<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
______________________________
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 000-20685
________________________________________
American Wagering, Inc.
_________________________________________________________________
(Exact name of small business issuer as specified in its charter)
Nevada 88-0344658
___________________________________ _________________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
675 Grier Drive, Las Vegas, Nevada 89119
_________________________________________________________________
(Address of principal executive office)
(702) 735-0101
_________________________________________________________________
(Issuer's telephone number)
_________________________________________________________________
(Former name, former address and former fiscal year, if changed
since last report)
Check whether the issuer (1) filed reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes x No
___________ _____________
The number of shares of Common Stock outstanding as of September
13, 1996 was 7,837,500.
<PAGE>
PART I -- FINANCIAL INFORMATION.
_____________________
Item 1. FINANCIAL STATEMENTS.
AMERICAN WAGERING, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
January 31, July 31,
1996 1996
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 3,938,582 $ 12,737,512
Other current assets 459,414 418,841
------------ ------------
4,397,996 13,563,353
PROPERTY AND EQUIPMENT, NET 420,992 5,178,653
INVESTMENT IN PARTNERSHIP 1,331,844 --
EXCESS OF COST OVER FAIR MARKET VALUE
OF NET ASSETS ACQUIRED -- 2,189,965
DEPOSITS AND OTHER ASSETS 88,977 265,846
------------ ------------
$ 6,239,809 $ 20,790,817
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Unpaid winning tickets $ 1,006,056 $ 425,785
Accounts payable/accrued expenses 495,176 390,839
Current portion of long-term debt 236,365 296,097
Stockholder notes payable -- 2,433,124
Other current liabilities 656,157 713,920
------------ ------------
2,393,754 4,259,765
LONG-TERM DEBT (less current portion) 757,956 3,101,237
------------ ------------
3,151,710 7,361,002
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 50,251 78,376
Additional paid-in capital 445,006 14,686,207
Retained earnings (accumulated deficit) 2,592,842 (1,334,768)
------------ ------------
3,088,099 13,429,815
------------ ------------
$ 6,239,809 $ 20,790,817
============ ============
</TABLE>
NOTE: The balance sheet at January 31, 1996 has been taken
from the audited financial statements at that date and condensed
The accompanying notes are an integral part of these financial statements.
<PAGE>
AMERICAN WAGERING, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31,1995 AND 1996
<TABLE>
<CAPTION>
1995 1996
----------- -----------
<S> <C> <C>
REVENUES:
Horse and sports wagering $ 597,448 $ 693,100
Hotel and casino revenues -- 880,615
----------- -----------
Total revenues 597,448 1,573,715
DIRECT COSTS 546,151 1,220,151
----------- -----------
Gross profit 51,297 353,564
ADMINISTRATIVE EXPENSES 265,662 589,362
DEPRECIATION AND AMORTIZATION 18,792 106,667
----------- -----------
Operating loss (233,157) (342,465)
INTEREST INCOME (EXPENSE) AND OTHER INCOME, net (46,402) 55,844
----------- -----------
Loss before provision for income taxes (279,559) (286,621)
PROVISION FOR INCOME TAXES -- --
----------- -----------
NET LOSS $ (279,559) $ (286,621)
----------- -----------
PRO FORMA LOSS PER SHARE (0.05) $ (0.04)
----------- -----------
PRO FORMA WEIGHTED AVERAGE SHARES OUTSTANDING 5,250,000 7,247,802
----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AMERICAN WAGERING, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1995 AND 1996
<TABLE>
<CAPTION>
1995 1996
----------- -----------
<S> <C> <C>
REVENUES:
Horse and sports wagering $ 1,812,452 $ 1,746,201
Hotel and casino revenues -- 880,615
----------- -----------
Total revenues 1,812,452 2,626,816
DIRECT COSTS 1,215,864 1,862,729
----------- -----------
Gross profit 596,588 764,087
ADMINISTRATIVE EXPENSES 611,354 988,789
DEPRECIATION AND AMORTIZATION 37,584 144,839
----------- -----------
Operating loss (52,350) (369,541)
INTEREST INCOME (EXPENSE) AND OTHER INCOME, net (10,930) 90,952
----------- -----------
Loss before provision for income taxes (63,280) (278,589)
PROVISION FOR INCOME TAXES -- --
----------- -----------
NET LOSS $ (63,280) $ (278,589)
----------- -----------
PRO FORMA LOSS PER SHARE $ (0.0l) $ (0.04)
