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American Wagering Results Up

LAS VEGAS – (PRESS RELEASE) -- American Wagering, Inc. (OTC Bulletin Board: BETM) today announced the operational results and key developments for the first quarter of the current fiscal year. Revenues for the first quarter increased to $3,306,295 (+32%) from the same period last year while net income increased to $218,729 (+839%).

                       Three Months Ended April 30,
                              2005         2004     $ CHANGE     % CHANGE

    Revenue             $3,306,295   $2,504,052     +802,243         +32%
    Costs and Expenses   3,115,396    2,463,606     +651,790         +26%
      Operating Income     190,900       40,447     +150,453        +372%
    Other Income (Expense) 144,381      (14,141)    +158,522      +1,121%
      Income Before
       Income Taxes        335,281       26,306     +308,975      +1,175%
    Income Tax Expense     116,552        3,000     +113,552      +3,785%
      Net Income          $218,729      $23,306     +195,423        +839%

KEY DEVELOPMENTS:

-- Leroy's sports handle (the total amount wagered) increased $766,000 (+3.6%) from the first quarter of last year while sports win increased $502,000 (+33.2%). These figures include the professional football championship game, held in February of 2005, where handle increased $163,000 (+6.0%) and win increased $85,000 (+22.5%) over the previous professional football championship game.

-- On January 28, 2005, Leroy's increased from 3 pari-mutuel race books to 6 with the addition of pari-mutuel operations at the Avi Hotel & Casino in Laughlin, Nevada; the Silver Club Hotel & Casino in Sparks, Nevada; and the Silver Nugget Casino in North Las Vegas, Nevada. As a result of operating these new books for the full quarter, pari-mutuel race handle increased $333,000 (+61.88%) and pari-mutuel race win increased $66,000 (+59.0%) over the first quarter of last year.

-- CBS installed the first 64-bit Hewlett-Packard Alpha race/sports system at the Aladdin Hotel & Casino in Las Vegas, Nevada. (March, 2005)

-- CBS installed a new race/sports system at Wynn Las Vegas in Las Vegas, Nevada (also based on the 64-bit Hewlett-Packard Alpha). (April, 2005)

-- CBS installed a new race/sports system at Jerry's Nugget Casino in North Las Vegas, Nevada. (February, 2005)

-- CBS installed new handicapping software and oversaw contests at Harrah's Hotel and Casino in Reno, Nevada and at various Coast Casino properties in Las Vegas, Nevada. (March and April, 2005)

-- AWI and Leroy's formally emerged from the Chapter 11 bankruptcy process on March 11, 2005.

-- The Bankruptcy Appellate Panel ruled in the Company's favor and determined that the Racusin claim should be subordinated pursuant to Section 510(b) of the Bankruptcy Code. As a result of this ruling, and the settlement agreement with Racusin, the Racusin claim will be paid via the issuance of 250,000 shares of the Company's common stock rather than $2.8 million in cash. (April, 2005)

Victor Salerno, the Company's CEO and President, said, "We are very pleased with the first quarter results. The Leroy's operation experienced the best first quarter in its 25+ year operating history with record handle and win. At the same time, the CBS operation introduced the first 64-bit sports operating system in the history of the Nevada gaming industry and installed the system at two properties, including the Wynn Las Vegas, the newest property on the Las Vegas Strip. We also recently announced the formation of a new division, AWI Gaming, Inc., and the addition of Bruce Dewing to our management team, in order to take advantage of opportunities in the rural Nevada hotel/casino market. While the accomplishments of the first quarter are significant and indicate that are operating strategies are correct, we realize that this is no time to rest on our laurels. We remain committed to our goals of strengthening and diversifying cash flows, growing the Company and increasing shareholder value in the long term."

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