|  x | QUARTERLY REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|---------------------------------------------------------------------------------------------------|

| For      the quarterly period ended: | March      31, 2010 |
|--------------------------------------|---------------------|

|   | OR |
|--------|----|

|  o | TRANSITION      REPORT PURSUANT SECTION 13 OR 15(d) OF THE EXCHANGE  ACT |
|---------|--------------------------------------------------------------------------|

| For      the transition period from: |   | to |   |
|--------------------------------------|--------|----|--------|

| Commission      file number: | 000-30375 |
|------------------------------|-----------|

| Las      Vegas Gaming, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Exact      name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
| Nevada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 88-0392994 |
| (State      or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (I.R.S.      Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3980      Howard Hughes Pkwy., Suite 450, Las Vegas, Nevada 89169                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (Address      of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (702)      871-7111                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (Issuer’s      telephone number)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (Former      name, former address and former fiscal year, if changed since last      report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Check      whether the issuer (1) has filed all reports required to be filed by      Section 13 or 15(d) of the Securities Exchange Act of 1934 during the      preceding 12 months (or for such shorter period that the registrant was      required to file such reports), and (2) has been subject to such filing      requirements for the past 90 days. Yes  x        No   o                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate      by check mark whether the registrant has submitted electronically and      posted on its corporate Web site, if any, every Interactive Data File      required to be submitted and posted pursuant to Rule 405 of Regulation S-T      (§232.405 of this chapter) during the preceding 12 months (or for such      shorter period that the registrant was required to submit and post such      files). Yes  oNo  o                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.  See the definitions of “large accelerated filer,”      “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the      Exchange Act. Large      accelerated filer  o                                                                                                             Accelerated      filer    oNon-accelerated      filer    o           (do not check if smaller reporting      company)                           Smaller      reporting company  x |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Exchange Act). Yes o        No  x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| APPLICABLE      ONLY TO CORPORATE ISSUERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate      the number of shares outstanding of each of the issuer’s classes of common      stock, as of the latest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| practicable      date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 15,009,149      shares of Common Stock Series A, $.001 par value, as of March 31,      2010 |

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Table of Contents

TABLE OF CONTENTS

|                                                  |                                                                                                      | Page     |
|-------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|----------|
|  PART I – FINANCIAL      INFORMATION  |
| Item      1.                                          | Financial Statements                                                                                      | 3   |
|                                                  |       Consolidated Balance Sheets                                           | 3   |
|                                                  |            Consolidated Statements of      Operations                            | 4   |
|                                                  |            Consolidated Statements of  Stockholders’      Equity | 5   |
|                                                  |            Consolidated Statements of Cash    Flows                              | 7   |
|                                                  |            Notes to Unaudited Consolidated Financial      Statements             | 8   |
| Item      2.                                          | Management’s Discussion and Analysis of Financial Condition and      Results of Operations          | 17  |
| Item      3.                                          | Quantitative and Qualitative Disclosures About Market      Risk                                           | 22  |
| Item      4T.                                         | Controls and Procedures                                                                                   | 22       |
|  PART II – OTHER      INFORMATION     |
| Item      1.                                          | Legal Proceedings                                                                                         | 23  |
| Item      1A.                                         | Risk Factors                                                                                              | 24  |
| Item      2.                                          | Unregistered Sales of Equity Securities                                                                   | 24  |
| Item      3.                                          | Defaults Upon Senior Securities                                                                           | 24  |
| Item      4.                                          | Submission of Matters to a Vote of Security      Holders                                                  | 24  |
| Item      5.                                          | Other Information                                                                                         | 24  |
| Item      6.                                          | Exhibits                                                                                                  | 24       |

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Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.  Financial 

