Exhibit
10.3




Amendment No. 1 to Security
Agreement




AMENDMENT  NO. 1, dated as of
April 30, 2008 (this “Amendment”), to the
Security Agreement, dated as of March 31, 2006, among Las Vegas Gaming, Inc., a
Nevada corporation (the “Company”), all of the
Subsidiaries of the Company, and the holder or holders of the Company’s Senior
Secured Notes due January 1, 2010 in the original aggregate principal amount of
$5,000,000, signatory thereto, their endorsees, transferees and assigns (the
“Security
Agreement”).




RECITALS




WHEREAS,
on March 31, 2006, the parties hereto entered into a loan transaction pursuant
to which the Secured Parties made a loan to the Company in the original
aggregate principal amount of $5,000,000, which loan was evidenced by the
Transaction Documents, including without limitation, the Notes;




WHEREAS,
subsequent to March 31, 2006, from time to time the Company requested that
changes be made to certain provisions included in the Transaction Documents, and
the Secured Parties agreed to make such changes;




WHEREAS,
among other things, pursuant to a letter agreement dated March 22, 2007 between
the Company and the Secured Parties (the “March 2007 Letter Agreement”), the
Maturity Date of the Notes was extended from January 1, 2008, to January 1,
2009;




WHEREAS,
in partial consideration of the Secured Parties agreeing to make the changes
requested by the Company, pursuant to a letter agreement dated September 28,
2007 between the Company and the Secured Parties (the “September 2007 Letter
Agreement”), the aggregate principal amount outstanding on the Notes was
increased by $250,000 to $5,250,000;




WHEREAS,
in subsequent discussions the Company and the Secured Parties verbally agreed to
further changes to the terms of the Notes, including further extensions of the
Maturity Date and increases in the aggregate principal amount of the
Notes;




WHEREAS,
the parties now desire to amend the Security Agreement to memorialize the (i)
extension of the Maturity Date provided for in the March 2007 Letter Agreement,
(ii) increase in the aggregate principal amount outstanding on the Notes
provided for in the March 2007 Letter Agreement, (iii) subsequent verbal
discussions between the Company and the Secured Parties, and (iv) fact that such
additional obligation on the Notes is intended to be secured pursuant to the
Security Agreement.




1







AGREEMENT




NOW
THEREFORE, in consideration of the premises and the mutual covenants and the
agreements herein set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:




1) Definitions.
Capitalized terms used and not defined herein shall have the meanings ascribed
to them in the Security Agreement and in the Securities Purchase Agreement dated
as of March 31, 2006 between the Company and the Secured Parties.




2) Amendment.  (i)
The reference to “Senior Secured Notes due January 1, 2008 in the original
aggregate principal amount of $5,000,000” in the introductory paragraph of the
Security Agreement shall be changed to “Senior Secured Convertible Notes due
January 1, 2010 in the original aggregate principal amount of
$6,051,250”;




(ii)  
the term “Notes” in the introductory first paragraph of the Security Agreement
shall mean the Senior Secured Convertible Notes in the aggregate principal
amount of $6,051,250; and




(iii) 
any reference to “Guaranty” in the Security Agreement shall mean the Guaranty as
amended to date.




3) Conditions to
Effectiveness.  This Amendment shall be effective as of the
date first written above, but shall not become effective as of such date until
this Amendment has been duly executed by the Company and the
Holders.




4) Continuing Effect of
Security Agreement.  Except as expressly amended hereby, the
Security Agreement shall remain unchanged and in full force and
effect.




5) Execution in
Counterparts.  This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of
which, when taken together, shall constitute but one and the same
agreement.  Delivery of an executed counterpart of this Amendment by
facsimile shall be equally as effective as delivery of an original executed
counterpart of this Amendment.




6) Governing
Law.  This Amendment will be governed by, and construed in
accordance with, the laws of the state of New York applicable to contracts
executed in and to be performed entirely within that state, without reference to
conflicts of laws provisions.









[Signature page
follows]




2


IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first written
above.






Las Vegas
Gaming, Inc.
   By:  /s/   Bruce
Shepard
 Name:    
Bruce Shepard
 Title:      
Chief Financial Officer






Imagineering
Gaming, Inc.
   By:/s/    Bruce
Shepard
 Name:  
  Bruce Shepard
 Title:     
 Chief Financial Officer
   Las Vegas
Keno, Inc.
   By: 
/s/   Bruce
Shepard
 Name:   
Bruce Shepard
 Title:     
Chief Financial Officer








[SIGNATURE
PAGE OF HOLDERS FOLLOWS]







3


[SIGNATURE
PAGE OF HOLDERS TO LVGI SA]







Name of
Investing
Entity:                                                        
CAMOFI Master
LDC




Signature of Authorized Signatory of Investing
entity:    /s/ Jeffrey M.
Haas




Name of
Authorized
Signatory:                                                   
Jeffrey M.
Haas




Title of
Authorized
Signatory:                                              
Authorized
Signatory


















4