----------- -----------
PRO FORMA WEIGHTED SHARES OUTSTANDING 5,250,000 6,263,118
----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AMERICAN WAGERING, INC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JULY 31, 1995 AND 1996
<TABLE>
<CAPTION>
1995 1996
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (63,280) $ (278,589)
------------ ------------
Adjustments to reconcile net loss
to cash provided by operating activities:
Depreciation and amortization 37,584 144,839
Equity in (earnings) loss from investment in partnership 16,140 (68,041)
Changes in assets and liabilities:
Decrease (increase) in assets:
Restricted cash (2,879) --
Other current assets 44,666 772,958
Deposits and other assets (58,708) (87,121)
Increase (decrease) in liabilities:
Unpaid winning tickets (677,723) (580,271)
Other current liabilities 219,080 (83,554)
Accounts payable/accrued expenses (24,389) (447,140)
------------ ------------
Total adjustments (446,229) (109,222)
------------ ------------
Net cash used in operating activities (509,509) (387,811)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (103,397) (99,109)
Proceeds from sale of property and equipment 150,000 --
Purchase of remaining 50% interest in partnership -- (3,601,000)
Proceeds from distribution of investee partnership 10,000 --
------------ ------------
Net cash provided by (used in) investing activities 56,603 (3,700,109)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) of long-term debt (76,596) (166,579)
Stockholder notes payable -- 2,433,124
Net proceeds from issuance of common stock -- 13,711,326
Contributions from stockholders -- 558,000
Distributions to Stockholders (1,700,000) (3,649,021)
------------ ------------
Net cash provided by (used in) financing activities (1,776,596) 12,886,850
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,229,502) 8,798,930
------------ ------------
CASH AND CASH EQUIVALENTS, beginning of period 4,485,116 3,938,582
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 2,255,614 $ 12,737,512
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AMERICAN WAGERING, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JULY 31, 1995 AND 1996
1. Information and Disclosure
The accompanying unaudited condensed consolidated financial statements do
not include all information and disclosures required under generally
accepted accounting principles. However, in the opinion of management, the
accompanying financial statements contain all adjustments (consisting only
of normal recurring adjustments) considered necessary to present fairly the
financial position of the Company at July 31, 1995 and 1996, and the
results of its operations and cash flows for the periods presented. The
financial statements as of and for the years ended January 31, 1995 and
1996 and the notes thereto included in the Company's Registration Statement
on Form SB-2 should be read in conjunction with these interim financial
statements.
The Condensed Balance Sheet as of January 31, 1996 and the results of
operations and cash flows through May 15, 1996 are the combined financial
statements of American Wagering, Inc., Leroy's Horse and Sports Place and
Leroy's Hotel Corporation.(See Note 3)
The financial results for acquisitions are included in the condensed
financial statements from the date of acquisition.
2. Period Results Not Indicative of the Full Year
The results of operations for the three months and six months ended July
31, 1995 and 1996 are not necessarily indicative of the results to be
expected for the full calendar year.
3. Reorganization
In August 1995, the Company was formed to be a holding company for two
wholly owned subsidiaries. Leroy's Horse and Sports Place (LHSP) and
Leroy's Hotel Corporation (LHC). Immediately prior to the closing of the
stock offering (see Note 8), the stockholders of LHSP and LHC exchanged
their shares in those companies for shares of American Wagering, Inc. These
transactions are referred to as the Reorganization.
4. Cash Equivalents
Cash equivalents consist of highly liquid investments with a maturity of
six months or less and are carried at cost which approximates market value.
5. Excess of Cost Over Fair Market Value of Net Assets Acquired and
Other Intangible Assets
The excess of the cost over the fair market value of net assets of acquired
companies ("goodwill") is being amortized over the periods expected to be
benefited, or approximately 25 years.