BALANCE SHEETS

|                                                                                                                                                       |   | December      31, |        |   | March      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|----------------|--------|
| ASSETS                                                                                                                                                     |   | 2009              |        |   | 2010           |   |
| Current      assets                                                                                                                                        |   |              |        |   | (Unaudited)    |   |
| Cash                                                                                                                                                       |   | $                 | 5,293       |   |           | $      | 4,610 |   |
| Accounts      receivable, net                                                                                                                              |   |              | 336,352     |   |           |   | 159,098 |   |
| Inventories                                                                                                                                                |   |              | 223,287     |   |           |   | 192,167 |   |
| Prepaid      expenses, deposits and other                                                                                                                  |   |              | 34,311      |   |           |   | 113,791 |   |
| Jackpot      reserve deposits                                                                                                                              |   |              | 218,628     |   |           |   | 219,519 |   |
|                                                                                                                                                       |   |              | 817,871     |   |           |   | 689,185 |   |
| Equipment,      net                                                                                                                                        |   |              | 505,486     |   |           |   | 479,114 |   |
| Goodwill                                                                                                                                                   |   |              | 1,413,901   |   |           |   | 1,413,901 |   |
| Patents      and other intangibles, net                                                                                                                    |   |              | 757,267     |   |           |   | 735,393 |   |
| Other                                                                                                                                                      |   |              | 42,212      |   |           |   | 40,030 |   |
|                                                                                                                                                       |   | $                 | 3,536,737   |   |           | $      | 3,357,623 |   |
|                                                                                                                                                       |   |              |        |   |           |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                     |   |              |        |   |           |   |   |   |
| Current      liabilities                                                                                                                                   |   |              |        |   |           |   |   |   |
| Due      to stockholders and officers                                                                                                                      |   | $                 | 1,555,000   |   |           | $      | 2,672,847 |   |
| Due      to buyer of bingo business                                                                                                                        |   |              | 494,342     |   |           |   | 458,892 |   |
| Accounts      payable                                                                                                                                      |   |              | 1,017,375   |   |           |   | 937,815 |   |
| Accrued      salaries                                                                                                                                      |   |              | 391,122     |   |           |   | 558,855 |   |
| Accrued      dividends                                                                                                                                     |   |              | 994,607     |   |           |   | 1,397,171 |   |
| Operating      lease reserve                                                                                                                               |   |              | -           |   |           |   | 325,234 |   |
| Progressive      jackpot liability                                                                                                                         |   |              | 1,612,946   |   |           |   | 228,496 |   |
| Other                                                                                                                                                      |   |              | 265,276     |   |           |   | 445,021 |   |
|                                                                                                                                                       |   |              | 6,330,668   |   |           |   | 7,024,331 |   |
|                                                                                                                                                       |   |              |        |   |           |   |   |   |
| Long-term      debt, net of current portion                                                                                                                |   |              | 16,266      |   |           |   | 29,868 |   |
|                                                                                                                                                       |   |              |        |   |           |   |   |   |
| Conditionally      redeemable Series B Convertible Preferred Stock, 50,000 shares issued and      outstanding                                              |   |              | 250,000     |   |           |   | 250,000 |   |
|                                                                                                                                                       |   |              | 6,596,934   |   |           |   | 7,304,199 |   |
| Stockholders'      equity (deficiency)                                                                                                                     |   |              |        |   |           |   |   |   |
| Preferred      Stock, $.001 par, 10,000,000 shares authorized:                                                                                             |   |              |        |   |           |   |   |   |
| Series      E:  810,800 shares issued and outstanding                                                                                            |   |              | 811         |   |           |   | 811 |   |
| Series      G: 150,000 shares issued and outstanding                                                                                                       |   |              | 150         |   |           |   | - |   |
| Series      H: 98,500 shares issued and outstanding                                                                                                        |   |              | 99          |   |           |   | 99 |   |
| Series      I: 4,693,878 shares issued and outstanding                                                                                                     |   |              | 4,694       |   |           |   | 4,694 |   |
| Common      Stock, $.001 par value, 90,000,000 shares authorized:                                                                                          |   |              |        |   |           |   |   |   |
| Common      Stock, $.001 par value, 90,000,000 shares authorized,      14,974,149  and 15,009,149 shares of series A issued and      outstanding |   |              | 14,974      |   |           |   | 15,009 |   |
| Additional      paid-in capital                                                                                                                            |   |              | 44,245,949  |   |           |   | 43,592,194 |   |
| Deficit                                                                                                                                                    |   |              | (47,326,874 | )      |           |   | (47,559,383 | ) |
|                                                                                                                                                       |   |              | (3,060,197  | )      |           |   | (3,946,576 | ) |
|                                                                                                                                                       |   | $                 | 3,536,737   |   |           | $      | 3,357,623 |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                      |   | 2009   |       |   | 2010   |   |
|-------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                      |   |   |       |   |   |   |
| Revenues                                                                                  |   |   |       |   |   |   |
|     Casino      games                                                 |   | $      | 75,664     |   |   | $      | 11,568 |   |
|     Product      sales                                                |   |   | 97,291     |   |   |   | 108,818 |   |
|     Other                                                             |   |   | 266,271    |   |   |   | 186,454 |   |
|                                                                                      |   |   | 439,226    |   |   |   | 306,840 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Costs      and expenses                                                                   |   |   |       |   |   |   |   |   |
|     Casino      games                                                 |   |   | 124,280    |   |   |   | 6,591 |   |
|     Product      costs                                                |   |   | 56,523     |   |   |   | 45,903 |   |
|     Other                                                             |   |   | 262,416    |   |   |   | 105,694 |   |
|                                                                                      |   |   | 443,219    |   |   |   | 158,188 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Gross      operating income (loss)                                                        |   |   | (3,993     | )      |   |   | 148,652 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Other      operating expenses    Provision      for lease abandonment |   |   | -          |   |   |   | 325,234 |   |
|     Other      selling, general, and administrative                   |   |   | 1,464,749  |   |   |   | 705,631 |   |
|     Research      and development                                     |   |   | 20,458     |   |   |   | 23,156 |   |
|     Depreciation      and amortization                                |   |   | 135,608    |   |   |   | 73,494 |   |
|                                                                                      |   |   | 1,620,815  |   |   |   | 1,127,515 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Operating      loss                                                                       |   |   | (1,624,808 | )      |   |   | (978,863 | ) |
|                                                                                      |   |   |       |   |   |   |   |   |
| Other      income and expense                                                             |   |   |       |   |   |   |   |   |
|     Interest      expense                                             |   |   | (11,541    | )      |   |   | (106,087 | ) |
|     Other                                                             |   |   | (2,614     | )      |   |   | 1,751 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Loss      from continuing operations                                                      |   |   | (1,638,963 | )      |   |   | (1,083,199 | ) |
|                                                                                      |   |   |       |   |   |   |   |   |
| Income      from discontinued operations:                                                 |   |   |       |   |   |   |   |   |
|   (including      gain on sale of bingo assets of $68,991 in 2010)              |   |   | 178,648    |   |   |   | 11,768 |   |
|                                                                                      |   |   |       |   |   |   |   |   |
| Net      loss                                                                             |   |   | (1,460,315 | )      |   |   | (1,071,431 | ) |
| Preferred      stock dividends                                                            |   |   | (223,932   | )      |   |   | (510,411 | ) |
| Net      loss attributed to common stockholders                                           |   | $      | (1,684,247 | )      |   | $      | (1,581,842 | ) |
|                                                                                      |   |   |       |   |   |   |   |   |
| Net      loss per common share                                                            |   | $      | (0.11      | )      |   | $      | (0.11 | ) |
|                                                                                      |   |   |       |   |   |   |   |   |
| Weighted      average shares outstanding                                                  |   |   | 15,023,440 |   |   |   | 15,000,399 |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

