<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 April 30, 1997
--------------
[ ] 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 year)
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 June 13, 1997
was 7,837,500.
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
AMERICAN WAGERING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
April 30, January 31,
1997 1997
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 3,263,129 $ 3,416,412
Short-term investments 7,229,037 7,154,007
Accounts receivable, net of allowance for doubtful accounts
of $147,445 and $152,445. 139,040 409,141
Inventory 487,138 300,334
Prepaid expenses and other current assets 461,001 392,678
------------ ------------
11,579,345 11,672,572
PROPERTY AND EQUIPMENT, net 8,734,144 8,710,404
INVESTMENT IN JOINT VENTURE 395,795 134,599
INTANGIBLE ASSETS, net 616,539 1,424,933
EXCESS OF COST OVER FAIR MARKET VALUE
OF NET ASSETS ACQUIRED, net 2,122,279 2,144,474
DEPOSITS AND OTHER ASSETS 638,951 633,175
------------ ------------
$ 24,087,053 $ 24,720,157
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 837,835 $ 383,673
Accounts payable 897,860 922,206
Accrued expenses 610,847 687,914
Unpaid winning tickets 618,068 927,866
Other current liabilities 871,903 602,659
------------ ------------
3,836,513 3,524,318
LONG-TERM DEBT
Stockholder notes payable 2,433,124 2,433,124
Long-term debt, less current portion 4,402,990 4,931,411
------------ ------------
6,836,114 7,364,535
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock -- $.01 par value; authorized
25,000,000 shares; issued and outstanding: none -- --
Common stock -- $.01 par value; authorized
25,000,000 shares; issued and outstanding: 7,837,500 78,375 78,375
Additional paid-in capital 14,686,208 14,686,208
Retained earnings (deficit) (1,350,157) (933,279)
------------ ------------
13,414,426 13,831,304
------------ ------------
$ 24,087,053 $ 24,720,157
============ ============
</TABLE>
Note: The consolidated balance sheet at January 31, 1997 has been derived from
the audited financial statements at that date.
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
AMERICAN WAGERING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED APRIL 30, 1997 AND 1996
1997 1996
---------- ----------
REVENUES $2,597,878 $1,056,926
OPERATING COSTS AND EXPENSES:
Direct costs 1,974,267 795,756
Research and development 96,117 --
Selling, general and administrative 649,906 244,288
Depreciation and amortization 232,589 37,817
---------- ----------
Total operating costs and expenses 2,952,879 1,077,861
---------- ----------
OPERATING LOSS (355,001) (20,935)
OTHER INCOME (EXPENSE):
Interest income 101,351 16,246
Other income 3,127 59,228
Interest expense (166,356) (46,507)
---------- ----------
Total other income (expense) (61,878) 28,967
---------- ----------
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (416,879) 8,032
PROVISION (BENEFIT) FOR INCOME TAXES -- --
PROFORMA PROVISION FOR INCOME TAXES -- 2,731
---------- ----------
NET LOSS $ (416,879) --
========== ==========
LOSS PER SHARE $ (0.05) --
========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING 7,837,500 --
========== ==========
PROFORMA NET INCOME $ -- $ 5,301
========== ==========
PROFORMA EARNINGS PER SHARE $ -- $ 0.00
========== ==========
PROFORMA WEIGHTED AVERAGE SHARES OUTSTANDING -- 5,250,000
========== ==========
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
AMERICAN WAGERING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED APRIL 30, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
------------ -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (416,879) $ 5,301
----------- -----------
Adjustments to reconcile net income (loss) to cash provided by operating
activities:
Pro forma provision for income taxes (unaudited) -- 2,731
Depreciation and amortization 232,589 37,817
Equity in earnings from investment in partnership -- (59,087)
Interest from short-term investments (75,030) --
Provision for doubtful accounts (5,000) --
Changes in assets and liabilities:
Decrease (increase) in assets:
Accounts receivable 275,102 --
Inventory (186,804) --
Prepaid expenses and other current assets (68,323) 104,633
Increase (decrease) in liabilities:
Accounts payable (24,346) (199,824)
Accrued expenses (77,067) 83,799
Unpaid winning tickets (309,798) (446,344)
Other current liabilities 269,244 (183,550)
----------- -----------
Total adjustments 30,567 (659,825)
----------- -----------
Net cash used in operating activities (386,312) (654,524)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (179,940) (14,699)
Deposits and other assets (5,776) (1,016)
Contributions to the joint venture (6,996) --
Proceeds received from joint venture partner 500,000 --
----------- -----------
Net cash provided by (used in) investing activities 307,288 (15,715)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt (74,259) (57,489)
Proceeds from stockholder notes -- 2,433,124
Contributions from stockholders -- 558,000
Distributions to stockholders -- (3,649,021)
----------- -----------
Net cash provided by (used in) financing activities (74,259) (715,386)
----------- -----------
NET DECREASE IN CASH (153,283) (1,385,625)
CASH, beginning of period 3,416,412 3,938,582
=========== ===========
CASH, end of period $ 3,263,129 $ 2,552,957
=========== ===========
</TABLE>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest during the three months ended April 30, 1997 and 1996 was
$166,356 and $46,507.
