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EXHIBIT 12
CAPITAL GAMING INTERNATIONAL, INC.
SCHEDULE OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(ROUNDED)
<TABLE>
<CAPTION>
PREDECESSOR
REORGANIZED COMPANY COMPANY
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MAY 29, 1997 JULY 1, 1996
YEAR ENDED YEAR ENDED YEAR ENDED THROUGH THROUGH YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998 JUNE 30, 1997 MAY 28, 1997 JUNE 30,1996
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<S> <C> <C> <C> <C> <C> <C>
Consolidated Pre-Tax [Loss]
Income From Operations (2,595,000) $ 842,000 $ (7,154,000) $ (1,351,000) $ 44,411,000 $ (3,718,000)
Fixed Charges 2,407,000 2,700,000 2,885,000 251,000 8,394,000 21,846,000
------------- ------------ ------------ ------------ ------------ ------------
Earnings For Computation $ (188,000) $ 3,542,000 $ (4,269,000) $ (1,100,000) $ 52,805,000 $ 18,128,000
============= ============ ============ ============ ============ ============
Interest Expense $ 2,407,000 $ 2,700,000 $ 2,885,000 $ 251,000 $ 7,842,000 $ 19,062,000
Capitalized Interest -- -- -- -- -- --
Deferred Financing Cost -- -- -- -- 552,000 2,784,000
Interest Portion
Of Rent Expense -- -- -- -- -- --
------------- ------------ ------------ ------------ ------------ ------------
Fixed Charges $ 2,407,000 $ 2,700,000 $ 2,885,000 $ 251,000 $ 8,394,000 $ 21,846,000
============= ============ ============ ============ ============ ============
Ratio of Earnings to Fixed
Charges -- 1.31 -- -- 6.29 --
============= ============ ============ ============ ============ ============
Deficiency of Earnings $ -- $ -- $ 7,154,000 $ 1,351,000 $ -- $ 3,718,000
============= ============ ============ ============ ============ ============
</TABLE>
(1) Does not include a one time charge of $4,000,000 which was recognized as
interest expense as consideration for the termination of the company's
obligation to issue warrants to purchase 1,250,000 shares of the company's
stock.