The realizability of the goodwill and other intangible assets is evaluated
periodically as events or circumstances warrant. Such evaluations are based
on various analyses, including cash flow and profitability projections that
incorporate, as applicable, the impact on existing company business. The
analysis necessarily involve significant management judgment to evaluate
the capacity of an acquired business to perform within projections.
<PAGE>
6. Income Taxes
In connection with the Reorganization on May 10, 1996, the S corporation
status of LHSP and LHC terminated. Upon termination of the S corporation
election, LHSP and LHC are subject to federal income taxes. The
accompanying financial statements for the periods ended July 31, 1995
include a pro forma income tax adjustment, using a tax rate of 34 percent,
to reflect the estimated income tax expense of the Company as if LHSP and
LHC had been subject to federal income taxes for such periods presented.
No income tax benefits have been provided for the three months and six
months ended July 31, 1996.
7. Investment in Subsidiary
In March, 1995, LHC purchased fifty percent interests in certain entities
which own and operate a hotel/casino located in Las Vegas, Nevada. The
related entities are BSRB Resort Hotels (a Nevada general partnership) and
B-P Food Corporation (a Nevada corporation which is wholly owned by BSRB
Resort Hotels). The purchase was financed by a bank note made by LHSP for
approximately $1.1 million. In February, 1996, the shareholders of the
Company purchased a fifty percent interest in the stock of BP-Gaming
Corporation (a Nevada corporation), which was contributed to the Company
in connection with the Reorganization.
The purchase has been accounted for under the equity method and the excess
of the purchase price over the net assets received in the purchase has been
capitalized and is being amortized over 25 years.
Summarized, combined financial information for these entities for the
period from December 31, 1995 to May 15, 1996 is as follows:
Revenues $ 1,597,000
Operating Income $ 173,000
Net Income $ 136,000
On May 15, 1996, the Company purchased the remaining fifty percent interest
in BSRB Resort Hotels and BP-Gaming Corporation for $3,601,000 in cash and
the assumption of certain liabilities. The acquisition of BSRB Resort
Hotels and BP-Gaming Corporation have been accounted for as a purchase. Had
the acquisition occurred as of February 1, 1996, Consolidated Revenue,
Operating Loss, and Net Loss would have been as follows:
Revenues $ 4,224,000
Operating Loss $ (197,000)
Net Loss $ (211,000)
8. Stock Offering
On May 15, 1996, the Company completed a public offering of stock. The
initial public offering price was $6.00 a share, with 2,250,000 shares
being offered. In June, 1996 the underwriter exercised its over-allotment
option to purchase an additional 337,500 shares at $6.00 a share. A portion
of the proceeds of the offering was used to purchase the remaining fifty
percent interest in BSRB Resort Hotels and B-P Gaming Corporation. The
remaining proceeds of the offering will be used to renovate and expand the
existing hotel/casino into a sports theme entertainment facility, and for
other corporate purposes.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Fiscal Quarter Ended July 31, 1996 Compared to Fiscal Quarter
Ended July 31, 1995
Revenues for the fiscal quarter ended July 31, 1996 ("Second Quarter of
Fiscal 1997") were $1,574,000, an increase of $977,000 or 163.7% from revenues
of $597,000 for the quarter ended July 31, 1995 ("Second Quarter of Fiscal
1996"). On May 15, 1996 the Company completed the acquisition of the Howard
Johnson Hotel and Casino (the "Hotel and Casino") located in Las Vegas, Nevada.
Revenues from the Hotel and Casino for the Second Quarter of Fiscal 1997 were
approximately $881,000. Revenues from horse and sports wagering were
approximately $693,000 for the Second Quarter of Fiscal 1997 an increase of
$96,000 or 16.0% from revenues of $597,000 for the Second Quarter of Fiscal
1996. Handle for the Second Quarter of Fiscal 1997 was $12,678,000 a decrease of
$3,356,000 or 20.9% from handle of $16,034,000 in the Second Quarter of Fiscal
1996. Net win percentage (revenues divided by handle) was 5.5% in the Second
Quarter of Fiscal 1997 compared to 3.6% in the Second Quarter of Fiscal 1996.