Cash paid for income taxes during the three months ended April 30, 1997 and 1996
was $136,000 and $0.
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
AMERICAN WAGERING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED APRIL 30, 1997 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, results of operations and
cash flows, of the Company for the periods presented. The financial
statements as of and for the years ended January 31, 1997 and 1996 and
the notes thereto included in the Company's Annual Report on Form
10-KSB should be read in conjunction with these interim financial
statements.
Financial statements prepared in accordance with generally accepted
accounting principles require the use of management estimates. The most
significant estimates with regard to these consolidated financial
statements involves the Company's Horse and Sports Wagering Segment and
relates to setting and adjusting lines on sporting events. The
sportsbook operator is betting as a principal against its patrons.
Therefore, if the "book" of wagers placed on an event is not balanced,
the sportsbook operator is significantly at risk for the outcome of a
sporting event. Although sportsbook operators attempt to keep the book
in balance by adjusting the betting line, the risk of a non-balanced
book is inherent in the operation of a sportsbook. To the extent that a
book on a particular event is not balanced, the book-making operation,
like its patrons, is gambling on the outcome of an event.
In February, 1997, the Company formed American Wagering Management
Company, Inc. to facilitate the management services provided to its
subsidiaries. Management service fees such as human resources,
accounting and marketing are centralized and are billed monthly to each
subsidiary through intercompany transactions at 9.5% of their
respective gross incomes. Management service fees for the three months
ended April 30, 1997 were $187,000.
Reclassifications
Certain amounts in the 1996 consolidated financial statements have been
reclassified to conform with the 1997 presentation. These
reclassifications had no effect on the Company's net income.
Period Results Not Indicative of the Full Year
The results of operations for the three months ended April 30, 1997 and
1996 are not necessarily indicative of the results to be expected for
the full fiscal year.
<PAGE>
2. Investment in Joint Venture
The Company, through the acquisition of Computerized Bookmaking
Systems, Inc. ("CBS") on October 24, 1996, is involved in a joint
venture with IGT-North America ("IGT"). CBS and IGT each own a fifty
percent interest in the joint venture company named Mega$ports, Inc., a
Nevada corporation ("Mega$ports"). Mega$ports is an enterprise in the
development stage and is engaged in the design, manufacture and
distribution of a pari-mutuel sport wagering system. The Company's
investment in joint venture balance has arisen primarily through
contributions of property and equipment.
In February 1997, the Company received a reimbursement of $500,000 from
IGT for previous start-up costs incurred by CBS related to the
Mega$ports investment in joint venture. The contribution by IGT was
treated as a "contingent asset", as defined by SFAS No. 38 "Accounting
for Business Combinations", which was resolved within a short period of
time after the consummation of the acquisition of CBS and was accounted
for as a purchase price allocation adjustment. Accordingly, the
investment in joint venture balance and intangibles arising from the
CBS acquisition were revalued to reflect the increase in the total
contribution to the joint venture by CBS.
3. Business Segment Reporting
The Company's primary operations are reported in the following four
segments: Horse and Sports Wagering, Hotel, Food and Beverage, Casino
and Computerized Bookmaking Systems ("Systems").
The Horse and Sports Wagering segment consists of licensed bookmaking
operations with the largest number of sportsbooks in the state of
Nevada. In addition to its main location, the Company operates 40 race
and sports books located within licensed gaming establishments owned by
other companies throughout the state of Nevada.
The Hotel, Food and Beverage segment consists of Hotel and Food
operations of a 150 room Howard Johnson Hotel and adjacent
International House of Pancakes restaurant located in Las Vegas,
Nevada.
