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American Wagering Announces Q2 Results

Revenues in the 2nd quarter were $1,904,451, a decrease of $352,033 from the 2nd quarter ending July 31, 1999. The decrease was primarily attributed to a decrease in Systems revenues of $738,713 which were offset by an increase in wagering revenues of $342,430. T

he operating loss in the 2nd quarter ended July 31, 2000 was $1,315,917 as compared with an operating loss of $949,442 in the comparison period. The higher loss was principally attributed to increased costs for operating the Company's Keno system and Mega$ports (ACT).

Offsetting the operating loss was the absence of losses associated with the ceased operations of Mega$ports U.S.A.

Revenues from wagering operations increased $342,430 to $1,069,247 despite a decrease in Handle of $2,828,947 due to an increase in the net win percentage to 4.9% as compared with 3% in the year ago period.

Operating costs decreased $204,929 to $1,184,509 resulting in a near break even quarter for wagering operations. Systems operations revenue decreased 54.2% to $623,070 primarily due to decreased revenues from the Company's CBS unit due to the completion of the openings of the mega-resorts in the Las Vegas area.

Offsetting the decreased sales was a decrease in operating costs of $272,395 or 51.7% to $834,179.

Commenting on the 2nd quarter results, American Wagering CEO Victor Salerno said, ``The 2nd quarter was a difficult quarter but despite the challenges, the loss from continuing operations was less than last year's quarter. The company booked proceeds from litigation settlement of $899,997 this quarter and is continuing to reduce costs companywide in response to a slowdown of the opening of new casinos in Nevada and the current political climate which the company is operating in.

"Negotiations are continuing on the possible sale of our Australian Internet bookmaking operations and of course, we are quite pleased that Football season has begun. The Football season is the period where the Handle for our wagering operations is at its highest.

"American Wagering, Inc. owns and operates Leroy's Horse and Sports Place, the licensed bookmaker with the largest number of sports book locations (47) 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.

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