Net win percentage fluctuates depending on the outcome of various sporting
events within the reporting period. The decrease in handle was principally due
to the loss of six locations partly offset by the handle from the six
replacement locations which were opened at various times in the Second Quarter
of Fiscal 1997.
Direct costs were $1,220,000 in the Second Quarter of Fiscal 1997, an
increase of $674,000 or 123.4% from Second Quarter of Fiscal 1996 direct costs
of $546,000. Direct costs were 77.5% of revenues for the Second Quarter of
Fiscal 1997 compared to 91.4% in the Second Quarter of Fiscal 1996. Direct costs
include labor costs, gaming taxes, franchise fees and other costs. The increase
in direct costs in the Second Quarter of Fiscal 1997 was principally due to the
acquisition of the Hotel and Casino during the Second Quarter of Fiscal 1997.
Directs costs associated with horse and sports wagering increased $66,000 or
12.1% as compared to direct costs in the Second Quarter of Fiscal 1996. The
increase in direct costs associated with horse and sports wagering was
principally due to higher revenues for the period. The decrease in direct costs
as a percentage of revenues from the Second Quarter of Fiscal 1996 to the Second
Quarter of fiscal 1997 was due principally to higher margins associated with the
Hotel and Casino and due to higher marginal gross profits from horse and sports
wagering.
Administrative expenses were $589,000 in the Second Quarter of Fiscal
1997, an increase of $323,000 or 121.4% from the Second Quarter of Fiscal 1996
administrative expenses of $266,000. Administrative expenses were 37.5% of
revenues for the Second Quarter of Fiscal 1997 compared to 44.5% in the Second
Quarter of Fiscal 1996. The increase in administrative expenses in the Second
Quarter of Fiscal 1997 was principally due to the acquisition of the Hotel and
Casino during the Second Quarter of Fiscal 1997.
Depreciation and amortization was $107,000 in the Second Quarter of
Fiscal 1997, an increase of $88,000 or 467.6% from depreciation and
amortization for the Second Quarter of Fiscal 1996 of $19,000. The increase in
depreciation and amortization over the Second Quarter of Fiscal 1996 was
principally due to depreciation and amortization associated with the acquisition
of the Hotel and Casino. Also, depreciation and amortization increased due to
capital expenditures associated with new sports book locations opened during the
Second Quarter of Fiscal 1997.
Interest and other income was $56,000 in the Second Quarter of Fiscal
1997, an increase of $102,000 from interest expense and other income in the
Second Quarter of Fiscal 1996 of $46,000. The increase in interest and other
income was principally due to earnings from temporary investment of the net
proceeds from the initial public offering of the Company's common stock and an
increase in miscellaneous other income. Partly offsetting this increase was
interest expense on the long term debt of the Hotel and Casino.
Net loss for the Second Quarter of Fiscal 1997 was $287,000 a decrease
of $7,000 from the Second Quarter of Fiscal 1996 net loss of $280,000. Net loss
for the Second Quarter of Fiscal 1997 from the sports wagering operations
decreased by approximately $138,000 as compared to the net loss for the Second
Quarter of Fiscal 1996 principally due to higher wagering revenue. Offsetting
the decrease in the net loss from horse and sports wagering was the loss from
the Hotel and Casino operations. Prior to May, 1996 affiliates of the Company
were S Corporations and income taxes were
<PAGE>
assessed at the stockholder level. Income tax benefits were not provided against
the net loss for the Second Quarter of Fiscal 1997.