The Casino segment consists of the operations of a 5,600 square foot
casino within the Howard Johnson Hotel containing approximately 74
electronic gaming devices including slot machines, video poker machines
and multi-game video machines.
The Computerized Bookmaking Systems segment consists of operations
which design, install and maintain race and sports book equipment,
software and computer systems to the sports betting industry.
The following summarizes the segment information for the Company:
<TABLE>
<CAPTION>
Three months Horse and Hotel,
ended Sports Food and
April 30, Wagering Beverage Casino Systems Corporate Total
------------ --------- -------- ------ ------- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues 1997 $ 961,234 $ 912,532 $135,088 $ 589,024 $ -- $ 2,597,878
1996 1,056,926 -- -- -- -- 1,056,926
Operating Income 1997 (86,634) (44,185) 32,323 24,197 (280,702) (355,001)
(Loss) 1996 49,416 (16,750) -- -- (53,601) (20,935)
Capital Expenditure 1997 110,490 46,186 -- 16,641 6,623 179,940
1996 10,303 4,395 -- -- -- 14,698
Depreciation and 1997 40,108 73,637 4,001 110,872 3,971 232,589
Amortization 1996 23,629 14,188 -- -- -- 37,817
Indentifiable Assets 1997 3,418,251 7,528,788 411,529 5,057,640 7,670,845 24,087,053
As of Jan. 31, 1997 3,633,668 7,672,444 350,153 5,781,141 7,282,751 24,720,157
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Results of Operations
Fiscal Quarter Ended April 30, 1997 Compared to the Fiscal Quarter
Ended April 30, 1996
Revenues for the Fiscal Quarter ended April 30, 1997 ("First
Quarter of Fiscal 1998"), were $2,598,000, an increase of $1,541,000 or
145.8% from revenues of $1,057,000 for the Fiscal Quarter ended April
30, 1996 ("First Quarter of Fiscal 1997"). The increase in revenues was
primarily attributed to the following two events:
1. On May 15, 1996, the Company completed the acquisition of
the Howard Johnson Hotel and Casino ("Hotel/Casino") located in Las
Vegas, Nevada. Revenues from Hotel, Food and Beverage for the First
Quarter of Fiscal 1998 were approximately $913,000. Revenues from the
Casino for the First Quarter of Fiscal 1998 were approximately
$135,000. The Hotel, Food and Beverage revenues for the First Quarter
of Fiscal 1998 consisted principally of room sales of $536,000. The
hotel's occupancy rate averaged 81% for the First Quarter of Fiscal
1998, a decrease of 11% from the hotel's average occupancy rate of 91%
for the First Quarter of Fiscal 1997 due primarily to increased
competition of new and expanded hotels in the Las Vegas area. The
Casino revenues for the First Quarter of Fiscal 1998 consisted of slot
revenue of $135,000.
2. On October 24, 1996, the Company acquired Computerized
Bookmaking Systems, Inc. ("CBS") located in Las Vegas, Nevada. Revenues
from CBS for the First Quarter of Fiscal 1998 were approximately
$589,000. CBS revenues consisted principally of maintenance contract
revenues of $472,000.
Revenues from horse and sports wagering were approximately
$961,000 for the First Quarter of Fiscal 1998, a decrease of $96,000 or
9.1% from revenues of $1,057,000 for the First Quarter of Fiscal 1997.
The decrease in horse and sports wagering revenues was principally due
to the loss of certain sportsbooks which were operating during the
First Quarter of Fiscal 1997, offset by the opening of new locations
which were operating during the First Quarter of Fiscal 1998. Revenues
of $875,000 for the First Quarter of Fiscal 1998 at locations operating
in both periods decreased $10,000 or 1.2% over revenues of $885,000 for
the First Quarter of Fiscal 1997. Revenues of $82,000 for the First
Quarter of Fiscal 1998 at the locations that were not operating in both
periods decreased $86,000 or 51.2% from revenues of $168,000 for the
First Quarter of Fiscal 1997. Handle (the total amount wagered at the
Company's sports and race books) for the First Quarter of Fiscal 1998
was $17,455,000 an increase of $273,000 or 1.6% from the handle of
$17,182,000 for the First Quarter of Fiscal 1997. The increase in
handle was principally due to more sportsbook locations operating
during the First Quarter of Fiscal 1998 than were operating during
First Quarter of Fiscal 1997. Handle of $15,706,000 for First Quarter
of Fiscal 1998 at locations that were operating in both periods
increased $997,000 or 6.8% over the handle of $14,709,000 for the First
Quarter of Fiscal 1997. Handle of $1,747,000 for First Quarter of
Fiscal 1998 at the locations that were not operating in both periods
decreased $725,000 or 29.3% from the handle of $2,472,000 for the First
Quarter of Fiscal 1997. An increase or decrease in handle is not
necessarily indicative of an increase or decrease in revenues or
profits. Net win percentage (revenues divided by handle) for all race
and sports wagering was 5.5% for the First Quarter of Fiscal 1998 a
decrease of .6% compared to a net win percentage for all race and
sports wagering of 6.1% for the First Quarter of Fiscal 1997. Net win
percentage fluctuates depending on the outcome of various sporting
events within the reporting period. The decrease in the net win
percentage between fiscal quarters was attributed to unfavorable
results in college basketball, baseball and parlay cards offset by
favorable results in boxing, professional basketball and hockey.