|                                                                     |   | Series E ConvertiblePreferredStock |   |   | Series F ConvertiblePreferredStock |   |   | Series G ConvertiblePreferredStock |   |   | Series H ConvertiblePreferredStock |   |   | Series IConvertiblePreferredStock |   |   | CommonStock(IncludingSeries A) |   |   | AdditionalPaid-InCapital |   |   | Less Due FromOfficers andStockholders |   |   | Deficit |       |
|--------------------------------------------------------------------------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------|--------|--------|--------------------------|--------|--------|---------------------------------------|--------|--------|---------|------------|
| Balances, January 1, 2009                                                |   | $                                  | 811    |   |                               | $      | 200    |                               |   | $      | 150                                |   |   | $                                 | 99     |   |                           | $      | 4,694  |                     |   | $      | 14,850                                |   |   | $       | 44,160,702 |   |   | $ | (188,245 | ) |   | $ | (41,584,110 | ) |
| Net loss                                                                 |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | (1,460,315 | ) |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Series F, G, andI preferred stockdividends payable                       |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | (223,932 | ) |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Issuance of warrantsfor services                                         |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    | 139,747    |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Other stock basedcompensation                                            |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   | 20                                    |   |   |    | (20        | ) |   |   |   |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Redemption of Series FPreferred Stock                                    |   |                               |   |   |                               |   | (200   | )                                  |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    | (999,800   | ) |   |   |   |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Reissuance of Series      Preferred      Stock                           |   |                               |   |   |                               |   | 200    |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    | 998,000    |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Collection of amountsreceivable fromemployees      and      stockholders |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   | 3000 |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Sale of Common Stock                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   | 225                                   |   |   |    | 562,275    |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Balances, March 31, 2009                                                 |   | $                                  | 811    |   |                               | $      | 200    |                               |   | $      | 150                                |   |   | $                                 | 99     |   |                           | $      | 4,694  |                     |   | $      | 15,095                                |   |   | $       | 44,862,704 |   |   | $ | (185,245 | ) |   | $ | (43,268,357 | ) |

