eLOT, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

(In thousands, except for per share amounts)     Three Months Ended
                                                      March 31,
                                               ---------------------
                                                 2001         2000
                                               --------     --------

REVENUES                                       $    345     $    116

COSTS AND EXPENSES:
   Prizes, content, advertising and promotion       246          585
   General and Administrative                     2,316        1,520
   Asset Impairment                                 366          ---
   Depreciation and Amortization                  1,116          279
                                               --------     --------
                                                  4,044        2,384
                                               --------     --------
OPERATING LOSS                                   (3,699)      (2,268)

INTEREST EXPENSE                                   (412)        (414)
OTHER INCOME (EXPENSE), NET                         (78)         113
                                               --------     --------
LOSS FROM CONTINUING OPERATIONS
 BEFORE INCOME TAXES                             (4,189)      (2,569)

INCOME TAXES                                        ---          ---
                                               --------     --------

LOSS FROM CONTINUING OPERATIONS                  (4,189)      (2,569)

DISCONTINUED OPERATIONS:
   Income (loss) from discontinued operations      (430)      (1,231)
   Gain (loss) on sale of discontinued
    operations, (net of tax provision
    of $15,924 for 2000)                         (3,886)       3,887
                                               --------     --------

   Income (loss) from discontinued operations    (4,316)       2,656
                                               --------     --------

NET INCOME (LOSS)                              $ (8,505)    $     87
                                               ========     ========

BASIC AND DILUTED LOSS PER SHARE:
   Loss from continuing operations             $  (0.06)    $  (0.04)
   Loss from discontinued operations              (0.01)       (0.02)
   Gain (Loss) on sale of
    discontinued operations                       (0.05)        0.06
                                               --------     --------
   NET INCOME (LOSS) PER SHARE                 $  (0.12)    $   0.00
                                               ========     ========


AVERAGE COMMON SHARES OUTSTANDING:               70,675       63,619
                                               ========     ========


                              eLOT, INC.
                      CONSOLIDATED BALANCE SHEETS

(In thousands, except for share
 and per share amounts)                       March 31,  December 31,
                                                2001         2000
                                              ---------  -----------
                              (Unaudited)
                                ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                   $  2,549     $  5,731
   Accounts receivable                              344          222
   Prepaid expenses and other current assets        251          709
   Net assets of discontinued operations          4,247        8,294
                                               --------     --------
   Total Current Assets                           7,391       14,956

PROPERTY AND EQUIPMENT, net                       5,367        5,143
INTANGIBLE ASSETS, net                            4,874        4,018
OTHER ASSETS                                      3,062        3,486
                                               --------     --------
                                               $ 20,694     $ 27,603
                                               ========     ========

                 LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Current portion of long-term debt           $    239     $    240
   Accounts payable                               1,894        1,841
   Accrued payroll and related costs                834          838
   Accrued liabilities                            1,687        2,083
                                               --------     --------
   Total Current Liabilities                      4,654        5,002

LONG-TERM DEBT                                   15,102       14,243
                                               --------     --------
   Total Liabilities                             19,756       19,245
                                               --------     --------

STOCKHOLDERS' EQUITY:
   Common stock:  $.01 par value; 130,000,000
    shares authorized; 73,379,703 and
    69,645,441 issued and outstanding               734          696
   Additional paid-in capital                    92,972       91,911
   Accumulated other comprehensive loss            (627)        (613)
   Accumulated deficit                          (92,141)     (83,636)
                                               --------     --------
   Total Stockholders' Equity                       938        8,358
                                               --------     --------
                                               $ 20,694     $ 27,603
                                               ========     ========