American Wagering, Inc.
                     Consolidated Statement of Operations
                For the Years Ended January 31, 2001 and 2000

                                                        2001           2000

    REVENUES                                     $12,002,389    $12,590,065

    OPERATING COSTS AND EXPENSES:
     Direct Costs                                  7,648,712      8,824,665
     Research and development                        846,736        774,544
     Selling, general and administrative           2,607,231      3,496,096
     Depreciation and amortization                   852,337        807,076
     Asset impairment provision                      258,250        201,341

                                                  12,213,266     14,103,712

    OPERATING LOSS                                 (210,877)    (1,513,647)

    OTHER INCOME (EXPENSE):
     Interest income                                  60,683         49,954
     Interest expense                              (178,817)      (160,009)
     Litigation judgments and settlements            981,856             --
     Minority interests in net income (loss)
      of subsidiaries                                (5,624)        102,421
     Other, net                                     (12,253)        101,079

    INCOME (LOSS) FROM CONTINUING OPERATIONS         634,968    (1,420,202)

    INCOME (LOSS) FROM DISCONTINUED OPERATIONS     (170,939)         96,232

    GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS           --        554,868

                                                   (170,939)        651,100

    INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
     CHANGE IN ACCOUNTING PRINCIPLE                  464,029      (769,102)

    CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
     PRINCIPLE                                            --       (45,429)

    NET INCOME (LOSS)                               $464,029     ($814,531)


    BASIC AND DILUTED INCOME (LOSS) PER SHARE

     Income (loss) from continuing operations          $0.06        ($0.20)
     Income (loss) from discontinued
      operations                                     ($0.02)          $0.08

    Cumulative effect of change in
     accounting principle                                 --        ($0.01)

    Net income (loss)                                  $0.04        ($0.13)

SOURCE: American Wagering, Inc.