American Wagering Reports Q3 Results

American Wagering, Inc. BETM today announced key developments for its third fiscal quarter which ended October 31, 2005.

* Leroy's Horse & Sports Place, Inc. ("Leroy's") sports handle (the total amount wagered) increased 12.1% from the third quarter of last year while sports win increased 64.4%. We attribute the increase in sports handle and win to normal fluctuations in betting patterns. The
following table indicates the increase/decrease, by sporting category, from the third quarter of last year to the third quarter of this year.

* Leroy's race handle increased 44.5% from the third quarter of last year while race win increased 46.2%. We attribute the increase in race handle and win to the additional locations opened early in 2005.

* Leroy's combined handle (both race and sports) increased 13.0% from the third quarter of last year while combined win increased 62.3%. As a result, the third quarter of the current fiscal year is the best third quarter in Leroy's history (in terms of handle and win).

* Leroy's player club (started in May of 2005) had in excess of 2,800 members at October 31, 2005, and we expect additional enrollments over the next several quarters. The player club is designed to reward players for their continued play at Leroy's locations.

* Leroy's continued the process of upgrading all of its point-of-sale terminals in order to take advantage of the latest technologies available. This project is over 90% complete and we expect it to be finalized early in the fourth quarter.

* Once the terminal upgrade project is completed, Leroy's expects to upgrade the server to the newer 64-bit hardware platform offered by Computerized Bookmaking Systems, Inc. ("CBS") (an affiliated company). Leroy's expects this upgrade to be completed by the end of the calendar year.

* CBS continued converting its customers from the VAX hardware platform to the newer 64-bit hardware platform. During the quarter, the HP Integrity system was installed at the Rainbow Hotel & Casino in Wendover, Nevada and the El Cortez Hotel & Casino in Las Vegas, Nevada. (NOTE: The Rainbow installation was a conversion from the older
hardware platform while the El Cortez installation is a new customer.) Over the next several quarters, the Company expects the research and development expended on building the 64-bit system to bear fruit as each conversion is expected to result in immediate sales for CBS as well as increased monthly maintenance fees over the long-term.

* CBS completed the process of consolidating the Mandalay Resort Group properties into the MGM/Mirage system as well as finalizing installations of the newer T-3 wagering terminals at the Luxor and Excalibur.

* CBS oversaw the operation of the Fall Classic handicapping contest at the Orleans Hotel & Casino.

* AWI Gaming, Inc. (a Company subsidiary) continued to move forward with the gaming licensure process required prior to closing on the purchase of Sturgeon's Inn & Casino in Lovelock, Nevada. The Company cannot predict when the Nevada gaming regulators will complete their investigation and allow the transaction to close, but is hopeful the
closing will occur early in the first quarter of the next fiscal year.

Victor Salerno, the Company's CEO and President, said, "The developments for the third quarter mark an excellent continuation of the fiscal year with record handle and win from the Leroy's operation as well as the continued deployment of the 64-bit HP Integrity hardware platform from the CBS operation. The developments provide a testament to the strength of the American Wagering brands and the revenue growth potential they provide."

Salerno continued, "The acquisition of the Lovelock hotel/casino operation is moving forward and, following the closing of the acquisition, we expect it to be immediately accretive to our bottom line, further solidifying our growth potential and expanding our portfolio of customer experiences. Our management team remains dedicated to our long-term operating strategies and we are optimistic about meeting our goals of strengthening and diversifying cash flows, growing the Company and increasing shareholder value in the long term."