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Table of Contents

|                                               |   | Series E ConvertiblePreferredStock |   |   | Series F ConvertiblePreferredStock |   |   | Series G ConvertiblePreferredStock |   |   | Series H ConvertiblePreferredStock |   |   | Series IConvertiblePreferredStock |   |   | CommonStock(IncludingSeries A) |   |   | AdditionalPaid-InCapital |   |   | Less Due FromOfficers andStockholders |   |   | Deficit |       |
|----------------------------------------------------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------|--------|--------|--------------------------|--------|--------|---------------------------------------|--------|--------|---------|------------|
| Balances, January 1, 2010,as previously reported   |   | $                                  | 811    |   |                               | $      | -      |                               |   | $      | 150                                |   |   | $                                 | 99     |   |                           | $      | 4,694  |                     |   | $      | 14,974                                |   |   | $       | 44,245,949 |   |   | $ | - |   |   | $ | (47,326,874 | ) |
| Adoption of newaccounting principle                |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | 1,349,332 |   |
| Balances, January 1, 2010, as restated             |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | (45,977,542 | ) |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Net loss                                           |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | (1,071,430 | ) |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Dividends Payable Preferred Stock I                |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   | (510,411 | ) |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Issuance of stockoptions and warrants for services |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    | 8,630      |   |   |   |   |   |   |   |   |   |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                      |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   | 35                                    |   |   |    | 87,465     |   |   |   |   |   |   |   |   |   |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Cancellation of SeriesG      Preferred Stock       |   |                               |   |   |                               |   |   |                               |   |   | (150                               | )      |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    | (749,850   | ) |   |   |   |   |   |   |   |   |
|                                               |   |                               |   |   |                               |   |   |                               |   |   |                               |   |   |                              |   |   |                           |   |   |                     |   |   |                                  |   |   |    |       |   |   |   |   |   |   |   |   |   |
| Balances, March 31, 2010                           |   | $                                  | 811    |   |                               | $      | -      |                               |   | $      | -                                  |   |   | $                                 | 99     |   |                           | $      | 4,694  |                     |   | $      | 15,009                                |   |   | $       | 43,592,194 |   |   | $ | - |   |   | $ | (47,559,383 | ) |

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CONSOLIDATED STATEMENTS OF CASH FLOW

