AMERICAN WAGERING, INC
                    CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED JULY 31, 2000 AND 1999

                                                      2000           1999

    REVENUES                                       1,904,451      2,256,484


    OPERATING COSTS AND EXPENSES:

      DIRECT COSTS                                 2,068,185      2,037,817
      RESEARCH AND DEVELOPMENT                       249,172        191,862
      SELLING, GENERAL AND ADMINISTRATIVE            696,616        768,941
      DEPRECIATION AND AMORTIZATION                  206,395        207,306

    TOTAL OPERATING COSTS AND EXPENSES             3,220,368      3,205,926

    OPERATING LOSS                               (1,315,917)      (949,442)

    OTHER INCOME (EXPENSE)

      INTEREST INCOME                                  8,561          3,023
      OTHER EXPENSE                                 (62,566)          1,319
      MINORITY INTEREST                              (1,495)        (1,354)
      INTEREST EXPENSE                             (465,256)       (39,974)

    TOTAL OTHER INCOME (EXPENSE)                   (520,756)       (36,986)

    LOSS BEFORE UNUSUAL OR INFREQUENT ITEMS      (1,836,673)      (986,428)

      PROCEEDS FROM LITIGATION SETTLEMENT            899,997             --

    LOSS FROM CONTINUING OPERATIONS                (936,676)      (986,428)

    DISCONTINUED OPERATIONS:

      GAIN ON SALE OF HOTEL, FOOD
       AND BEVERAGE OPERATIONS                            --        341,403

      EXCESS OPERATING LOSS RESERVE                       --        213,465

    INCOME FROM DISCONTINUED OPERATIONS                   --         54,868

    NET LOSS                                       (936,676)      (431,560)

    PREFERRED STOCK DIVIDEND REQUIREMENTS           (38,747)       (47,570)

    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS    (975,423)      (479,130)

    BASIC AND DILUTED INCOME (LOSS) PER SHARE

      LOSS FROM CONTINUING OPERATIONS                 (0.12)         (0.13)
      INCOME FROM DISCONTINUED OPERATIONS                 --           0.07
      NET LOSS                                        (0.12)         (0.06)

                           AMERICAN WAGERING, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE SIX MONTHS ENDED JULY 31, 2000 AND 1999

                                                      2000           1999
    REVENUES                                       4,917,322      5,266,607

    OPERATING COSTS AND EXPENSES:

      DIRECT COSTS                                 4,462,562      3,803,402
      RESEARCH AND DEVELOPMENT                       554,470        343,242
      SELLING, GENERAL AND ADMINISTRATIVE          1,436,995      1,395,606
      DEPRECIATION AND AMORTIZATION                  434,829        395,451

    TOTAL OPERATING COSTS AND EXPENSES             6,888,856      5,937,701

    OPERATING LOSS                               (1,971,534)      (671,094)

    OTHER INCOME (EXPENSE)

      INTEREST INCOME                                 14,975         10,543
      OTHER EXPENSE                                 (59,491)          1,319
      MINORITY INTEREST                              (5,624)          3,669
      INTEREST EXPENSE                             (514,797)       (79,453)

    TOTAL OTHER INCOME (EXPENSE)                   (564,937)       (63,922)

    LOSS BEFORE UNUSUAL OR INFREQUENT ITEMS      (2,536,471)      (735,016)

      PROCEEDS FROM LITIGATION SETTLEMENT            899,997             --

    LOSS FROM CONTINUING OPERATIONS              (1,636,474)      (735,016)

    DISCONTINUED OPERATIONS:

    GAIN ON SALE OF HOTEL,
     FOOD AND BEVERAGE OPERATIONS                         --        341,403

      EXCESS OPERATING LOSS RESERVE                       --        213,465

    INCOME FROM DISCONTINUED OPERATIONS                   --        554,868

    NET LOSS                                     (1,636,474)      (180,148)

    PREFERRED STOCK DIVIDEND REQUIREMENTS           (76,863)       (94,354)

    NET INCOME AVAILABLE TO
     COMMON SHAREHOLDERS                         (1,713,337)      (274,502)

    BASIC AND DILUTED INCOME (LOSS) PER SHARE

      LOSS FROM CONTINUING OPERATIONS                 (0.21)         (0.10)
      INCOME FROM DISCONTINUED OPERATIONS                 --           0.07
      NET LOSS                                        (0.22)         (0.03)