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American Wagering Reports Profit in Q1

4 June 2002

LAS VEGAS – (Press Release) -- American Wagering, Inc. (OTC Bulletin Board: BETM) today announced the financial results through the first quarter. In the first quarter, the Company reported a net income of $106,933, or $0.01 per share, as compared to a net loss of ($127,574), or ($0.02) per share, in the first quarter of the prior year.

Revenue: Revenues for the three months ending April 30, 2002 were $2,318,982; this is an increase of $22,143, or 1%, from the three months ending April 30, 2001. The growth is attributable to a $130,724 increase in systems revenues resulting from sales of the T-3 wagering terminal offset by a ($108,581) decrease in overall wagering revenues. Although wagering revenues from the Leroy's operations increased due to the professional football championship game being held in February of 2002, overall wagering revenues decreased as a result of losses from Mega$ports (Australia) and keno.

Operating Costs and Expenses: Operating costs and expenses for the three months ending April 30, 2002 were $2,225,469; this is a decrease of ($189,661), or (8%), from the three months ending April 30, 2001. The decrease in operating costs and expenses is a result of the Company's continuing efforts to focus on its core businesses in order to reduce overall expenses and return the Company to profitability.

Operating Income: Operating income for the three months ending April 30, 2002 was $93,513; this is an increase of $211,804, or 179%, from the three months ending April 30, 2002. The increase in operating income is a function of the increased revenues and reduced operating costs and expenses.

Other Income and Expenses: Other income and expenses for the three months ending April 30, 2002 resulted in a net income of $13,420. For the three months ending April 30, 2001, other income and expenses resulted in a net expense of ($9,283).

Net Income: Net income for the three months ending April 30, 2002 was $106,933; this is an increase of $234,507, or 184%, from the three months ending April 30, 2001. As with operating income, the increase in net income is a function of the increased revenues and reduced costs and expenses.

Commenting on the results, Victor Salerno, CEO/COO and Chairman of the Board of American Wagering said, "The results of the first quarter are very encouraging and follow the trend set by the prior fiscal year. Although revenues remained flat, the Company's renewed focus on our core race/sports and equipment businesses resulted in dramatic cost savings and increased profitability. With expenses under control and cash reserves increased, the Company is well positioned to begin the next phase of its long-term business plan and grow the revenues by examining additional race and sports related opportunities in both the Nevada and international markets."

American Wagering, Inc. owns and operates a number of subsidiaries including:

Leroy's Horse and Sports Place: Leroy's operates 41 race and/or sports books licensed by the Nevada Gaming Commission, giving it the largest number of books in the state.

Computerized Bookmaking Systems: CBS is the dominant supplier of computerized sports wagering systems in the state of Nevada.

AWI Keno: AWI Keno is licensed by the Nevada Gaming Commission as an operator of an inter-casino linked keno game. At the present time, the AWI Keno operation has been temporarily closed pending modifications to the system.

Secured Telephone Operating Platform: STOP is the creator and operator of a system designed to ensure that telephone calls for account wagering originate from within the state of Nevada. STOP currently has three sports book operations utilizing the system.

Mega$ports (ACT): Mega$ports (ACT) operates a sports book on the Internet and via telephone from its headquarters in Canberra, ACT, Australia. Pursuant to a settlement agreement with the Nevada Gaming Commission, the Company must divest itself of the Mega$ports (ACT) operation by July 25, 2002.

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