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American Wagering Signs Stipulation to Settle Complaint

14 July 2000

LAS VEGAS, Nevada—(Press Release)-- July 14,2000 -- American Wagering, Inc. (Nasdaq: BETM - news) today announced they reached an agreement with the Nevada Gaming Control Board, subject to approval by the Nevada Gaming Commission, regarding the disciplinary complaint filed against the Company relating to their MegaSports Pty, Ltd. Australian Internet gaming unit. The Nevada Gaming Commission will meet on July 27th to discuss this settlement agreement.

The Company reached the proposed settlement without admitting or denying the allegations. The Company agreed to pay a fine of $10,000 and has agreed to divest itself of any and all interests and rights pertaining to the Australian operation.

The divestiture may be accomplished by sale, spin-off or terminating the operations of the subsidiary. The time frame for the divestiture is 180 days from the date of acceptance by the Commission.

The Company has the right to request not more than three 60-day extension periods to complete the divestiture. The Company hopes to update shareholders in the near future on the plan for divestiture.

Commenting on the settlement, American Wagering CEO Victor Salerno said, ``The Company agreed to a settlement which allows us to continue our sports betting and keno operations in Nevada. The settlement helps us avoid delays in our license applications in other domestic jurisdictions. We hope to shortly announce our plans for the divestiture and in what time frame it will be accomplished."

"While this was a very unfortunate event, we felt it was in the best interest of the company and our shareholders to resolve this matter. The Company is currently in discussions with 3 major investment groups concerning the Australian operation. We feel that an agreement with any of these groups will result in enhanced shareholder and customer value. We do not expect any disruption of business during the transition period.''

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