Exhibit 10.4

Third Amendment to License & Development Agreement

               This Amendment, dated November 7, 2003 (“Amendment”), is the
Third Amendment to that certain License and Development Agreement, dated
April 24, 2002, as amended by that certain First Amendment to License &
Development Agreement dated as of June 10, 2003 (the “Agreement”), each between
SIERRA DESIGN GROUP, a Nevada corporation with offices located at 300 Sierra
Manor Drive, Reno, NV 89511 (“LICENSOR”), and WMS GAMING INC., a Delaware
corporation with offices located at 800 S. Northpoint Boulevard, Waukegan,
Illinois 60085 (“LICENSEE”).

          WHEREAS, the parties desire to amend the Agreement;

          THEREFORE, in consideration of the mutual promises and covenants set
forth in this Amendment, the sufficiency and receipt of which is hereby
acknowledged, LICENSOR and LICENSEE agree as follows:

1.   Definitions

          1.1.   Section 1 of the Agreement is amended to add the following
term: “[*]” shall mean [*] and such other functionality as the parties may
mutually agree. LICENSOR agrees to use best commercial efforts to include
maximum bet game specific set-up in [*], but it shall not constitute a
Deliverable for [*].         1.2.   Section 1 of the Agreement is amended to add
the following term: “[*]” shall mean the version of SDG Platform Rev B that
includes the additional functionality listed on Annex 1.2 attached hereto and
incorporated herein and correction of identified defects in accordance with the
Agreement.         1.3.   Section 1 of the Agreement is amended to add the
following term: “[*]” shall mean [*]. [*] shall also include the additional
functionality described on Annex 1.3 attached hereto and incorporated herein and
such other functionality as the parties may mutually agree and correction of
identified defects in accordance with the Agreement.         1.4.   The term
“Final Load”, as defined with respect to [*], is deleted in its entirety and
replaced with the following: “’Final Load’ shall mean [*].

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 1 -

--------------------------------------------------------------------------------

 

          1.5.   1.5 “New Bonus Amounts” shall mean, with respect to [*] or [*],
the Bonus amounts as set forth in Annex 2.3 (which aggregate to [*]) and, with
respect to [*], the Bonus amounts associated with all of the parts of Milestone
4D as set forth in Annex 2.3 (which aggregate to [*]).         1.6.   1.6
“Original Bonus Amounts” shall mean the Bonus amounts associated with Milestones
1A, Milestones 2A-2E, Milestones 3A-3B, and Milestones 4A-4B (as modified)
(which aggregate to [*]).         1.7.   1.7 “Pre-Submission Milestones” shall
mean, with respect to [*] for each of Nevada, New Jersey and Mississippi,
Milestones 4C-1 through 4C-2 and, with respect to [*], Milestones 4D-1 through
4D-2.         1.8.   1.8 “All Tests Passed” shall mean delivery by LICENSOR of a
Final Load for which no Major Defects are outstanding.

2.   Additional Consideration

          2.1.   Section 3a of the Agreement is amended by adding the following
sentences at the end of such Section: “In consideration of the additional
functionality added to [*], an amount equal to [*] shall be paid to LICENSOR
within [*] of [*]. In consideration of the additional functionality to be
included in [*], an amount equal to [*] shall be paid to LICENSOR within [*] of
completion of All Tests Passed for [*]. Such consideration for additional
functionality is not subject to the penalty provisions of Section 3c or
Exhibit D.

3.   Milestones (Exhibit C)

    3.1 The Bonuses applicable to Milestones [*] are [*]. The Bonus applicable
to Milestone [*] is [*].       3.2 Milestone [*] is [*].       3.4 Milestones
[*] on Exhibit C are [*] set forth on Annex 2.3 attached hereto and incorporated
herein.       3.5 The aggregate Bonus of [*] for Sell 2 and Sell 3 set forth in
Exhibit C remains allocated to Sell 2 and Sell 3, to the extent the parties
reach agreement on Milestones for Sell 2 and Sell 3.