|                                                              |   | 2009   |       |   | 2010   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Operating      activities                                         |   |   |       |   |   |   |
|                                                              |   |   |       |   |   |   |
| Loss      from continuing operations                              |   | $      | (1,638,963 | )      |   | $      | (1,083,199 | ) |
| Deferred      gain recognized on sale of bingo business           |   |   | -          |   |   |   | (68,991 | ) |
| Marketable      security received for licensing fee               |   |   | 5,068      |   |   |   | - |   |
| Depreciation      and amortization of equipment                   |   |   | 70,473     |   |   |   | 51,619 |   |
| Bad      debt expense                                             |   |   | 29,154     |   |   |   | 7,617 |   |
| Capitalization      of PlayerVision costs                         |   |   | (320,607   | )      |   |   | - |   |
| Amortization      of debt issuance cost and intangibles           |   |   | 65,470     |   |   |   | 21,875 |   |
| Stock-based      compensation to employees and consultants        |   |   | 139,747    |   |   |   | 96,129 |   |
| Other                                                             |   |   | 879        |   |   |   | 2,182 |   |
| Changes      in operating assets and liabilities:                 |   |   |       |   |   |   |   |   |
|     Accounts      receivable                  |   |   | 183,453    |   |   |   | (31,838 | ) |
|     Inventories                               |   |   | (2,708     | )      |   |   | (51,081 | ) |
|     Prepaid      expenses, deposits and other |   |   | (94,408    | )      |   |   | 61 |   |
|     Accounts      payable                     |   |   | (427,813   | )      |   |   | (57,175 | ) |
|     Accrued      salaries                     |   |   | (22,458    | )      |   |   | 167,733 |   |
|     Reserve      for operating lease          |   |   | -          |   |   |   | 325,234 |   |
|     Progressive      jackpot liability        |   |   | 24,250     |   |   |   | 9,738 |   |
|          Other                                     |   |   | (58,447    | )      |   |   | 190,208 |   |
| Net      cash used in continuing operating activities             |   |   | (2,046,910 | )      |   |   | (419,888 | ) |
| Income      from discontinued operations                          |   |   | 178,648    |   |   |   | 11,768 |   |
| Net      cash used in operating activities                        |   |   | (1,868,262 | )      |   |   | (408,120 | ) |
|                                                              |   |   |       |   |   |   |   |   |
| Investing      Activities                                         |   |   |       |   |   |   |   |   |
| Purchase      of property, equipment, and software                |   |   | (33,684    | )      |   |   | - |   |
| Decrease      in jackpot reserve deposits                         |   |   | 147,030    |   |   |   | - |   |
| Increase      in jackpot reserve deposits                         |   |   | (9,557     | )      |   |   | (891 | ) |
| Net      cash provided by (used in) investing activities          |   |   | 103,789    |   |   |   | (891 | ) |
|                                                              |   |   |       |   |   |   |   |   |
| Financing      activities                                         |   |   |       |   |   |   |   |   |
| Dividend      payments on Series F preferred stock                |   |   | (32,877    | )      |   |   | - |   |
| Redemption      of Series F preferred stock                       |   |   | (1,000,000 | )      |   |   | - |   |
| Re-issuance      of Series F preferred stock                      |   |   | 1,000,000  |   |   |   | - |   |
| Repayment      of debt                                            |   |   | (2,637     | )      |   |   | (2,359 | ) |
| Advances      from officers and shareholders                      |   |   | 1,500,000  |   |   |   | - |   |
| Repayment      of advances from shareholders                      |   |   | (600,000   | )      |   |   | - |   |
| Increase      in notes payable                                    |   |   |       |   |   |   | 212,000 |   |
| Advances      from buyer of bingo business assets                 |   |   |       |   |   |   | 198,687 |   |
| Collection      of stock subscription receivables                 |   |   | 3,000      |   |   |   | - |   |
| Sale      of common stock                                         |   |   | 562,500    |   |   |   | - |   |
| Net      cash provided by financing activities                    |   |   | 1,429,986  |   |   |   | 408,328 |   |
|                                                              |   |   |       |   |   |   |   |   |
| Net      (decrease) in cash and cash equivalents                  |   |   | (334,487   | )      |   |   | (683 | ) |
| Cash,      beginning of period                                    |   |   | 497,529    |   |   |   | 5,293 |   |
| Cash,      end of period                                          |   | $      | 163,041    |   |   | $      | 4,610 |   |
|                                                              |   |   |       |   |   |   |   |   |
| Non-cash      investing and financing activities                  |   |   |       |   |   |   |   |   |
|                                                              |   |   |       |   |   |   |   |   |
| Dividends      declared on Series I preferred stock               |   |   | 223,932    |   |   |   | 510,411 |   |
| Equipment      acquired directly with debt proceeds               |   |   |       |   |   |   | 25,247 |   |
| Series      G preferred stock converted to debt                   |   |   |       |   |   |   | 957,847 |   |
| Bingo      business assets applied to reduce debt                 |   |   |       |   |   |   | 304,136 |   |
| Reduction      of progressive liability for change in method      |   |   |       |   |   |   | 1,349,332 |   |
| Non      cash advances from Buyer of bingo business assets        |   |   |       |   |   |   | 69,998 |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

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|                          |   | Options/Warrants |      |   | Weighted Average      Price |   |
|-------------------------------|--------|------------------|-----------|--------|----------------------------------|--------|
| Balance,      January 1, 2010 |   |             | 8,110,618 |   |                             | $      | 2.46 |   |
| Granted                       |   |             | -         |   |                             |   | - |   |
| Forfeited                     |   |             | (805,332  | )      |                             |   | (3.12 | ) |
| Balance,      March 31, 2010  |   |             | 7,305,286 |   |                             |   | 2.39 |   |

