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American Wagering Announces Q1 Results

19 June 2000

LAS VEGAS, June 16 (Press Release) -- American Wagering, Inc. (Nasdaq: BETM - news) today announced financial results for their first quarter ended April 30, 2000. Revenues rose 1.6% to $3,056,911 from $3,010,123 in the year ago period. Revenues increased despite a decrease of $396,112 or 22% in wagering revenues.

While handle (amount wagered) increased by $3,114,812 to $25,908,151, the company experienced a decline in net win percentage of 31.6%. The net win percentage was 5.2% for the quarter ended April 30, 2000 as compared with 7.6% in the year ago period.

The decrease in wagering revenues was offset by additional Systems revenue of $396,101 and the addition of Keno revenues of $76,457. Systems revenue increased primarily due to increased equipment sales.

For the quarter ended April 30, 2000, the Company incurred an operating loss of $655,618 as compared with operating income of $325,131 for the year ago period. Net loss per share was $0.09 as compared with net income of $0.03 in the year ago period. The net loss was primarily due to the additional cost of operating Keno and increased expenses of wagering operations. In addition, research and development costs increased $153,917 to $305,298 as the Company continues to develop new products for new revenue sources.

Commenting on the results, American Wagering, Inc. CEO Victor Salerno said, ``While we were very pleased with the $3.1 million increase in handle this quarter, our net win percentage decreased by 32%. If our win percentage had been the same as last year, we would have had approximately $600,000 more in income flowing to our bottom line.

For the month of May, our Nevada sports wagering operations had a strong month and is on course with last year. With the continued threat of legislation which would remove the business of legalized sports betting on collegiate sporting events, the Company continues to step up our research and development to develop new products to offset this threat. We will keep shareholders updated on our progress and the progress of the legislative environment.''

American Wagering, Inc. owns and operates Leroy's Horse and Sports Place, the licensed bookmaker with the largest number of sports book locations (49) in the state of Nevada; CBS, the dominant supplier of sports equipment and software in Nevada and creator and operator of Mega$ports; and AWI Keno, Inc., which is the systems operator for interlinked Keno games. The Company also owns and operates an Australian subsidiary which operates Mega$ports on the Internet.

                           AMERICAN WAGERING, INC.
               UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED APRIL 30, 2000 AND 1999

                                                     2000            1999

    REVENUES                                      $3,056,911     $3,010,123

    OPERATING COSTS AND EXPENSES:
    Direct costs                                   2,438,417      1,765,585
    Research and development                         305,298        151,381
    Selling, general and administrative              740,380        579,881
    Depreciation and amortization                    228,434        188,145
    TOTAL OPERATING COSTS AND EXPENSES             3,712,529      2,684,992

    OPERATING INCOME (LOSS)                        (655,618)        325,131

    OTHER INCOME (EXPENSE):
    Interest income                                    6,414          7,520
    Other income                                       3,076             --
    Minority interest                                (4,129)          5,023
    Interest expense                                (49,541)       (70,494)
    TOTAL OTHER EXPENSE                             (44,180)       (57,951)

    INCOME (LOSS)                                  (699,798)        267,180
    PREFERRED STOCK DIVIDEND REQUIREMENTS           (38,116)       (15,770)
    NET LOSS APPLICABLE TO COMMON SHAREHOLDERS    $(737,914)       $251,410

    BASIC AND DILUTED INCOME (LOSS) PER SHARE
    Net Income (loss)                                $(0.09)          $0.03

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