4.   Bonus License Fees and Penalties (Exhibit D)

          4.1   Paragraph A.4 of Exhibit D is deleted in its entirety and
replaced with the following:

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 2 -

--------------------------------------------------------------------------------

 

      “Subject to this Paragraph A and Paragraph B herein, Bonuses associated
with Milestones 4C and 4D set forth in Exhibit C will be deemed earned as
follows:         [*] GLI Approval         The Bonus associated with GLI approval
for [*] shall consist of the Bonuses associated with each of Milestones 4C-3a
(GLI submission) and 4C-4a (GLI approval) to the extent each such Milestone date
is met without delay.         [*] GLI, NV, MS and NJ Submissions        
Notwithstanding the provisions of Paragraph A.1 above, if any of the
Pre-Submission Milestones for [*] are not met, but [*] in each of Nevada,
Mississippi and New Jersey (Milestone 4C-3c) is met with no delay, then [*] of
the New Bonus Amounts attributed to the Pre-Submission Milestones for [*] and
[*] of the submittal Bonus for [*] in Nevada, Mississippi and New Jersey
(Milestone 4C-3c) shall be deemed to be [*] earned for Nevada, Mississippi and
New Jersey, respectively. If the Milestone Date for regulatory submission of [*]
in GLI (Milestone 4C-3b) is met with no delay, then the submittal Bonus for GLI
shall be deemed [*] earned.         [*] All Test Pass         Notwithstanding
the provisions of Paragraph A.1 above, if any of the Pre-Submission Milestones
for [*] are not met, but [*] (Milestone 4D-3) is met with no delay, then [*] of
the New Bonus Amounts attributed to the Pre-Submission Milestones for [*] and
[*] of the All Tests Passed Bonus for [*] shall be deemed to be [*] earned with
respect to GLI, Nevada, Mississippi and New Jersey.         [*] New Jersey
Approval         If the New Jersey approval letter for [*] is received by
LICENSEE on or before [*] following the New Jersey approval Milestone Date
(Milestone 4D-5a), then the Bonus for such Milestone shall be deemed to be [*]
earned; if the New Jersey approval letter for [*] is not received within [*]
after the New Jersey approval Milestone Date (Milestone 4D-5a) for any reason,
then the Bonus for such Milestone will not earned. For purposes of determining
whether the New Jersey approval Milestone is met for [*], the provisions of the
last sentence of Section 4.h of the Agreement and Paragraph B.2(d) of this
Exhibit D shall not apply. LICENSOR and LICENSEE shall use best commercial
efforts to gain approval for [*] from New Jersey.         [*] GLI, Nevada and
Mississippi Approval         LICENSOR and LICENSEE shall use best commercial
efforts to gain approval for [*] from GLI, Nevada and Mississippi.”

          4.2   Paragraph A.5 of Exhibit D is deleted in its entirety and
replaced with the following:

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 3 -

--------------------------------------------------------------------------------

 

“Subject to the provisions of Paragraph B of this Exhibit D, an amount equal to
the submittal Bonus for [*] for GLI (Milestone 4C-3b) shall be paid to LICENSOR
within [*] of receipt of approval for [*] from GLI.

Subject to the provisions of Paragraph B of this Exhibit D, with respect to each
of Nevada and Mississippi, an amount equal to the sum of [*] of the Original
Bonus Amounts, [*] of any earned New Bonus Amounts attributed to the
Pre-Submission Milestones for [*] and, to the extent earned, [*] of the
submittal Bonus for [*] for Nevada, Mississippi and New Jersey (Milestone 4C-3c)
shall be paid to LICENSOR within [*] of receipt of approval for [*] for Nevada
or Mississippi. In the event that LICENSEE elects to substitute [*] for [*] in
either or both Nevada or Mississippi, payment of any Bonuses earned in
connection with [*] for such jurisdiction shall be paid within [*] of completion
of the corresponding approval Milestone for [*] (Milestones 4D-4c and 4D-4d).