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|                          |   | Non-vested      Options |    |   | Weighted Average      Price |   |
|-------------------------------|--------|-------------------------|---------|--------|----------------------------------|--------|
| Balance,      January 1, 2010 |   |                    | 722,358 |   |                             | $      | 3.02 |   |
| Granted                       |   |                    | -       |   |                             |   | - |   |
| Forfeited/Vested              |   |                    | (11,197 | )      |                             |   | (2.56 | ) |
| Balance,      March 31, 2010  |   |                    | 711,161 |   |                             |   | 3.03 |   |

|                          |   | Non-vested      Warrants |   |   | Weighted Average      Price |   |
|-------------------------------|--------|--------------------------|--------|--------|----------------------------------|--------|
| Balance,      January 1, 2010 |   |                     | 15,500 |   |                             | $      | 2.50 |   |
| Granted                       |   |                     | -      |   |                             |   | - |   |
| Forfeited/Vested              |   |                     | -      |   |                             |   | - |   |
| Balance,      March 31, 2010  |   |                     | 15,500 |   |                             |   | 2.50 |   |

|     |   |     |   |   |        |   |      | Weighted      Average |   |   |        |   |   | Weighted      Average |      |
|----------|--------|----------|--------|--------|-------------|--------|-----------|-----------------------|--------|--------|-------------|--------|--------|-----------------------|-----------|
|     |   | Exercise |   |   | Number      |   |      | Remaining             |   |   | Number      |   |   | Remaining             |      |
|     |   | Price    |   |   | Outstanding |   |      | Life      in years    |   |   | Exercisable |   |   | Life      in years    |      |
| Options  |   |     |   |   |        |   |      |                  |   |   |        |   |   |                  |      |
|     |   | $        | 2.00   |   |        |   | 10,000    |                  |   |   | 3.04        |   |   |                  | 10,000    |   |   |   | 3.04 |   |
|     |   | $        | 2.50   |   |        |   | 1,171,810 |                  |   |   | 3.76        |   |   |                  | 610,649   |   |   |   | 3.78 |   |
|     |   | $        | 3.00   |   |        |   | 25,000    |                  |   |   | 0.26        |   |   |                  | 25,000    |   |   |   | 0.26 |   |
|     |   |     |   |   |        |   |      |                  |   |   |        |   |   |                  |      |   |   |   |   |   |
|     |   | $        | 5.00   |   |        |   | 650,000   |                  |   |   | 2.28        |   |   |                  | 500,000   |   |   |   | 2.29 |   |
| Warrants |   | $        | 1.00   |   |        |   | 90,000    |                  |   |   | 2.81        |   |   |                  | 90,000    |   |   |   | 2.81 |   |
|     |   | $        | 1.48   |   |        |   | 2,675,000 |                  |   |   | 1.07        |   |   |                  | 2,675,000 |   |   |   | 1.07 |   |
|     |   | $        | 1.50   |   |        |   | 30,000    |                  |   |   | 3.10        |   |   |                  | 30,000    |   |   |   | 3.10 |   |
|     |   | $        | 2.00   |   |        |   | 155,000   |                  |   |   | 0.49        |   |   |                  | 155,000   |   |   |   | 0.49 |   |
|     |   | $        | 2.10   |   |        |   | 23,809    |                  |   |   | 0.62        |   |   |                  | 23,809    |   |   |   | 0.62 |   |
|     |   | $        | 2.45   |   |        |   | 1,500,000 |                  |   |   | 1.56        |   |   |                  | 1,500,000 |   |   |   | 1.56 |   |
|     |   | $        | 2.50   |   |        |   | 30,667    |                  |   |   | 4.14        |   |   |                  | 15,167    |   |   |   | 4.04 |   |
|     |   | $        | 3.00   |   |        |   | 854,000   |                  |   |   | 0.81        |   |   |                  | 854,000   |   |   |   | 0.81 |   |
|     |   |     |   |   |        |   |      |                  |   |   |        |   |   |                  |      |   |   |   |   |   |
|     |   | $        | 5.00   |   |        |   | 90,000    |                  |   |   | 1.77        |   |   |                  | 90,000    |   |   |   | 1.77 |   |
|     |   |     |   |   |        |   | 7,305,286 |                  |   |   | 1.72        |   |   |                  | 6,578,625 |   |   |   | 1.52 |   |