Six Months Ended July 31, 1996 Compared to the Six Months Ended July 31, 1995
Revenues for the six months ended July 31, 1996 were $2,627,000, an
increase of $814,000 or 44.9% from revenues of $1,812,000 for the six months
ended July 31, 1995. On May 15, 1996 the Company completed the acquisition of
the Howard Johnson Hotel and Casino (the "Hotel and Casino") located in Las
Vegas, Nevada. Revenues from the Hotel and Casino since the date of acquisition
were approximately $881,000. Revenues from horse and sports wagering were
approximately $1,746,000 for the six months ended July 31, 1996, a decrease of
$66,000 or 3.7% from revenues of $1,812,000 for the six months ended July 31,
1995. Handle for the six months ended July 31, 1996 was $29,860,000 a decrease
of $1,711,000 or 5.4% from handle of $31,571,000 in the six months ended July
31, 1995. Net win percentage (revenues divided by handle) was 5.8% in the six
months ended July 31, 1996 compared to 5.5% in the six months ended July 31,
1995. Net win Percentage fluctuates depending on the outcome of various sporting
events within the reporting period. The decrease in handle was principally due
to the loss of six locations partly offset by the handle from the six
replacement locations which were opened at various times in the six months ended
July 31, 1996. Handle in six months ended July 31, 1996 at locations that were
operating in both periods increased $2,775,000 or 10.9% over the handle for the
six months ended July 31, 1995. Revenues for the six months ended July 31, 1995
at location operating in both periods were $151,000 or 31.0% over revenue for
the six months ended July 31, 1995.
Direct costs were $1,863,000 in the six months ended July 31, 1996, an
increase of $647,000 or 53.2% from the six months ended July 31, 1995. Direct
costs were 70.9% of revenues for the six months ended July 31, 1996 compared to
67.1% in the six months ended July 31, 1995. Direct costs included labor costs,
gaming taxes, franchise fees and other costs. The increase in direct costs in
the six months ended July 31, 1996 was principally due to the acquisition of the
Hotel and Casino during the Second Quarter of Fiscal 1997. Directs costs
associated with horse and sports wagering increased $38,000 or 3.1% as compared
to direct costs in the six months ended July 31, 1995. The increase in direct
costs associated with horse and sports wagering was principally due to costs
associated with the increase in revenues for the quarter ended July 31, 1996.
The increase in direct costs as a percentage of revenues from the six months
ended July 31, 1995 to the six months ended July 31, 1996 was due principally to
lower horse and sports wagering revenues.
Administrative expenses were $989,000 in the six months ended July 31,
1996, an increase of $377,000 or 61.7% from the six months ended July 31, 1995.
Administrative expenses were 37.6% of revenues for the six months ended July 31,
1996 compared to 33.7% in the six months ended July 31, 1995. The increase in
administrative expenses in the six months ended July 31, 1996 was principally
due to the acquisition of the Hotel and Casino during the Second Quarter of
Fiscal 1997, higher salaries of continuing and new employees at Leroy's Horses
and Sports Place ("Leroy's") the reorganization and costs associated with the
relocation of the Company's headquarters and operation offices of Leroy's.
Depreciation and amortization was $145,000 in the six months ended July
31, 1996, an increase of $107,000 or 285.4% from depreciation and amortization
for the six months ended July 31, 1995 of $38,000. The increase in depreciation
and amortization over the six months ended July 31, 1995 was principally due to
depreciation and amortization associated with the acquisition of the Hotel and
Casino. Also, depreciation and amortization increased due to capital
expenditures associated with new sports book locations opened during the Second
Quarter of Fiscal 1997.
Interest and other income was $91,000 in the six months ended July 3l,
1996, an increase of $102,000 from interest expense and other income in the six
months ended July 31, 1995 of $11,000. The increase in interest and other income
was principally due to earnings from the investment of the net proceeds from the
initial public offering of the Company's common stock an increase in the equity
in net earnings from the investment in the Hotel and Casino and an increase in
miscellaneous other income. Partly offsetting this increase was interest expense
on the long term debt of the Hotel and Casino.
<PAGE>
Net loss for the six months ended Judy 31, 1996 was $279,000 an
increase of $216,000 or 340.2% from the six months ended July 31, 1995 net loss
of $63,000. Net loss from horse and sports wagering operations increased
approximately $138,000 for the six months ended July 31, 1996 as compared to the
six months ended July 31, 1995 principally due to higher direct costs and
administrative expenses. The net loss from the Hotel and Casino operations was
approximatelv $140,000. Partly offsetting these losses were earnings from
temporary investments. Prior to May, 1996 affiliates of the Company were S
Corporations and income taxes were assessed at the stockholder level. Income tax
benefits were not provided against the net loss for the six months ended July
31, 1996.
Liquidity and Capital Resources
As of July 31, 1996 working capital was $9,304,000 reflecting the net
proceeds from the Company's initial public offering and the exercise of the
underwriters over-allotment option.