<PAGE>
Direct costs were $1,974,000 for First Quarter of Fiscal 1998,
an increase of $1,178,000 or 148.0% from direct costs of $796,000 for
the First Quarter of Fiscal 1997. Direct costs include product and
installation cost of sales, labor costs, gaming taxes, gaming supplies,
television simulcasting, franchise fees, and other costs. The increase
in direct costs was principally due to the acquisition of the
Hotel/Casino and CBS. The acquisition of the Hotel/Casino, which
occurred during the Second Quarter of Fiscal 1997, contributed to an
increase in direct costs of $772,000 for the First Quarter of Fiscal
1998, of which $707,000 were Hotel, Food and Beverage direct costs and
$65,000 were Casino direct costs. The acquisition of CBS, which
occurred during the Third Quarter of Fiscal 1997, contributed to an
increase in direct costs of $251,000 for the First Quarter of Fiscal
1998. Direct costs associated with horse and sports wagering were
$950,000, an increase of $154,000 or 19.3% as compared to direct costs
of $796,000 for the First Quarter of Fiscal 1997. The increase in
direct costs associated with horse and sports wagering was primarily
attributed to greater labor costs due to the acquisition of additional
operations personnel, advertising and expenses associated with the
sports operations transition to a new hardware/software platform. The
transition to the new platform was approximately $50,000 during the
First Quarter of Fiscal 1998. The new platform will provide greater
functionality and allow the operation of the Mega$ports(TM) pari-mutuel
sports wagering product at the Company's sportsbook locations. Direct
costs as a percentage of revenues was 76.0% for the First Quarter of
Fiscal 1998 an increase of .7% as compared to direct costs as a
percentage of revenues of 75.3% for the First Quarter of Fiscal 1997.
Research and Development expenses were $96,000 for the First
Quarter of Fiscal 1998. These expenses relate exclusively to CBS and
are attributed to software development for new products.
Selling, general and administrative expenses were $650,000 for
the First Quarter of Fiscal 1998, an increase of $406,000 or 166.4%
from selling, general and administrative expenses of $244,000 for the
First Quarter of Fiscal 1997. The increase in selling, general and
administrative expenses for the First Quarter of Fiscal 1998 was
principally due to the acquisition of the Hotel/Casino and CBS. The
acquisition of the Hotel/Casino which occurred during the Second
Quarter of Fiscal 1997, contributed to an increase in selling, general
and administrative expenses of $206,000 for the First Quarter of Fiscal
1998, of which $173,000 are Hotel, Food and Beverage expenses and
$33,000 are Casino expenses. The acquisition of CBS, which occurred
during the Third Quarter of Fiscal 1997, contributed to an increase in
the selling, general and administrative expenses of $107,000 for the
First Quarter of Fiscal 1998. Remaining selling, general and
administrative expenses were $335,000 for the First Quarter of Fiscal
1998, an increase of $93,000 or 38.4% as compared to selling, general
and administrative expenses of $242,000 for the First Quarter of Fiscal
1997. The increase in remaining selling, general and administrative
expenses was primarily attributed to higher labor costs, related to
additional personnel, and legal and other costs associated with gaming
licensing and potential acquisitions. Selling, general and
administrative expenses were 25.1% of revenues for the First Quarter of
Fiscal 1998 compared to 23.2% for the First Quarter of Fiscal 1997. The
increase in selling, general and administrative expenses as a
percentage of revenue between fiscal quarters was principally due to
the acquisition of personnel.