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|                         |   | Three      months ended March 31, |       |
|------------------------------|--------|-----------------------------------|------------|
|                         |   | 2009                              |       |   | 2010 |   |
| Revenue                      |   |                              |       |   |   |   |
| Casino      Games            |   | $                                 | 75,664     |   |   | $ | 11,568 |   |
| Product      Sales           |   |                              | 97,291     |   |   |   | 108,818 |   |
| Other                        |   |                              | 266,271    |   |   |   | 186,454 |   |
|                         |   | $                                 | 439,226    |   |   | $ | 306,840 |   |
|                         |   |                              |       |   |   |   |   |   |
| Operating      income (loss) |   |                              |       |   |   |   |   |   |
| Casino      Games            |   | $                                 | (48,616    | ) |   | $ | 4,977 |   |
| Product      Sales           |   |                              | 40,768     |   |   |   | 62,915 |   |
| Other                        |   |                              | 3,855      |   |   |   | 80,760 |   |
| Unallocated                  |   |                              | (1,620,815 | ) |   |   | (1,127,515 | ) |
|                         |   | $                                 | (1,624,808 | ) |   | $ | (978,863 | ) |
|                         |   |                              |       |   |   |   |   |   |
| Identifiable      assets     |   | December      31, 2009            |       |   | March      31, 2010 |   |
| Casino      Games            |   | $                                 | 1,422,438  |   |   | $ | 1,263,212 |   |
| Product      Sales           |   |                              | 265,833    |   |   |   | 127,078 |   |
| Other                        |   |                              | 201,321    |   |   |   | 226,774 |   |
| Unallocated                  |   |                              | 1,647,145  |   |   |   | 1,740,559 |   |
|                         |   | $                                 | 3,536,737  |   |   | $ | 3,357,623 |   |

|                      |   | Three      months ended March 31, |   |
|---------------------------|--------|-----------------------------------|--------|
| Capital      expenditures |   | 2009                              |   |   | 2010 |   |
| Casino      Games         |   | $                                 | 12,472 |   |   | $ | - |   |
| Product      Sales        |   |                              | 754    |   |   |   | - |   |
| Other                     |   |                              | -      |   |   |   | 25,247 |   |
| Unallocated               |   |                              | 20,458 |   |   |   | - |   |
|                      |   | $                                 | 33,684 |   |   | $ | 25,247 |   |

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| Accounts      receivable |   | $      | 86,469      |   |
|--------------------------|--------|--------|-------------|--------|
| Inventories              |   |   | 188,833     |   |
| Equipment                |   |   | 64,620      |   |
| Goodwill                 |   |   | 630,335     |   |
|                     |   | $      | 970,257     |   |
|                     |   |   |        |   |
| Accounts      payable    |   | $      | 38,550      |   |
| Notes      payable       |   |   |  2,778 |   |
|                     |   | $      | 41,328      |   |

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Item 2.  

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Item 3.    

  
Item 4(T). 

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Item 1.  

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Item 1A.  

Item 2.   

Item 3. 

Item 4. 

Item5.  

Item 6.   

| 10.1 |   | Stock      Repurchase Agreement with Triangle Holdings VI      LLC            |   |   |
|------|--------|-------------------------------------------------------------------------------|--------|--------|
| 31.1 |   | Certifications      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   |   |
| 31.2 |   | Certifications      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   |   |
| 32.1 |   | Certifications      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   |   |

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|   |               | Las      Vegas Gaming, Inc. |
|--------|--------------------|-----------------------------|
|   |               | (Registrant)                |
|   |               |                        |   |   |
| Date:  | June      18, 2010 | By:                         | /s/      Jon D. Berkley |   |
|   |               |                        | Jon      D. Berkley |   |
|   |               | Its:                        | President      and Chief Executive Officer |   |
|   |               |                        | (Principal      Executive Officer) |   |
|   |               |                        |   |   |
| Date:  | June      18, 2010 | By:                         | /s/      Bruce A. Shepard |   |
|   |               |                        | Bruce      A. Shepard |   |
|   |               | Its:                        | Chief      Financial Officer |   |
|   |               |                        | (Principal      Financial Officer) |   |

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| Exhibit |   | Document      Description                                                     |
|---------|--------|-------------------------------------------------------------------------------|
| 10.1    |   | Stock      Repurchase Agreement with Triangle Holdings VI      LLC            |
| 31.1    |   | Certifications pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
| 31.2    |   | Certifications pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
| 32.1    |   | Certifications pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |

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