Cash used in operating activities was $388,000. Net investing
activities amounted to $3,700,000 reflecting the purchase of the remaining 50%
interest in the Hotel and Casino. Net cash provided from financing activities
amounted to $12,887,000 including the net proceeds from the Company's initial
public offering of $13,711,000 issuance of stockholders notes of $2,433,000 and
contributions from stockholders of $558,000, partly offset by distributions of
$3,649,000.
Leroy's, a subsidiary of the Company was an S Corporation under the
Internal Revenue Code. From inception through February 29, 1996, Leroy's made
cash distributions of approximately $4,400,000 in aggregate to its stockholders.
On March 21, 1996, Leroy's made cash distributions to its stockholders in the
aggregate amount of $3,000,000 representing undistributed earnings as of January
31, 1996, on which the stockholders had previously paid federal income taxes. Of
the $3,000,000 distributed, approximately $2,400,000 was loaned back to Leroy's
by the stockholders and $338,000 was contributed as capital to Leroy's by the
stockholders. The loans are repayable pursuant to stockholder notes maturing on
April 1, 1997 and bear interest at a 7% annual rate.
On May 15, 1996 the Company completed an initial public offering of
2,587,500 shares (337,500 shares, were sold on June 28, 1996 at $6.00 a share
upon the exercise of the underwriters option) of its common stock at $6.00 per
share. Simultaneous with the completion of the initial public offering, the
Company completed the purchase of the remaining 50% interest in the 150 room
hotel/casino complex located at 3111 W. Tropicana Ave. in Las Vegas Nevada. The
balance of the proceeds will be used to renovate and expand the hotel/casino
into a sports theme hotel/casino, to support the Company's growth and expansion
strategy and for general working corporate purposes.
The Company believes that the net proceeds of the initial public
offering together with the anticipated cash provided by its operating activities
will be sufficient to finance its operations, scheduled debt repayment and
anticipated capital expenditures through July 31, 1997.
CAUTIONARY STATEMENTS FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT Of 1995
The statements contained in this document which are not historical facts contain
forward looking information with respect to plans, projections or future
performance of the Company, the occurrence of which involve certain risks and
uncertainties, including that the sports book operator takes financial risks on
the outcome of sporting events as a principal betting against its patrons and
uncertainties detailed in the Company's filings with the Securities and Exchange
Commission.
<PAGE>
PART II -- OTHER INFORMATION
_________________
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -- Financial Data Schedule
Number Description Method of Filing
------ ----------- ----------------
27 Financial Data Schedule Filed herewith
(b) The following reports on Form 8-K were filed during the
quarter ended July 31, 1996:
1. Form 8-K on May 16, 1996 with respect to Items 2, 5 and 7.
2. Form 8-K/A on June 25, 1996 with respect to Item 7 and
including the unaudited, condensed combined financial
statements for the three months ended March 31, 1995 and 1996
for BSRB Resort Hotels and B-P Gaming Corporation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN WAGERING, INC.
_____________________________
(Registrant)
Date September 13, 1996 By: /s/ Robert D. Ciunci
-----------------------------
Robert D. Ciunci
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
American Wagering, Inc.
Financial Data Schedule Required under:
Appendix A to Item 601(c) of Regulation S-B
Commercial and Industrial Companies
Article 5 of Regulation S-X
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-END> JUL-31-1996
<CASH> 12,737,512
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 418,841
<PP&E> 5,178,653
<DEPRECIATION> 2,189,965
<TOTAL-ASSETS> 20,790,817
<CURRENT-LIABILITIES> 4,259,765
<BONDS> 3,101,237
0
0
<COMMON> 78,376
<OTHER-SE> 13,533,439
<TOTAL-LIABILITY-AND-EQUITY> 20,790,817
<SALES> 0
<TOTAL-REVENUES> 2,626,816
<CGS> 0
<TOTAL-COSTS> 1,862,729
<OTHER-EXPENSES> 1,133,628
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 90,952
<INCOME-PRETAX> (278,589)
<INCOME-TAX> 0
<INCOME-CONTINUING> (278,589)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (278,589)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