Depreciation and amortization was $233,000 for the First
Quarter of Fiscal 1998, an increase of $195,000 from depreciation and
amortization of $38,000 for the First Quarter of Fiscal 1997. An
increase of $67,000 relates to amortization expense attributed to
goodwill and other intangible assets associated with the acquisition of
the Hotel/Casino and CBS, respectively. An increase in depreciation
expense of $128,000 was due to capital equipment associated with the
acquisition of the Hotel/Casino and CBS and new capital equipment
purchases.
<PAGE>
Other income (expense) was ($62,000) for First Quarter of
Fiscal 1998, a decrease of $91,000, or 313.8%, from other income
(expense) in the First Quarter of Fiscal 1997 of $29,000. The decrease
in other income (expense) was principally due to additional interest
expense of $99,000 on the long-term debt of the Hotel/Casino and CBS
and the absence of equity in earnings of $59,000 from the partnership
investment in the hotel recognized during the First Quarter of Fiscal
1997. Partly offsetting these unfavorable items were earnings of
$82,000 from the investments of the net proceeds from the initial
public offering of the Company's common stock in May 1996.
Net loss before income taxes for the First Quarter of Fiscal
1998 of $417,000 varied unfavorably by $425,000 compared to the net
earnings before income taxes of $8,000 for First Quarter of Fiscal
1997. Net loss from horse and sports wagering operations of $134,000
for the First Quarter of Fiscal 1998 varied unfavorably by
approximately $154,000 as compared to the net earnings of $29,000 for
the First Quarter of Fiscal 1997. The unfavorable variance was
principally due to a reduction in revenues of $96,000 and increased
operating costs and expenses of $58,000. The net loss from the hotel,
food and beverage operations for the First Quarter of Fiscal 1998 was
approximately $107,000. The net income from the Casino operations for
the First Quarter of Fiscal 1998 was approximately $33,000. The net
loss from CBS operations for the First Quarter of Fiscal 1998 was
approximately $10,000. The net loss from the corporate entities for the
First Quarter of Fiscal 1998 was $199,000 before management fees billed
to subsidiaries of $187,000. Partly offsetting these losses were
earnings of $82,000 from temporary investments of the proceeds from the
initial public offering of the Company's common stock.
Liquidity and Capital Resources
As of April 30, 1997, working capital was $7,743,000
reflecting the net proceeds from the Company's initial public offering
and the exercise of the underwriters over-allotment option during the
Second Quarter of Fiscal 1997.
Cash used in operating activities was $386,000. Net cash
provided by investing activities amounted to $307,000 reflecting a
contribution from IGT, a joint venture partner, offset by the purchase
of capital expenditures. The transition to a new hardware/software
platform to support the Mega$ports(TM) pari-mutuel sports wagering
product accounted for approximately $51,000 of new capital equipment
purchases during the First Quarter of Fiscal 1998. Net cash used in
financing activities amounted to $74,000 representing repayments of
long-term debt.
Management believes that the Company will be able to satisfy
its cash requirements for at least the next twelve months without
having to raise additional funds.
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
Company 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 1. LEGAL PROCEEDINGS
Non-Applicable
Item 2. CHANGES IN SECURITIES
Non-Applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
Non-Applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Non-Applicable
Item 5. OTHER INFORMATION
Non-Applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits - Financial Date Schedule
Number Description Method of Filing
------ ----------- ----------------
27 Financial Data Schedule Filed Herewith
(b) The following report on form 8-K was filed during the quarter ended
April 30, 1997:
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and 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: June 13, 1997 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> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> APR-30-1997
<CASH> 3,263,129
<SECURITIES> 7,229,037
<RECEIVABLES> 286,485
<ALLOWANCES> (147,445)
<INVENTORY> 487,138
<CURRENT-ASSETS> 461,001
<PP&E> 8,734,144
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,087,053
<CURRENT-LIABILITIES> 3,836,513
<BONDS> 6,836,114
0
0
<COMMON> 78,375
<OTHER-SE> 13,336,051
<TOTAL-LIABILITY-AND-EQUITY> 24,087,053
<SALES> 0
<TOTAL-REVENUES> 2,597,878
<CGS> 0
<TOTAL-COSTS> 2,952,879
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (416,879)
<INCOME-TAX> 0
<INCOME-CONTINUING> (416,879)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (416,879)
<EPS-PRIMARY> (0.05)
<EPS-DILUTED> 0
</TABLE>
