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American Wagering Reports Q3 Results

10 November 2005

LAS VEGAS – (PRESS RELEASE) -- American Wagering, Inc. (OTC Bulletin Board: BETM today announced key developments for its third fiscal quarter which ended October 31, 2005.

    *  Leroy's Horse & Sports Place, Inc. ("Leroy's") sports handle (the total
       amount wagered) increased 12.1% from the third quarter of last year
       while sports win increased 64.4%.  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 third quarter of last year to the third quarter of this year.

                                             HANDLE           WIN
                                             ------           ---
           Football                            +12%         +121%
           Baseball                           +8.5%         +304%
           Basketball                         +242%          -55%
           Hockey(1)                        +3,326%         +597%
           Boxing(2)                           -61%          -71%
           Miscellaneous(3)                   +104%          -19%
           Parlay Cards                         +7%          -33%
           (1) Due to the player strike in 2004, hockey figures are not

           (2) Boxing is seasonal in nature; handle is dependent upon the
           number and quality of fights offered during the quarter.

           (3) Miscellaneous includes auto racing, golf and other events.

    *  Leroy's race handle increased 44.5% from the third quarter of last year
       while race win increased 46.2%.  We attribute the increase in race
       handle and win to the additional locations opened early in 2005.

    *  Leroy's combined handle (both race and sports) increased 13.0% from the
       third quarter of last year while combined win increased 62.3%.  As a
       result, the third quarter of the current fiscal year is the best third
       quarter in Leroy's history (in terms of handle and win).

    *  Leroy's player club (started in May of 2005) had in excess of 2,800
       members at October 31, 2005, and we expect additional enrollments over
       the next several quarters.  The player club is designed to reward
       players for their continued play at Leroy's locations.

    *  Leroy's continued the process of upgrading all of its point-of-sale
       terminals in order to take advantage of the latest technologies
       available.  This project is over 90% complete and we expect it to be
       finalized early in the fourth quarter.

    *  Once the terminal upgrade project is completed, Leroy's expects to
       upgrade the server to the newer 64-bit hardware platform offered by
       Computerized Bookmaking Systems, Inc. ("CBS") (an affiliated company).
       Leroy's expects this upgrade to be completed by the end of the calendar

    *  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 Rainbow Hotel & Casino in
       Wendover, Nevada and the El Cortez Hotel & Casino in Las Vegas, Nevada.
       (NOTE:  The Rainbow installation was a conversion from the older
       hardware platform while the El Cortez installation is a new customer.)
       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 completed the process of consolidating the Mandalay Resort Group
       properties into the MGM/Mirage system as well as finalizing
       installations of the newer T-3 wagering terminals at the Luxor and

    *  CBS oversaw the operation of the Fall Classic handicapping contest at
       the Orleans Hotel & Casino.

    *  AWI Gaming, Inc. (a Company subsidiary) continued to move forward with
       the gaming licensure process required prior to closing on the purchase
       of Sturgeon's Inn & Casino in Lovelock, Nevada.  The Company cannot
       predict when the Nevada gaming regulators will complete their
       investigation and allow the transaction to close, but is hopeful the
       closing will occur early in the first quarter of the next fiscal year.

Victor Salerno, the Company's CEO and President, said, "The developments for the third quarter mark an excellent continuation of the fiscal year with record handle and win from the Leroy's operation as well as the continued deployment of the 64-bit HP Integrity hardware platform from the CBS operation. The developments provide a testament to the strength of the American Wagering brands and the revenue growth potential they provide."

Salerno continued, "The acquisition of the Lovelock hotel/casino operation is moving forward and, following the closing of the acquisition, we expect it to be immediately accretive to our bottom line, further solidifying our growth potential and expanding our portfolio of customer experiences. 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."

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