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American Wagering Reports Q4

9 February 2006

LAS VEGAS – (PRESS RELEASE) -- American Wagering, Inc. (OTC Bulletin Board: BETM) today announced key developments for its fourth fiscal quarter and fiscal year which ended January 31, 2006, as well as certain developments after year-end.

* Leroy's Horse & Sports Place, Inc. ("Leroy's") sports handle (the total amount wagered) for the year ended January 31, 2006 increased 10.0% from the year ended January 31, 2005 while sports win increased 7.1%. We attribute the increase in sports handle and win to normal fluctuations in betting patterns. The following table indicates the increase/decrease, by sporting category, from the last fiscal year to the current fiscal year.

* Leroy's race handle for the year ended January 31, 2006 increased 39.2% from the year ended January 31, 2005 while race win increased 44.2%. We attribute the increase in race handle and win to the additional locations that we opened early in 2005.

* Leroy's combined handle (both race and sports) for the year ended January 31, 2006 increased 10.8% from the year ended January 31, 2005 while combined win increased 10.3%. As a result, Leroy's combined handle for the current fiscal year is the highest handle realized by Leroy's in the past ten years while the combined win is the third highest in the same ten year period.

* While the increase in combined handle exceeded our internal projections, the increase in combined win was slightly less than our internal projections. We attribute this to poor results from professional football wagering during November and December that caused a decrease of 18.4% in pro football win (from the prior year) and a decrease of 56.3% in parlay card win (from the prior year). The combined win figure was stabilized and bolstered by better than internally projected results in college football wagering, college basketball wagering and hockey wagering.

* Enrollment in the Leroy's player club (started in May of 2005) increased 17.9% during the fourth quarter as compared to our third quarter. At January 31, 2006, the player club had in excess of 3,300 members and we expect it to increase further over the next several quarters. The player club is designed to reward players for their continued play at Leroy's locations.

* Leroy's completed the process of upgrading all of its point-of-sale terminals in order to take advantage of the latest technologies available. In addition, Leroy's completed upgrading its server to the newer 64-bit hardware platform offered by Computerized Bookmaking Systems, Inc. ("CBS," a subsidiary of the Company).

* CBS continued converting its customers from the VAX hardware platform to the newer 64-bit hardware platform. During the quarter, the HP Integrity system was installed at the MGM/Mirage properties in Las Vegas, Nevada. In addition, CBS contracted to install the HP Integrity system at Harrah's Casinos (February installation), the Primm Properties (February/March installation) and Station Casinos (March installation). Over the next several quarters, the Company expects the research and development expended on building the 64-bit system to bear fruit as each conversion is expected to result in immediate sales for CBS as well as increased monthly maintenance fees over the long-term.

* CBS contracted with Station Casinos to upgrade their point-of-sale terminals to the newer T-3 wagering terminal. In January, CBS completed the upgrades at Texas Station (race line only) and Wildfire. The remaining properties are scheduled for completion during February and March.

* CBS installed T-3 wagering terminals at the newly-opened Southcoast Hotel & Casino, the most recent member of the Coast Casino family.

* CBS oversaw the operation of the NTRA pari-mutuel contest at Bally's Hotel & Casino and the Coast World Series Handicapping Contest.

The following significant events occurred subsequent to the end of the fourth quarter (January 31, 2006):

* At their regularly scheduled meeting on February 8, 2006, the State Gaming Control Board recommended approval, subject to execution of loan documents, of the acquisition of Sturgeon's Inn & Casino in Lovelock, Nevada ("Sturgeon's") by our subsidiary AWI Gaming, Inc. ("AWIG"). The acquisition, however, cannot be completed until satisfaction of the condition and final approval from the Nevada Gaming Commission ("NGC"); the acquisition is on the agenda for the NGC's regular meeting on February 23, 2006. Contingent upon final approval from the NGC, the Company anticipates closing the acquisition and beginning operations at Sturgeon's on March 1, 2006.

* Wagering on the 2006 professional football championship game increased 8.8% from the prior year, resulting in our fourth highest handle over the prior fifteen year period. In addition, our win percentage over the past fifteen years averaged 9.7% while ranging from a low of -4.0% in 1999 to a high of +19.7% in 2001. Our win of 10.6% for the current year exceeded our average but is less than the 16.0% win recorded for the 2005 professional football championship game.

Victor Salerno, the Company's CEO and President, said, "The record handle and modest increase in win from the Leroy's operation, combined with the continued deployment of the 64-bit HP Integrity hardware platform and T-3 wagering terminals by the CBS operation, provide a testament to the strength of the American Wagering brands and the revenue growth potential they provide. Both Leroy's and CBS performed very well over the past year on continued solid consumer demand, our strong product offerings, and our effective marketing."

Salerno continued, "We are pleased to get a positive recommendation from the Gaming Control Board regarding the acquisition of Sturgeon's Inn & Casino and eagerly await closing the acquisition as we expect the Sturgeon's operation to be immediately accretive to our bottom line and to further solidify our growth potential and expand our portfolio of customer experiences. The impact of our achievements has translated into a stronger company with continued increases in profitability from our well-diversified revenue base. Our management team remains dedicated to our long-term operating strategies and we are optimistic about meeting our goals of strengthening and diversifying cash flows, growing the Company and increasing shareholder value in the long term. We are optimistic about additional success in the coming year."

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