Subject to the provisions of Paragraph B of this Exhibit D, an amount equal to
the sum of [*] of the Original Bonus Amounts, [*] of any earned New Bonus
Amounts attributed to the Pre-Submission Milestones for [*], [*] of any earned
New Bonus Amounts attributed to the Pre-Submission Milestones for [*], and, to
the extent earned, [*] of the submittal Bonus for [*] in Nevada, Mississippi and
New Jersey (Milestone 4C-3c), [*] of the [*] to (Milestones 4C-3b and 4D-3) and
the New Jersey approval Bonus for [*] (Milestone 4D-4a) shall be paid to
LICENSOR within [*] of receipt of such New Jersey approval for [*].

Subject to the provisions of Paragraph B of this Exhibit D, with respect to each
of GLI, Nevada and Mississippi, an amount equal to the sum of [*] of any earned
New Bonus Amounts attributed to the Pre-Submission Milestones for [*] and, to
the extent earned, [*] of the [*] (Milestone 4D-3) shall be paid to LICENSOR
within [*] of completion of the corresponding approval [*] for GLI, Nevada, and
Mississippi (Milestones 4D-4b, 4D-4c and 4D-4d, as applicable).”

          4.3   Paragraph B.2(a) of Exhibit D is deleted in its entirety and
replaced with the following: “The maximum amount of the penalty is a [*]
reduction in the applicable earned Bonus Pool (as defined below) plus a Refund
of [*] (the “Maximum Penalty”). With respect to either the [*] or [*] Trigger
Dates (as defined below), the applicable earned Bonus Pool shall be calculated
as follows:

                                      Bonus Pool   Trigger Sell Version  
Jurisdiction(s)   (To the extent earned)   Date

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

[*]

          4.4   Paragraph B.2 (b) of Exhibit D is deleted in its entirety and
replaced with the following:

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 4 -

--------------------------------------------------------------------------------

 

      In the event that [*] for GLI approval (Milestone 4C-4a) is missed for any
reason, the penalty, if any, which is actually assessed will be calculated using
the original GLI approval Milestone Date of [*]. Approval by GLI means the first
GLI approval for any GLI jurisdiction. In the event that [*] submittal Milestone
for Nevada, Mississippi or New Jersey (Milestone 4C-3c) is missed, the penalty,
if any, which is actually assessed for Nevada, Mississippi or New Jersey will be
calculated based on [*] for such jurisdictions set forth in Exhibit C (Milestone
4C-3c). The [*] GLI approval Milestone Date (Milestone 4C-4a) and the [*]
submittal Milestone Date for Nevada, Mississippi and New Jersey are referred to
as the “Trigger Dates”, applicable to [*] or [*].         In the event the [*]
All Tests Passed Milestone Date (Milestone 4D-3) is missed, the penalty, if any,
which is actually assessed for each jurisdiction, will be calculated based on
such All Tests Passed Milestone Date for [*] set forth in Exhibit C. The [*] All
Tests Passed Milestone Date for New Jersey, GLI, Nevada and Mississippi is
referred to as the “Trigger Date” for [*].”

          4.5   Paragraph B.2(c) of Exhibit D is deleted in its entirety and
replaced with the following:

      “With respect to each of the jurisdictions, considered separately, for
each of [*] or [*] and [*], the following penalties shall be assessed
cumulatively, as described below, against the applicable Bonus Pool for each
jurisdiction:

          Delay after the applicable Trigger         Date for each Jurisdiction
  Penalty

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

[*]

 

 

      Notwithstanding the foregoing, upon substitution of [*] for [*] in New
Jersey and, in the event that LICENSEE elects to substitute [*] for [*] in
either or both Nevada or Mississippi, upon such substitution in Nevada or
Mississippi, any delay incurred in submission (calculated pursuant to
Paragraph B.2 (d) below) shall be deemed locked as of the date of successful
completion of the All Tests Passed Milestone for the substitute

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 5 -

--------------------------------------------------------------------------------

 

      [*] for purposes of calculating any penalty that may be charged against
the applicable Bonus Pool for [*]. In the event of substitution of [*] for [*],
it is the intention of the parties that any penalties resulting from delays
incurred in completion of the All Tests Passed for [*] (calculated pursuant to
Paragraph B.2 (d) below) only be charged against the applicable Bonus Pool for
[*].

