and the
authenticity of the originals of such copies; (c) the truth of all factual
matters stated therein; (d) the incumbency of all individuals referenced in any
of the documents as being directors and/or officers of SFG;  (e) the genuineness
of all signatures appearing on any document not signed in our presence; (f) the
legal capacity of all natural persons; (g) that all actions taken by the board
of directors and stockholders of SFG in connection with the Plan were taken at
meetings duly called and noticed in accordance with the laws of the state of
Nevada and the articles of incorporation and bylaws of SFG; (h) that the Plan
has been administered by SFG in accordance with its terms; (i) that upon the
issuance of the Shares pursuant to the terms and conditions of the Plan, the
total number of issued and outstanding shares of SFG Common Stock will not
exceed one hundred million (100,000,000) shares; and (j) there are no other
documents or agreements that have not been supplied to us that would have an
effect on the opinions rendered herein.

     Based on the foregoing and in reliance thereon, we are of the opinion that:
(a) the Shares have been duly authorized for issuance pursuant to the Plan; and
(b) when issued upon the exercise of options granted under the Plan and paid for
in accordance with the terms thereof, the Shares will be validly issued, fully
paid and nonassessable.

     This opinion is limited to the laws of the state of Nevada; provided,
however, we express no opinion on the securities laws of the state of Nevada.

     We hereby consent to the filing of this opinion as Exhibit 5.1 to the
Registration Statement.   In giving this consent, we do not admit that we are
within the category of persons whose consent is required under Section 7 of the
Securities Act or the General Rules and Regulations of the Commission.


Very truly yours,

Jones Vargas