          4.6   Paragraph B.2 (d) of Exhibit D is deleted in its entirety and
replaced with the following:

      “The following shall apply in determining the amount of any penalty that
may be assessed against the applicable Bonus Pool for any jurisdiction with
respect to either [*] or [*]:         With respect to [*] submission for New
Jersey, Nevada and Mississippi and with respect to completion of the [*] “all
test pass” Milestone for all jurisdictions, the aggregate delay after the
applicable Trigger Date shall be deemed to equal the sum of (i) the number of
[*] after the applicable Trigger Date that submission of [*] occurs in any of
Nevada, Mississippi or New Jersey or the “all test pass” Milestone for [*], as
applicable, is actually completed, and (ii) any delay incurred as a result of
Major Defects arising with respect to the Licensed Property (excluding Defects
solely caused by LICENSEE’s game development and Top Box development) after
submission to the applicable jurisdiction, such delay being calculated as the
number of [*] from the time LICENSOR is notified of such Major Defect to the
date the fix for such Defect is submitted to LICENSEE. For example purposes
only, if the submission Milestone for [*] is met on [*] and, following
submission, LICENSOR is notified on [*] of a Major Defect, which LICENSOR fixes
and such fix is submitted to LICENSEE on [*], and subsequently, [*] approves [*]
without further delay, the [*] submission will be deemed to have been [*] late.

          4.7   Paragraph B.2 (e) of Exhibit D is deleted in its entirety and
replaced with the following: “Notwithstanding anything to the contrary herein,
including (d) above, if the actual Trigger Date for any of the jurisdictions is
[*] or more late, then the penalty shall be a [*] reduction in the applicable
Bonus Pool for such Trigger Date and, with respect to [*] only, if the actual
Trigger Date for any of the jurisdictions is one year or more late, the Refund
owed by LICENSOR to LICENSEE shall equal an amount from [*] for a single
jurisdiction up to [*] for all jurisdictions.”

5.   Miscellaneous

    5.1 Except as specifically modified or amended by the Amendment, all of the
terms and conditions of the Agreement are unmodified and shall remain in full
force and effect. In the event of conflict between the terms of the Agreement
and this Amendment, this Amendment shall control.

          5.2   This Amendment may be executed in any number of counterparts,
each of which shall be deemed to constitute but one and the same instrument.

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 6 -

--------------------------------------------------------------------------------

 

          5.3   Captions contained in this Amendment are inserted only as a
matter of convenience and reference. Such captions shall not be construed to
define, limit, extend or describe the intent of any provision of this amendment.

          IN WITNESS WHEREOF, the parties hereto, have by their duly authorized
representatives executed this Agreement as of the day and year first above
written.

              SIERRA DESIGN GROUP   WMS GAMING INC.               By:    /s/
Robert A. Luciano, Jr.   By:    /s/ Brian R. Gamache    

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

Name: Robert A. Luciano, Jr.   Name: Brian R. Gamache Title: President   Title:
President & CEO

- 7 -

--------------------------------------------------------------------------------

 

ANNEX 1.2
[*]

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 8 -

--------------------------------------------------------------------------------

 

ANNEX 1.3
[*]

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 9 -

--------------------------------------------------------------------------------

 

ANNEX 2.3
MILESTONES
[*]

*Information has been omitted from this document and filed separately with the
Securities and Exchange Commission under a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

- 10 -